The World Cup is giving the nation’s pubs a vital boost but there are huge challenges facing landlords and ladies, from employment costs to energy
Nearly half of landlords aren’t confident about their pub’s future over the next year, exclusive research has revealed.
While the World Cup has delivered a much needed boost to takings, many publicans are battling to survive in the face of a wave of cost increases, from wages to energy.
The cost of living squeeze and changing habits have also impacted how often drinkers nip down their local. The Mirror has long highlighted those challenges as part of its Your Pub Needs You campaign.
A Survation survey by Greenpeace found 47% are not confident about the future of their pub over the next 12 months. A further 19% are unsure either way.
Of those who described themselves as not confident, around two thirds thought their pub could only continue operating under current conditions for less than 12 months. Another 22% said they thought they could only survive between one and two years.
To keep their business afloat over the past year, 48% of badly impacted publicans say they have dipped into their personal savings, 18% have resorted to personal credit cards or loans, and 7% have had to remortgage their properties.
The stark findings come as Greenpeace calls for the government to extend help with sky high energy bills to pubs.
When asked to rank their biggest worries over the last year, wages and national insurance came top, but closely fallowed by the cost of energy.
Nearly nine in 10 said they were concerned that the conflict in Iran might increase their energy bills even more this year.
While a peace deal between the US and Iran has been signed, the cost of energy is still higher than before war broke out in late February. It has compounded the impact Russia’s invasion of Ukraine, which sent wholesale costs soaring.
Pubs are have had to react to rising costs by taking sometimes drastic action. According to poll, 89% of publicans have increased their prices over the past year, 62% have reduced staff numbers or cut working hours, 55% have adjusted their heating or electricity usage during opening hours, and 49% have delayed or reduced their own owner or their manager’s pay.
Lily-Rose Ellis, climate campaigner for Greenpeace UK, said: “So many communities rely on their local to act as a village hall, social club, meeting room and every other function a community needs.
“But the energy demands of running a pub make them vulnerable to volatile oil and gas prices, driven by conflict and the war profiteering of fossil fuel companies. “Pubs, and other community spaces, could save money with cheaper renewable energy if they were added to the government’s plan to put solar panels on schools and hospitals and lower their bills. For many pubs across Britain it’s that or closing time.”
Greenpeace is calling on the government to expand its scheme that funds solar on a small number of schools and hospitals to reduce their energy bills, to support pubs, leisure centres, and other community hubs too.
Miles Lyster-Connolly, of The Prince Albert, Stroud, said the pub’s energy contract jumped by between 35% and 40% two years ago. To try to soften the blow, they have installed solar panels and batteries. Mr Lyster-Connolly said it had tried hard to keep a lid on prices for its punters, but added: “Going to the pub is now the preserve of the middle classes rather than the working class.”
Adam Roberts, who owns two pubs in Chester, was also left reeling by a surge in their energy bills, but has recently negotiated a new contract that will save £18,000 a year. “We are very busy, but you have to be to make any money.” he said. “I spoke to a friend who runs a really good bar in town and it is going under.”
