This became clear from a recent report by economist Jim Power commissioned by the Restaurants Association of Ireland.
The RAI report, 9% VAT – Food, Tourism & Jobs, utilised CSO data to show the beneficial effect the 9% VAT rate has had on the hospitality industry since it was introduced in July 2011.
“If a pub did food, that was included in the CSO data,” RAI Chief Executive Adrian Cummins told Drinks Industry Ireland, “Our understanding is that the 75/25 alcohol to food split in pubs is now moving to 65/35 alcohol to food split.”
He added, “Also, what we’ve seen is that the restaurant sector has moved into the alcohol trade with 25/75 alcohol to food split. This is moving 30/70 over the past number of years.”