The Economic Squeeze on Publicans and Patrons

One of the most meaningful challenges facing Irish pubs is the steady increase in alcohol prices. This rise affects both publicans and their customers, making a regular night out increasingly expensive. For many 20-somethings, already burdened with financial pressures, the cost of a weekly visit to the local pub can be prohibitive.

The broader nightlife landscape in Ireland reflects this trend. According to figures from Give Us The Night, only 83 nightclubs remain open in Ireland, marking a staggering 83% decline since the beginning of this century. while one might expect this decline to lead to increased patronage of local pubs, the reality is that many Irish people are opting to drink at home rather.

The Drinkaware Barometer 2024 sheds light on this shift in drinking habits.The Drinkaware barometer 2024 reveals a pivotal shift: almost one-third (32%) of Irish adults reporting that drinking alone at home is now their most common drinking occasion, occurring at least once a week. While 32% of adults now drink alone at home weekly, 30% drink with family or housemates over mealtimes, and 27% drink with a partner or housemate outside of mealtimes. These figures highlight a significant change in how and where Irish people consume alcohol.

The VFI’s Outlook: A Cultural Institution Under Threat

Pat Crotty, chief executive of the vintners’ Federation of Ireland (VFI), emphasized the importance of the pub as a cultural institution known for its reliability. Though, he noted that maintaining this stability is becoming increasingly tough for publicans due to escalating costs.

If you talk about it as a cultural institution, the pub, and notably the rural pub, was something you could always depend on to always be there and always be open.

Pat Crotty, Vintners’ Federation of Ireland (VFI)

According to Crotty, Now the cost of opening the door, the cost to have someone standing behind the counter, there’s no small cost anymore. Every single cost is a significant cost now,and when you add it up,that’s why you’re seeing more and more rural publicans especially saying,well,it’s really not worth my while trying to run shifts five days over seven where I have to split people and do all sorts of things and ask them to change days and do everything. They end up saying: ‘We’ll just stay closed Monday and Tuesday we’ll run a five-day shift from there to the weekend’.

The Pub as the Bedrock of Culture and Tourism

Crotty stressed that the Irish pub is not only a cornerstone of community and culture but also an absolute bedrock of the tourism industry. He explained, I mean, every American particularly, but every person from Germany and France and everyone who comes to Ireland, they swear by their experience in the Irish pub. It’s where they meet Irish people, where you live. I mean,it’s hard to walk up to people on the street to have a conversation. But it’s very easy to have a conversation in a pub and that’s where you get the music and everything.

The impact of pubs extends far beyond their immediate business. All these pubs are not only sustaining themselves, but they are sustaining musicians, they are sustaining other activities in their own communities. They are the supporters of the local GAA club. They are the supporters of every other thing that’s going on, every charity and every other thing that happens, Crotty noted. They’re the first one to be asked to be organisers.They’re asked: ‘Will you do that? Will you put on an event for us? Will you fund us?’

In every community they do their bit,and they won’t be there in another while if things keep going the way they’re going.

Government Intervention: A Potential Lifeline

Crotty believes that government intervention is crucial to support struggling publicans. He suggested that the government should consider reducing the employers PRSI to offset the increasing cost of labor due to minimum wage increases. Alternatively, he proposed a rebate on draught beer excise, which would lower the cost of the product for publicans, allowing them to sell it for less while still making a profit.

According to Crotty, Our government has to decide: ‘Okay, if we’re forcing them to spend the money here, then we have to give them back a bit there’, and the obvious place for them to do it is twofold. One is if they’re increasing the cost of labor and the payout to the staff, then maybe reduce the employers PRSI. But they would have to reduce it by a good bit to achieve it, and they probably wouldn’t like that much.Another one would be to make the cost of beer a little cheaper. the government takes a huge cut in excise on draught beer and they certainly wouldn’t reduce excise all over as the biggest winner then would be the supermarkets and the off licences, who are doing nicely anyway. But if they only reduced it or gave a rebate on draught beer, you would have a situation where it would cause the cost of your product as it comes in the door to be less, which means you could sell it for less and still make a profit and that would help you to stay alive but also help the customers to have reason to come in more often.

Engaging the Younger Generation

while acknowledging that young people may have different habits and priorities, Crotty believes they still value the pub experience. He noted that high rents, rather than mortgage interest rates, are impacting the pub-going habits of young adults who have moved out of home.

We certainly know, with young people, that there’s a lot more health consciousness and everything else going on. They have a lot of different things going on with their habits, but they still like to go to the pub and they do like to have a blow out too once in a while, Crotty said. So they might not do it exactly the same way as we did in the previous generation, but they haven’t thrown it all out.

Crotty emphasized the importance of creating event-driven and occasion-driven experiences to attract younger patrons. The one thing we do know is that night sales and particularly significant nights out are far more event-driven or occasion-driven, he explained. there are some who need you to give them a good reason to say: ‘Okay,we’ve organised the crew,we’re going down to the pub’. You will see that the places that have more festivals and events, the pubs there on their own organize more stuff, whether it be music or other kinds of entertainment. But you’re giving people a reason, and it can’t just be the same old, same old.there has to be an event once in a while to shake them up and remind them that they need to make a decision to come to the pub.

