That painful time of year has come again where bar prices for both drink and food have to be reviewed and this time round increased. However this year we have been forced to increase a month earlier than planned…. Read on.
Drink prices are rising by 6%, rounded to the nearest 5p or 10p.
Food prices are currently under review and will be increased later.
Why such a large increase?
Our suppliers sent us notice of drink prices increasing by 3%, effective start 3rd March. This is why we could not wait till April to review prices as planned.
We had a rise in minimum pay rate in October 2013 and just recently it has been announced we can expect a further 3% increase in October this year. While we pay above minimum pay rate, we do use that figure as a bench mark for calculating pay rates for our staff.
We have had to second guess the Chancellors potential increases on alcohol duties in this years Spring Budget statement. There were none in last years Spring Budget, so fare to assume there will be increases this year – remember the earlier comment about plans to review prices in April – i.e. after the budget.
Is that it?
No, as we continue to take additional steps round under charging for wine.
Our review in April 2013 (the first since November 2011!) revealed we were only charging £2.15 for a glass for wine. When you factor in overheads, we were as good as selling wine at a loss. Ideally we would like a glass of wine to be round about the same price as a pint of beer, but that would have been too much of an increase in one go. So last year we increased wine to £2.40 a glass and this year to £2.75 a glass. Still very cheep and now closer to the price of a pint of beer which is £3 / £3.10.
As a members sailing club, it is vital that we price as such, hence our desire to keep our prices as low as possible, while avoiding letting the bar drop into the red. We continue to keep an eye on growing costs and make some level of profit (even though has been and remains very low), hence action taken based on what I have outlined above
Price changes will take effect after close of business Sunday 16th March.
We do of course continue to do all we can to reduce our overheads and always welcome ideas on how we can do more in this area.