- COALITION -
Step Down Recovery Plan to Save Jobs in the Restaurant Industry in Ireland
Restaurant workers are a vital part of the Irish economy. There are more than 6,500 restaurants all over the country, employing over 80,000 workers. However, the Restaurant industry, along with many others has been decimated by the C19 crisis, 80% of these jobs are now on the line. This is a sensible and cost effective plan to save most of these jobs.
With countless businesses closed, tens of thousands of valued employees effectively unemployed, business owners are facing bankruptcy and the value of business assets destroyed.
On top of this there is a great deal of uncertainty as to when business will be back to normal. Many commentators say that until a vaccine is developed and widely available, social distancing will be a reality, and that it could be another two years, before restaurant businesses get back to normal. This is way too long for most closed businesses to survive.
In the event that restrictions are partially lifted and restaurants and bars can resume partial trade, the economic costs of doing so in terms of rents, bank payments etc. do not make sense without full trade being resumed.
“We just want to get our amazing employees back to work as soon as possible.”
SAVE JOBS... SAVE RESTAURANTS
The Save Our Restaurants Coalition has been formed by a group of hospitality professionals and advisers with three aims:
Get our amazing employees back to work ASAP. Re-assure employees that it safe to come back to work, and keep people employed, and paying their taxes.
Get the cost base of viable restaurant businesses into line with actual sales, allowing viable business to survive.
Re-engage the public, by re-assuring them that it is safe to come out and dine with restaurants.
“It will be more difficult to re-open restaurants than it was to close them.”
Our 3 Point Step Down Plan
This step down plan aims to be an equitable strategy to look after the interests of our employees, our stakeholders and Ireland itself. Step down support means that most help goes to those businesses that need it most, and is stepped down as revenues in those businesses recover.
Where applicable this support should be provided by way of direct government grants as opposed to bank administered debt. Introducing additional debt into the system will not resuscitate our sector.
Any restaurant which is receiving any state aid it should have a no dividend policy for the year in which the state aid is received, and all profits (if any) should be ploughed back into the business.
It seeks to allow viable restaurants to survive for two years, or until a vaccine is widely distributed in Ireland. This proposal recognises, that while restaurants may be allowed to re-open, it is likely with social distancing measures in place, overseas tourism dead, and a nervous customer base, sales will take a long time to come back.
With an unadjusted cost base during this period, most restaurant businesses will not survive. The aim of this plan is to get the operating costs of restaurants into line with post lockdown sales, while making sure the support goes to those who need it most, while those who don’t need it, don’t get it.
We have included a series of supplementary proposals, many at no cost to Government, which would make the viability of restaurants, and the associated jobs more certain and hopeful.
If you would like to become a supporter or need more information, please fill in the form below and someone will get back as soon as possible.