Dunfermline and West Fife pubs have spoken out on "ridiculous" rising costs that threaten the hospitality industry.
It comes after a stark warning by accountancy firm Price Bailey which says that more than one in 10 British pubs are at imminent risk of closure.
Elizabethan general manager Alex Flemming said: “One in ten is probably a gross underestimation. Our costs have more than doubled in the past two to three years.
“I don’t think people get just how excessive those costs have become, and you can’t just downstream them onto the consumer because nobody’s going to pay twice as much for their pint.
“Where does that shortfall go then? It’s absorbed by hospitality businesses, who are all trying to keep our customers happy and deliver our product at a reasonable price that is affordable. It’s a climate which is financially difficult for everyone.
“The cost-of-living impacts everybody, which means that purchases in pubs and restaurants are considered luxury spending. I don’t personally think they are, because it’s an important social and cultural thing.”
The hospitality sector provides the fourth largest amount of jobs in Scotland, with 233,000 employees making up eight per cent of the entire workforce.
Mr Flemming said: “You have little help in terms of VAT, duty, energy, sustainability, all these things that are burdens and hospitality are expected to just take on.”
In August the Scottish Licenced Trade Association (SLTA) found that 78% of outlets think the best way the new UK Government can help hospitality is by reducing VAT.
Mr Flemming continued: “You don’t have regulation in energy costs, so energy is bandit country when it comes to commercial ventures. If there’s no price cap you can’t factor those costs in.”
Pubs across the board agree that spiralling energy costs contribute to cost insecurity, and businesses are not covered by an energy price cap as households are.
Owner of the Hillend Tavern Mike Henderson said: “We’re up to £800 for electricity just now and it’s a cost we’re having to bear. You can’t pass it on to the customer because the price of a pint would be about eight or nine quid.
“It’s difficult for every pub. I don’t’ know of anybody having a fun time in the industry right now. We’ve got the budget in the next couple of weeks and then the usual price rises from the brewers in January.”
The cost of getting popular brands in can often cost more than customers are willing to pay to make the product profitable.
Mr Henderson said: “For a pint of Guinness, we’re charging £5.35, and in Edinburgh they’re asking for £7. We should be asking for a lot more than what we’re charging, but people just won’t buy it for that amount.
“We take a hit on the cost of it unfortunately but that’s something you have to do to keep your head above water.”
Stand alone pubs are arguably in a tougher position when it comes to acquiring products, due to limited purchasing power.
Owner of Edwards Bar and Grill Andrew Edwards said: “The costs keep edging up and up. We’re having to take a wee hit on the percentages, but it helps that we have a venue in South Queensferry now so our suppliers can give us a bit of a better deal when buying in volume."
SLTA managing director Colin Wilkinson highlighted the severity of the crisis facing the country’s pubs.
He said: “I’ve been involved in the licensed trade for over 40 years, and I’ve never seen anything like what we’re experiencing today. It’s even worse than Covid, because at least then you had government support with the Furlough scheme.
“Pubs in England and Wales have had business rates relief for the last two years, but we’ve had nothing. It’s been a huge hit that we’ve not had the same support from the Scottish Government as our colleagues south of the border.”
However, Mr Wilkinson believes that tourism could provide some type of a lifeline for Dunfermline’s licenced premises.
He said: “About 74% of tourists who come to Scotland visit a licenced premises, which is more than Edinburgh castle for example.
“It’s all about adapting to trends and the fact that Dunfermline is so close to Edinburgh is a bonus. It has a nice range of premises, some traditional and unique.
“You have these slots in the calendar when you can make the most of it, so it’s about selling your place and looking at it as a tourist attraction.”
Comments: Our rules
We want our comments to be a lively and valuable part of our community - a place where readers can debate and engage with the most important local issues. The ability to comment on our stories is a privilege, not a right, however, and that privilege may be withdrawn if it is abused or misused.
Please report any comments that break our rules.
Read the rules here