Cost of living: Pub sector expert warns of threat to small business

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The owner of The Rose and Crown pub in Bebington, Merseyside, was shocked when hunting for the best energy deal available ahead of the price cap increase in October. Upon using comparison sites, the landlord discovered the best “deal” was with British Gas, with the company seeking a direct debit of £6,215.92 a month, or £61,667.94 a year. The contract would begin in September and end in September 2023.

Sharing the “deal” on Twitter, the owner said: “Just thought I might update you on the latest ‘best’ energy deal available for a pub of our size.

“We were paying 15p/unit in May. This is the best quote available today.”

British Gas is now predicting the pub will be paying 97.05p/unit.

The tweet raked in more than 11,000 likes as people shared their thoughts on the situation.

User @marcfrance said: “The government must put solar panels over every viable home, office, school, factory, carpark, outhouse and hen house, with battery storage for every home and turn each building into its own power station.”

While user @emmacowan11 added: “Absolutely disgusting. We all needed saving via ‘furlough’ etc. But they’re happily sitting back watching this happen?”

The pub said “action is needed urgently otherwise thousands of small businesses will disappear this winter”.

The owners issued a desperate plea for “firewood” to “combat the energy crisis” this winter, and asked pub goers to “leave it at our back gate”.

Seemingly frustrated at the situation, they added: “Fear not, cask beer and candles will be the way forward. Sorry, no cold lagers, coolers too expensive to run.”

Unlike consumer energy bills, there is no price cap on commercial energy costs.

This has resulted in a number of businesses coming under extreme pressure as concerns rise around the energy crisis.

UK Hospitality, Night-Time Industries Association, Music Venue Trust, The British Institute of Innkeeping and The British Beer and Pub Association have said businesses and jobs in the sector are at grave risk, and asked for an urgent support package from the Government.

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Steve Alton, CEO of the British Institute of Innkeeping, said many pubs’ position was fragile.

He told the Oxford Mail: “The majority of our members are single site operators, running small, independent businesses at the heart of their communities.

“Without urgent action from Government, these vital spaces for social connection, supporting local jobs, supply chains and community groups, will drown under the weight of the rising cost of doing business,” he said.

“In many cases, the impact on their businesses is now worse than that of the pandemic, which has already left them with average debts of £40,000 per pub. The stark reality of the challenges now facing them cannot be underestimated. Government must act now to ensure we don’t lose these essential local community hubs for ever.”

The Rose and Crown Pub have been contacted for comment.

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