Dublin’s Yew Tree Restaurant Closes as Hospitality Crisis Deepens

The Yew Tree restaurant in Terenure, Dublin, will close its doors permanently on August 31, 2024, as owners Máire Ní Mhaolie and Geoff Carty confront the harsh realities of rising operational costs and declining customer numbers. This marks a significant moment in a city grappling with a broader crisis in the hospitality sector, as over 300 food-led businesses have shut down in just the first half of this year.

Máire and Geoff, well-known figures in Dublin’s food scene, previously operated the popular 57 The Headline Bar for a decade before transitioning to Yew Tree in December 2023. The couple aimed to create a welcoming atmosphere in Terenure, which quickly became a beloved local spot thanks to its quality offerings and community feel.

Reflecting on their journey, Máire noted, “Last year, we had a great year, but our numbers are way down this year compared to last year – and so too are so many other businesses.” Despite a successful first year, a significant drop in patronage this year forced them to make the tough choice to close.

Rising operational costs have significantly impacted their margins. Máire elaborated, “It wasn’t just one thing. It was a combination of everything, especially the escalating costs of running a business.” These include increased prices for utilities, supplies, and insurance, with annual premiums rising by as much as 25 percent without any claims being made. The couple also faced changing consumer habits, with fewer people dining out as remote work becomes more common.

The hospitality sector’s struggles are reflected in a recent report by the Restaurants Association of Ireland, which revealed that 70 percent of hospitality businesses plan to cut staff if the government does not provide meaningful support. The association also noted that 564 businesses in the sector closed last year, with an additional 306 closures occurring in the first seven months of 2024.

A recent survey highlighted the urgent need for government intervention, particularly regarding the VAT rate for food businesses, which currently stands at 13.5 percent. According to leading economist Professor Anthony Foley, lowering this rate to 9 percent could significantly relieve financial pressures on restaurants and prevent further closures.

Customer sentiments reflect the broader economic challenges. Máire mentioned that patrons often express disappointment over the restaurant’s closure. “People have literally just come through my door saying they’re so disappointed – and disappointed is a really strong word,” she shared.

As Máire and Geoff prepare to close Yew Tree, they are not ruling out a return to the hospitality industry in the future. “I’d love to stay in hospitality,” Máire stated, acknowledging the need for a break after a particularly stressful year.

The closure of Yew Tree serves as a reminder of the mounting pressures facing the hospitality sector in Ireland. With operational challenges persisting, many in the industry are left to navigate an uncertain future.