- Hospitality businesses are reducing hours and closing as energy bills skyrocket
- Pub and brewery bosses warn of utility prices rising by as much as 300 per cent
- 'Serious intervention needed by whoever takes hot seat at No10', landlord says
- Landlords call for help as crisis looks to be 'worse than Covid' for industry
PUBLISHED: 09:43 EDT, 31 August 2022 | UPDATED: 13:15 EDT, 31 August 2022
British pubs are reducing their hours and closing down as energy bills skyrocket by tens of thousands of pounds, with landlords describing it as 'an even bigger crisis than Covid'.
Pub and brewery bosses have warned of gas and electricity prices rising by as much as 300%, wiping out profits and forcing many to close.
Six of the UK's biggest pub and brewing company leaders called for urgent intervention by the Government in an open letter published yesterday.
Many are now having to put prices up to try to cover increasingly steep costs, but one landlord said it would be impossible 'unless you charge £10-14 a pint'.
Business owners are calling for immediate intervention from the incoming Prime Minister, amid warnings that spiraling costs could spell the death of the British pub.
Here, MailOnline examines the tough choices landlords, café owners and restaurateurs are having to make amid soaring energy prices...
Ye Olde Fleece Inn in Kendal, which dates back to 1654, has seen a huge increase of £80,000 to it's annual electricity bill
Ye Olde Fleece, Highgate, Kendal: Increase of £80,000 to annual electricity bill
Ye Olde Fleece Inn in Kendal, which dates back to 1654, has seen a huge increase of £80,000 to it's annual electricity bill.The beloved historic pub currently pays £44,000 for its annual electricity bill, but was last week quoted £124,000 for the 12 months from Christmas.
'It is absolutely horrendous,' Chris Moss, a director of Westmorland Hospitality, which runs the Fleece, told MailOnline.
'The government needs to get a grip on this or we risk losing the British pub forever.'
'We have to make that decision. Are they going to intervene? or are we just going to move forward and say the pub is going to be no more?'
He said while they had expected their bill to rise they were so shocked by how much it had gone up they had to check it with their broker, adding it has 'probably increased again since then.'
The company said it is going to look at its energy consumption to try and keep its bills down by reducing hours and the food offering.
'We are changing the way we cook because we simply can't afford it,' Mr Moss said, adding that they are looking at reducing the use of high energy grills to keep costs down.
Westmorland Hospitality has 80 staff across the three pubs it owns, with Mr Moss saying that many are 'stressed' by the increasingly tight margins.
He added that without support for the sector, hospitality workers across the UK could lose their jobs, plunging many into poverty.
The Fontmell, Shaftesbury: Michelin Guide gastropub closed 'with immediate effect' as bills rocket by £58,000
Upmarket Dorset pub, The Fontmell, which featured in the 2022 Michelin Guide, announced it would close its doors 'with immediate effect' yesterday - as its bills are going up by £58,000
Upmarket Dorset gastropub The Fontmell, which featured in the 2022 Michelin Guide, announced it would close its doors 'with immediate effect' yesterday - as its bills are going up by an astonishing £58,000.
The closure of the B&B and pub in Shaftesbury, Dorset, has shocked the local community with punters saying it is in a 'prosperous' area.
The Fontmell's Director John Crompton posted on Facebook that the pub no longer felt happy to pass the huge cost of energy bills onto their guests.
'The reality is unless you charge £10-14 a pint, and £40 for a main course, then you've got no chance of survival, and I'm not going to pay that, and you're not going to pay that. It's an impossible ask,' he told the i.
The Fontmell's Director John Crompton posted on Facebook that the pub no longer felt happy to pass the huge cost of energy bills onto their guests.
Management at The Fontmell, Shaftesbury, posted on Facebook about its closure, a decision they said 'has not been made lightly'
Mr Crompton posted on Facebook: 'It is with a heavy heart and great regret to say that The Fontmell will close with immediate effect other than to honour the bed and breakfast bookings that we already have.
'This is not a decision that has been made lightly and we would like to thank all our guests for their support and help over the last 6 and a half years.'
Laura Barton, who had a table booked at the Fontmell for Sunday lunch, told the Bournemouth Echo the closure of the pub in a 'prosperous' area is 'concerning', as businesses and consumers face an 'iceberg' of mounting costs.
