Dublin Restaurants Cut Prices After VAT Reduction from 13.5% to 9%

Several Dublin restaurants, including Dax on Pembroke Street, Cluck Chicken in Walkinstown, and Lolly and Cooks, announced price reductions following the government's VAT cut from 13.5% to 9% this week. This move, announced in Budget 2026, aims to thank customers, though the industry body expects most businesses to retain the savings.

Olivier Meisonnave, owner of Dax, stated their fixed-price dinner menu will decrease from €98 to €94, and the lunch menu from €68 to €65. He explained this decision was made for loyal customers who supported the restaurant through difficult times, including the 2008 financial crash and Covid-19 pandemic, despite tight industry margins. Churpy Strahan, managing director of Lolly & Cooks, also cited customer loyalty as the reason for their price adjustments.

However, Adrian Cummins, CEO of the Restaurants Association of Ireland, believes few businesses will follow suit, as there is no requirement to pass on the savings. He noted that any price reductions might be a marketing strategy, as industry margins are currently not conducive to profitability. The VAT cut, expected to cost €681 million annually, is secured for this government's term, but future governments may reconsider it. Past VAT reductions have shown varied rates of pass-through to customers, with 50% in 2011 but lower in 2020 due to economic uncertainty.