The price of the average pint could shoot up by between 16 and 20p, as pubs and bars struggle with a battery of sky-rocketing costs. Other operators have suggested that this could surge to as much as 70p by Christmas.
Both the brewing and hospitality industries are facing increases in costs, from grain to make beer, to energy to light and heat venues and fuel to power its deliveries. All of this will at some point have to be passed on to customers, with many businesses in the sector having absorbed as much of the increases as they can.
Currently the average pint in the UK costs £4.07, with that figure likely to increase to £4.25 by June, according to predictions from night time economy advisor Sacha Lord, one of the founders of the Warehouse Project.
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“Our sector looks like it's back to normal with the naked eye, but behind the scenes, operators are barely breaking even,” he said. “Many operators will be forced to increase customer prices by around four to five per cent simply to stay afloat and this additional rise will be noticeable to punters.
"Landlords are trying their best in what is a financially precarious situation for many and putting prices up isn't something they will want to do. I believe most will try to keep price increases lower than the current 6.2% inflation rate to keep customers coming in, and will look to cut costs elsewhere such in their supply chains or even by reducing trading hours and cutting staff hours."
It comes as Patrick Dardis, chief executive of the Young’s brewery has warned that a pint could cost as much as 70p more by Christmas, due to grain prices and the huge hike in energy bills. Wetherspoons has also confirmed this month that it will be increasing its prices by 10p across its sites, and 20p in London.
Hospitality operators across the city have warned about increased costs and a looming staff shortage crisis all coming together to make it an extremely difficult time to be in the industry, while many still find themselves deep in debt from having been locked down during the pandemic.
Lord told the M.E.N : “The debt people have taken on is phenomenal. And not to mention the customers, who have also been battered in the pocket. As you get less and less money in your pocket, you look to where you can cut spending it.
“I feel so sorry for people who have worked all their lives in this industry, and seen it snatched away at the last minute. It's heartbreaking.”
Speaking to the Manchester Evening News in February, Paul Jones of the acclaimed Cloudwater brewery said: “We’re surviving, but only by the skin of our teeth, really. The industry is going through all kinds of different pain at the moment.
“All of the basic costs that we face, everything has gone up. And the questions for us now are ‘what can we stomach?’ and ‘for how long can we stomach it?’”
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