Nottingham pub owners are battling on as it was revealed that 150 ale houses have closed across England and Wales in the first three months of the year. Soaring energy bills and the rising costs of beer and food have driven many operators out according to official government data, which was analysed by real estate intelligence firm Altus Group.
Since the pandemic Nottinghamshire has seen a number of pubs call time for good. The Crafty Crow in Friar Lane, Nottingham city centre, and the Hand & Heart in Derby Road, are amongst them.
Operators have resorted to a number of measures to help them keep afloat such as shutting up shop at quieter times and bringing out a house beer at a more affordable price. Colin Wilde, the MD of Castle Rock Brewery which has 16 pubs across Notts include the Canalhouse and VAT & Fiddle, said: "We are always looking at opening hours. If we are opening our doors and customers aren't coming in at that time, clearly we're paying people to be there.
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"It's just trying to tweak at the margins. Our overall thing is we are very passionate about what we do and believe people want to come and see us and enjoy our beers in our pubs. It's just trying to run as lean as we can so we can continue to provide the right price points to attract people back. It's a balancing act trying to keep costs under control and make hay when the sun shines and make sure you're saving for a rainy day at the same time."
Prices were increased in January to combat the rising costs of supplies and the increase in the minimum wage. Around 30p was added to a pint of Harvest Pale, one of the company's best-selling beers, making it in the region of £4.20 (prices vary from pub to pub).
Mr Wilde said: "It's been a very difficult time and a clearly a difficult time to put prices up when consumers are hurting with their own battles at home in making ends meet. We have tried to keep the increases as reasonable as we possibly could do. We have mitigated that by increasing discounts on our loyalty scheme so people get significant benefits from that."
The brewery has also launched a slightly weaker (3.6% ABV) and cheaper house beer, priced at £3.80 so cash-strapped customers can still enjoy a pint.
But there's a further storm brewing with Castle Rock's energy contract due for renewal on October 1. "We have been cushioned from that until then. It's the not knowing of what that's going to be which is tricky. Also we have 12 months left of the government's discount on business rates so when that ends that's another thing to worry about. It's not a business in terms of getting rich quick, it's just trying to make long-term sensible decisions so we are still here in five years time and focussing on giving customers what they want at the price point they can afford," added Mr Wilde.
Hucknall-based Lincoln Green Brewing Company is a growing business that appears to be bucking the trend. It started the year with five pubs and is about to take over its seventh, adding the White Lion in Beeston to the list which includes Sir John Borlase Warren at Canning Circus, and the Brickyard in Carlton.
Founder Anthony Hughes said: "It’s definitely challenging for the hospitality and brewing businesses at the moment. Many are caught in a perfect storm; massive increases in utility costs, business rate rises, increases in National Living Wage and virtually every supplier also putting prices up as a direct result of rising inflation. Add to this the impact that the pandemic had on the sector – many pubs and brewers had to take on additional debt to survive, so for some a tipping point is reached where their businesses are no longer viable.
"It’s not all doom and gloom though. People still want to socialise – it was the one thing everyone missed during lockdown and there’s strong evidence that many are returning to a normal pattern of going out. It’s my belief that any business that puts the customer at the heart of everything they do will be in a strong position to attract footfall."
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