Restaurant owners say they are trying to remain good value for money but rising costs are making that goal harder to achieve.
The Restaurant Association of Ireland says the high cost of doing business means that the 9% VAT rate is a necessity otherwise businesses will continue to close.
The summer weather has boosted business in pubs and restaurants, however owners say the rising cost of food - up to 50% on some produce - and staff wages means that margins are very tight.
Liam Edwards who runs Jim Edwards restaurant in Kinsale says while it is peak tourism season and the town is busy the spend is down and the numbers are also down.
Speaking to RedFM News Liam Edwards says there appears to be less of a demand and that leads to a worry ahead of the quieter winter period.
"It's definitely busy, but compared to last year it's not as busy as last year, unfortunately.
"If you come to Kinsale on any sunny day, you'll see crowds around the place. I just think the spend is down a little, the crowds are down a little.
"As we face into the winter season, things in Kinsale will get a lot quieter, and a lot more bleak."
