British pubs are decreasing hours and shutting as energy prices soar by tens of thousands of pounds. Landlords call it a “greater catastrophe than Covid.”
Gas and electricity bills might rise 300%, wiping away earnings and causing many businesses to collapse.
Six of the UK’s largest pub and brewery sector chiefs called for Government involvement yesterday.
One landlord suggested it would be difficult ‘unless you charge £10-14 a pint’
Business owners want the next Prime Minister to intervene immediately because rising expenses may kill the British pub.
MailOnline explores the harsh decisions landlords, café owners, and restaurateurs face under growing energy rates.
Ye Olde Fleece Inn in Kendal has seen its yearly power cost rise by £80,000.
The ancient pub’s yearly power cost is £44,000, but it was charged £124,000 for the year from Christmas.
Chris Moss, director of Westmorland Hospitality, which manages the Fleece, told MailOnline it’s ‘horrendous’
We fear losing the British pub if the government doesn’t act.
“We must decide. They’ll intervene? Or will we close the pub?
He claimed they anticipated their bill to grow, but were astonished by how much it had risen. He added that it has probably raised again since then.’
The corporation will reduce hours and meals to save energy use and costs.
Mr. Moss said they are minimising the usage of high-energy grills to save expenses.
Mr. Moss says many of Westmorland Hospitality’s 80 employees are’stressed’ by tight margins.
Without help, hospitality workers in the UK might lose their employment and fall into poverty.
The Fontmell, a Michelin-starred gastropub in Dorset, will close ‘immediately’ because of rising costs.
The closing of a B&B and bar in Shaftesbury, Dorset, devastated the local community.
The Fontmell’s Director John Crompton said on Facebook that the pub no longer wanted to transfer energy costs onto customers.
‘Unless you charge £10-14 a pint and £40 for a full dish, you have no hope of surviving, and I won’t pay that. He said I it’s impossible.
The Fontmell’s Director John Crompton said on Facebook that the pub no longer wanted to transfer energy costs onto customers.
Mr. Crompton said on Facebook: ‘It is with a sad heart and great sorrow that The Fontmell will cease immediately other than to honour bed & breakfast reservations.
‘This was not an easy choice, and we appreciate all our visitors for their support over the previous 6 1/2 years.’
Laura Barton said the Fontmell’s closing in a ‘prosperous’ location is ‘concerning’ as firms and customers confront an ‘iceberg’ of growing prices.
A Buckinghamshire gastropub’s gas and electricity expenses almost tripled from £25,000 to £70,000.
Henry Cripps, a landlord, told MailOnline that whomever occupies No. 10 must rescue the hotel business.
‘At a time when many suppliers refuse to service hospitality firms or ask for bonds, it’s a troubling time to be in the lucrative and pleasurable hospitality industry.
We’ll endeavour to limit these unusual increases while safeguarding our staff and customers.
He noted that’many of our friends in the sector suffer due to rising prices’ and that anxiety is growing as winter approaches.
John Wilkins, 55, the landlord of The Royal Oak in Burford for eight years, said his power cost had quadrupled, rising by ‘thousands’
Royal Oak, Burford: electricity bill ‘doubled’
John Wilkins, 55, the landlord of The Royal Oak in Burford for eight years, said his power cost had quadrupled, rising by ‘thousands’
While they’ve been ‘fortunate’ with visitor traffic, ‘winter will be challenging,’ he added.
Mr. Wilkins remarked, “You can’t rule out anything” when asked whether the bar may shorten its hours or close. We’re concerned, no question.’
“All pubs are struggling right now,” she said.
The energy “crisis” is “100% worse than Covid,” he said.
Another famous pub and restaurant in East Lancashire is shutting because of rising prices.
Darina and Craig Currie, landlords of The Park in Great Harwood, posted on Facebook about its closure, which they called ‘unavoidable’
The pair claimed things were ‘finally looking better’ after ‘an very traumatic 12-18 months’ with Covid.
They now “face an even worse predicament,” they claimed.
They cited the “continuous escalating cost of beer, food, and utilities,” adding, “We just can’t afford to keep the bar open.”
The numbers don’t add up and things will grow harder, that’s the fact.
The bar will close on September 5 because its owner is seeking a new tenant.
The price is £21,000.
