Pub owner battles rising costs, fears young workers will be driven out
Nick Evans, co-owner of the Old Crown Coaching Inn in Oxfordshire, is facing a desperate struggle to keep his historic pub afloat, battling a perfect storm of escalating costs and dwindling consumer confidence.
A steep price for heritage
The pub, steeped in history with beams dating back to Cromwell’s visit, is now grappling with soaring energy bills, minimum wage increases, and punitive business rates – a triple whammy threatening its very existence.
Evans, a former City trader, admits the hospitality sector has been ‘nothing but sucker punches’ since the pandemic. “The only way you can make it work is to have a microwave, staff who can open a packet and put it on a plate,” he lamented, a stark indictment of a sector increasingly reliant on streamlined, low-cost operations.The pub’s ambitious plan to expand to 20 rooms, a £350,000 investment, is on hold, overshadowed by the immediate crisis. Webb, Evans’ co-investor and fellow City retiree, acknowledges the grim reality: “We can’t sustain a business employing 20 people if we end up losing money. We’ll have to just say let’s go and live in Spain, we don’t need this shit any more.”
A detailed spreadsheet painted a bleak picture: annual revenue stands at £1.4 million, fueled by a previous £440,000 investment, yet expenses – including beef prices, beer costs, and rising water bills – are already outpacing income. The VAT burden, a persistent grievance for UK hospitality businesses compared to European counterparts, adds another £234,000 annually, pushing the business into the red.
The looming threat of surging energy prices, exacerbated by the Iran crisis, is particularly alarming. Cornwall Insight warns of potential ‘locked-in’ deals and limited access to fixed-rate contracts. Evans estimates a significant increase in his gas and electricity bill, potentially costing upwards of £80,000, a figure that could spell disaster.
But the financial pressures extend beyond immediate costs. The national insurance hike, implemented by the government, is disproportionately impacting young workers, many of whom have already struggled to find employment. Evans argues that the change is ‘inherently misogynistic,’ as it discourages employers from hiring part-time workers – often mothers seeking supplemental income. “You’re running the risk of pricing young people out of the market,” he stated, a sobering assessment of the sector’s trajectory.
Despite these challenges, Evans and Webb remain committed to preserving the Old Crown. They are currently appealing to HMRC for a more flexible payment plan for their VAT bill, a desperate plea amidst a landscape of rising costs and dwindling opportunities. “It’s been a struggle,” Evans concluded, his voice heavy with resignation. “It’s tough, tough, tough.”