Beer Prices in Czech Pubs Surge by Nearly 50% Over Five Years

Data from POS system operator Dotykačka reveals that draft beer prices in the Czech Republic have increased from an average of CZK 36 in 2019 to CZK 53 this year.

This represents a nearly 50% rise in five years, significantly impacting consumers in restaurants and pubs.

Prices of popular 12-strength beers have seen even sharper increases. In April, the average price of a pint in gastronomic establishments was CZK 58.90, which is CZK 5.60 more than the previous year. Petr Menclík, director of Dotykačka, notes that prices have risen by 10% in the past year alone.

Further increases are expected as many pubs have not fully accounted for the January increase of the value-added tax on beer from 10% to 21%.

Lubos Kastner from the Czech Beer and Malt Association (CSPS) explains that only 20% of operators had adjusted their prices to reflect the higher VAT by January.

Kastner attributes the price hikes to several factors. The industry relies heavily on labor, and as wages have increased, so have operational costs. Despite the national inflation rate being 2.9%, the hospitality sector experiences inflation at around 8%. Additionally, building owners have raised rents by almost 11% due to inflation.

High energy costs also contribute to the rising prices. Many pubs are still paying elevated energy prices, and building owners have invoked inflation clauses, further driving up rent. While raw materials haven’t increased significantly, they only represent about a fifth of the overall costs.

Restaurants typically have low margins on beer, second only to lunch menus. Despite a significant drop in malt prices, breweries have not reduced their prices, said Roman Trzaskalik, commercial director of Plzeňský Prazdroj.

Trzaskalik explains that significant inflationary pressures in 2022 and early 2023 impacted all production stages, particularly in packaging. Items like bottles, jars, and aluminium cans saw sharp price increases. Equipment provided to pubs by breweries, such as tap technology and glasses, also became more expensive.

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