Tom Kerridge, a renowned chef, has expressed his dismay about an almost 700% increase in electricity expenses for his pub business, while Fuller’s faces an increase from £8 million to £18 million for its 385-pub empire.
The Michelin-starred chef reported 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 threatens bankruptcy this winter.
Fuller’s has stated that its gas and energy costs will increase by £10 million without government assistance, as businesses await the unveiling of a package this week.
Mr. Kerridge, who owns three pubs in Marlow in addition to five restaurants and bars, told GB News that the government must swiftly implement a price ceiling for businesses in order to rescue the hospitality industry.
Earlier last month, the famous chef disclosed that the electricity cost at one of his pubs will skyrocket from £60,000 to £420,000 per year, a 600% rise.
The price was provided by his current electricity provider for when his contract expires in December, and he is concerned because many of his equipment, including the stoves, ovens, and refrigerators, require electricity.
Mr. Kerridge did not disclose which of his venues faced the £420,000 energy bill, but if it was The Hand and Flowers, the pub now faces a charge reaching £480,000 annually, a 700% increase.
Fuller’s, the owner of 385 pubs, expects its energy expense to more than quadruple this year, from £8 million to £18 million.
The hospitality industry is witnessing unsustainable rises in energy prices, according to Simon Emeny, chief executive officer.
Despite having proactively secured forward contracts to mitigate the impact on Fuller’s, we anticipate major price rises this year and ask the government to offer much-needed clarity on its planned support package so we can plan accordingly.
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.
Mr. Kerridge (pictured), who owns three pubs and five restaurants and bars in Marlow, told GB News that the government must swiftly implement a price ceiling for businesses in order to rescue the hospitality industry.
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.
In an interview on Breakfast with Eamonn Holmes and Isabel Webster, Mr. Kerridge, a judge on Great British Menu, stated, “The entire hospitality industry is suffering a very, very difficult period 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.
Fuller’s reported to its shareholders that it has made “excellent progress executing a variety of initiatives” to lower its energy costs and offset price hikes.
In the 25 weeks leading up to September 17, the hospitality company reported a 21 percent gain in comparable revenues compared to the same time last year.
In addition, the World Cup and the first Christmas without restrictions in three years are approaching.
Nonetheless, the company acknowledged the cost challenges faced by its own clients.
Mr Emeny added: ‘While sales continue to recover from the effects of the pandemic, we are conscious that consumers face increasingly challenging times ahead.’
In an interview on Breakfast with Eamonn Holmes and Isabel Webster, Mr. Kerridge anticipated “a very, very difficult couple of years” with little chance for an improvement in the near future.
Mr. Kerridge foresaw “a very, very challenging couple of years” with little hope for an improvement in the immediate future.
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.
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 earlier this month that he would shop about to see if he could reduce his fee, but from his initial quote, the annual amount has increased from £60,000 to £420,000.
It’s just ridiculous, and that’s just our company. This is every business – every business is getting quoted that because there is no price cap on business energy,’ Mr Kerridge told BBC Radio 5 Live.
The stats are so absurd and outrageous that it’s no wonder so many companies are closing or contemplating closing.
Government will announce measures to aid failing firms
Business Secretary Jacob Rees-Mogg is due to explain on Wednesday how businesses, schools, hospitals, charities, and other non-domestic consumers will be protected from rising gas and electricity costs.
The government has already announced that the average household’s energy costs in England, Scotland, and Wales will be capped at £2,500 beginning on 1 October, but while businesses have been promised equivalent support, they have been waiting for details as officials have been developing a bespoke scheme.
As businesses have not benefited from the current energy price ceiling and are not always able to lock in their energy price through fixed deals, many are predicting energy cost increases of over 500%.
The government intends to implement a six-month program for all non-domestic energy consumers, which will be replaced by a tailored approach aimed at the most vulnerable industries.
Tina McKenzie, policy chair of the Federation of Small Businesses (FSB), stated, “According to our most recent study, nearly two-thirds of small businesses are paying more for energy this year compared to last year, with one-fifth experiencing double, triple, or even higher bill increases.”
She continued, “At this time, they are unable to plan, and are awaiting tomorrow’s announcement to be able to do so.”