[Drinking] Pubs and surge pricing.

[Guinness Boy]

I get that and I know pubs are having a torrid time generally, I just don’t get his logic that it costs more to run a pub the busier it is. I know there are incremental increases, but surely the more you generally sell the more profitable you should be? I don’t have an issue with pubs putting up their prices, I just feel his explanation is a bit lame and misleading.

I was trying to remember what he'd said at just after 8.30 more than 4 hours on, so possibly I'm paraphrasing him and possibly projecting some of my own ignorance.

I do remember clearly his first point was that the BBC mostly had the story the wrong way and that pubs were mostly discounting at quiet times and that he repeatedly made the point that overall costs had gone up.

For me it's a no-brainer that costs will be higher on, say, a Saturday night, especially for a 'wet' pub. You may need a bouncer. You may need entertainment. You certainly need more bar staff. Now you may sell way more pints but that's turnover and, you hope, profit. It isn't anything to do with keeping cost down.

 

[jcdenton08]

How much for a round of Ladyboys?

 

[Iggle Piggle]

For those baffled by yet another thread started by the OP with no context and a missing negative, this is the thing.

UK’s biggest pub group to charge 20p more a pint at busy times under surge pricing

Owner of Slug & Lettuce and Yates’s to raise prices at times such as weekends to help cover costs

www.theguardian.com

Tom Kerridge was interviewed about it on Today this morning and explained the '20p extra' is actually the real price when costs are taken into account - i.e. more staff needed at busier times. The rest of the time it's discounted so actually a happy hour.

I like the idea of surge pricing in Yates wine lodge. When the price goes up 20p, you know you've got less than 2 hours before the first fight kicks off.

 

[beorhthelm]

I was trying to remember what he'd said at just after 8.30 more than 4 hours on, so possibly I'm paraphrasing him and possibly projecting some of my own ignorance.

I do remember clearly his first point was that the BBC mostly had the story the wrong way and that pubs were mostly discounting at quiet times and that he repeatedly made the point that overall costs had gone up.

For me it's a no-brainer that costs will be higher on, say, a Saturday night, especially for a 'wet' pub. You may need a bouncer. You may need entertainment. You certainly need more bar staff. Now you may sell way more pints but that's turnover and, you hope, profit. It isn't anything to do with keeping cost down.

a sensible operation will price to cover costs across the whole week or month, not peaks and troughs. if you priced per pint the most expensive would likely be 11am on a Tuesday, one chap comes in for a pint of lager, while a couple of staff are milling around, all lights and rent attribute to that one beer. Saturday evening, even with additional staff and doorman, should probably be the lowest fixed cost per pint because the volume is so much higher. gross margins on beer are considerably higher than Mr Kerridge is implying, we know this because basic product is available in the supermarket for ~£1 to £2pint. he's really talking about the low to medium volume gastropub end where the costs are spread across fewer pints, modest increases in punters need more staff for service.

 

[Papak]

As I have said before, a number of restaurants in Berlin charge more at weekends than during the week. The hospitality sector is brutal at the moment; I hope this helps them.

Another restaurant I know seems to be getting around the economic issue by having a broken card machine for the past few months and only taking cash

This has been going on (at least in the former East) for about 25 years, I worked in Germany a lot at that time and when we were taken out for dinner by our hosts it was often mentioned if their card machine was working when it was time to pay up...

 

[vegster]

So surge prices at a pubs busy times, will the owners pay the staff a higher wage during these exceptionally busy times? Surely staff pouring say 70 drinks an hour should be paid more than staff pouring 50 drinks an hour ?

Fairs fair.

 

[Leekbrookgull]

Ok, happy to have a good kicking as the O/P. Not a issue and bring it on. Huge queue for Supermarket fuel at £1.35 P/LTR and yet your LOACL garage with genuine costs can only sell it at £1.50 P/LTR. Over to you.

 

[Gwylan]

Never mind surge pricing, I think I'd need financial inducement to set foot in a S&L or Yates - particularly Yates. I remember the one in Bradford that served 'wine' from barrels and where you were never 10 minutes away from a scrap.