The Curries claimed, “The brewery can’t find somebody to operate it since we’re going” (overheads). In the present environment, we don’t know.’
The pair congratulated devoted workers and customers and said, ‘We’re sorry your favourite watering place is closing.’
An 1811 pub in York city centre shuttered when its monthly expenditure nearly tripled.
The Gillygate’s monthly costs have risen from £900 to £2,500.
Former bar owner Brian Furey told the BBC, ‘It’s almost ludicrous, you receive your bill and think ‘we can’t do that.’
His staff sought to keep The Gillygate functioning and thought Christmas may help.
Mr. Furey considered taking out a loan to keep the bar operating, but earnings wouldn’t have paid it.
Former Gillygate owner Brian Furey told the BBC, ‘It’s almost ludicrous, you receive your bill and think ‘we can’t do that.’
Another bar is closing two days a week to save expenses.
The Crown Inn in North Yorkshire closed on Mondays and Tuesdays as electricity prices rose.
The pub’s owner, Paul Dixon, said, ‘It was a painful choice, but it gets quiet in the winter.’
When fuel costs rise, it’s not viable to run all the equipment.
Five Fox Lane, Leicester: £10,000 to £55,000 a year in bills
In another illustration of the escalating cost of living issue, a tiny family-owned café faces a 450% power bill jump.
Five Fox Lane in Leicester might close after owner Jan Gillbanks got a £55k electrical bill.
Ms Gillbanks told MailOnline she had to have a stern chat with her seven loyal employees about the high prices.
She responded, “That’s the final resort.” We hope the government caps electricity prices.
The owner of the company said that she and her employees are all coping but that it is a “sad” development in the uphill struggle to endure during and after Covid.
We had just been operational for two months when Covid occurred, forcing us to shut. Just one full year of trading has passed, and here we are. It seems like one continuous struggle.
Ms. Gillbanks has experienced the cost of living problem most acutely in recent months, but she “never anticipated” prices to rise by such an enormous amount so quickly.
You hear about it on the news all the time, but unless it’s written down and you’re considering solutions, it doesn’t really sink in, the woman said.
The entrepreneur thought she could call around with rivals to obtain a better bargain at first, but she soon realised that wasn’t going to happen.
She responded, “Nobody wants to do it.” “The best contract I can obtain is for £55,000 per year.” Even so, they warn that it can increase to £80,000 the next year.
“It’s not tenable.” No little company could afford that.
Ms. Gillbanks is confident she will find a way to survive for the time being despite the tremendous shock. But if it doesn’t happen sooner, she worries that a further price increase after Christmas might be “the nail in the coffin.”
Ms. Gillbanks is searching for further methods to reduce expenses, such as investing in more energy-efficient refrigerators and lowering the water’s temperature.
Even yet, she estimates that these actions will only result in annual savings of about £5,000, leaving her with an additional £40,000 in debt compared to last year.
A restaurant owner who had to shut down his family company because of skyrocketing energy costs expressed his hope that safeguards would be put in place to assist others.
Earlier in August, David Haetzman, 49, was compelled to close his restaurant, the Firebrick Brasserie in Lauder, close to Edinburgh.
Mr. Haetzman said that the restaurant’s energy costs almost doubled, rising from £1,000 per month to around £4,000, prompting him to make the tough choice.
Earlier in August, David Haetzman, 49, had to close his restaurant, the Firebrick Brasserie in Lauder, near Edinburgh.
The chef expressed his grief and general distress to the PA news agency. Clearly, during the last seven years, we have invested a lot of money in the company.
We’re incredibly enthusiastic about what we do, so having to shut down is quite upsetting.
The cost-of-living problem, namely the rise in energy costs, is what pushed us over the brink.
The previous few years with COVID-19 have been really challenging, but we made it through, he added. All of our pricing rose dramatically as a result of the rise in the cost of basic components. We were unable to maintain it in any way. Although customers continued to enter the store, they spent less since their cost of living grew as well.
Unavoidably, there were layoffs as a result of the restaurant’s closing.
It’s really difficult, according to Mr. Haetzman. For a long time, we had a small but really effective staff, and it’s always hard to let individuals leave.
The family company employed his three children, Alex, 23, Charlie, 17, and Sophie, 15.
For all of us, it is a sad day. The most we will miss is taking care of our consumers. We are quite enthusiastic about creating quality cuisine,’ he said.