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Oliver Dunne owns Michelin starred restaurant Bon Appétit in Malahide. Oliver Dunne

Irish restaurateur says restaurants' bad business decisions are why they're closing

Oliver Dunne said he has never witnessed the hospitality industry in such a slump.

PROMINENT IRISH RESTAURATEUR Oliver Dunne has said current restaurant closures are largely due to poor decisions businesses made during and after Covid.

Dunne suggested current pressures on hospitality businesses such as reduced bookings and higher costs are not the main factor behind a spate of closures. There have been over 150 in the past six months alone, which the restaurants lobby has attributed the closures to soaring business costs.

Speaking to The Last Word on Today FM, the chef said “the vast majority of the hospitality industry is in a slump like I’ve never witnessed before”.

He added that some restaurants are hiking prices “way past the level” that is acceptable.  

Dunne said many bad business decisions were made after the pandemic, particularly in relation to VAT warehousing.

VAT warehousing was a scheme launched during the Covid-19 pandemic to help keep business afloat by allowing them to delay paying tax owed. Delays in paying employer PRSI were also allowed.

Dunne said: “A lot of reasons why a lot of places go bust and close down is because of bad business decisions that they’ve made over the years. Those restaurants, when they close, they purport it to be a downturn of business, and don’t actually say they kept a couple of hundred thousand worth of VAT that they spent.”

He said more restaurants will close.

“The weak will go, the strong will remain,” he added.

Dunne’s Asian-fusion Temple Bar restaurant, Cleaver East, will close next month for the final time after a decade in business. It’s closing due to the renovation of The Clarence Hotel; they are in the same building complex.

Cleaver East Oliver Dunne's restaurant Cleaver East in Temple Bar will close next month. David Cantwell David Cantwell

His restaurants include Michelin starred restaurant Bon Appétit in Malahide, ONE Ballsbridge Bar and Restaurant and Beef & Lobster Dublin and Galway.

Dunne has seen a 20% decrease in bookings across his ten restaurants between 2024 and 2025.

He said restaurant businesses have also been hit by the increase in the cost of ingredients. Less tourism and a change in habits during Covid are also at play.

“I think Covid taught everyone that going out early, coming back early, maybe wasn’t a bad thing,” he said.

Dunne said his restaurants are now more likely to be full early in the evening, while Friday nights rea not as busy for the restaurant industry any more. Business on Thursdays has increased.

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    Mute Martin Sinnott
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    Dec 27th 2018, 7:57 AM

    Another Quango with all the usual faces after consultancy companies are paid millions.

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    Mute Chin Feeyin
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    Dec 27th 2018, 9:43 AM

    @Martin Sinnott: you can see the future? Cool. Give us the winning Lotto numbers!

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    Mute Sarah
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    Dec 27th 2018, 11:03 AM

    @Chin Feeyin: He’s just making an educated guess I’d wager. Almost certainly right about it too….

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    Mute Trevor Hayden
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    Dec 27th 2018, 8:02 AM

    How convenient for FF and FG, hand picked by themselves no doubt, similar to the counting stations.

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    Mute Fear Uisce
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    Dec 27th 2018, 7:55 AM

    another quango, another job for Leo’s boys

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    Mute Chin Feeyin
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    Dec 27th 2018, 10:11 AM

    @Fear Uisce: well, it’s a public consultation, so get out your crayons and start writing.

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    Mute prop joe
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    Dec 27th 2018, 8:49 AM

    This has corruption written all over it. Make the system over bureaucratic to squeeze out smaller parties and censor political opponents.

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    Mute Willy Mc Caul
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    Dec 27th 2018, 9:44 AM

    FFG want total control..

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    Mute Adrian
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    Dec 27th 2018, 9:53 AM

    We know from experience that anything “independent” thats set up by our govs is really not independent at all.

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    Mute Gerard Heery
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    Dec 27th 2018, 9:28 AM

    Dictatorship on the cards by the looks of it ,never needed any one to overlook the elections since Bertie’s s voting machines and look at the mess and cost entailed

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    Mute TamuMassif2019
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    Dec 27th 2018, 6:15 PM

    @Gerard Heery: F.G. is learning using the film, The rise and rise of Michael Rimmer, as a guide?

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    Mute Dominic Leleu
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    Dec 27th 2018, 10:11 AM

    What a joke.

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    Mute Ianmoone
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    Dec 27th 2018, 10:41 AM

    More money down the drain for the EU and our globalist politicians to decide if our answer fits with theirs.

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    Mute paul kelly
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    Dec 27th 2018, 9:08 AM

    Along with using pps numbers this will stop the “home to vote” group.

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    Mute John Flood
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    Dec 27th 2018, 8:42 AM

    Perhaps some good could come from this like “vote by mail”, early voting, and voting on weekends.

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    Mute tommytukamomo
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    Dec 27th 2018, 9:06 AM

    @John Flood: it’s Ireland so I doubt it.

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    Mute Niall
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    Dec 27th 2018, 10:41 AM

    some comments on here really crack me up!! Hilarious!!

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    Mute Fergus Robson
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    Dec 27th 2018, 10:52 AM

    @Niall: literally all the swivel-eyes have come out for this one. Remarkable really the extent of uncomprehending hostility they exhibit while remaining almost totally clueless about the political and electoral process and why this is a positive change.

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    Mute Chin Feeyin
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    Dec 27th 2018, 12:41 PM

    @Fergus Robson: and most of them too young to vote!

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    Mute Frank McGlynn
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    Dec 27th 2018, 2:40 PM

    The role of the State in our democracy should be absolutely neutral as regards policies and parties. Funding for political parties favours the insiders i.e. the existing parties and puts new emerging parties at a disadvantage.

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    Mute marydebbie
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    Dec 27th 2018, 1:27 PM

    Like the ‘true results’ of the abortion referendum!!!!! Shower of liars :(

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    Mute TamuMassif2019
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    Dec 27th 2018, 6:14 PM

    Why???

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