Tenants of a popular and long-running pub say they are quitting because of "astronomical" energy bills and soaring wholesale prices.
Landlords Colin Ross and Tom Davies will leave the Hafodyrynys Inn, in the village of Hafodyrynys near Crumlin, having seen energy prices rise "ridiculously high", according to Mr Ross. After 26 years the pair's last day will be September 4.
They claim they asked the pub's owner, Admiral Taverns, to consider lowering rent amid the sharp rise in inflation, but were told: "A deal's a deal." Mr Ross, 55, said: "It doesn't matter how many years we've given, we're just a number."
Read next: Much-loved Welsh restaurant group facing 'mind-blowing' £500,000 electricity bill
When the lifelong friends announced their departure, their Facebook post was shared more than 600 times and a flood of comments paid tribute to their work. One customer commented: "How sad to be reading this, you have dished up the best ever Sunday lunch and your staff are amazing." Another wrote: "Such devastating news. You have both worked so hard to build up the pub over the years, you're a credit to the trade, it's a pity the brewery couldn't see how you have became an integral part of Hafodyrynys."
Mr Ross said the energy crisis was "the final nail in the coffin", adding: "Gas and electricity have more than doubled. Our contract expired at the end of July and we're on a new rate which is astronomical. Before, it was £700 monthly, which is high anyway, and it's gone up to near enough £2,000. It makes it impossible to stay here."
Asked if he would like to see a cap on energy prices for businesses, he replied: "I think something should be done about it because at the end of the day, more places are going to go out of business. It's not just businesses facing high bills, it's the customers, and they're not going to be coming out with extra money to spend on beer and food."
Mr Ross said the business also suffered from the recent doubling of some wholesale food prices. "We had to do a menu with new prices but you can't change the menu every week. I went to the cash-and-carry for a box of tomatoes that was £6, then the next time it was up to £12. Everything is increasing and increasing.
"Covid has changed habits as well. Everyone is now used to drinking in their gardens, especially with the hot weather we've had. We're selling a premium product, draught beer, but a lot of people are getting cans from Sainsbury's and Tesco."
Mr Ross added that he would have liked to have seen more government support for businesses as they emerged from Covid restrictions. When they re-opened from lockdown there were times when they did not have the funds to buy stock. "We missed all our big dates," he said. "Two Christmasses, Mother's Day, all lost or under restrictions. At the end of the day we had no compensation."
Mr Ross and Mr Davies hail from East Lothian in Scotland, where they became friends at school. Mr Davies has family in Wales, which was the spark for the pair moving to Hafodyrynys and taking on the pub. In the 26 years since, the support they had received from the community had been special, said Mr Ross.
"You just need to look at some of the posts on the Facebook page," he added. "It's overwhelming really. My son was brought up in the pub. He's 12 years old and it's all he's ever known.
"This is a close community where everybody knows everybody, and the pub is like a meeting place. We used to have meetings for societies upstairs before we had the community centre up the road. If someone needed something done with their home they would go to the pub and there'd always be someone, there'd be a gardener or a painter. It was the hub of the community and it's sad that it's not going to be there anymore.
"The art of conversation will be gone, I think. If you want a pint of draught beer you're going to have to jump on a train or bus to go to the big cities, because there aren't going to be small independent pubs in villages."
Admiral has announced its intention to find a new publican but Mr Ross was sceptical that the role would be filled in the near future. "In this present time would you take a pub on? We've been established for 26 years and we're struggling. What's going to happen to a new venture? It's going to be difficult."
In the Facebook post the business partners said they had been forced to shut the pub "with a tear in our eye". They added: "We will be waving goodbye on September 4 after our last Sunday lunch. It's a decision that we have made due to ever increasing overheads, which we have seen more than double in the last few months and can't pass on to our loyal customers."
The statement continues: "We would just like to pay tribute to all the staff and customers that have graced our bar and restaurant over our long and rewarding career and thank you for all the wonderful memories."
Mr Ross said he would take some time to "regroup" following the pub's closure and said he was looking forward to enjoying some weekends off work.
A spokesperson for Admiral Taverns, said: “At Admiral we take great pride in running sustainable pubs and we oversee more than 1,600 across England, Scotland and Wales. Unfortunately, there are inevitably instances where we do have to part company with our licensees. After careful consideration of the business in its current format and discussion with the licensees, they have decided to leave the business. We are currently in the process of looking for new licensees to ensure the successful future of the Hafodyrynys Inn and anyone interested should please get in touch.”
Earlier this week we reported on the "mind-blowing" £500,000 annual electricity bill facing the 44 group — one of the most acclaimed restaurant groups in Wales — across its five sites. Its founder Owen Morgan feared the independent restaurant sector would almost be "wiped out" unless there was "major intervention" before October.
Much of the recent energy crisis debate has been over calls for a freeze on the household price cap. But unlike for households, there is no cap to protect businesses. In a tweet this week, the Music Venue Trust raised fears over the future of independent businesses. Pointing to a music venue facing a 646% increase in energy costs — £36,400 extra per year — the trust said: "We need a price cap for businesses NOW."
A UK government spokesperson said: “No national government can control the global factors pushing up the price of energy and other business costs, but we will continue to support the hospitality sector throughout the UK, including in Wales, in navigating the months ahead. This includes slashing fuel duty, freezing alcohol duty rates on beer, cider, wine and spirits, and reducing employer national insurance by raising the Employment Allowance, with the Welsh government also receiving an additional £8.6bn in funding from the UK government as a result of measures taken during the Covid pandemic.”
And a Welsh Government spokesperson said: “We fully appreciate this is a worrying time for the sector, with rising inflation, increasing operating costs and staffing challenges. To help now, we are providing a £116million package of rates relief to businesses in these sectors – which means businesses are receiving 50% business rates relief in 2022-23. This is in addition to the unprecedented levels of support we made available to businesses during the Covid pandemic.
“However, the main support levers rest with UK ministers. We again call on the UK government to do far more to help businesses, individuals, and communities with the cost-of-living crisis.”
You can read more of the latest Welsh food and drink news here.
READ NEXT:
-
UK Government planning energy blackouts this winter with planned power cuts for homes and businesses
- The burger bar on a remote farm that's become one of the most in-demand venues in Wales
-
Welsh restaurant owner says zero food hygiene rating is unfair and damaging his business
-
The new Cardiff market stall selling lunches that left us lost for words
-
The Wales restaurants and businesses rated zero for food hygiene
Places to eat near where you live:
