My Favourite Restaurant

I WAS INVITED TO A CLOSING PARTY

Eatokyo Capel Street: A Dublin Dining Gem Fades Away

It’s with a heavy heart that I write this post about the closure of Eatokyo on Capel Street. I distinctly remember my first visit shortly after they opened. Now, they will cease trading on 26th January 2025, another victim of the perfect storm that has been brewing in Dublin’s hospitality sector. I’ve been a loyal customer ever since, always impressed by their delicious food and friendly service. It’s a real shame to see them go.

Today, I was the last customer to leave at 5 pm. It was a bittersweet experience saying goodbye to the staff. Two have relocated to the last remaining Eatokyo in Temple Bar, one is returning to Mongolia, and another is heading back to Japan in a few weeks. Jack, the owner, has taken over Essence in Dundrum, which I hope to visit regularly. (I should mention that I received a gift of two Japanese lacquered panels before I left – they knew I was a collector of Chinese and Korean pieces!)

Eatokyo’s closure has got me thinking about the wider challenges facing Dublin businesses. Over the years, I’ve seen many of my favourite local restaurants close their doors. This trend, alarmingly evident on Capel Street with its growing number of empty units, seems to have accelerated since the Dublin Riot in 2023.

A City in Crisis?

Eatokyo’s story, like many others, is sadly familiar. They navigated the turbulent waters of the Covid-19 lockdowns, but the riot devastated their expected Christmas business. Like many restaurants in the area, they saw advanced and block bookings disappear overnight. The subsequent shift to working from home and a growing perception of the Northside as unsafe further eroded their customer base.

But Eatokyo’s struggles are not unique. The hospitality industry in Dublin, and particularly in the North Inner City, has been grappling with a multitude of challenges:

Overtourism Concerns? In 2023, a report placed Dublin third on an “Overtourism Index”. However, tourism experts have questioned this, given the significant drop in tourism since the pandemic. Was Dublin truly suffering from overtourism, or were these concerns overblown?

The Lingering Shadow of Covid-19: The pandemic had a devastating impact. Lockdowns forced businesses to close, leading to significant revenue losses and job cuts. Dublin hotels, reliant on international tourism, struggled. Even after the lockdowns, the industry continued to face difficulties, including a record number of closure orders issued to food businesses in 2024.

The Scar of the 2023 Dublin Riot: The riot resulted in widespread damage and looting, and had a profound psychological impact on the area. Businesses reported a sharp decline in footfall, as people avoided the Northside due to safety concerns.

The Rise of Remote Working: With fewer people commuting to offices, lunchtime trade has dwindled. While some restaurants have seen an increase in weekend trade, this hasn’t been enough to offset the decline in weekday business.

Soaring Costs and Staffing Shortages: Rising food and energy prices, coupled with increased labour costs, are squeezing profit margins. At the same time, the industry is struggling to attract and retain staff. Brexit has made it more difficult to recruit from the EU.

Tax and VAT Woes: The tax warehousing program, introduced during the pandemic, allowed businesses to defer tax liabilities. However, the repayment terms are now adding to their financial burdens. Furthermore, the reversion of the VAT rate for hospitality from 9% to 13.5% has also contributed to rising costs.

What Can Be Done?

The closure of Eatokyo is a stark reminder of the challenges facing Dublin’s hospitality industry. While there are no easy solutions, a concerted effort is needed to support struggling businesses:

Government Support: Initiatives like the “Power Up” grant and Fáilte Ireland’s programmes are crucial.

Community Action: We can all play our part by supporting local businesses, spreading the word, attending local events, challenging negative perceptions, and advocating for change.

Conclusion

The closure of Eatokyo is a sad loss for Dublin. However, it also serves as a wake-up call. The challenges are real and multifaceted. While government support is crucial, the future of Dublin’s hospitality sector ultimately depends on a collaborative effort. By working together, we can help ensure that other businesses don’t suffer the same fate as Eatokyo. Let’s cherish and celebrate Dublin’s diverse culinary landscape. What will it take for Dublin to not only survive, but truly thrive as a culinary destination?