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Daily Record
Daily Record
National
Lochlin Highet

Award-winning pub boss 'worried' about future and admits rising costs are tough for businesses

An Ayrshire pub boss admits rising costs are becoming tougher to take for businesses.

Mikey Lennon, who co-owns the Kings Arms in Fenwick, has revealed the venue's energy bills have more than tripled in price.

The DRAM magazine's Scottish pub of the year monthly electricity and gas bills are now well into four figures which, on top of inflation in stock, is making it tough for them to keep menu prices down.

Manager Mikey insists they will do their best to soak up the extra costs themselves – but wants to be transparent in case their hand is forced in the future.

He feels that rising costs are putting businesses at risk of closure and it's a worrying time for everyone.

"We have always been very transparent and outspoken on issues affecting hospitality," Mikey said, "not just for us but as an industry.

"We are again going to be very transparent with our customers. With the current rise in energy costs, we are fighting hard not to push the rise on to them but the constant increases are making it more difficult by the day.

"Our electricity cost has risen from £960 per month to £3,350 per month with another rise expected in three weeks pushing us well over the £4,000 mark.

"Our gas has also risen by almost £1,200 per month and on top of that, the cost of stock from suppliers has risen to meet the inflation from their end which we have also been absorbing.

"Shell Energy, one of the industry-leading names in energy, are almost single-handedly going to bring down the shutters on not only us but on many more businesses.

"Meteoric rises In costs; without combating them, with small businesses doing likewise, it’s a very very worrying time for us all.

Fenwick's Kings Arms won Scottish pub of the year at the Scottish Bar and Pub Awards 2021 (SUNDAY MAIL)

"We totally understand that this isn’t just businesses getting affected by this, but every single household. That is why we are fighting against the tide to try our hardest not to put any increase on our prices.

"We will continue to absorb as much as we possibly can but with the predicted rises coming imminently, everyone is going to notice everyone from small to large businesses pushing up prices."

Mikey continued: "Why are we being transparent on this issue? We don’t want our customers to think that, if the moment comes, we are trying to gain extra margins, gain more profit. We are just merely trying to again fight through something that is completely out with our control.

"We strive to provide an enjoyable experience for all of our customers and we will continue to do so and will fight hard to make sure you get value for your money.

"Be understanding at this time. Everyone is just trying to get through this moment and together with understanding support and good will. We will all get there."

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