23/03/2026
Your local independent cafes, restaurants, and pubs are struggling…
We’re adding our voices to those of the many other small businesses across the UK, begging Parliament for a lower VAT rate on hospitality. Our story isn’t unique—the UK has one of the highest VAT rates on hospitality in Europe, and every single one of your favourite independent spots is feeling the squeeze. You’ve probably already seen places closing.
In the current market our margins are practically non-existent, and with 20% VAT, it often feels we’re just running our business to pay the taxes. Costs keep increasing, but we can only price our items so high before customers (understandably) stop coming. So, we open fewer days or shorten our hours because we can’t afford to stay open when the place isn’t as busy. That, in turn, means fewer hours for our team, essentially wiping out the benefit of their annual wage increases. It means we don’t hire as many staff or give people a chance to get into the workforce. Portion sizes go down, or we make fewer items from scratch to save on prep costs. We don’t try new things or take risks to see what might come of them. Innovation and growth stop.
And as prices climb in Northern Ireland, hospitality businesses across the border can stay competitive, because the Republic of Ireland has a 13.5% VAT rate on hospitality (which will drop to 9% this July). So, we’ll all see fewer tourists coming through our doors, hurting us further. Throw in some geopolitical chaos, which means everything will cost little more and everyone will have a little less to spend…and it just gets harder to withstand those global impacts that are out of our control.
Let us be clear that we want to pay our employees higher wages, and we support legislation to protect employee rights. We want to keep their hours up. We want to use local produce, make fresh food from scratch, and blow you away with top-tier quality and service. And we want to do all that while keeping our prices as low as possible, so that our customers can afford to visit us. We want to keep supporting our local schools and clubs with discounts and donations. We love our team, our customers, and our community.
But it feels like doing things the right way and having a viable business model are incompatible goals. Paying 20% VAT gives us no room to breathe, and it forces us to constantly reassess how we can stay true to our values while still paying the government’s cut. The proposal to have a lower VAT rate for hospitality is one of the few policies that receives broad cross-party support in Northern Ireland, so you know how desperately it must be needed.
We’re doing a pricing review as we approach April, and some of our prices may go up where it’s unavoidable, but please believe us when we say it’s the absolute last thing we want to do. To those of you who keep coming and keep supporting us, thank you! If you’ve got any contacts in Stormont or Westminster, feel free to pass on our story.
--Robert & Tiffany