IMPACT REPORT
Introduction We would like to extend our heartfelt thanks to the following individuals and organisations for their invaluable support, encouragement, and contributions throughout this journey. Their dedication, insight, and generosity of spirit have made a meaningful difference, and this work would not have been possible without them. North Tipperary Development Company
Dr Senan Cooke
Tipperary County Council
Dr. Mary O'Shaughnessy, UCC
Clann Credo
Cynthia Ni Mhurchu M.E.P.
Tipperary Tearooms Action Group
Michael Lowry T.D.
Jim Russell, Chair, The Cottage Loughmore
Ryan O’Meara T.D
John G O’Dwyer - Tipperary Tourism
Sen. Imelda Goldsboro
John Logue - CEO SERI
Cllr. Kay Cahill
National Community Cafes
Cllr. Willie Kennedy
Peter Couchman (ex. CEO Plunkett Foundation) Cllr. Eddie Moran Derek Fanning - Tipperary Volunteer Centre
We dedicate this report to Maeve O’Hair co-founder of The Cottage Loughmore, who departed from this life on 24 March 2024. Requiescat in pace.
This Impact Report has been co-authored by:
Ciaran Lynch CEO at Community Engagement Partners LTD
Leonie Maher PRO at The Cottage Loughmore
Mary Fogarty Co-Founder and Manager at The Cottage Loughmore
Introduction There are only four ways in which any service can be delivered to the community.
Bring the people to the service
Bring the service to the people
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Help the people provide the service
Deliver the service virtually
eople being brought to the service is, for many rural communities the most common form of service provision. As service consolidation grows, essential services are being provided in fewer and fewer locations. Those who wish to avail of that service must travel to it. This is particularly so for services which require large and immobile equipment or where high volumes of activity is required to remain operationally viable.
themselves is, essentially, the social enterprise model in which a community, through a mixture of volunteerism and commercialism provides a service which neither the state nor the private sector would deem commerically viable.
Bringing the service to the people involved operating a service for within the community or someone providing a mobile service to the community on a frequent basis.
Community Cafés fall into the social enterprise framework, incorporating elements of a café, shop and social meeting place for rural communities .
This was effectively the model through which convenience shopping and drinking facilities were provided in Irish rural communities up to 25 or 30 years ago. It is, however, no longer the case. Helping people to provide a service for
There are services, such as financial services, that can be provided virtually as no transaction of physical goods is required. This is not the case for food and beverage outlets.
Providing much needed services that are not being provided in any other way.
A National Reach County with a least one Community Tearoom / Café or Shop County setting up a Community Tearoom / Café or Shop
Background For the purposes of this report the term Community Café will be used to refer to facilities which can be variously known as Cafés, tearooms or shops. However, all include the provision of food and drink for consumption on the premises.
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wenty-seven Community Cafés have been established since 2012 across the Republic of Ireland. These Cafés have been established in response to a community need arising from circumstances such as post-office closures, closure of social hubs, and increase in rural and social isolation and lack of local amenities. The loss of informal places for meeting has had a devastating effect on communities. Without comfortable places in which to meet, the social capital of an area has been impacted and a cycle of decline has started that is difficult to reverse. This decline loosens
community bonds and, bit by bit, the factors that supported communities and helped them to be self-sufficient die away. Each of the Community Cafés were established in an area where a privately-owned facility does not exist and would not be viable within normal commercial enterprise parameters. It is also noticeable that, in rural communities where such a facility does not exist, community surveys regularly highlight the need for a café, restaurant or similar,as one of the most important improvements that could be provided for the community.
