More than four in five publicans say that no family member wishes to inherit their pub

A survey by the Vintners Federation of Ireland (VFI) has found that over four in five (84 per cent) of publicans reported that no family members wish to inherit their pub.

The finding comes as the VFI's benchmarking survey also showed 37% of publicans are considering retirement within the next two years.

The group described these figures as a "a worrying trend about the future of the pub trade" and warned that rising costs in the industry are putting the viability of the pub trade at risk. The VFI said "unsustainable labour costs and the escalating overall cost of doing business, is forcing many publicans to consider retirement".

The call for action from the VFI comes in light of a recent survey from the federation, which highlighted that 36 per cent of pub turnover is currently consumed by labour costs, with that figure expected to increase to over 40% with the introduction of a Living Wage.

Speaking in advance of the VFI’s national AGM in Donegal, Pat Crotty, CEO of the VFI, expressed deep concern over the projected increases in labour costs due to the planned shift to a living wage by the start of 2026.

“If we move to a living wage within 18 months, bank holiday pay will be almost €35 per hour for our most junior staff. Such costs are simply unsustainable for our members and could severely impact the ability of pubs across Ireland to operate viably,” he said.

VFI President John Clendennen said: “While it must be acknowledged that some pubs are doing a thriving business, the findings of our survey underscore the urgency of the situation for many others. With such a significant portion of publicans looking to exit the industry, combined with a lack of succession plans, we risk losing many of our cherished local pubs unless decisive action is taken.”

The VFI is urging the Government to consider specific measures to support the pub sector, including: Re-evaluation of the shift to a living wage in consideration of its impact on small businesses, implementation of targeted relief measures, a reduction in alcohol Excise Duty, and a commitment to set the hospitality VAT rate permanently at 9%.