The rising cost of a pint: what the licensed trade can do to keep people buying
A pint in a Great British pub or restaurant has become something of a tradition over time, but changes in the law are seeing many establishments slip into decline.
As the cost of a pint continues to rise it’s essential that those in the licensed trade take steps to keep their customers buying. Failure to do so could result in financial difficulties and place the business concerned in trouble.
Restructuring processes could be considered but it would almost certainly impact upon the trading of the company.
Taking early action to avoid this situation before it becomes too serious is essential. While passing the full additional cost onto the customer ,by putting up the prices of a pint, may seem like a logical idea, the easy availability of cheap alcohol means customers can go elsewhere for less. It is essential that custom is maintained if the business is to survive and flourish.
There are a number of alternatives that businesses can consider to boost sales and profit.
Broadening your horizons
Attracting customers and retaining them is very difficult, but increasing the product range available is a good place to start.
In recent times, many local breweries have experienced success while larger brands have turned towards flavoured drinks to attract custom.
The cider market has expanded at a record rate thanks to the development of flavours including, strawberry and lime, mixed berry and cherry to name just a few.
Meanwhile, the leading brands have explored the possibilities of adding lemon and lime to drinks to get that pub feel in a bottle rather than a pint glass.
Of course, this doesn’t completely avoid the possibility of a company reshuffle or business restructuring process, but it can help companies to stay on track.
Turning towards food options as well as drinks is an increasingly popular way to help to boost profits, as can developing a menu of exotic drinks that may be unavailable elsewhere.
Engaging the customer in social activity, such as a quiz night, can draw people in or offering the use of accommodation to local social groups.
Either way the licensing trade has plenty of options available to ensure that people will continue to invest, even when the price of a pint is still going up.
By Phil Smith