We are Social Enterprises While our structures may be different our commitment to our local communities is identical ationally Community Cafés Directors replacing the Management are all social enterprises i.e. Committee. businesses whose core objective Community Cafés rely on volunteers is to achieve a social, societal or during the start-up phase but as they environmental impact; some trade mature, they transition to a hybrid as CLGs, others are established as model with paid staff being supported cooperatives. All social enterprises by a large volunteer base. are governed by the same financial This is a model that has been repeated and legal rules as are applicable to any across all Community Cafés nationally. small, private, profit seeking business in Volunteer enthusiasm and commitment Ireland. and the return of being involved in something new will sustain any However, profits are reinvested new endeavour for a period of time. into the social enterprise or into the Eventually, however, both the demands local community. Cafés operating of management and governance and the as cooperatives are owned by setting in of volunteer fatigue, mean shareholders from the local community that, while volunteering is still a critical with the day-to-day operations being component of the model, some paid the responsibility of the community assistance becomes a necessity. This is café manager and volunteer Co- particularly so where the success of the op Management Committee. Those venture see a high volume of new and established as CLGs are run, in a repeat customers. very similar way, but with a Board of
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Our Role and Range of Services
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ommunity Cafés offer opportunities for employment for micro-suppliers, development of hospitality / service skills and volunteer / employment opportunities for people with additional needs who sometimes struggle to find suitable employment opportunities. They play a vital role in supporting and amplifying community-led sustainability and educational initiatives in partnership with the local community. Such partnership is rooted in shared values of social inclusion, intergenerational connection, and environmental responsibility, and directly supports five key UN Sustainable Development Goals (SDGs): Quality Education, Good Health & Wellbeing, Sustainable Communities, Responsible Consumption & Production, and Climate Action. Apart from the obvious services e.g. food / hospitality. Community Cafés offer services such as:
Pay A Bill
Credit Top-Ups
Stamps purchase
Postage and Parcel Facilities
Cards & Gifts
Community Noticeboards
Tickets to Local Events / Attractions
Community Hub
Space for Activities
They are, therefore, community hubs that can meet many of the smaller and more day-to-day needs of the community and, crucially, provide that warm, comfortable and inviting meeting space which is so vital to community health.
The Importance of the Community Café
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ommunity Cafés fall within the conceptual sphere of social capital. While this is a contested term, it has been defined as “the networks of relationships among people who live and work in a particular society, enabling that society to function effectively.” This concept can be applied at societal level or neighbourhood level. At a neighbourhood level, three types of social capital have been identified – bonding, bridging and linking. Bonding social capital is that which exists between members of the same group, who often have many shared characteristics and beliefs. This can be positive in creating safe places in which people feel comfortable to be themselves, but it can also be negative in generating exclusion and barriers to others. Bridging social capital is that which creates links across groups and allows for intergroup exchange and
collaboration. Linking capital refers to the vertical linkages to places and institutions of power. There is substantial literature about the importance of meeting places in the development of bonding and bridging social capital in particular. Historically, these were community centres, pubs, churches and Cafés. In today’s world, these have been added to by online meeting spaces. There is an ongoing debate as to the extent that online meeting places develop and sustain social capital and they are seen as having both positive and negative effects. Whatever the balance, however, online spaces cannot replace many of the positive aspects of a good community café and particularly its social, personal, and creative atmosphere. A Café provides a relaxed environment, fosters informal networking, and allows
for non-verbal communication that is difficult to replicate online. Add to that the positives which rising from sharing food together and the community café has a unique place in the social capital eco-system. There has been some study of the role of pubs, Cafés and community centres in providing places where social capital can be developed and maintained and the factors that are important in that context. Discussions have focused on issues such as the level of activity, the length of time that facilities are open, accessibility in terms of the availability of transport and parking and the level of diversity of the clientele. A number of writers have conceptualised Cafés and especially Community Cafés as ‘third places’ in between the intimacy and privacy of home and the public and more formal interactions of the workplace. This ‘third place’ status of Cafés arises from a number of sources. Firstly, the possibility for informal and intimate connections is created by virtue of the neutrality of the space offered by third places. Secondly, the third place has a social ‘levelling’ impact in which it can offer an experience for customers based on equality rather than differentiations based on status or wealth. A further key characteristic of third places is the presence of playfulness in which ‘joy and acceptance reign over anxiety and alienation’ as one writer states. Community Cafés have been contrasted with outlets of many of the café chains.
