Cork publican says increase in price of a pint will hit already-struggling pubs

A Cork publican has said that this week’s price increases on a pint will have a huge effect on businesses that are already struggling.

Diageo announced last month that they would increase the price of their products on draught, including on Guinness, by six cent per pint (ex-Vat), effective from February 3.

The base prices of a pint of Guinness, Harp, Smithwick’s and Hop House 13 have all increased by six cent, excluding Vat.

The Vintners’ Federation of Ireland (VFI) has criticised the price hike, saying that it equates to €5.28/50l keg and will force many publicans to raise the sale price of a pint.

Disappointing

VFI president Michael O’Donovan, owner of The Castle Inn on South Main St, told The Echo: “This is the fourth time their prices have increased over the last 24 months.

“It’s a little bit disappointing; people’s domestic take-home pay has already been hit by the cost-of-living crisis, and publicans have weathered the storm of that crisis and covid before it; we were really hoping our suppliers would hold costs to give people certainty.”

Mr O’Donovan continued: “We’re in a real competition with people’s front rooms at the moment; we have to give people a reason to come out, so when we see these price increases, we know it will be more difficult to get people out of the house.

“We’ve also seen government policies over the last 24 months putting huge increases on our bottom lines; pubs try to absorb these policies, like wage increases and PRSI, but it’s been a real hit in all directions.

“Energy costs have come down since their peak, but they’re still very high compared to 2018 and 2019.

“Then, the costs of products are going up. Some of that has to be put back to customers and some people think we’re trying to rip them off because going out is gone so expensive — but we’re just trying to survive.

“I’ve been talking to publicans over the last few weeks who say they struggled to break even last year.

“Even with a good December, it only helped them break even, so there’s a struggle out there. No business is out there making huge profits.”

Some publicans have reported anger from customers over price increases.

But he added: “People can see it in their own supermarket shopping that there have been dramatic increases over the last 24 months, and most people are reasonable and understand.”