‘PRICES HAVE TO RISE BUT WILL PEOPLE PAY THEM?’

Pub landlord voices the concerns of the hospitality trade

THE energy crisis alongside other spiralling costs will force pub and restaurants to raise prices – with one landlord saying the big unknown is whether people will keep coming.

Trade body UKHospitality said some 93 per cent of hospitality businesses have said they plan to increase customer prices this year.

Tracey Emberton is the landlady at the Bryn Arms in Gellilydan, near Blaenau Ffestiniog, where she is assisted by partner Wayne.

The current energy crisis hitting homes and businesses was highlighted when they went to renew their electricity contract and were quoted £87,000 for the year – almost £60,000 more than they are currently paying.

After hunting down better quotes they have an offer of £47,000 as well as higher standing charges – making it nearly double the current bill.

It is not the only cost that is rising – with wages in the sector going up and suppliers forced to raise prices due to higher energy and fuel costs.

The Bryn Arms estimates it will have to put 50p on a pint by the summer and potentially more by the end of the year – as well as extra on menu prices.

They said: “It is unbelievable – that is just the electric, it is the same with our oil and LPG gas.

“I know households are seeing rises but in the commercial sector it is awful.

“We can’t keep absorbing the cost, we will have put 50p on a pint and it could even be a £1 by the end of the year, we will not make a penny more.

“The big question is ‘are people willing to pay it?’ or will they vote with their feet.

“Everyone in hospitality is in the same position as us and it will be a tough 12 months ahead, our aim is just to break even while paying ourselves a small wage.”

They are refusing to be daunted after two years dealing with a pandemic and are looking at a new accommodation building to add an income stream.

UKHospitality said firms told them they need to lift prices after witnessing double-figure increases in energy bills, labour, food and drink prices and insurance costs.

Businesses are also due to see VAT on food and soft drinks increase back from 12.5% to 20% and witness an increase in business rates in April.

To help beat the energy price hikes some are looking to renewables.

Carbon Zero Renewables – part of the UK Leisure Living Group, which has sites in St Asaph, Mochdre and Deeside – is taking on more staff to cope with a surge in enquiries, having experienced their busiest ever January.

Managing Director

Gareth Jones said: “The new price cap is going to make life very difficult for homeowners and companies in fixed contracts which for years had been affordable but could now treble.”

Vale of Clwyd-based Hafod Renewables, has also been inundated with calls.

Hafod Managing Director David Jones said: “These increased charges are going to hit everyone including homeowners but at least there is a cap on domestic charges even though it’s going to go up.

“For businesses there’s no cap so they are going to be subject to the full force of these price increases and that could mean charges going up by hundreds of thousands of pounds a year.”