In Community Cafés, seating and spaces are arranged to encourage discussion and contact; whereas the chain Cafés tend to be what is called sociofugal in form, which discourages communication between people. Therefore, the Community Cafés positively encourage the development of the bonding and bridging types of social capital which the other forms of café are less likely to support.
A National Contribution We are Significant Employers
27
Community Cafés across the country Community Cafés in 11 Counties
18
Full Time Jobs
32
PartTime Jobs
Carlow Cavan Clare
Assisted by
Cork Kilkenny Limerick Mayo
362
Offaly Sligo Tipperary Wexford
Volunteers
The Impact We Can Have Community Cafés, being based within their communities, are run as social enterprises. They strive towards a community benefit rather than a return on investment. Community Cafés often have a range of impacts that go far beyond that of satisfying the catering needs of their customers. These impacts can be viewed as sociocultural, economic, environmental and inter-generational. Socio-Cultural Impact
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n area of significant strategic importance for Community Cafés is the socio-cultural environment and the response which they provide to the diminishing fabric of rural communities arising from the loss of local amenities. In some rural villages young couples with families have moved back to the locality – helped by a combination of hybrid employment opportunities and a greater rural infrastructure and services, including Community Cafés. Community Cafés provide a space for all and ensure intergenerational connections are maintained. They provide spaces for parent and baby groups and primary school connections through community events or partnerships. They provide employment and work experience opportunities for secondary school and or college students, as well as partnerships with social care providers.
Community Cafés provide a meeting hub for the community; stories and information are exchanged, and inperson connections are amplified through connections with Café staff and volunteers. People who once felt isolated in the community now have a place which they can visit and where they can interact with other community members. As highlighted by academic papers, this connection is vital for many and provides a sense of community care as their absence will be noticed by others. Preservation of local folklore and communication of stories through intergenerational interaction, ensures such cultural information is maintained in the locality. An important feature of Community Cafés is that, because they provide a culturally validated recreational activity, there is no stigma associated with visiting such a facility, even if the true reason for the visit is not the ostensible one of being served food and drink but that of making human contact, having a non-challenging discourse or hearing the news of the area. While such an opportunity would be available in other settings such as pubs, it would not necessarily be available in all contexts.
More Than One Kind of Impact
Socio-Cultural
Economic
Economic Impact
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rom an economic perspective, social enterprises such as Community Cafés perform many positive functions, often fulfilling roles where “free market forces” have failed e.g. sustainable job creation and supporting local enterprises. Community Cafés have significant economic impact on the local community such as creating fulltime jobs, volunteering opportunities, and upskilling/reskilling opportunities through partnership with the local ETBs. In some cases, it has enabled old or disused buildings to be re-purposed and created an outlet for micro-food producers or handcraft enterprises contributing to the economic well-being of the rural locality. Community Cafés play a vital role in supporting tourism, especially in areas of historical interest or natural beauty which are often located in extremely rural areas. Having a space that offers
Environmental
Inter-Generational
hospitality, and a local connection or experience enhances the tourist experience and benefits the economy as a whole. Many Community Cafés have long-established strong links with their local tourism offices and benefit from international trade during the high tourist season. Many Community Cafés are female-led and run and give an economic outlet to many (predominantly female) food suppliers and craft-makers in the local community thereby harnessing an important societal contribution that may be otherwise lost and helping to address the issue of gender balance in entrepreneurship. Environmental Impact
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s societal values shift, consumers are becoming more conscious about where and how their food is grown. Social enterprises are focussed on achieving a positive social,
Inter-generational Impact
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ommunity Cafés provide unique opportunities to both develop and maintain intergenerational engagement such as mentoring by staff, sharing culinary skills with students, and supporting social learning. They provide locations where young and old can meet in groups and where interchange between these groups can be fostered. This ongoing exchange fosters lifelong skills in sustainability, health, and entrepreneurship. Through music and heritage activities, including folk song performances, the interaction of young and old reduces social isolation, strengthens local culture, and nurtures crossgenerational connection.
societal or environmental impact. For most Community Cafés they offer access to local produced food or crafts; have adopted a zero-waste policy or commenced an action to achieve this; with a view to reducing their overall carbon footprint.
