Operator of popular Mayo town cafe outlines the 'killer' for local businesses

COMMUNITY NOTES: BALLYHAUNIS - WESTERN PEOPLE (JANUARY 28 EDITION)

The operator of popular local café, McHugh’s, has highlighted the impact of the rise in minimum wage on local business.

Rory McHugh described the rise, the second in two years, as “a killer” for businesses like his.

“In our 12 years in business, the minimum wage has gone from €7.20 to €13.50 so it’s nearly doubled but there’s no way that our prices have doubled. You can’t have a situation where you have to put it on the customer or you will lose customers,” noted Mr McHugh who said he’s trying to keep his sandwich prices below €10.

McHugh’s absorbed seven separate price increases for coffee in 2024. Meat prices also rose.

The only way the company has absorbed prices is by shortening its opening hours, closing at 4pm in some of its locations.

“I don’t want to do that, it’s bad for the customer who wants to come after four for a coffee or something nice but it’s our only way of controlling costs,” he explained.

A prediction Rory McHugh made to this column in mid-2024 about a spate of closures has come to pass, he adds.

According to the Restaurant Association of Ireland, there were 600 closures in the year up to the end of October.

Mr McHugh welcomes the Tribe chain opening up a few doors from his café.

“They do different products to us, we focus on sandwiches. It’s great for the town.”