According to industry experts, the price of a pint of beer is set to jump by 50p as bars face closure. As a result of surging inflation and supply chain issues, brewers are witnessing skyrocketing expenses for beer, energy, food, and labour. It implies that some Londoners may have to spend more than £7 for a pint.
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According to the British Beer and Pub Association, the average cost of a pint in the UK is £4.07. Londoners are estimated to pay £4.84 on average, although some pubs in the city already charge more than £6.
Bear the prices
Input cost increases affect independent brewers as well. Costs of workers, transportation, raw materials, and energy have all risen dramatically. According to UKHospitality, pubs are suffering unprecedented price increases. Kate Nicholls, the company's CEO, stated:
This is weighing very heavily on these businesses, which have had nothing but a torrid time, and the price of a pint and a meal out will have to rise.
Experts reveal that drinkers are set to face an increase of more than 50p. James Calder, CEO of the Society of Independent Brewers added:
With most brewers running very tight ships already, our sector, unfortunately, needs to be able to pass on these price rises to customers including the pubs in between.
Otherwise, they will go bust. No business likes to raise its prices but right now it is a necessity to survive.
VAT for it
Clive Watson, the chairman of the City Pub Company, warned earlier this week that pub inflation was running at over 10%, with the price of a pint rising by 40p to 50p. To relieve pressure on the industry, industry experts encouraged the government to repeal the 12.5% VAT rate on bars, restaurants, and hotels, as well as the anticipated increase to 20% in April. According to Dave Mountford, co-founder of the Forum of British Pubs and manager of The Boat Inn in Cromford, Derbyshire,
We’re putting prices up now and soon we’ll break the £4 a pint on cask ale for the first time ever. Our most expensive pint is a premium lager and it’s £4.80 - it was £3.75 two years ago.
While disappointing, the price of a pint is projected to grow sharply as the beer and bars sector continues to grapple with employment, supply chain, and cost of goods challenges. If consumers decide to stay at home to save money, this might mean doom for local breweries and pubs.