Our Future Viability
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he viability of any business is dependent on the balance between costs and income. Costs can be divided into fixed costs, which apply no matter what the level of business, and variable costs which rise and fall relative to business volume. Typically, fixed costs include rent, insurance, management, maintenance, office overheads and similar. Variable costs include raw materials, production costs, production and service personnel and similar. In general, in business such as Community Cafés, the variable costs can be met by income. As business increases the variable costs increase but so does income. There is usually a small premium included in the prices charged, so that a portion of the fixed
cost is also covered by income. However, in small communities with a limited market and where the services are being provided by a social enterprise as market failure does not allow the service to be provided on a commercial basis, the level of business is often not sufficient to cover all fixed costs. The lower the level of business, the less likely it is that the fixed costs will be capable of being covered by income. A particular challenge for small, rural social enterprises is the cost of management personnel. Such personnel are critical to quality control and business development, but it is common that sufficient surplus cannot be generated from operations, to pay for this resource.
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ur Rural Future was possibly the most positive statement about rural Ireland in a generation. The vision of that document for rural Ireland
is of a “thriving rural Ireland is which is integral to our national economic, social, cultural and environmental wellbeing and development, which is built on the interdependence of urban and rural areas, and which recognises the centrality of people, the importance of vibrant and lived-in rural places, and the potential to create quality jobs and sustain our shared environment.” Part of the mechanisms for achieving that vision involves a commitment to “Invest in rural towns and villages as hubs of economic and social activity.” It is acknowledged that a significant amount of that investment will be targeted at the
larger settlements, but it is important that the smaller settlements such as those where most Community Cafés are located are not forgotten. In addition to fitting well with the policies as set out in Our Rural Future, many Community Cafés address the Town Centre First approach and the policy to support the purchase of vacant buildings for community purposes as so many Community Cafés are located in, or close to, settlement centres and have involved the re-purposing of vacant or underused traditional buildings. Finally, the programme for Government is very specific in its intention to “Work to support the development and retention of community-run shops and Cafés”.
Types of Support
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n interpreting that statement in the Programme for Government, what becomes critical is the nature of the support which will be provided. From the point of view of a community organisation, there are two categories of support – support for capital expenditure and support for operational costs. Traditionally, there has been and continues to be good support for one-off capital expenditure. Indeed, many Community Cafés have availed themselves of that form of support in order to get established. However, the willingness to provide ongoing operational support has been much less forthcoming and many community projects have almost foundered on the lack of such support. Interestingly, the CES, TUS and RSS schemes have, despite their limitations, probably been some of the best ways of providing widespread operational support for community actions. In more recent times, however, there seems to have been a slight shift in that stance with a greater recognition that state-supported capital investment may remain underutilised unless some small support is provided for ongoing costs. • The long-standing Community Support Programme operated by Pobal, provides support to the community and voluntary sector for operational costs, including a manager’s salary. • The Support Scheme for National
Organisations does the same for national level organisations in the community and voluntary sector. • The LAWPRO Catchment Support Fund helps build the capacity of nongovernmental organisations working in the area of water quality in Ireland by providing funding toward core organisational running costs. This funding call is open to not-for-profit non-governmental water focused organisations only. • The Heritage Council’s Organisation Support Fund aims to build the capacity of non- governmental organisations working in the heritage sector in Ireland by providing funding towards their core costs. Therefore, as these examples show, it is recognised at national and Governmental level that this form of support is needed for organisations in the community and voluntary sector. This applies, without a doubt, to Community Cafés. It is proposed, therefore, that in order to meet the policy stance of Our Rural Future and the commitment in the Programme for Government in a meaningful way, and to provide that support which is needed, a scheme to provide ongoing, albeit conditional and limited support to Community Cafés will be established, in recognition of the major social, economic and environmental impact which these facilities have, particularly in small rural communities. If such support is not forthcoming, then the future of many of these facilities is bleak.
