Six cafe and restaurants have closed in the midlands in recent months.
Increasing the VAT rate for hospitality could add further to the cost of living.
That's one of the findings of a new report carried out by the Restaurants Association of Ireland.
It believes businesses are under severe pressure, with lower margins and rising costs across the board.
Six cafe and restaurants have closed in the midlands in recent months - with the pandemic, energy costs and staffing reasons being cited among the reasons for closures.
CEO of the Restaurants Association, Adrian Cummins says the government can afford to keep the 9% rate: