Cafés/bars will continue to face higher costs in the forthcoming period and this will be an issue for the overall category. With inflation remaining high in 2023, Irish cafés/bars must also confront an increase in VAT from 9% to 13.
Major café and coffee chains like Starbucks and Caffé Nero are betting on new openings to elevate their foodservice value share, following two years of restrictions. For independents it will be a more difficult period and it is expected that some cafés/bars will end up have to close due to lack of profitability.
The search for new alternatives and retail concepts will be a differentiating factor for cafés/bars in the forthcoming period, helping to attract new customers. The opening of seating areas outside some coffee shops and cafés helps to support sales during warmer periods, although the core business is hot drinks.
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This category encompasses all establishments where the focus is on drinking (either alcoholic or non-alcoholic beverages). While a wide variety of snacks and full meals are offered, it is not uncommon for consumers to only order a drink. As a general rule, establishments deriving 50% of their income or more from the sale of drinks are included here.See All of Our Definitions
This report originates from Passport, our Cafés/Bars research and analysis database.
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