“We’re barely surviving” — Carnlough café owners sound alarm

Twilight Coffee & Bunkhouse, Carnlough

A Carnlough couple behind a popular coffee shop and bunkhouse have issued a stark warning about the future of Northern Ireland’s hospitality industry, saying rising costs and a 20% VAT rate are pushing independent businesses to the brink.

Robert and Tiffany McKay, owners of Twilight Coffee & Bunkhouse on the Antrim Coast, say many cafés, restaurants and pubs are now operating with “practically non-existent” margins — forcing difficult decisions on pricing, staffing and opening hours.

“Your local independent cafes, restaurants, and pubs are struggling,” they said. “We’re adding our voices to those of the many other small businesses across the UK, begging Parliament for a lower VAT rate on hospitality.”

“It feels like we’re just paying taxes”

Robert and Tiffany McKay, owners of Twilight Coffee & Bunkhouse, in Carnlough, County Antrim

The couple say the current 20% VAT rate leaves little room for businesses to survive, let alone grow.

“In the current market our margins are practically non-existent, and with 20% VAT, it often feels we’re just running our business to pay the taxes,” they explained.

They described a cycle affecting the entire sector: rising costs force businesses to increase prices, but higher prices deter customers — leading to reduced opening hours, fewer staff shifts, and limited hiring opportunities.

“So, we open fewer days or shorten our hours because we can’t afford to stay open when the place isn’t as busy. That, in turn, means fewer hours for our team… It means we don’t hire as many staff or give people a chance to get into the workforce.”

The knock-on effects, they say, are already visible — from smaller portions to reduced innovation and fewer locally sourced ingredients — Northern Ireland’s hospitality sector is being strangled.

Cross-border pressure and tourism concerns

The McKays also highlighted growing concerns about competitiveness, particularly with the Republic of Ireland’s lower VAT rate for hospitality — currently 13.5%, with plans to drop to 9%.

“As prices climb in Northern Ireland, hospitality businesses across the border can stay competitive,” they said. “So, we’ll all see fewer tourists coming down through our doors, hurting us further.”

They warned that global economic pressures are only adding to the strain, with rising costs and reduced consumer spending making it harder for small businesses to absorb shocks.

“We want to do things the right way”

Despite the challenges, the couple insist their priorities remain unchanged: fair wages, quality food, and community support.

“Let us be clear that we want to pay our employees higher wages, and we support legislation to protect employee rights,” they said. “We want to use local produce, make fresh food from scratch, and blow you away with top-tier quality and service.”

However, they say current conditions are forcing a difficult balancing act.

“It feels like doing things the right way and having a viable business model are incompatible goals.”

A pricing review ahead of April may result in increases — something they describe as “the absolute last thing we want to do.”

A local business with global roots

Twilight Coffee & Bunkhouse opened in October 2019 after the couple relocated from Houston, Texas, to Carnlough, where Robert grew up.

The move was driven by a desire to support family and invest in local tourism along the Glens of Antrim. After purchasing a well-located building in the village, they developed a concept combining budget accommodation with a speciality coffee offering.

Today, the business serves locally baked goods and ethically sourced coffee, while offering modern, affordable accommodation for visitors exploring the Antrim Coast.

Call for action

The McKays say a reduced VAT rate is one of the few policies with broad political support in Northern Ireland — and they are urging decision-makers to act.

“If you’ve got any contacts in Stormont or Westminster, feel free to pass on our story,” they added.

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At a glance

• Carnlough business owners warn hospitality sector is under severe pressure

• Twilight Coffee & Bunkhouse says 20% VAT is “unsustainable”

• Rising costs forcing reduced hours, fewer staff shifts, and price increases

• Cross-border VAT differences raising concerns about tourism and competitiveness

• Republic of Ireland hospitality VAT set to drop to 9%

• Businesses cutting back on innovation and local sourcing

• Owners say they want to protect wages, quality, and community support

• Pricing review expected, with potential increases from April

• Calls growing for UK Government to reduce VAT for hospitality