PUBS, restaurants and cafes in York could be forced out of business by rocketing gas and electricity costs - coupled with collapsing custom - unless the Government helps out, owners have warned.
Landlords and restaurateurs say some hospitality businesses are facing a tripling or quadrupling of energy bills, with 'absolutely devastating' consequences which could be 'worse than the pandemic.'
Leading restaurateur Michael Hjort said that even successful and well-run businesses would struggle to survive if they were unlucky enough to be renewing their energy contracts in the current crisis.
He said some were facing a tripling of bills under contract renewals, and this could be 'absolutely devastating' unless they received assistance.
He said his own restaurants, the Chopping Block and Walmgate Ale House in Walmgate and Meltons in Scarcroft Road, were 'OK at the moment' under their existing contracts.
However, problems could still be caused by customers eating out less in coming months because their own budgets were being squeezed by soaring energy costs.
Pete Pemberton, landlord of the Red Lion in Merchantgate, said his fuel bill was set to rise in November from £1,200-£1,400 per month currently to £3,000-£3,500 per month.
At the same time, customers would have less money to spend.
He said his business was strong and would survive but others wouldn't, and major action from new Prime Minister Liz Truss was needed, such as a big cut in VAT.
Paul Crossman, who is landlord of the Slip Inn, the Swan Inn and Volunteer Arms in the Clementhorpe area and also chair of the national Campaign For Pubs, said the crisis for pubs was potentially worse than the pandemic.
He said some pubs were facing the same double whammy of energy bills soaring if their contracts were up for renewal, while customers had less to spend because of their own rising fuel costs.
Some pubs were already closing elsewhere, and it was only a matter of time before they began to close in York unless something was done by the Government, similar to the support offered during the pandemic.
John Pybus, landlord of the Blue Bell in Fossgate, said: "It's one devastation into another, coming after the pandemic. There are two problems - the rise in energy costs and the impact on trade as customers find their own home's energy costs rising."
He said he was 'lucky' because his own charges had 'only' doubled last November when his supplier went bust and he had to find a new one, and he was given a new two-year contract.
Otherwise his contract would now be up for renewal and he might now be facing a 300 per cent, 400 per cent or even 500 per cent rise.
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