Local pub in Dublin fights price increase by removing taps for select drinks

James

Dublin Pub Stands Up Against Price Hikes: Kavanagh's Removes Some Diageo Taps, Concept art for illustrative purpose - Monok

The proprietor of Kavanagh’s, situated on New Street in the Liberties, shared his discontent on social media when Diageo, the maker of Guinness, increased the cost of their kegs for the third time within the span of 18 months.

In spite of this, they have made a promise to protect the local community from the increasing expense of Guinness by implementing a cash discount program to keep its price at €5 per pint.

The rise amounts to a supplementary 0.06c for every pint or €5.28 for each keg. Diageo defended the price hike by referencing heightened expenses in all their Irish-based operations, despite recent declines in energy expenses and inflation.

In February of last year, the global beverage company had increased the cost of a pint by 12 cents. They then raised it by an additional 4 cents in July, which sparked anger among pub owners.

According to the Irish Mirror, Diageo possesses an assortment of popular labels, which comprises nine different draught choices such as Heineken, Moretti, Orchard Thieves, Lagunitas, Beamish, Murphys, Tiger, Coors, Fosters, and Island’s Edge.

To discontinue or not?

Graham, the proprietor of Kavanagh’s, intends to discontinue the sale of specific beverages such as Rockshore and Hophouse. Nevertheless, he will persist in providing Guinness pints at a reduced price of €5 in order to show support for their loyal customers, many of whom are elderly individuals who usually purchase four pints for a total of €20.

According to a post on Facebook, the proprietor of the pub shared their dissatisfaction by stating:

To say we are disappointed with yet another increase, (the 3rd in 18months) would be an understatement. We are a small locals local run by a liberty boy born and bred who understands the needs of our customers.

Graham, the proprietor of Kavanagh’s

The recent price hikes were attributed to operational expenses and a significant surge in energy costs, which, although undesirable, were justifiable. However, in the following period, the sector experienced three decreases in energy costs, leading to substantial annual savings amounting to millions of euros for a company like Guinness.

By collaborating, they have the potential to exert a notable influence on their profits. The plan involves initiating the removal of certain taps using Rockshore and Hophouse.

Their business differs from the price gougers found in select areas of the city. They prioritize catering to their local clientele, evident in their decision to absorb the third price hike in 18 months for Guinness. Furthermore, they will maintain their commitment to offering it at €5 through their cash discount program for customers.

A significant number of their clients are elderly individuals who have not yet transitioned to the use of modern cards and tap systems. As such, they can still pay for four pints with €20 in cash when they visit. However, this only applies to Guinness as for all other items, we will have to apply the price increase after our next delivery.

The announcement made on the pub’s Facebook page has garnered numerous likes and multiple comments, with several expressing their backing for the post.

A patron from the community commended the effort, stating: “Well done for what you are doing for your locals,” Another individual added: “I hope your pub continues to prosper as a result of this kind gesture“.

According to another individual, the older man who visits the pub daily not only enjoys a pint but also values the company and is willing to pay €5 in cash for it. This is a commendable gesture, as mentioned by the commenter.

At the beginning of the current year, Diageo made public its decision to raise prices, citing increased expenses in all of its operations in Ireland. This was done despite the recent decline in energy costs and inflation. The company notified pubs that in order to compensate for this, they would have to transfer some of these added costs to their customers.

In response, they will be making modifications to the prices listed for its draft products. This adjustment applies to all items, including Guinness, which will see a rise of 0.06 per pint or 5.28 euros per 50 litre keg. These updates will go into effect on April 15th, 2024 and any deliveries made on or after this date will be subject to the revised prices.

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