Some British bar patrons are about to pony up more for their pints. The Stonegate Group — the United Kingdom’s largest pub group, which owns approximately 4,500 pubs across the U.K. — has announced that 800 of its bars will begin using dynamic pricing, or surge pricing, which will see the cost of a pint increase by 20 pence during busy hours.
Pubs in Britain have hit a rough patch in recent years, with the Stonegate Group having reported a loss of £23 million — approximately $29 million — in a six-month period ending in April 2023. The company cites understaffing and increased staffing costs (like employing additional bouncers) as primary reasons behind their decision to lean on surge pricing. Stonegate also points to extra cleaning, washing glasses, and “complying with licensing requirements” as factors that went into the decision.
Though this price strategy is common in many industries like air travel, ride sharing, and concert tickets — looking at you, Taylor Swift — it’s not an incredibly common practice in bars. Stonegate patrons were informed of the change earlier this week, with signs posted in the establishments that would be enacting the strategy.
“Across the managed business our dynamic pricing encompasses the ability to offer guests a range of promotions … throughout the week,” a spokesperson for Stonegate told the Daily Telegraph. “This flexibility may mean that on occasions pricing may marginally increase in selective pubs and bars due to increased cost demands on the business with additional staffing or licensing requirements such as additional door team members.”
Despite their cited reasons, not everyone is convinced of the necessity for surge pricing prints. Pete Favelle, an I.T. consultant from Wales, told the New York Times that the dynamic pricing is nothing more than a cash grab. He hopes the policy will fail, and expresses concern for front-of-house staff members at these pubs who will have to explain to angry patrons why their beers are more expensive.
Some industry players agree with him. Tom Stainer, chief executive of Campaign for Real Ale, a consumer organization that promotes real ale, cider, and perry in traditional pubs, worries about what impact this may have on Brits supporting their local watering holes.
“Pubs are a place where you are expected to walk in and know what you’re going to be paying for a pint, regardless of the time of day,” he tells the NYT.
Despite the public outcry, some say they support Stonegate’s decision, like an anonymous chief executive for another one of Britain’s pub chains who told the Guardian that dynamic pricing has been “going on for decades” and that Stonegate is “not the only [one] doing it.” The executive believes that most of the negative response comes from the fact that Stongate actually told patrons they would be using dynamic pricing rather than simply enacting the new policy, which may have backfired in this instance.
So, if you want to ensure you’re paying the list price on your pint of beer, it may be best to hit the pub in the middle of the day as Maureen Heffernan, a spokeswoman for Stonegate, says pricing will generally be higher on weekends and evenings. You know, the times people actually go to the pub.
