According to a prominent advocate, it is not “viable” for landlords to raise the price of a pint to £15 or £20 in order to meet the skyrocketing cost of their energy bills, which might result in the closure of thousands of pubs.
According to Tom Stainer, chief executive of the Campaign for Real Ale (Camra) organisation, the price of a pint would have to grow to “ridiculous” rates in order to meet the increase in operating costs that bar operators already face.
He stated that some bars have seen an increase in their bills of between 500 and 600 percent.
Mr. Stainer noted that a survey conducted by Camra during the summer indicated that more than fifty percent of the British public believes that the price of a pint is already prohibitive, which indicates that customers would be discouraged by a price of fifteen or twenty pounds for a pint.
According to what he shared with the publication, “what you can say with certainty is that you can’t possibly pass on these energy gains and you can’t boost the pint by 500%.”
“It just isn’t viable for pubs to pass (price hikes this high) on to customers since people wouldn’t come drink at pubs anyway,” said the owner of a bar. “Price spikes of this magnitude just can’t be passed on.”
He stated, “So it’s possible that thousands of bars might be impacted by this. The distinction between pubs and other types of companies is that if a bar is closed, there is a very slim chance that it will ever reopen.
Mr. Stainer made a plea to the government, urging them to intervene and lend their support to the hospitality sector by reevaluating the taxation of beer, business rates, and energy prices.
His warning comes after specialty brewer BrewDog announced it will close six pubs due to its skyrocketing energy prices and criticized the Government for being “clueless.” His warning follows the news.
An open letter to the government was also signed by the CEOs of six of the largest pub and brewing companies in the United Kingdom. These companies include Greene King, Carlsberg Marston’s, and Drake & Morgan. The letter urges the government to take action to prevent “real and serious irreversible” damage to the sector.