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17th Feb 2023

Breakfast roll prices could be set for major hike, hospitality experts warn

Stephen Porzio

breakfast roll

Such changes would be down to a proposed VAT increase.

Hospitality experts have warned that breakfast roll prices could be set for a major hike.

According to the Irish Mirror, such a price change would be linked to the special hospitality VAT rate which is due to run out in less than two weeks.

Introduced to help the hospitality industry as it struggled amid the Covid-19 pandemic, the sector currently has a special concessionary VAT rate of 9%.

However, this special concessionary VAT rate is set to expire at the end of February and the Irish Mirror reports that all the indications are that the Government wants to put it back to its previous 13.5% rate.

VAT is charged on hot food in delis or forecourts, so breakfast rolls and other hot sandwiches could be impacted by the proposed hike.

Speaking to the outlet, the Restaurants Association of Ireland’s chief executive Adrian Cummins said that such a VAT rise would see “substantial increases to the bottom line.”

Meanwhile, a Licensed Vintners Association spokesperson added: “Any increase would be Government-imposed inflation at a time of rising prices.”

The paper also spoke to a leading restaurant owner who said that if the VAT rate was to be raised, prices would have to increase considerably as well.

“I’m trying to do my best to keep prices down, but it’s impossible,” she said.

“Now, if they put the VAT up, I’ll have to pass on the cost increases and I’d say that will see prices go up by 25% or so.”

Asked about the possibility of breakfast rolls being affected by the VAT increase, she responded: “Same rules apply.”

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