Northern Ireland’s hospitality industry is facing serious challenges, locals say. Rising wages, inflation and tough economic conditions have forced some businesses to close their doors for good.
In recent months, restaurants and cafés across the region have shut down because of higher operating costs and lower customer demand. Many business owners say a mix of increased wages, higher taxes and rising costs is making it impossible to stay open.
After criticism from business owners and the public, Finance Minister John O’Dowd recently paused a planned revaluation process that would have led to large rate increases for many hospitality businesses. The decision, announced in late January, is intended to give local businesses some relief. O’Dowd said he wants local businesses to thrive and described them as the backbone of the community.
In a statement on 29 January, he said: “I want our local businesses to thrive; they are the backbone of our communities. I have listened carefully, and I am very aware of the concerns raised by businesses — particularly hotels, pubs and other hospitality businesses. I remain in listening mode. I will now consider the next steps. My focus remains on supporting our public services, our local businesses and growing our economy.”
For some businesses, however, this help may have come too late. Last Thursday, just days before O’Dowd’s announcement, Coopers, a well‑known restaurant in Coleraine, closed after eight years in business.
In a statement on Instagram, the owners wrote: “We announce the closure of Coopers Restaurant, effective Sunday, 8 February, after 6 years serving the local community. We have made the difficult decision to close our doors. Due to increases in wages, rates and business taxes, we will find it hard to continue. We are grateful for your loyalty… we invite you to join us for one last meal before we close.”
The challenges facing the sector are not limited to Portstewart. New data from NIQ’s Hospitality Market Monitor shows that hospitality businesses across Britain and Northern Ireland are under pressure. Britain lost 382 licensed premises in the last three months of 2025 — an average of more than four closures a day — with restaurants among the hardest hit. Casual dining sites dropped by 1.8% in the quarter, reflecting higher costs and weak consumer confidence. Many Northern Ireland businesses say they are struggling to cope with these changes.
People in Portstewart say the hospitality industry has been struggling for some time. Many are worried about losing local venues and the effect on the community, with some fearing more closures if the economy does not improve.
A part‑time worker at a local café said: “I think that the government needs to step in and get a bit of a hold on the release taxes, because it’s only going to end up with more small businesses closing. Especially with the cost‑of‑living crisis. They’re not making as much money as they used to.”
An off‑licence worker added: “The hospitality industry is needed… we need it now… It’s a nice thing to do… It’s beneficial to the town.”
The future of the hospitality sector remains uncertain, but one thing is clear: these businesses are more than just places to eat or drink. For many, they are part of local life. As communities, business owners, and government look for solutions, the hope is that support will come before even more doors close for good, like Coopers.
A University Student.
- Erin Adams
- Erin Adams
