The study says pubs and brewpubs will lose an average of 20% if energy bills return to their regular rate after government support ends in March.
the report showed that Energy costs are currently the biggest threat to its viability and will be even more dire when the bailout scheme expires in April.
This added to cost inflation in other parts of its food and beverage businesses, which, if wages are added, contributed to eroding profit margins.
“Recent economic shocks from Covid, Brexit and the war in Ukraine have put sustained pressure on businesses,” he said in the study. Tim BlackAssociate Director of Retail and Consumer Team Frontier Economics.
,The pub and brewery sector is facing a combination of rising costs (primarily energy, but also raw materials and wages) and falling demandas consumers cut back on spending due to severe cost-of-living pressures,” he added.
He stressed that while there is uncertainty about the individual business impact and outlook, the underlying economy of the region makes these shocks incredibly difficult to absorb, and some companies will find it difficult to survive.
Gemma Gardener who drives York HotelRooms, a pub in the English town of Morecambe, said its electricity bills were not only exorbitant, but its supplier also added unexpected extra charges outside standard rates, doubling the cost of daily rent from the £2,000 set limit Huh. ,
“We have tried to change providers but have been turned down, and the only reason we can move on is because our bar company is helping us. We are struggling with our bills, but so are our customers We are being pressurized from both the sides. We’ve also started offering free food to encourage customers to come in and purchase drinks.said the gardener.
,Not knowing how much we’ll be charged month-to-month is incredibly scaryIt is not only our business but also our home, but We are at the mercy of our energy providers, If it’s this bad now, I dread to think what it will be like when the energy relief scheme ends in April.”
Too Emma McClarkinThe BBPA chief executive said long-term guarantees that energy costs and contracts would be fair and reasonable may not be enough for our pubs and brewers come spring.
“They are planning now for the coming months and need a guarantee that bills don’t skyrocket and wipe out profits completely,” he added.
“We urge the government to seriously consider the impact skyrocketing energy costs will have not only on the businesses who have to pay for them, but also on the communities they are embedded in and serve in the UK. If our sector does not make the cut for additional support on April 1st, these figures paint a stark and very bleak picture,” he concluded.