The cost of doing business in Ireland is currently “off the wall” when compared to other European nations, according to one of the Brennan hotelier brothers.
John Brennan attributed the majority of the inflation in an interview to expenses “inflicted” by the government.
He asserted that the bank holiday in February of the previous year, “which no one wanted,” cost their three firms €25,000 in lost revenue. He noted that Ireland currently has the second-highest minimum wage in Europe and the highest VAT rate (13.5%) in Western Europe.
Saying, “We were in a restaurant here, and the burger cost €22,” is unfair. Since 40% of the €22 is spent on labor, the amount must be €22. It’s just economics; we are not magicians,” he declared.
“A few years back, Enda Kenny, a Taoiseach, made the claim that Ireland is the best small nation in the world for doing business. Though I’m not sure what happened to the train, it’s currently seriously off course.
According to Mr. Brennan, the government has not shown any signs of realizing that raising prices for businesses can be risky.
Hoteliers have the ability to increase prices, but only if the market is willing to accept them and household disposable income has increased from a year earlier.
He declared, “Profit is not a bad word; in fact, it is a very good word.” “If a business doesn’t earn a profit, it doesn’t survive.”
The Park and The Lansdowne hotels in Kenmare were recently sold by Mr. Brennan and his brother, Francis. John Brennan owns the neighboring Dromquinna Manor, which accommodates about 55 events annually, most of which are weddings. The company also offers lodging options, including glamping.
“A business doesn’t survive if it doesn’t make a profit,” he continued.
Speaking about Dromquinna’s new records, which reveal that the company reported post-tax earnings of €164,792 in 2022, Mr. Brennan made his comments.
According to Cloud Nine Management Services Ltd.’s accounts, these post-tax earnings came after €313,868 in profits in 2021. By the end of 2022, the company had made €1.38 million in earnings and employed 29 people. “2022, we had a great year,” Mr. Brennan concurred.
According to him, the “atrocious and brutal” weather that began in July caused a 4 percent decline in the business’s revenues in 2023, primarily from food and beverage sales at Dromquinna’s BoatHouse restaurant.
“I have no worries about Dromquinna—it’s a fine business, and now I have more time to concentrate on it,” Mr. Brennan said in closing.
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