‘We have no choice’: Scarborough pubs to raise cost of drinks following brewery price increases

Pubs in Scarborough have shared their concern after brewery companies across the UK increased their prices, meaning that pubs and free houses have to raise the cost of their pints.
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Danny Smith, owner of Scholar’s Bar and Chair of Scarborough Pub Watch, said: “Luckily I have a long contract on stuff but my electric is tied in until May and it will go from 16p a unit up to 57p a unit which is three and a half times more.

“Brewery prices have gone up, because I’m a free house I have a cap on my increases so my cost is going up to 15p a time but with VAT it will be 20p. That’s us not making any money to go towards the minimum wage increase or energy prices, it’s just the brewery increase.

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“The last brewery increase I held off increasing the price of the cask beers for the sake of the customer, but you just have to do it. I’d rather be honest with people and tell them why, it’s the right thing to do.

Scholars Bar Landlord Danny Smith talks about the cost of living impact in the pub trade.Scholars Bar Landlord Danny Smith talks about the cost of living impact in the pub trade.
Scholars Bar Landlord Danny Smith talks about the cost of living impact in the pub trade.

“It’s out of our control and it’s not me wanting to make 20p a pint from customers, I’d love it if we didn’t have to put the prices up but if I didn’t do it this time, then next year I’d have to put it up double.

“I try to cut costs where I can, so I do Monday, Tuesday and Wednesday on my own and my wife and I do the Thursday night quiz. Holiday’s are out of the question, but it’s just the way it is, as long as we survive then the holiday’s come bottom of the pile to me.”

The brewery price increases reflect the current inflation happening in the country, and not only does it see pubs suffering but also the drinker.

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Andrew Ritchie, owner of Rack and Roll Sports Bar in Scarborough, said: “Unfortunately we’ve had to put our prices up again, which will be the third time we’ve had to increase prices in 12 months which sucks because we don’t want to do it, but we have to.

Nags Head staff member Sara Ricotta and Owner Stacey Durham.Nags Head staff member Sara Ricotta and Owner Stacey Durham.
Nags Head staff member Sara Ricotta and Owner Stacey Durham.

“This price increase will reflect the brewery increase and not the utilities increase which is later on in the year.

“I have to suck it up, there’s not a lot I can do. My gas canister has increased by three times what I was paying, and I need it because it gets the beer from the barrel to the pump.

“It’s all reflective, and you have to tweak prices here and there but if you don’t do it then you’ll get left behind and have to close.”

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Mr Ritchie says he is putting the price of certain drinks up by 20p, but is “trying to be fair”.

Rack n Roll Bar talk about the cost of living impact in the pub trade.Rack n Roll Bar talk about the cost of living impact in the pub trade.
Rack n Roll Bar talk about the cost of living impact in the pub trade.

Stacey Durham, half of J&S Pub Company who run five pubs in Scarborough and one in Whitby, agreed with Mr Ritchie and said: “We have noticed a difference and we’re going to notice it more.

“We’re trying to be more considerate of the people really and what they’re paying for. We’re going to have put our prices up, we’ve got no choice.

“Minimum wage is set to rise which has a knock on effect through all the roles through a business. We’re going to have the same amount of money coming in, or a little less money because of what people are going through at home

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“We are currently hosting a warm room at Nags Head, because of what’s going on.”

It’s not only independent pubs who are having to increase their prices, bu last week t was announced that Whetherspoons will also be increasing the prices on certain food, alcohol and soft drink items.

In January, the Treasury announced that hospitality businesses will continue to receive support with their energy bills for a further 12 months from April 1 but at a lower rate.

CAMRA Chairman Nik Antona said: “The prospect of energy bills soaring in April as other costs keep rising and consumers tighten their belts will leave the nation’s pubs, social clubs, brewers and cider producers apprehensive about how they can continue to make ends meet.

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“While we want to see energy support reinstated at current levels, it is now vital that the Chancellor uses his Budget in March to announce a wider support package if our pubs are to survive and thrive.

“This must include proper reforms to fix the unfair burden of business rates and introducing the new lower rate of duty charged on draught beer and cider at 20% below the general duty rate.

“This would help keep pub-going affordable for customers and give our locals a fighting chance against the likes of cheaper supermarket alcohol.”