Where To Find Us County Cavan Clare Cork
# of Cafés 1 1 1
Kilkenny
4
Limerick
2
Mayo
2
Offaly
2
Sligo
6
Tipperary
6
Wexford
2
Location Kilnaleck Scarrif Courtmacsherry Muckalee Windgap Freshford Ballyhale Kilmeedy St Munchins Louisburgh Murrisk Moneygall Pullough Coolaney Coolnacool Mullinabreena Ballinafad Knocknashee Drummartin Loughmore Moyne Ballingarry Cloughjordan Lorrha Annacarthy Our Ladys Island Ramsgrange
The Cottage Loughmore
€1 spent in a chain store is a transaction, €1 spent in a community shop is a transformation.
A Case Study
Awards We are Social Enterprise World Forum’s People & Planet First Verified. Recently The Cottage was awarded the Social Enterprise World Forum’s People & Planet First Verification, one of the first social enterprises in Ireland to secure this. People & Planet First is a robust verification mark for social enterprises which is recognised globally and adopted in 130+ counties. The verification focuses on five core standards: 1. Purpose: It exists to solve a social and/or environmental problem. 2. Operations: It prioritises purpose, people and planet over profit in operational decisions. 3. Revenue: It has a self-sustaining revenue model. 4. Use of surplus: It reinvests the majority of any surplus towards our purpose. 5. Structure: It chooses legal structures and financing that protect and lock-in purpose long-term. Year 2013 2014 2015 2016 2017 2019 2019
Award County Tipperary Community & Voluntary Association Award for setting up and running our Community Project. Irish Times Best Tearooms in Ireland Award Templemore Credit Union Award for our contribution and commitment to local community Winners of the 2016 National Get Involved Award judged by Duncan Stuart. John & Sally McKenna Good Food Awards (retained yearly since 2017) County Tipperary Chamber of Commerce Award for Hospitality & Tourism St Cronan’s Roscrea Community Champions Award
The Cottage has also been features on National & International TV programmes including RTE's Nationwide & Ear to The Ground as well as UK based Tipperary TV, TG4.
Background
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he Cottage in Loughmore arose from a need, a vision and two determined women. The need was that Loughmore, which once had a small but adequate service sector, had, in a very short time, lost virtually all its services. The vision was that by coming together, the community of the area could address some at least of that loss. It was the energy and fortitude of Mary Fogarty and the late Maeve O’Hair that has made this vision a reality. Loughmore Community Co-operative Society Ltd., trading as The Cottage (Loughmore Co. Tipperary) is a first of its kind cooperative set up in 2012 based on the principles of the Plunkett Cooperative Movement - whose mission is to promote social inclusion and reduce rural isolation for an ageing rural population. The Cottage Manager is Mary Fogarty and The Cottage Management Committee (7 persons) is chaired by Jim Russell and includes the following positions: Chair, Treasurer, PRO and volunteer members. The Cottage employs three full time staff, seven part time staff and has approximately 20 volunteers ranging from transition year students, retirees and volunteers with additional support needs. Services provided by The Cottage Loughmore include hospitality and a pantry shop as well as bill-pay, phone credit purchase, postage stamps and a village postage box, mass cards,
community notice board, and a tourism hub which provides access to local historical sites such as Loughmore Castle, the Cormack brother’s mausoleum and Loughmore Mill to name a few. In addition, The Cottage provides a space for groups to meet e.g. parent and baby group, active retirement and the local development committee. Most food preparation is carried out on site, with local producers supplying the raw ingredients. A significant focus is sustainability, with attention paid specifically to “food miles” ensuring most produce comes from within a 20-mile radius of The Cottage. The Cottage operates a zero-waste policy and has taken steps to further reduce its carbon footprint with the installation of Solar PV panels in 2020.
