Is £7.50 for a Pint of Guinness Worth It?

The rising cost of pints in pubs is becoming a pressing issue for many UK drinkers, as evidenced by the Advocate Arms in Market Rasen, Lincolnshire, which is contemplating a price hike for a pint of Guinness to £7.50. Currently priced at £6, the landlord, Matthew Horsfield, is seeking customer feedback on this potential increase, which reflects the broader trend of rising prices in the hospitality sector due to supply chain pressures.

Last updated: 30 October 2023 (BST)

What’s happening now

The Advocate Arms is evaluating a significant price increase for a pint of Guinness, moving from £6 to £7.50. This decision comes against the backdrop of rising costs from suppliers, as stated by the pub's landlord. Diageo, the distributor of Guinness, has noted that while they strive to keep increases minimal, the ongoing inflation in supply chains has necessitated price adjustments. This situation is reflective of a broader trend in the UK, where pub prices are under constant pressure from rising operational costs.

Key takeaways

The Advocate Arms is considering raising the price of a pint of Guinness to £7.50.
Diageo cited inflation in the supply chain as a reason for price increases.
The average price of a pint in the UK is currently £5.21.
Increased costs and business rates are putting pressure on pubs to raise prices.
Customer feedback is being sought to gauge willingness to pay higher prices.

Timeline: how we got here

The issue of rising pint prices has evolved over several decades. Here are some key milestones:

1987: The average price of a pint of draught lager was under £1.
2000: Prices rose to approximately £2 per pint.
2025: Projections indicate the average price will reach £4.83.
April 2023: Diageo announces a price increase on draught Guinness, impacting customers by about £0.04 per pint.
November 2022: The UK government announces a 15% discount on business rates for pubs and music venues.

What’s new vs what’s known

New today/this week

The Advocate Arms is directly soliciting customer opinions about a proposed price increase for a pint of Guinness to £7.50. This initiative highlights the pressures that pub landlords face in managing costs while trying to retain customers.

What was already established

It is well documented that the cost of pints has been rising for years, driven by inflation and increasing costs of ingredients and supplies. Diageo has been transparent about the need for price adjustments to maintain quality and support the hospitality sector amidst these challenges.

Impact for the UK

Consumers and households

As pub prices rise, many consumers may find it increasingly difficult to afford a night out. The potential hike to £7.50 for a pint could deter regular pubgoers and lead to reduced footfall in local establishments. This trend is concerning for the hospitality industry, which has already been struggling post-pandemic.

Businesses and jobs

For pubs, the choice is stark: raise prices or risk closure. Landlords like Matthew Horsfield are caught in a challenging position where they must balance maintaining profitability against the risk of alienating customers. The hospitality sector may experience job losses if pubs cannot sustain operations under increasing costs.

Policy and regulation

The UK government has attempted to alleviate some pressure on pubs by offering a business rates discount. However, industry leaders argue that more comprehensive measures are needed, such as reducing VAT on food and drinks, reversing National Insurance hikes, and permanently lowering business rates to ensure pubs can thrive in the long term.

Numbers that matter

£6: Current price of a pint of Guinness at the Advocate Arms.
£7.50: Proposed new price for a pint of Guinness.
£5.21: Average price of a pint in the UK as reported by Diageo.
15%: Discount on business rates for pubs and music venues from April 2023.
4p: Estimated increase in cost to consumers per pint due to supplier price rises.

Definitions and jargon buster

Diageo: The global company responsible for distributing Guinness and other alcoholic beverages.
Pint: A unit of volume commonly used in the UK to measure beer, equivalent to approximately 568 millilitres.
Business rates: Taxes paid by businesses based on the value of their properties, which can significantly impact operational costs.

How to think about the next steps

Near term (0–4 weeks)

As pubs assess customer feedback regarding price changes, patrons may want to consider how much they are willing to pay for a pint and adjust their spending habits accordingly. Engaging with local pubs about their pricing can also provide landlords with valuable insights.

Medium term (1–6 months)

Watch for potential shifts in pub pricing strategies as more establishments respond to rising costs. The impact of governmental support measures, such as the business rates discount, will also play a crucial role in shaping the viability of local pubs.

Signals to watch

Changes in average pint prices across major UK cities.
Responses from other pubs regarding similar price increases.
Government announcements related to business support for the hospitality sector.

Practical guidance

Do

Engage with local pubs about their pricing and express your views as a customer.
Stay informed about government initiatives that may impact business rates and VAT for pubs.
Consider supporting local businesses by choosing to visit them regularly, even if prices rise.

Don’t

Don’t assume that all pubs will follow the same pricing model; each establishment may react differently.
Don’t overlook the broader economic factors affecting the hospitality industry.
Don’t ignore the potential for community initiatives to support local pubs.

Checklist

Assess your own budget for pub visits based on potential price changes.
Research local pubs to understand their pricing structures and offerings.
Stay updated on industry news regarding costs and regulations affecting the hospitality sector.
Consider the importance of your local pub for community cohesion and support.
Engage in discussions with friends or family about the value of supporting local businesses.

Risks, caveats, and uncertainties

While the proposed price increase at the Advocate Arms reflects larger trends in the market, it is important to note that individual pub experiences may vary widely based on location, customer demographics, and operational costs. Additionally, economic conditions can change rapidly, making it challenging to predict the long-term viability of current pricing strategies.

Bottom line

The potential rise in the price of a pint of Guinness to £7.50 at the Advocate Arms signals a growing concern within the hospitality sector about sustainability amidst rising costs. Patrons may need to adjust their expectations and spending habits as landlords navigate these challenging economic times, and community support for local pubs will be crucial in the coming months.

FAQs

Why is the price of a pint increasing?

The price of a pint is increasing due to rising costs in the supply chain, which are passed down from suppliers to pubs, leading to higher retail prices.

What is the average price of a pint in the UK?

The average price of a pint in the UK is currently around £5.21, though this can vary significantly based on location and the type of establishment.

What measures are being taken to support pubs financially?

The UK government has announced a 15% discount on business rates for pubs and music venues, aimed at alleviating some financial pressure on these businesses.