Interview with Dr. Siobhan Murphy, Expert on Irish Cultural Studies and Economics

Senior editor (SE): As we delve into the challenges irish pubs are currently facing, one can’t help but wonder: How critical is the survival of the customary Irish pub to ireland’s cultural identity and economic health?

dr. Siobhan Murphy (SM): The Irish pub isn’t just a cornerstone of Ireland’s cultural identity; it’s an institution that has historically served as a microcosm of Irish society.Traditionally, pubs have been places where communities gather, stories are shared, and cultures are celebrated.Economically, they contribute substantially to local economies and tourism. Their role extends far beyond serving drinks,as they act as facilitators of community events and supporters of local musicians and sporting activities. Their decline would represent not just an economic loss but a cultural one too.

SE: According to the Drinkaware Barometer 2024, how has the shift towards at-home drinking impacted the patronage of these beloved pubs?

SM: The Drinkaware Barometer 2024 reveals a pivotal shift: almost one-third of Irish adults now drink alone at home weekly, signaling a move away from communal pub experiences. This trend is partly driven by increasing alcohol and operational costs, making pub visits more expensive for consumers.Moreover, the rise of at-home entertainment options and healthier lifestyle choices further contributes to this shift. The economic strain on publicans—faced with heightened costs without commensurate increases in customer patronage—poses significant challenges.

Have you ever considered how the pulse of a nation can be measured by the warmth of it’s local pubs? irish pubs, long celebrated as woven threads in the rich tapestry of Irish culture and economy, are facing formidable challenges today. Rising alcohol costs, shifting drinking habits, and evolving entertainment preferences threaten their existence. But could these conventional social hubs reinvent themselves and secure their place in the modern-day Irish landscape?

Interview with Dr. Niall O’Sullivan, Renowned Expert in Irish Cultural Studies and Economics

Senior Editor (SE): The Irish pub has been a cornerstone of Irish cultural identity for generations. Dr. O’Sullivan, how pivotal is the survival of these establishments to Ireland’s cultural and economic vitality?

Dr. Niall O’Sullivan (NO): The Irish pub serves as more than just a drinking establishment; it is a living museum reflecting the heart and soul of Irish tradition. Historically, Irish pubs have been central to community life, acting as gathering places where social bonds are formed and stories are shared. Economically, they play a vital role in supporting local economies and boosting tourism, drawing in visitors eager to experience authentic Irish culture—complete with a pint of Guinness and the vibrant melodies of live music. The decline of pubs would not only mean an economic downturn but a meaningful cultural erosion, stripping away a valuable piece of Ireland’s heritage.

SE: With the Drinkaware Barometer 2024 indicating a shift towards drinking at home, how has this trend impacted the frequency of visits to Irish pubs?

NO: The Drinkaware Barometer 2024 highlights a significant cultural shift—the rise of solitary drinking at home. Nearly one-third of Irish adults now prefer to enjoy their drinks in the comfort of their living rooms, driven by factors such as cost-effectiveness, rising alcohol and pub operating costs, and changing lifestyle choices. This trend is a double-edged sword: while it reflects a more health-conscious society, it also puts a strain on pub owners, who find it challenging to maintain profitability. Consequently, we see a decline in pub patronage, an issue that requires both immediate attention and long-term strategies to counteract.

SE: Given the challenges of rising costs, both for patrons and pub owners, what actionable steps can be taken to revitalize the appeal of Irish pubs?

NO: To breathe new life into Irish pubs, innovative strategies are needed. For instance, leveraging the local community’s talents—such as hosting live music nights, comedy, and cultural events—can transform pubs into vibrant social hubs. Implementing loyalty programs and themed nights can also draw in different demographics,including the younger generation who seek unique experiences.

Key Takeaways:

• Community Engagement: Host regular events featuring local talent to enhance the pub experience.
• Modern Marketing: Utilize social media to highlight unique offers and attract diverse audiences.
• Collaborative Initiatives: partner with local breweries for exclusive brew nights and artisanal food stalls.

SE: How can government intervention provide the necessary lifeline for Irish pubs struggling with financial pressures?

NO: government intervention can play a crucial role in supporting Irish pubs. Reducing employers’ PRSI or offering rebates on draught beer excise could alleviate some financial pressures on pub owners. Such measures would lower operational costs and make it feasible for publicans to offer competitive pricing without compromising on profit margins. The success of these interventions would hinge on striking a balance that ensures sustainability for pubs while still addressing workforce expenses effectively.

SE: Dr. O’Sullivan,what role does the younger generation play in the future of irish pubs,and how can their interests be aligned with traditional pub culture?

NO: The younger generation is crucial to the evolution of pub culture. They appreciate authenticity and experiences more than ever before. To attract this demographic, pubs need to craft occasions that resonate with young people—be it through launching themed events, collaborating with local influencers, or introducing craft beers that appeal to a modern palate.

Critical Insight:

• Event-Driven Experiences: younger audiences are drawn to pubs that offer distinct, memorable events—once-a-month festivals or themed trivia nights add significant appeal.

while Irish pubs face significant hurdles, their survival depends on adaptive strategies that marry tradition with innovation, backed by supportive government policies. By harnessing the energy and creativity of the community—especially its youth—these cultural institutions can continue to flourish.

We invite you to join the conversation and share your views in the comments below or on your social network. How do you envision the future of Irish pubs? Share your thoughts and experiences with us!