Keynote Speaking and Contribution to Education & Research Mary Fogarty & Maeve O'Hair (Co-Founders) invited as Keynote Speakers at Plunkett UK AGM in Oxford. Mary Fogarty (Manager & Co-Founder) has also been: • Invited by the Department of Rural & Community Development to speak at an international Symposium in Bermingham, showcasing our project. • Invited by Tipperary County Council to speak at conferences in Hungary & Slovenia, showcasing our project, where we won an award for being the most sustainable & replicable project out of 13 other international projects being showcased. • Invited by Universities in Ireland to speak - UCC, UCG, LIT & DCU. • Assisting and supporting many Co-operative Studies Students who have used "The Cottage" model for their Thesis.
Meaningfully Contributing to the Wider Community • Board member of Tipperary Tourism. • Board member of Thurles Tourism -Hidden Heartlands. • Represented on the North Tipperary Leader decision making panel. • Represented on the Community Climate Coaches Action Committee. • Represented on Loughmore Community Development Committee
Community Impact - A Partnership
“The Loughmore National School – Cottage partnership exemplifies grassroots impact through shared resources, values, and care. Together, we continue to build a resilient, inclusive, and sustainable rural community. The name Loughmore derives from Luach Maigh which means “reward field” in Irish, and the National School – Cottage partnership means that the area can remain a reward field for all.” - Angela Dunne, Principal, Loughmore National School
In May 2025, Loughmore National School was one of only twelve schools nationally to receive recognition for this project from President Michael D. Higgins at Áras an Uachtaráin as part of their continued support to the UN Sustainable Development Goals.
A Example of Partnership
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n 2023-2024, the Cottage collaborated with Loughmore NS on a flagship biodiversity project: the installation and management of a school Poly-tunnel. Funded by an ESD Grant, the Poly-tunnel serves as a hands-on, multi-sensory classroom for pupils aged 4–13, including those in ASD special classes. Fresh organic produce grown by the pupils is regularly supplied to the Cottage, marking the school’s entry as Junior Tipperary Food Producers. The following are highlights of the impact of this project which demonstrates the added value which a community café brings, and which is very difficult to include in a profit and loss account.
• 100+ students engaged in sustainable food production • 500+ portions of organic produce shared • Regular intergenerational events enhancing social well-being • Support of ASD inclusion and special education • Promotion of local food heritage and storytelling through digital creative projects
A heartfelt poem about "The Cottage" by Seamus Brennan. Seamus is one of our most loyal volunteers and is a service user of St Cronans and St Anne's in Roscrea.
What Our Customers Think Between 15 March and 4 April 2025, we interviewed 48 visitors to The Cottage to understand the frequency of their visits, how far they’re travelling to visit, why they visit and how important The Cottage is to their everyday lives. The result of the frequency of visit question is shown below:
45 of the 48 respondents (94%) indicated that they lived in the Loughmore Area.
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hile only 2 people visited every day, a little under a third visited once or twice a week, while slightly more visited us a few times per month or a few times a year.
The vast majority of interviewees knew that the café was a social enterprise, and it was an important consideration for everybody with over 90% saying it was very important. Everybody would, without exception, recommend the café to a friend. Most people knew about the café from being a resident in the parish, word of mouth or by being involved in some way with the facility. Finally, people were finally asked if they had any other comments, and again these all referred to the opportunity to socialise, the excellence of the staff, the great welcome and atmosphere and the quality of the food.
