Increasing restaurant costs have made the Irish more stringent than other EU nations, because Ireland's customers spend a substantial part of their home expenses on restaurants than their European counterparts. We are only Spain in our expanses of restaurants, cafes, pubs and canines.
Adrian Cummins of the Irish Restaurant Association warned: "I can see the prices of food inflation and the growing cafe in restaurants … we are usually seeing anything in the 5-15pc price increase.
"We are among the complete storms for serious improvement in our industry.
"Many businesses will run drinking water in April."
Ireland's spokesman Dormot Jewel's Consumers Association states that consumers will leave cafes and restaurants who have put prices through "unreasonable" amount.
"Customers will be reduced to cost and if prices rise improperly, they can use their choice to spend their money and where their customs value is worth their Euro."
Economist Anthony Foly said that very few hospitality businesses would not increase VAT, which increased from 9 pc on January 1 to 13.5 pc.
Minor restaurants and hotels in rural areas were the most dangerous to increase costs.
He said that restaurants and cafes earn very little profit by making very profitable earnings. They were facing higher insurance costs and wage costs and increased VAT rates.
Professor Folly, associate professor of economics at Dublin City University, said prices should only increase by 5 pac or 6 pc. 20 pac price increase is not a justified decision.
He advised consumers to buy for the best value, in recent times the number of people in Ireland has "exploded".
"In urban areas, we are no longer bringing our food with us. We are going out and taking levies, or sitting in bars with restaurants or sandwiches.
"There has been an explosion of food in the last few years. Many of them are involved in the world, and we are becoming poor and we are doing a little better … In the office block in Dublin, there are probably about 50 outlets – a wide range of competition and diversity , "He said.
Speaking about the increase in VAT, he said that the statement of the government said that due to the increase in VAT, there will be no effect of the "minor profanity" due to the large number of small operators in the sector on poor profit margins.
Vibrant businesses can increase taxes in city centers, but many industries can not absorb it.
Wages make the cost of 30pc to 40pc. The increase in the minimum wage by 25 cents to € 9.80 will increase the restaurant costs by about 1 pc.
Mr. M., Chief Executive of Irish Restaurant Association Cummins said that their members would have to cover the cost of business or send it towards the customer because the cost of running the business was "skycocoating".
"Some businesses will not be able to survive to grow. Every business has to decide what to do, but this year I can see a terrible year for the restaurant and the cafeteria industry.
"We are not only talking about the increase in VAT – but increasing costs by 35pc, rising wage costs and taxation.
"The ultimate loser will be the customer, businesses are not charity, they have to earn money to open their doors and every business will decide what to do to survive."
"And if the bracket hits the industry, it will be the first to impress.
He said that the Finance Minister should have thought about this before putting VAT rates. Increase of VAT – When you consider everything else – it will be a big disaster for the industry.
Mr Jaevelle criticized some restaurant owners who pushed their prices by the increase of 1 January VAT.
The government criticized restaurants when they reduced VAT for some years ago to help the sector, who did not reduce their prices.
"The immediate question of the reliability of the compensation for the 'effect' of VAT is the immediate question … Return to the original rate … the restaurant is compensated against the VAT on a general purchase of the business," he said.
Economist Dr. Alan Ehren said: "It is worrisome that they will work technically and will increase prices beyond the VAT," it will negatively affect the overall health of the economy.
"If customers do not eat, they will have the remaining money in their pocket and they will probably cost it something else, so, from the perspective of the entire economy, it will still be spent."