Soaring energy costs creates 'perfect storm' for pub industry

With energy costs continuing to skyrocket, some publicans will be worrying about the future of the industry.

Tim Dewey, chief executive of Timothy Taylor's Brewery in Keighley, said: "I think for pubs, dare I call it a perfect storm?

Pubs like the Taylor's on the Green in Keighley are trying to cope with rising energy costs

"They already have issues getting staff and how much you have to pay them, and the problems with rising energy costs make me very concerned about the sustainability of outlets.

"With the energy price cap announced today (Friday), the only way for energy companies to balance their books will be to turn to business who aren't affected by the energy price cap."

Mr Dewey said: "Our brewery signed a new energy deal this week which will cost us four times as much as we pay in a year. As bad as it was, worse might be around the corner."

Taylor's on the Green, the former Lord Rodney in Keighley

And Mr Dewey said energy costs for pubs are quite significant.

"When their utility bills hit, it could wipe out the profits they expect to make.

"Let's say a pub's bills go from £20,000 to £60,000. That's £40,000 they have to find. They might have to charge higher prices.

"But consumers are under financial pressure themselves. A financially distressed consumer might ask 'Can I afford to go to the pub?'

"I also don't think pubs have recovered since Covid.

"All of this effort went in protecting pubs during Covid and after they have been trying to recoup their costs then they're hit with further inflation and rising energy costs."

"I very concerned from a brewery point of view on what will happen in the next nine months," said Mr Dewey. "We're famous for our cask ale and the key thing that drives our financial situation is that we need outlets - healthy, brilliant and vibrant outlets to sell our beer."

Taylor's on the Green, the former Lord Rodney in Keighley, re-opened on Yorkshire Day

Timothy Taylor's Brewery owns 19 pubs, including the Brown Cow in Bingley and several in Keighley, in surrounding areas and across the district.

They run two of the those - the Woolly Sheep in Skipton and Taylor's on the Green in Keighley - and the rest sell Timothy Taylor's beer but "are managed by tenants to run as they set fit," said Mr Dewey.

Taylor's on the Green, the former Lord Rodney, was re-opened on Yorkshire Day earlier this year after the Lord Rodney closed and the pub was refurbished.

"It was really well received.," he said. "The Lord Mayor of Bradford was there to celebrate with us."

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