Morrells of Oxford has admitted using a picture of a New Zealand pub on adverts for new recruits to its Oxfordshire estate.
The photograph was correctly identified by Tracy Dennison, a member of barstaff at the Nellie Dean pub in Soho, as showing her deceased grandfather in her local pub the Royal Oak, Arrowtown, back home in New Zealand.
The ad, which bears the strapline "full of character", is aimed at attracting management couples to take on Morrells pubs in Oxfordshire.
But a spokeswoman for the company said the picture was selected by the advertising agency used for the campaign and was intended to show the type of "character" who might frequent a Morrells outlet and not the outlet itself.
Miss Dennison said: "It was quite a shock when I opened The Publican Newspaper and saw the picture. It seems a bit strange for a British pub company to use a picture of a pub in New Zealand rather than one of its own outlets.
"I phoned home as soon as I saw it and my dad says he thinks it was taken by National Geographic Magazine - but it must be at least eight years old."
The spokeswoman for Morrells said: "The photo was chosen by our ad agency from a number of stock shots and I don't think anyone realised where the pub was. It is meant to be more representative of the kind of characters who might visit a Morrells pub."
She added that no offence was intended to relatives of the two men pictured and that the picture would probably be withdrawn after the advert had finished its run.