logo
How £7 pints are destroying Britain's pubs

How £7 pints are destroying Britain's pubs

Yahoo08-06-2025
Brian Whiting can still remember the first time he had to charge more than £5 for a pint of Guinness in one of his pubs.
'There was a regular who would come in most days and read the paper,' he says. 'The day I put it up to £5, he turned around, walked out and never came back.'
The reaction of his former customer just goes to show the depth of feeling about the price of a pint in Britain.
However, for publicans, incidents like this are becoming increasingly common. What was once an easy-to-afford commodity has, for many households, become too expensive.
Pub owners have been forced to repeatedly raise their prices in recent years after sharp increases in the cost of everything from beer itself to food, fuel and labour.
Many fear this has thrust them into a doom-loop, where they must keep raising prices to stay afloat despite the risk of driving away cash-strapped customers.
'It's becoming very toxic,' says Whiting, who runs a string of pubs across the South East. 'You're so frightened, you've got to put prices up ... but you've got no choice but to do it.
'I worry that people think that landlords and publicans are just creaming it and making money. We work on tiny margins and we're trying to survive ... No one wants to charge those prices.
'I'm not sitting on a yacht anywhere.'
According to the British Beer and Pub Association (BBPA), the average price of a pint across the UK rose above £5 for the first time this year. But for pub owners like Whiting, that figure seems strikingly low compared with what they actually have to charge.
The days when he could sell a pint for £5 and turn a profit are now a distant memory. 'You'll get a 'cooking lager' for mid-£6, but anything premium now is going over £7 for us,' he says.
James Ratcliffe, co-owner of The Black Bull in Sedbergh, Cumbria, agrees: 'Premium lager? We're at about £6.70 a pint now.
'When we first opened [in 2018], we had a pint on sale that was £4.95 ... We were worried about going over the £5 mark.
'The dilemma is that, yes, I can put [the price] up, and yes, people understand why it's going up, but there's a certain point where people say, 'I'm not going to pay it.''
Some large brewers have also been criticised for asking pubs to pay more.
Diageo, the parent company of Guinness, was accused of unfairly imposing price rises on the hospitality industry earlier this year.
Whiting warns the pint price doom-loop is pushing customers out of pubs and into the supermarkets, where alcohol is significantly cheaper. 'It's not made life easy with supermarkets being able to sell booze so cheap,' he says.
Even though pint prices are typically much higher in London, the situation is worse outside the capital and other cities, Whiting believes.
'A lot of people go into a pub in a city and don't even know what they're paying,' he says. 'They tap with their card and off they go. In a village, everybody wants to know how much the cost of a pint is.'
It comes amid a deepening crisis in Britain's pub industry. Nearly 300 pubs shut down across England and Wales in 2024 – the equivalent of six per week – according to the BBPA.
Nic Sharpe, director of the St John's Tavern in Archway, north London, highlights the barrage of costs facing landlords.
'My energy costs went up by £40,000 last year,' he says. 'Across the board, my wages are £25,000 more. The business rates have just gone up.
'It's like, f------ hell, I'm up on revenue from last year, but it's wiped out by the amount of costs.'
Sharpe's prices are approaching the £7 mark too. He currently sells a pint of Estrella Galicia lager for £6.50, which is cheaper than rival venues where he says he has been charged as much as £7.80 for the same brand.
Higher taxes have compounded problems.
Wage bills have become a particular worry in recent months after Rachel Reeves increased employer National Insurance rates.
The changes, announced in her October Budget, took effect in April and have hit the hospitality sector hard. According to a survey by the major hospitality trade bodies, one third of firms in the sector are now operating at a loss.
The Telegraph also recently revealed that some pubs have even had to start calling last orders as early as 9pm to save money on staff costs.
'We're living with [higher NI costs] now and we're passing it on, and we're having these conversations and I hate it,' says Whiting. 'The last thing I want to do is increase my beer price, I want my pub to be full of people.'
Ultimately, Sharpe believes swathes of smaller businesses will simply go bust. However, as many search for a stay of execution, one thing is certain – further price rises for punters.
'We're knocking on the door of the £10 pint,' says Whiting. 'It's inevitable.'
Broaden your horizons with award-winning British journalism. Try The Telegraph free for 1 month with unlimited access to our award-winning website, exclusive app, money-saving offers and more.
Orange background

Try Our AI Features

Explore what Daily8 AI can do for you:

Comments

No comments yet...

