Figures from the RAC showed fuel prices have jumped by around 10p a litre since January, with diesel seeing the steepest increases.
According to the data, petrol climbed from around 135p per litre in January to roughly 140p by March, while diesel increased from about 145p to 151p per litre over the same period.
Join our new WhatsApp channel: The Morning Round-Up
Get the biggest pub trade stories straight to your phone. Listen to our one-minute daily news briefing and receive breaking news, exclusives and sector updates throughout the day....just remember to turn notifications on in top right corner!
Join the channel here.
Frisco Pub Group managing director Heath Ball, who operates four pubs across London and Sussex, told The Morning Advertiser (The MA) rising fuel costs have resulted in cautious consumer spending and reduced engagement with the on-trade.
He added this has piled on the pressure for operators battling to keep costs under control and monitor margins, with alcohol sales having particularly struggled.
“My London sites all had like-for-like growth, about 10%, but realistically I need this, if not more, to cover inflation. My Sussex site held the same figures as last year, so that really is a decline.
Relentless costs
“Americas war on Iran is doing no one any favours. If it isn’t finished soon, food inflation will be out of control,” he said.
Elsewhere, owner of Cheshire Cat Pubs & Bars, Tim Bird, told The MA while the business saw uplifts of 10.1% and 8.1% in February and March respectively, rising fuel costs have been particularly challenging for rural pubs as consumers monitor fuel usage.
He added managing rising costs has been “relentless” so far this year but that consistency and staying positive in the face of adversity were key.
“We remain in the ‘good value’ bracket and have plenty of wiggle room on pricing both on food and drink should we need it”, Bird continued.
“The key is to remain great value for money while giving great service and wonderful food and drink within a great atmosphere.
“We all must smile our way through every challenge especially with our teams and guests watching on. One can hide somewhere and rant but essentially positivity breeds positivity and positivity drives good results.”
Working together
The issue has also impacted suppliers. Warwickshire-based family butchers Aubrey Allen was forced to increase the threshold for its minimum order earlier this week after fuel prices soared.
A spokesperson for Aubrey Allen told The MA: “We have seen a 30% increase in diesel cost to our business since the start of February. This week we have also had suppliers adding surcharges to cover their costs.
“We are dealing with it in a different way without adding cost to our clients; by consolidating deliveries into us, merging transport routes and driver engagement on MPG reduction. We have always had a minimum order and for the vast majority of our clients this remains well within reach.
“There are a tiny percentage of orders that are under this from time to time; it is about working together to consolidate deliveries and our clients understand this.
“We are doing everything we can to give our clients stability of the core product, which chefs have told us they really appreciate and the response so far has been very supportive.”
