Tom Kerridge, a renowned chef, has expressed his dismay at the nearly 700 percent increase in his restaurant’s electrical expenses as a result of the continuing cost of living problem.
The Michelin-starred chef stated that his pub in Marlow, Buckinghamshire, The Hand and Flowers, had received a figure for its electricity bill that had increased by up to 700 percent, as the British hospitality industry risks financial catastrophe this winter.
Mr. Kerridge, who owns three pubs in Marlow and five other restaurants and bars, has cautioned the government that it must swiftly implement a price ceiling for businesses in order to save the hospitality industry.
According to the Office for National Statistics, 48% of adults find it “very or somewhat difficult” to afford their energy costs. In response, the new UK Prime Minister Liz Truss has announced long-awaited plans to combat soaring energy bills, including freezing prices for two years and announcing she will increase domestic energy supplies.
However, firms are still awaiting information regarding extra funding.
As energy costs increase by tens of thousands of pounds, many British pubs are decreasing their hours and closing down. Landlords describe the situation as “an even greater problem than Covid” and claim 400% rises in the cost of their utility bills, which they are mainly unable to reduce because they need the fuel to service their tenants.
Tom Kerridge (pictured) has expressed his dismay over an almost 700% increase in electricity bills for his restaurant business, as energy prices continue to skyrocket amid the ongoing cost of living crisis.
The Michelin-starred chef said his pub in Marlow, Buckinghamshire, The Hand and Flowers (pictured), recently received a figure for its electricity bill that had increased by up to 700 percent, as Britain’s hospitality industry threatens bankruptcy this winter.
Mr. Kerridge, a judge on Great British Menu, told GB News, “The entire hospitality industry is facing a very, very challenging period of time at the moment.”
‘There’s a lot of discussion that seven out of ten pubs won’t survive unless the government takes swift action and announces how it would assist with the cost of the energy problem.
There are other modest and excellent pubs scattered throughout the country, in the heart of towns where the landlord resides on the second floor.
They may barely eke out a livelihood, earning between £25,000 and £30,000 per year.
It is very difficult if your electricity costs are doubling, tripling, or tripling three or four times. The first estimate for the electricity bill at the pub where I am currently sitting has increased by approximately 700 percent.
And Mr. Kerridge warned that the situation will not improve in the near future, anticipating “a very, very terrible couple of years.”
During an appearance on Breakfast with Eamonn Holmes and Isabel Webster, he stated, ‘Obviously, we haven’t decided what to do yet; we’re still exploring our options.
‘But in those little pubs where the landlord makes a modest income, a sudden increase of 50, 60, or £70,000 per year will make it impossible for those pubs to continue to function.
Unfortunately, the supply chain is also experiencing this issue.
‘The butchers, the fishmongers, the farmers, and the vegetable growers – it is inevitable that prices will rise due to food inflation.
‘At the same time, guests and consumers at home have less money as a result of food and price inflation, which essentially rips everything apart.
It will be an extremely challenging couple of years.
The renowned chef disclosed earlier this month that the power cost at one of his pubs would go from £60,000 to a startling £420,000 per year, after he was quoted an increase from £5,000 to £30,000 per month.
He stated that the estimate was provided by his current electricity provider for when the contract expires in December, adding that he was concerned because many of his equipment, including the stoves, ovens, and refrigerators, require electricity.
Baroness Ruby McGregor-Smith, president of the British Chambers of Commerce, warned at the beginning of September that two-thirds of pubs are at risk of closing due to the energy price increase situation.
Mr. Kerridge stated that he will shop around in an effort to reduce his expense, but noted that since his initial estimate, the annual cost has increased from £60,000 to £420,000.
It’s just ridiculous, and that’s just our company. Mr. Kerridge told BBC Radio 5 Live that this is the case for all businesses because there is no ceiling on energy costs for businesses.
The stats are so absurd and outrageous that it’s no wonder so many companies are closing or contemplating closing.