British pubs chain Fuller's predicts doubling in energy costs, but looks forward to World Cup boost

In Ireland, pubs business groups are predicting that bars will have to limit their winter opening hours

Bar owners are unable to pass on hikes in business costs to consumers, as they are already feeling the inflation pinch. Picture: iStock

Tue, 20 Sep, 2022 - 16:27

British pubs firm Fuller, Smith, and Turner has said its full-year costs for gas and electricity would more than double, as the global energy crisis shows no sign of abating.

Pub operators have been struggling with the surging prices of everything from fuel to food ingredients, while high summer temperatures had kept drinkers at home. Chief executive Simon Emeny said in a statement:

Despite having proactively purchased forward contracts to limit the impact (of energy costs) on Fuller's, we will see significant increases this year.

He also urged the British government to provide "much needed" clarity on support measures it had proposed earlier this month to help businesses struggling to cope with soaring energy costs.

Fuller's expects annual gas and electricity costs of about £18m (€20.5m), compared with £8m last year.

Mr Emeny said the pub operator is looking forward to the forthcoming World Cup and its first Christmas free of pandemic restrictions in three years. The shares fell 2%.

Its total sales for the 25 weeks to the middle of September were up 3% from pre-Covid-19 levels, as its operations continue to recover from the pandemic.

In Ireland, pubs business groups have called for significant help to subsidise energy bills in the budget next week, predicting that pubs will be forced to limit their winter hours.

Chief executive at Vintners’ Federation of Ireland, Paul Clancy, said earlier this week that publicans cannot pass on their hike in costs, because drinkers are facing a huge squeeze from inflation.