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Pubs quoted higher tariffs from energy providers that view hospitality as ‘high risk’

Kitchen

Star Pubs & Bars has used its buying power to set up an energy services partnership for licensees that are shopping around for better tariffs and finding it difficult to get quotes.

The initiative with Inspired Energy could reduces electricity and gas bills by up to 10% and is part of a series of deals Star has negotiated for its licensees as they look to cut costs after 18 months of disrupted trade.

It has also secured discounts on waste management and recycling with Biffa that will provide annual savings of £5,500 to the average pub.

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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 and long contracts. Some are also requiring security deposits.

Under its scheme, Star bulk buys energy on behalf of its licensees and secures the best value rates for them.

It will manage the agreement to ensure great service for licensees but it does not receives any financial remuneration from them.

Steve Dancer, buying director at Star Pubs & Bars, 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.

“Taking advantage of the Buying Club deals on bigger expenses alone, could easily save at least £10,000 a year. All of the deals are optional, and it is up to licensees whether they participate.”

MARKET TALK: Kitchen optimisation, the energy tariff question and restaurant density management

Tags : PubsStar Pubs & Bars
Andrew Seymour

The author Andrew Seymour

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