A popular Buckinghamshire gastropub has seen its bills almost treble from £25,000 to £70,000 for the year for our gas and electricity
Landlord Henry Cripps told MailOnline that to save the ailing hospitality industry 'some serious intervention is needed by whoever takes the hot seat at Number 10'
The Three Oaks, Gerrards Cross, Buckinghamshire: Bills up from £25,000 to £70,000-a-year
A popular Buckinghamshire gastropub has seen its bills almost treble from £25,000 to £70,000 for the year for our gas and electricity.Landlord Henry Cripps told MailOnline that to save the ailing hospitality industry 'some serious intervention is needed by whoever takes the hot seat at Number 10.'
'At a time when many suppliers are refusing to supply hospitality businesses or asking for bonds equivalent to six months to a years use age it is an incredibly worrying time to be in hospitality, which can be so rewarding and enjoyable.
'We will try and do everything we can to mitigate these extraordinary increases whilst protecting our team and our fabulous patrons.
He added that 'so many of our friends in the industry struggle due to costs increasing across the board' and that concern is increasing as they go into winter.
John Wilkins, 55, who has been the landlord at The Royal Oak in Burford for eight years, told the MailOnline his electricity bill has doubled since this time last year, increasing by 'thousands'
The Royal Oak, Burford: Electricity bill has 'doubled'
John Wilkins, 55, who has been the landlord at The Royal Oak in Burford for eight years, told the MailOnline his electricity bill has doubled since this time last year, increasing by 'thousands'.He said while they have been 'fairly lucky' that they are still experiencing footfall from the tourist season, 'winter is going to be pretty tough'.
When asked if the pub could reduce it's hours or shutdown completely, Mr Wilkins said 'You can't rule anything out… we are a little bit worried, there's no doubt about that.'
'We're in the same boat as all pubs right now.'
He added that the energy 'crisis' is '100 per cent worse than Covid'.
Landlords at The Park in East Lancashire, expressed their heartbreak at its closure, which they described as 'unavoidable' as they expect things will only get worse
The Park, East Lancashire: Closing down is 'unavoidable'
Another popular pub and restaurant, located in East Lancashire, also announced it is closing it's doors, with costs no longer adding up.Darina and Craig Currie, landlords at The Park in Great Harwood, took to Facebook to express their heartbreak at its closure, which they described as 'unavoidable' as they expect things will only get worse.
After weathering the storm of Covid, which they described as 'an incredibly difficult 12-18 months', the couple said that things were 'finally looking up'.
But they said, they are now 'facing an even bigger crisis'.
They pointed to the 'constant rising cost of beer, food and most importantly the utilities,' adding: 'We simply can't afford to keep the pub open based on the current situation.
The Park is a popular pub and restaurant, located in Great Harwood, East Lancashire
The Park's landlords pointed to the 'constant rising cost of beer, food and most importantly the utilities'
The landlords thanked loyal staff and customers, adding 'we are very sad that your favourite watering hole will no longer be there'
'It is sad but unavoidable, the numbers don't add up and things are going to get more difficult, that's the truth.'
The pub will be closing its doors from Monday 5 September, as its owner Admiral Taverns is currently looking for a new tenant to take it over.
It is listed on their website for £21,000.
The Curries said 'the brewery can't find anyone (for now) to run it for the exact reasons that we are leaving (overheads). Hopefully this won't be forever but in this current climate we just don't know.'
The couple thanked loyal staff and customers, adding 'we are very sad that your favourite watering hole will no longer be there'.
The Gillygate, in York city centre. The pub's monthly bills have gone up a whopping £1,600, with payments rising from £900 a month to £2,500
The Gillygate, York: 300-year-old pub closes as bills have 'almost trebled'
A historic pub in York city centre, which dates back to 1811, has also closed after its monthly bill almost trebled.
The Gillygate's monthly bills have gone up a whopping £1,600, with payments rising from £900 a month to £2,500.
Brian Furey, who ran the pub for eight years, told the BBC, 'It's almost laughable, you get your bill and look at it and go 'we can't do that'.'
He said his team has tried to keep The Gillygate running and had considered whether Christmas might give it a welcome boost.
Mr Furey even said he contemplated taking out a loan to keep the beloved pub open, but said profits would not have covered the debt.
Brian Furey, who ran The Gillygate (pictured) for eight years, told the BBC , 'It's almost laughable, you get your bill and look at it and go 'we can't do that'.'
The Crown Inn, North Yorkshire: Reducing opening hours to cope with costs
Another pub has decided to close its doors for two days a week in order to cope with spiralling costs.The Crown Inn, in Grewelthorpe, North Yorkshire, made the decision to close on Mondays and Tuesdays after their energy bills soared.
The Crown Inn, in Grewelthorpe, North Yorkshire, made the decision to close on Mondays and Tuesdays after their energy bills soared. Owner Paul Dixon (right), who runs the pub, said: 'It was a tough decision'
Owner Paul Dixon, who runs the pub, said: 'It was a tough decision to take but we are a seasonal pub and it gets quiet in the winter.
