212 restaurants have closed so far this year, according to the Restaurants Association.
Restaurant owners say rising costs are putting their businesses at risk of closure.
212 restaurants have closed so far this year, according to the Restaurants Association.
It's calling for the VAT rate to be returned to 9 per cent, after it was increased to 13.5 per cent last October.
"For the first time, this new report lays out the stark economic reality of how damaging food-led hospitality closures are to the State and the economy," said Adrian Cummins, CEO of the RAI.
"The assumption among civil servants and in certain other quarters that where one restaurant closes down, another will shortly open is unfounded - particularly in parts of the country outside of Dublin."
"When a local restaurant or café closes and its staff are laid off, it is not a simple case of them finding another good job nearby or the business reopening under new ownership," he said.
Association President, Paul Lenehan, who runs a group of restaurants in Kildare, says businesses are struggling to survive paying the higher VAT rate.
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