 

[BrightonCottager]

Well, I just paid £5.80 for a pint of local ale in an almost deserted local pub apart from 6-7 women sharing a couple of bottles of wine. That seemed like unhappy hour to me.

 

[sparkie]

It's Miserable Hour again and again and again.

 

[Justice]

So surge prices at a pubs busy times, will the owners pay the staff a higher wage during these exceptionally busy times? Surely staff pouring say 70 drinks an hour should be paid more than staff pouring 50 drinks an hour ?

Fairs fair.

Like feck will they, my other half works is M&S if they have a good month in store the manager will round everyone up and do the praise the team talk no extra money in the bank though. Motivation is zero amongst the staff occasionally they will get a free sandwich for lunch. The best thing about her working there is the discount on top of store discount she often brings me home a £20 cut of steak or a rack of lamb for a couple of quid.

 

[Brovion]

Ok, happy to have a good kicking as the O/P. Not a issue and bring it on. Huge queue for Supermarket fuel at £1.35 P/LTR and yet your LOACL garage with genuine costs can only sell it at £1.50 P/LTR. Over to you.

Because that has nothing to do with surge pricing and everything to do with economics. Supermarkets are large chains who deal in large volumes and can buy (and therefore sell) fuel at a lower price than an independent. Also their volumes mean that they can settle for a lower profit margin per litre, as the volume of sales will more than compensate.

 

[Herr Tubthumper]

Every hour is a surge-hour in craft beer pubs.

 

[Herr Tubthumper]

This has been going on (at least in the former East) for about 25 years, I worked in Germany a lot at that time and when we were taken out for dinner by our hosts it was often mentioned if their card machine was working when it was time to pay up...

True. Happens at the end of most months in many places here. The black economy in Berlin is quite bizarre, it’s an open and seemingly accepted secret in the hospitality and night time sector. As long as businesses put a sensible amount through the books they’re left alone.

 

[jamie (not that one)]

I vaguely remember in the late 90's going to the escape (I think) and they had a dynamic pricing system like the stock exchange. Prices were displayed and the more in demand drinks (probably Smirnoff Ice whatever muck we used to drink) became more expensive while those not being drank got cheaper.

I think it only ran a few nights before they got a ticking off and had to stop.

 

[beorhthelm]

I vaguely remember in the late 90's going to the escape (I think) and they had a dynamic pricing system like the stock exchange. Prices were displayed and the more in demand drinks (probably Smirnoff Ice whatever muck we used to drink) became more expensive while those not being drank got cheaper.

I think it only ran a few nights before they got a ticking off and had to stop.

remember this, it was a gimmick many nights had, buying cheap drinks when they changed prices. it was no more sophisticated than someone changing the board manually every 15min or whatever.

 

[Guinness Boy]

I vaguely remember in the late 90's going to the escape (I think) and they had a dynamic pricing system like the stock exchange. Prices were displayed and the more in demand drinks (probably Smirnoff Ice whatever muck we used to drink) became more expensive while those not being drank got cheaper.

I think it only ran a few nights before they got a ticking off and had to stop.

remember this, it was a gimmick many nights had, buying cheap drinks when they changed prices. it was no more sophisticated than someone changing the board manually every 15min or whatever.

Didn't they have Red Light Rush on Monday's where drink was suddenly ridiculously cheap when the red lights came on. Only came on once or twice a night IIRC and so then the challenge was to get to the bar in time to order enough till the next time without having it mineswept when you went for a piss or a dance.

 

[The Clamp]

Don’t be fooled into thinking you’re getting a discount at non peak times. This is a price hike trying to look like a bargain.

 

[The Clamp]

How much for a round of Ladyboys?

It’s actually 33 pound. Well it was in 1997.

 

[jamie (not that one)]

Didn't they have Red Light Rush on Monday's where drink was suddenly ridiculously cheap when the red lights came on. Only came on once or twice a night IIRC and so then the challenge was to get to the bar in time to order enough till the next time without having it mineswept when you went for a piss or a dance.

The red light would come on just as the bar staff were down to one or two so they didn't sell too much cheap booze. I remember some place down the seafront in Hove doing a drink as much as you can for 15 quid or whatever (women free entry - classic). Only one person serving so you couldn't even get 15 quids worth of drink by the time they closed.