Why your pint of beer now costs an average of £5
THE average pint of beer now costs £5 and could continue to rise as breweries and pubs hit tough times.
It comes at a time when the number of licensed properties in the country has fallen below 100,000 for the first time since registration began.
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Industry experts blame Covid, Putin's invasion of Ukraine, a minimum wage increase and high interest rates squeezing publicans' margins.
In 2019, pubs made 27p profit on a pint and the average price nationally was £3.81.
Now they earn just 12p and the average price has risen to £4.80, according to the British Beer and Pub Association.
As drinkers face their own financial struggles and the cost of living, so do their favorite watering holes.
Pubs were first hit during the on-off nature of the lockdowns, when beer was simply poured down the drain.
Putin's invasion of Ukraine led to a rise in energy prices for breweries, which relied on heating during the cooking process.
Sam Hagger, the owner of three pubs in Leicestershire, told The Times energy had gone from its fourth largest expenditure to its second.
“We had to look at the time the ovens are turned on in the morning.
“Each location will have two window washing machines. Instead of both turning on at 10am, one will be turned on at 10am and the other at 1pm as trade increases.
JD Wetherspoon boss Sir Tim Martin said Covid had changed drinkers' behaviour.
'Probably one factor is that the lockdowns have brought about a change in behaviour.
“Going to the supermarket and staying at home replaced the usual visit to the local pub. It took longer to break the new habit than many had thought.”
He said supermarkets do not pay VAT on the sale of food, but pubs do and supermarkets benefit from lower business rates.
More recently, breweries have suffered the same price increase that has also personally affected many of their customers: interest rate increases.
While pubs received grants from the government in schemes such as Eat Out to Help Out, breweries only received loans.
The cost of servicing these loans has increased as interest rates have risen.
Strikes, protests and other disruptions all affected people's ability to physically get to the pub, another expert said.
The number of new licenses being opened is also decreasing: only 3,222 were opened last year.
Just under 4,000 opened in 2022 (3,989) and 4,532 opened in 2021.
Pub sells 'cheapest pints in Britain'
A PUB is selling the 'cheapest pints' in Britain for just £2.30 – almost half the average price.
The Waggon and Horses in Oldbury, West Midlands, is flogging all beers, ciders and ales at £2.90 or less to encourage punters to drink in traditional local boozers.
The old-school Black Country pub said it wanted to 'give back' to locals with bargain beer as many people struggle with the cost of living.
A pint of Stella will now cost you just £2.80, while Carling, Coors and John Smiths costs £2.40 and a pint of Thatcher's Gold costs £2.30.
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