Pint price rises may increase pressure on hospitality sector

The price of a pint has risen by 12 per cent across Ireland this week.

Due to the pressures of inflation and the cost-of-living crisis, pubs and restaurants have been forced to make price increases, with 12 cents being added to the price of a pint of Guinness.

The effect that the increase will have on the hospitality sector will be made clear in the coming months.

Brian Foley, the Communications and Public Affairs Manager for the Vintner’s Federation of Ireland (VFI) said:

“January and February are usually quiet. The trade usually starts to pick up in March, around St. Patrick’s Day — that’s the traditional start of the season so we will get a better idea then what sort of impact the increases have had.”

“We represent publicans in the trade so they are under huge pressure at the moment with the cost-of-living crisis and the cost of doing business.”

“They certainly don’t want to pass on price increases coming from suppliers from the likes of Diageo and Heineken,” says Foley.

“But giving the cost associated with running a pub, they have to pass it on to their customers so there is a worry there about the sort of impact that will have.”

Galway pub-owner Fergus McGinn expresses how pub-goers will feel once the increase is recognised.

“It’s made going for a pint a luxury,” he says.

McGinn says that the social aspect of meeting people without planning is “virtually gone” as inflation pressures may prevent spontaneous drinking.

Galway’s ‘That Guinness Girl’ comments on recent local pint price surges:

“12c is a considerable rise for regulars of the pub but makes sense as we are seeing so many prices soar recently”.

“I don’t necessarily see it stopping anyone from going to the pub, especially when a stout is so much better from the tap but I’m curious to see if people will switch from Guinness to a different beverage”, she says.

There is a “deep worry about costs” in general, according to Foley for people in business at the minute.

“There is a lot more price sensitivity in rural areas and a lot less disposable income so publicans just have to react to that and they know what their customers will pay for a pint,” says Foley, regarding the price difference between country pubs and city pubs.