Camile Thai in Letterkenny has closed today after almost two years in business.
The popular restaurant and takeaway franchise opened its first Donegal branch in January 2023, creating 16 jobs locally.
However, due to challenging trading conditions, the decision has been made to close the doors as of today (Wednesday).
In a message to customers, franchisee Andy Davitt said the announcement comes with a heavy heart but with a note of positivity.
“While the current trading conditions have undoubtedly been a lot to contend with, we want to focus on the amazing support we’ve received from this fantastic community.
“The people of Letterkenny have welcomed us with open arms, and it’s been a joy to serve such a vibrant, friendly town.
“We’re incredibly grateful for your loyalty and enthusiasm over the years.”
Davitt also expressed hope for a future return, stating, “While this chapter is closing for now, we’re hopeful it’s not the end! We’re already thinking of ways we might be able to come back in the future. Thank you for being part of our journey—we hope to see you again soon!”
The announcement comes amid warnings from Irish tourism and hospitality groups about an impending commercial crisis within the sector. A joint call has been made for immediate action in the upcoming Budget with a splitting of hospitality VAT and reintroduction of the lower 9% rate for food services.
The challenges facing the sector are laid bare in a new economic report examining the root causes of a worrying downsizing among hospitality food businesses throughout the country.
The report by economist Anthony Foley reveals that, even when operating under the previous 9% VAT rate, hospitality businesses within the wider tourism industry generated record levels of taxes for the exchequer. As a result of the higher 13.5% VAT rate, it is now estimated that the annual tax take from the sector will increase to €2.33 billion this year, some €1.17 billion higher than in 2018.
“his equates to a 100% increase in annual taxes, resulting in an unsustainable burden for the sector at a time when hospitality businesses are struggling to survive,” said a statement from Chief Executives of the Irish Tourism Industry Confederation (ITIC), Restaurants Association of Ireland (RAI), Vintners Federation of Ireland (VFI), Irish Hotels Federation (IHF) and Licensed Vintners Association (LVA).
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