British pubs are facing desperate times. Some of them have succumbed to rising costs, while others have tried to offset costs by opting for taxi-sharing-like models that raise drink prices during the busiest times.
Stonegate Group, which owns companies including Slug and Lettuce and Craft Union, has launched a “dynamic pricing” model for drinks in the evenings and weekends. telegraph Monday report. It is the UK’s largest pub group, with around 4,500 pubs across the country, some of which remain popular. made money Even in the toughest times, it can bring benefits to the company.
The new dynamic pricing model will affect its 800 stores across the UK, with a price rise of around 20p per pint helping to meet extra staffing requirements for pubs as well as licensing and security needs.
The move was met with backlash on social media from customers who complained it could mean fewer people visiting the pub at the popular time.
one user write on Xoriginal Twitter: “How about charging 20p less when they are less busy? These prices only seem to work one way and not another.”
Another user said: “It’s already happening in my local pub – a pint is £3.40 ($4.24) before 7pm and £4.20 ($5.24) after 7pm. I think this Counterproductive, it’s usually deserted after 7pm.” British Broadcasting Corporation.
elsewhere, A LinkedIn user writes that this pricing strategy is similar to that found in taxis or flight bookings and only works in certain circumstances.
“Dynamic pricing works well in typical supply and demand situations, such as Uber rides, air tickets, and train tickets,” the user said. “So unless they plan on limiting the amount of beer etc, this is nothing more than profiteering/a quick way to get people to switch to me.”
Stonegate pubs are offering “courtesy notices” to let customers know when surge pricing is in place, indicating drinks will be more expensive. The notice also lays out a list of costs the additional fees will help cover, from bar security to paying workers.
The harsh reality facing bars
The pub has gone through a turbulent time – only in first three months This year, 150 pubs have closed in England and Wales. Around 560 pubs will close in 2022 due to rising energy bills and rising maintenance costs.
Consumer group the Campaign for Real Ale said it acknowledged the difficulties faced by businesses but said dynamic pricing could ultimately harm pubs by confusing customers.
“This is an existential moment for the beer and pub industry. Many pubs are fighting for survival and have no choice but to raise prices in response to a business costs crisis, customers tightening their belts, high energy prices and Unfair business rates,” CAMRA chief executive Tom Stainer told us wealth in a statement.
“Many pubs already struggle to display a prominent price list to customers, which is more important than ever for those who may struggle to buy a pint with friends and family.”
This is not the first rodeo that Stonegate has offered differentiated pricing during peak times, as it reportedly did so at certain venues during the 2018 and 2022 FIFA World Cups. financial times. But this time, things are different – Britons face a severe cost of living crisis and food inflation, which has limited their ability to buy non-essential items.
Dynamic pricing is common in applications such as ride-hailing service Uber, where demand levels determine the price of a service. Even the ticketing platform that helps Brits get concert tickets has a similar system.But according to a December YouGov survey, this tactic is turning away customers, with 71% of Britons against this idea.
But Stonegate, for its part, defended its decision to introduce different pricing during busy periods so that it can continue to offer promotions such as happy hours, buy-two-get-one-free cocktails at other times of the week.
A spokesman for Stonegate Group said: “This flexibility may mean that, at times, there is increased cost demand on the business due to additional staffing or licensing requirements (such as additional doorman team members), and pricing for some pubs and bars There may be a slight increase.” wealthadding that it still wants to provide customers with “great value for money”.
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