>The 9% will give a lifeline to our industry because every two months businesses have to pay their VAT. It will mean the VAT bill will come down by 50%. It means a better cash flow for them over the twelve months
What am I missing here? The VAT rate is currently 13.5%. Hence, a 4.5% reduction in the rate would reduce the tax bill by 33%, not 50%.
Unless I’m missing something, seems shocking that the CEO of the Restaurants Association of Ireland could get very basic maths like that wrong.
qwerty_1965 on
The only bit that matters really.
“Referring to the €17.50 sandwich and soup he said: “I am sure that this business is trying to make a margin. At the end of the day, they have to make a profit. *If their customers are paying €17.50 that is the price that they feel as a business that will attract customers in their door*”
If you can find customers at a given price point then that’s your price point.
fourpyGold on
I think his costs there are way overstated. There is no way the bread is costing 55cents or the chicken €2 in a sandwich. The cost for a bowl of soup is ridiculous – €1.75 would imply a huge cost for the large container of soup they are making if that is the cost for a bowl.
Available-Talk-7161 on
Does a reduction in vat mean that if your restaurant bill was €113.50 (for simplicity, 100 + 13.5% vat), they would reduce the bill to €109, in order to make it more attractive to consumer?
Or does it mean the prices they pay for food to make for the end customer also drops by 4%
Or is it both?
Is there something else?
I would find it hard to believe that if the first scenario is true, that they would pass the 4% saving onto the customer.
InstructionGold3339 on
As was pointed out in the article, it sounds like it was a premium establishment. Organic chicken isn’t cheap to produce and tends to be only seen in higher end places.
The price is high but it sounds like they went to a fancy café and were shocked they were charged fancy prices.
Local_Skill4684 on
They’re so full of shit on the costs, if it costs you €5+ in staff costs per sandwich, then I suppose you’ll need extra overheads to provide space for your cook to park his Lamborghini.
I paid over €80 for coffee and sandwich for 4 in a rural Kerry village recently, almost puked.
Let’s stop trying to normalize pure, unadulterated greed.
brow5er on
You can get a toastie and a sandwich for 9.50 where I am. It is rae though.
smashedspuds on
Bargain
FatFingersOops on
“Organic chicken on sourdough”. Notions I tell ya…notions!
itsneverbeenthesame on
For the crazy prices for lunch and sandwiches,
Cafe Sol that are in Dunnes have unreal value. Sandwich crisps and drink for 4.50 I think. Sandwich can be hit or miss, but can’t complain.
TheChrisD on
If I had a costs breakdown like this, the very first thing I’d be doing is cutting back on the staffing.
> “I have looked at all the ingredients. It was chicken sandwich – the chicken was a premium chicken, it was organic. At cost you’d pay €2.10 for the chicken. 55 cent for the bread. Potato salad 50 cent. The soup €1.75. The garnish about 15 cent. So, it would cost about €5.05 – at cost,” said Mr Vaughan.
>
> “But the thing is that the €5.05 – that only represents about 35% of the total cost. If I was building that cost to allow for other costs that I have I’d be looking to get between €16 and €17 for what you got,” he added.
>
> The reason, he explained, was that staff labour cost represent another third of the final cost.
>
> On top of this there are rates, electricity and overhead costs to take into account.
>
> “When you add all of the costs up, when you do the maths on that, you are up as far as €16. But the owner is only getting about €1 of that as pure profit,” added Mr Vaughan.
13 commenti
PR piece to continue the lobby for 9% VAT rate
>The 9% will give a lifeline to our industry because every two months businesses have to pay their VAT. It will mean the VAT bill will come down by 50%. It means a better cash flow for them over the twelve months
What am I missing here? The VAT rate is currently 13.5%. Hence, a 4.5% reduction in the rate would reduce the tax bill by 33%, not 50%.
Unless I’m missing something, seems shocking that the CEO of the Restaurants Association of Ireland could get very basic maths like that wrong.
The only bit that matters really.
“Referring to the €17.50 sandwich and soup he said: “I am sure that this business is trying to make a margin. At the end of the day, they have to make a profit. *If their customers are paying €17.50 that is the price that they feel as a business that will attract customers in their door*”
If you can find customers at a given price point then that’s your price point.
I think his costs there are way overstated. There is no way the bread is costing 55cents or the chicken €2 in a sandwich. The cost for a bowl of soup is ridiculous – €1.75 would imply a huge cost for the large container of soup they are making if that is the cost for a bowl.
Does a reduction in vat mean that if your restaurant bill was €113.50 (for simplicity, 100 + 13.5% vat), they would reduce the bill to €109, in order to make it more attractive to consumer?
Or does it mean the prices they pay for food to make for the end customer also drops by 4%
Or is it both?
Is there something else?
I would find it hard to believe that if the first scenario is true, that they would pass the 4% saving onto the customer.
As was pointed out in the article, it sounds like it was a premium establishment. Organic chicken isn’t cheap to produce and tends to be only seen in higher end places.
The price is high but it sounds like they went to a fancy café and were shocked they were charged fancy prices.
They’re so full of shit on the costs, if it costs you €5+ in staff costs per sandwich, then I suppose you’ll need extra overheads to provide space for your cook to park his Lamborghini.
I paid over €80 for coffee and sandwich for 4 in a rural Kerry village recently, almost puked.
Let’s stop trying to normalize pure, unadulterated greed.
You can get a toastie and a sandwich for 9.50 where I am. It is rae though.
Bargain
“Organic chicken on sourdough”. Notions I tell ya…notions!
For the crazy prices for lunch and sandwiches,
Cafe Sol that are in Dunnes have unreal value. Sandwich crisps and drink for 4.50 I think. Sandwich can be hit or miss, but can’t complain.
If I had a costs breakdown like this, the very first thing I’d be doing is cutting back on the staffing.
> “I have looked at all the ingredients. It was chicken sandwich – the chicken was a premium chicken, it was organic. At cost you’d pay €2.10 for the chicken. 55 cent for the bread. Potato salad 50 cent. The soup €1.75. The garnish about 15 cent. So, it would cost about €5.05 – at cost,” said Mr Vaughan.
>
> “But the thing is that the €5.05 – that only represents about 35% of the total cost. If I was building that cost to allow for other costs that I have I’d be looking to get between €16 and €17 for what you got,” he added.
>
> The reason, he explained, was that staff labour cost represent another third of the final cost.
>
> On top of this there are rates, electricity and overhead costs to take into account.
>
> “When you add all of the costs up, when you do the maths on that, you are up as far as €16. But the owner is only getting about €1 of that as pure profit,” added Mr Vaughan.
It’s called monetizing. It is greed.