Related Articles

Why Dividend Investors Count on Diageo (DEO) for Stability and Reliability
Why Dividend Investors Count on Diageo (DEO) for Stability and Reliability

Yahoo

time2 days ago

  • Yahoo

Why Dividend Investors Count on Diageo (DEO) for Stability and Reliability

Diageo plc (NYSE:DEO) is included among the Top 10 Safest Dividend Stocks in the UK. A close-up of bottles of whisky and other alcoholic beverages from a winery. Diageo plc (NYSE:DEO) is among the best FTSE dividend stocks. The company owns well-known brands such as Johnnie Walker, Tanqueray, Ketel One, Don Julio, and many other premium spirits. It is also the producer of Guinness, the famous Irish stout. With a portfolio of over 200 brands, Diageo sells its products in 180 countries worldwide. Although Diageo plc (NYSE:DEO)'s offerings cover a wide range of price points, the company has recently concentrated on acquiring and developing premium brands. This strategy allows the company to raise prices more easily, as it does not rely on competing through lower costs, and aligns with the growing consumer preference for higher-quality spirits. Diageo plc (NYSE:DEO) is a solid dividend payer, having raised its payouts for 25 consecutive years. The company pays an interim dividend of $1.62 per share for a dividend yield of 3.87%, as of July 25. While we acknowledge the potential of DEO as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock. READ NEXT: and Disclosure: None. Sign in to access your portfolio

Guinness launches ice-cold new collaboration with wild partner
Guinness launches ice-cold new collaboration with wild partner

Miami Herald

time3 days ago

  • Miami Herald

Guinness launches ice-cold new collaboration with wild partner

One thing beer lovers agree on is that Guinness, or any beer, should always be ice cold. No one wants to crack open a lukewarm beer that's been baking under the sun for hours. But with summer at its peak, keeping beer cold outside can be a serious challenge, so Guinness has joined forces with a surprising partner to launch a new product that will solve this problem. Don't miss the move: Subscribe to TheStreet's free daily newsletter Founded in 1759 in Dublin, Ireland, Guinness is the world's most popular stout. It is known for its dark color and signature creamy texture, which is due to the use of nitrogen in its brewing process. The brand has been owned by the alcoholic beverage company Diageo (DEO) since 1997. Today, it's brewed in 49 countries worldwide and sold in over 150. Related: Guinness parent makes major investment in a surprising market Guinness offers various beer products in multiple presentations, as well as nonalcoholic Guinness 0.0 and cold brew coffee beer. However, unknown to some, it has expanded into the food market with coffee, chocolate, fudge, sauce, and even potato chips. Now, Guinness is taking it a step further by collaborating with a new partner to create a one-of-a-kind product that fuses beer and ice cream. Guinness has teamed up with the ice cream brand Van Leeuwen to launch "Lovely Day for Guinness," a new limited-edition ice cream that blends the flavor of Guinness and mixes it with chocolate chunks. This new flavor's name and packaging design are inspired by a 1950s Guinness advertising campaign, which matches the look of Guinness' new limited-edition summer Draught Stout 4-pack. Related: Taco Bell brings back exclusive menu collaboration for a limited time While the idea of combining beer and ice cream may sound odd to some people, Van Leeuwen is confident that skeptics will love the taste. "It's unexpected in the best way – and we think people are going to be surprised by how naturally Guinness and ice cream go together," said Van Leeuwen CEO Ben Van Leeuwen. The new "Lovely Day for Guinness" is available in 14-ounce pints for $11.15 at Van Leeuwen Scoop Shops nationwide or on its online website for $12 while supplies last. From humble beginnings as an ice cream truck in the streets of New York City in 2008, Van Leeuwen has grown into a massive brand, with multiple scoop shops nationwide and a retail empire of ice cream products spread across various grocery stores and online. Although "Lovely Day for Guinness" may sound like a wild flavor choice, Van Leeuwen is no stranger to pushing the boundaries of ice cream. More Food News: Pepsi and Coca-Cola rival brings SpongeBob to healthy sodaTaco Bell reveals new menu item with dream partnerPapa Johns announces wild new menu deal to win back customers The brand previously created more unusual limited-edition flavors with unexpected partners, including collaborating with Hidden Valley Ranch, Kraft Macaroni & Cheese, Dijon Mustard, and Tapatío Hot Sauce, to name a few. While the new "Lovely Day for Guinness" ice cream contains the signature taste of Guinness, fans can't get boozy off this pint, because it's made with Guinness 0 nonalcoholic beer and contains no alcohol. Related: Veteran fund manager unveils eye-popping S&P 500 forecast The Arena Media Brands, LLC THESTREET is a registered trademark of TheStreet, Inc.

