Star Pubs & Bars negotiates supplier deals to help licensees in wake of Covid-19 pandemic
The pubco has set up an energy services partnership with Inspired Energy for licensees who are shopping around for better energy prices and finding it difficult to get quotes.
The initiative reduces electricity and gas bills by up to 10%, it said. This is part of a trio of deals Star said it has negotiated for its licensees as they look to cut costs after 18 months of disrupted trade. The package also includes discounts on Sky Ultimate with Sky TV as well as waste management and recycling with Biffa that Star said will provide annual savings of £5,500 to the average pub.
Company's purchasing power
The agreement with Inspired Energy comes at a time when licensees are reporting that, due to Covid, many energy companies view hospitality businesses as high risk.
As a result, suppliers are either refusing to quote or are only offering higher tariffs, long contracts and some are also requiring security deposits. Under its scheme, Star bulk buys energy on behalf of its licensees.
The deals with Inspired Energy, Biffa and Sky are included in Star’s Buying Club, which uses the company’s purchasing power to secure competitive rates on products and services.
Two-pronged approach
Star Pubs & Bars buying director Steve Dancer said: “We know from talking to licensees around the country that cost reduction has never been more important. We want to do everything we can to make our pubs more sustainable by lowering their overheads.”
Jackie Fairburn, licensee of the Hare & Hounds, West Ardsley, said: “Like many pubs, we are in debt due to all the lockdowns and restrictions. My aim is to pay off what I owe by the end of the year. I’m taking a two-pronged approach: I’m continuing to invest, so I deliver an exceptional customer experience and increase sales, but I also need to reduce my outgoings wherever possible. Getting a 30% discount on Sky through Star Pubs & Bars is a real help.”
