The Irish Restaurant Landscape in 2025: Pressures and Opportunities
The Irish restaurant and hospitality sector is at a crucial crossroads in 2025. According to the Restaurant Association of Ireland, 150 food-led businesses closed in Q1 2025 alone due to soaring operational costs. Payroll now consumes nearly 39% of revenue, a jump from 32% just two years ago, while food, insurance, and utility expenses have risen by up to 30% since 2022. Over 600 Irish eateries closed between September 2023 and September 2024, highlighting the sector’s urgent need for innovation.[1][2]
Despite these challenges, optimism persists among Irish SMB restaurateurs. As of August 2025, the Love Irish Food and Bank of Ireland Barometer reports that 71% of Irish food businesses are focused on revenue growth, and two-thirds are prioritising investment in efficiency and technology. Diners nationwide are demanding fast, digital-first experiences, omnichannel ordering, and instant, personalised customer support.
Digital transformation—especially through AI automation—has gone from a growth opportunity to an essential survival strategy for Irish restaurants. While larger chains have led the way, most independent SMBs still rely on manual systems for reservations, inventory, scheduling, and sales reconciliation. This exposes them to inefficiencies but, crucially, offers a massive opportunity: moving to smart automation can boost resilience, efficiency, and customer satisfaction—at a time when Irish hospitality businesses need every edge.