Customers Feedback Survey
94% of customers were local. “The Cottage means everything to me. I am over 80 and a widow so it’s nice to meet friends at The Cottage. You come home refreshed”
“A great Irish success story – local communities helping locality, supporting local employment, small farms and enterprises”
“The Cottage has completely made “It has brought life back to our village and Loughmore as a place to go. Great place supports people (working) at home with to meet friends. It has made a huge baking, honey making etc.” impact on my life” “I live locally and find the facility to be "The best thing that ever happened in our absolutely invaluable on a personal level parish” & for the wider community” “It’s a great asset to the village”
Small But Impactful
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hough a relatively small rural enterprise, The Cottage does have an economic impact. The economic impact of The Cottage arises from its direct expenditure, plus the indirect and induced expenditure to which it gives rise. These latter effects are often combined into one multiplier effect, which for an enterprise of this nature is often accepted to be at around 1.6 due to the localised nature of much of its expenditure. On the basis of these figures, the economic impact for 2023 would amount to a direct effect of €209,984, a multiplier effect of €125,990.40 or a total impact of €335,974.40. This, also, does not take into account 1. The likelihood that some supplier enterprises which have their own economic impact would not exist if it were not for the café 2. The additional expenditure in the area which is likely by some who travel to visit the facility from outside. 3. The reduction in expenditure on social services and mental health supports which is attributable to the café’s existence. This is almost impossible to quantify but certainly exists. In addition to the overall economic impact, the enterprise generates a direct return to the exchequer of nearly €19,000 in 2023. To that can be added the indirect returns to which it also gave rise.
Testimonials "Since Loughmore Cottage was established in 2012 it helped others to set up tearooms and Cafés around the country. The management team travelled to other locations and welcomed many visitors to Loughmore. By sharing their experience they inspired other communities to replicate their facility. Mary and the team members travelled to the UK and EU to speak at meetings on the value of Community Cafés as socially inclusive centres. Their work has now been replicated in so many places beyond Loughmore and Co. Tipperary. The cottage has planted many seeds of regeneration within the social overall enterprise sector." Dr. Senan Cooke Dunhill Ecopark, Co. Waterford
"EcoVision are delighted to have been directly involved with the cottage where we facilitated the installation of a solar PV system in 2021. Their recognition of the importance of sustainability as part of the overall development is a good example to others of how to take a comprehensive approach to social enterprise. Looking at all of the elements that will go together to create a service within the community." Máirtín Ó Méalóid, EcoVision
Conclusion
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he impact of Community Cafés is obvious - not just through their economic impact, but also through their social and environmental aspects. They are the heartbeats of their localities, bringing life, joy and hope to isolated, and in some cases, almost decimated, rural communities, and they address rural isolation head on. Community Cafés provide a meeting space, an opportunity to reinforce community bonds where amenities and services have atrophied over time. In all cases, Community Cafés are not for profit, and they aim to keep prices as low as possible to ensure they are as inclusive as possible. Community Cafés support Government policy through their contribution to a thriving rural environment. Since the establishment of The Cottage in 2012 over twenty-seven Cafés have sprung up across the Republic of Ireland. Nearly all started out with a volunteer model, but over time they must adapt and move to a hybrid model i.e. paid staff members as well as volunteers. With costs increasing, their future viability is under critical threat if they cannot secure immediate multi-annual funding to help meet fixed costs.
The Cottage - Financials for FY 2024 Income Sales Opening Stock Purchases Closing Stock Cost of Goods Sold Gross Profit
Amount €197,458.64 €2,888 €63,483.48 €2,888 €63,483.48 €133,975.16
Expenditure Wages Running Costs Total Expenses
Amount €101,788.63 €30,059.55 €140,848.18
A loss of €6,873.02 for the year. Identifying Fixed v Variable cost shows that 66% of our total costs are Fixed Costs. Fixed Cost Suppliers Wages Rent Electricity Insurance Phone Banking Fees Auditors Fees Loan Repayments
€101,789 €7,200 €7,036 €1,118 €578 €907 €1,750 €3,848 €124,226
Variable Cost €63,483
€63,483
From this it can be seen that the income was well able to cover the Variable Costs but that the problem arises with the Fixed Costs. Things like heat and light, volunteer expenses and office overheads can be covered by income, but the real challenge is in finding enough surplus to pay for the management salary, rent and loan repayments. Social Enterprises such as this cannot afford to be run at a loss. They need to make a regular small surplus in order to create a reserve and to allow significant refurbishment and equipment replacement to take place from time to time. Café operations also resulted in returns of €18,641 directly to the Exchequer through Income Tax, USC, PRSI & Employer PRSI.