JD Wetherspoon shares rise as sunny weather and 'standout' Guinness sales boost pub trade
JD Wetherspoon shares rise as sunny weather and 'standout' Guinness sales boost pub trade

Yahoo

time5 days ago

  • Yahoo

JD Wetherspoon shares rise as sunny weather and 'standout' Guinness sales boost pub trade

Shares in JD Wetherspoon (JDW.L) rose nearly 3% on Wednesday morning, after the pub chain said sales had overtaken pre-pandemic levels, with sunny weather boosting trade in the fourth quarter. In a pre-close trading update, released on Wednesday, JD Wetherspoon reported a 5.1% rise in like-for-like sales in the fourth quarter. Chairman Tim Martin said that the company "benefitted from favourable weather in the fourth quarter, so that profits are anticipated to be in line with market expectations, notwithstanding the high tax and labour increases for the hospitality industry, which have been widely reported." He said that sales volumes, "which were very slow post-pandemic, have recently overtaken pre-pandemic levels". "Wine, for example, has shown strong growth, with Villa Maria from New Zealand and Prosecco from Italy both shooting the lights out," Martin said. "Spirits have improved in recent months and whisky volumes are significantly above pre-pandemic levels." In addition, Martin said that draught volumes were performing strongly, highlighting Guinness as a "standout performer". As for food sales, he said that breakfasts, after being "terribly slow post-pandemic, have recovered their lustre and are now well ahead". Martin added that chicken had also put in a "clucking good performance and volumes in recent weeks are up by about 50% compared to pre-pandemic levels". JD Wetherspoons currently operates 794 pubs, having opened three and sold nine sites year-to-date. The operator said it had also opened five new franchise pubs so far this year, bringing the total to eight. Wednesday's trading update gives investors an idea as to what to expect when the company publishes its preliminary full-year results, which are due out on 3 October. Read more: Which Mag 7 stocks will be the top performers this earnings season? Derren Nathan, head of equity research at Hargreaves Lansdown, said that despite the impact of increased labour costs flagged by Martin, analyst forecasts expect JD Wetherspoon's operating profit to land "a little ahead" of last year at nearly £140m ($189.6m). "The group has been trimming the tail of its estate by dropping underperforming units and is now leveraging its efficient operating model and brand strength to grab further market share," he said. "Flagging consumer confidence remains a near-term threat but, overall, the JD Wetherspoon looks in good shape with the shares offering reasonable value, compared to the peer group." Dan Lane, lead analyst at Robinhood UK, said: "UK consumer confidence is on the up and just hit its highest point since December. If inflation resumes its downward journey after the summer and takes interest rates with it, JDW could get a further demand boost heading into the final stretch of the year." Chris Beauchamp, chief market analyst at IG, said: "The usual complaints about taxation notwithstanding, this was a very solid set of numbers from 'Spoons. Britons continue to rediscover the joy of a Wetherspoons breakfast, not least because of its competitive price, and with drinks volumes now above pre-pandemic levels the iconic chain seems well-placed to grow further, though an increase in the dividend in due course wouldn't go amiss." Read more: UK's rising debt cost puts Reeves and tax rises in spotlight London IPO fundraising slumps in blow to UK Bank of England governor warns Labour against watering down financial rulesSign in to access your portfolio

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store