Nearly half of pub landlords are not confident about their pub's future over the next year, according to exclusive research. While the World Cup has provided a much-needed boost to takings, many publicans are struggling to survive amid rising costs for wages, energy, and other expenses.
Survey Findings
A Survation survey conducted by Greenpeace found that 47% of landlords are not confident about their pub's future in the next 12 months. Another 19% are unsure. Among those who are not confident, around two-thirds believe their pub can only continue operating under current conditions for less than 12 months, while 22% think they could survive only one to two years.
Financial Strain
To keep their businesses afloat, 48% of badly impacted publicans have dipped into personal savings, 18% have used personal credit cards or loans, and 7% have remortgaged their properties. The findings come as Greenpeace calls on the government to extend help with high energy bills to pubs.
Biggest Worries
When asked to rank their biggest concerns over the past year, wages and national insurance topped the list, closely followed by energy costs. Nearly nine in 10 landlords are worried that the conflict in Iran might further increase their energy bills. Although a peace deal between the US and Iran has been signed, energy costs remain higher than before the war began in late February, compounding the impact of Russia's invasion of Ukraine.
Actions Taken
To cope with rising costs, 89% of publicans have increased prices, 62% have reduced staff numbers or hours, 55% have adjusted heating or electricity usage during opening hours, and 49% have delayed or reduced their own or their manager's pay.
Greenpeace Campaign
Lily-Rose Ellis, climate campaigner for Greenpeace UK, said: "So many communities rely on their local to act as a village hall, social club, meeting room and every other function a community needs. But the energy demands of running a pub make them vulnerable to volatile oil and gas prices, driven by conflict and the war profiteering of fossil fuel companies. Pubs, and other community spaces, could save money with cheaper renewable energy if they were added to the government's plan to put solar panels on schools and hospitals and lower their bills. For many pubs across Britain it's that or closing time."
Greenpeace is urging the government to expand its scheme that funds solar panels on a small number of schools and hospitals to also support pubs, leisure centres, and other community hubs.
Landlord Experiences
Miles Lyster-Connolly, of The Prince Albert in Stroud, said his pub's energy contract jumped by 35% to 40% two years ago. To mitigate the blow, they installed solar panels and batteries. He noted that they have tried to keep prices down for customers, but added: "Going to the pub is now the preserve of the middle classes rather than the working class."
Adam Roberts, who owns two pubs in Chester, was also hit by a surge in energy bills but recently negotiated a new contract saving £18,000 a year. "We are very busy, but you have to be to make any money," he said. "I spoke to a friend who runs a really good bar in town and it is going under."
