int prices in London are hitting £8, the boss of pub chain Marston’s has said, after the company reported a drop in sales amid rising cost pressures for hospitality firms.
“Premium pints are sitting at £7-8 in London but in Wales we’ve still got beers at £3 a pint,” boss Andrew Andrea told the Standard.
“We’ve moved drinks prices up by 7-8% — we want to keep that under review but we’re conscious people only have so much money in their pocket.”
The group saw revenues fall 2% in the 42 weeks to 23 July compared to pre-pandemic levels, as pub goers ditched roast dinners in favour of cool drinks as the sweltering summer heat reached record temperatures.
“Drink sales have held up but food sales have slumped…people have stopped going to carveries,” Andrea said.
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7 of the best beaches in CroatiaThe pub chain reported a doubling in electricity costs since its last contract ran out in March, leading to a £2 million hit to the business. Food costs have also soared, led by sharp rises in the cost of chicken and white fish. Labour costs have risen too after the company raised hourly wage rates for staff ahead of the minimum wage as hospitality firms battle for workers amid ongoing labour shortages.
Despite pint price rises, Andrea said the spectre of a £10 pint in London was not on the horizon.
“Personally I can’t foresee that in our business any time soon…there’s a point at which someone will say, ‘is that value for money?’”
Marston’s has 12 pubs in London including sites in Waterloo and the Square Mile.
Marston’s share price climbed 0.5% to 47.2p following the trading update.