'When you have got the prices of fuel going up to turn all the equipment on it all adds up - it's not viable.'
Five Fox Lane, Leicester: Bills to rise from £10,000 a year to £55,000 a year
A small family-owned café is facing a 450 per cent hike in electricity prices in yet another example of the spiraling cost of living crisis.Five Fox Lane in Leicester is at risk of permanently closing after owner Jan Gillbanks received notice her annual electricity bill was jumping from £10k to £55k.
A small family-owned café is facing a 450 per cent hike in electricity prices in yet another example of the spiraling cost of living crisis
Five Fox Lane in Leicester is at risk of permanently closing after owner Jan Gillbanks received notice her annual electricity bill was jumping from £10k to £55k
Ms Gillbanks told MailOnline she had to have a tough conversation with her seven loyal staff to inform them that the exorbitant costs may force them out of a job.
Pictured: The cheapest quote Ms Gillbanks could find after shopping around
'That's a last resort,' she said. 'We're hoping the government will step in and put a cap on electricity prices.'
The business owner said she and her staff are all coping but it's a 'sad' development in the uphill battle to stay afloat during and after Covid.
'We'd only been open two months and then Covid happened and we had to close... We've just finished one full year of trading and now this. It feels like one long battle.'
Ms Gillbanks has felt the cost of living crisis at her hip pocket like most over recent months but 'never expected' such a sudden and astronomical jump in prices.
'You hear it on the news all the time, but it doesn't really sink in until it's in paper form and you're staring at it thinking of solutions,' she said.
The businesswoman initially was hopeful she could ring around with competitors to get a better deal but quickly realised that wasn't the case.
'Nobody wants to do it,' she said. 'The best deal I can get is £55,000 for one year. But even then, they're saying it could jump to £80,000 next year.
'It's unsustainable. No small business can pay that.'
In spite of the huge shock, Ms Gillbanks is hopeful she'll find a way to stay afloat for the time being. But she fears a further price hike after Christmas could be 'the nail in the coffin' - if it doesn't come sooner.
COO at St Austell Brewery: Pubs are seeing 'spiraling costs'
The business owner (second from the left) said she and her staff (pictured together) are all coping but it's a 'sad' development in the uphill battle to stay afloat during and after Covid
Ms Gillbanks and her son both shared the letter she received which explained the price hike (pictured)
Ms Gillbanks is on the lookout for other ways to cut costs, including forking out on more energy efficient fridges and turning down the temperature on the water.
Even still, by her estimations these measures will only save about £5,000 a year - meaning she's still out of pocket an extra £40,000 compared to last year.
The Firebrick Brasserie in Lauder, Berwickshire: Restaurateur closes family business as costs quadruple
A restaurant owner who has had to close his family business due to soaring energy prices said he hopes protections will be put in place to help others.David Haetzman, 49, was forced to shut his restaurant, the Firebrick Brasserie in Lauder, near Edinburgh, earlier in August.
Mr Haetzman said he made the difficult decision after the restaurant's energy bills near quadrupled, shooting up from £1,000 a month to nearly £4,000.
David Haetzman, 49, was forced to shut his restaurant, the Firebrick Brasserie in Lauder, near Edinburgh, earlier in August
The chef told the PA news agency: 'We're heartbroken and pretty distraught. Obviously we have put a lot into the business over the last seven years.
'We're very passionate about what we do and it's pretty heartbreaking to have to close.
'The cost-of-living crisis, and in particular the energy prices, is the thing that sent us over the edge.'
He said: 'The last few years have been very difficult with Covid, which we managed to get through. The price in base ingredients increased and all of our prices went through the roof.
Mr Haetzman said he made the difficult decision after the restaurant's energy bills shot up from £1,000 a month to nearly £4,000
'It was impossible for us to make that sustainable. Customers were still coming through the door but they spent less, as their cost of living increased too.'
The closure of the restaurant inevitably led to redundancies.
Mr Haetzman said: 'It's really hard. We had a small team but a really good team for a long time, and it's very difficult to let people go.'
His three children, Alex, 23, Charlie, 17, and Sophie, 15, were also working in the family business.
'It's a sad day for all of us. What we will miss the most is serving our customers. We are very passionate about producing good food,' he said.
Read more:
- York: Pub closed as monthly energy bill almost trebles - BBC News
- Pub closing due to £72,000 energy bills: 'Unless you charge £14 for a pint, there's no chance of survival'
- Dorset pub closes after £58,000 increase in utility costs | Bournemouth Echo
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