The price of draught beer in Czech pubs, restaurants, and bars has witnessed a substantial year-on-year increase, with an average rise of ten percent recorded in mid-January. The monthly transition from December to January alone saw an average four percent hike, equivalent to over two crowns, based on an analysis by Dotykačka, a company specializing in monitoring data from cash register systems.

As of mid-January, customers were paying an average of 57.80 crowns for half a liter of beer. Notably, in city restaurants, the average price escalated to 69.20 crowns, while in villages, the average stood lower at 49.10 crowns. A significant portion of establishments—more than a third—did not alter their beer prices from the beginning of the year, while a fifth implemented substantial price increases, often exceeding six crowns.

The hike in beer prices coincided with a change in the value-added tax (VAT) rate for draught beer in restaurants from 10 to 21 percent, effective from January. The same VAT adjustment was applicable to non-alcoholic beverages. Dotykačka’s analysis revealed a twelve percent annual increase in the prices of homemade lemonades in pubs and an eight percent rise in coffee prices.

However, the upward trajectory in beer prices comes at a challenging time for bars, especially considering the ongoing shift in consumer preferences. Despite optimistic initial figures last spring, the nightlife-oriented businesses, including clubs and discos, experienced a notable thirteen percent year-on-year decrease in sales. Originally attributed to the temporary effects of the pandemic, the annual figures indicate a more enduring trend, reflecting changes in consumer behavior, with a shift towards afternoon drinks in cafes over late-night outings. Overall, the data suggests a decline in alcohol consumption, signaling potential challenges for bars and establishments catering to late-night activities.

Article by Prague Forum