JDW moral lone ranger

the abandonment of

discounted doubles will have cost jdw spirit volume and sales

The PMA Team, Deputy Editor

One remarkable fact emerged from the results JD Wetherspoon revealed this week. In April 2004, it chose to give up serving discounted spirits doubles. The decision was an effort to address massive public concern over binge drinking. Some rival operators were left open-mouthed that the mighty Wetherspoon was prepared to give up one the most powerful sales mechanisms available to high-street operators. (For an operator like JDW spirit sales, with very high gross profits, are likely to account for as much as 25% of total wet sales worth around £5,000 of the £28,000 per pub weekly sales total).

The ending of discounted doubles, JDW management revealed, meant that doubles sales as a percentage of all spirits sales have decreased from 90% to 50%. Single sales of spirits are now equal to double sales. Discounted doubles are a particularly effective sales tool on a Friday and Saturday evening. Plenty of youngish customers at weekends are looking to maximise the amount of bang for their buck. JDW staff, prior to April 2004, were obviously trained to ask customers whether they wouldn't prefer to trade up to a discounted double. That, no doubt, is why doubles sales were once so incredibly high.

The abandonment of discounted doubles will have cost JDW spirit volume and sales. The company, perhaps fearing a shareholder backlash, insists it has made no precise calculation of the cost. All chairman and founder Tim Martin will say is: 'This (policy) may have had some impact on turnover and profitability, but indicates our willingness to adopt sensible policies.

Discouraging customers from walloping doubles down their throats has been costly financially. Management believes the move was necessary for the long-term sustainability of the high street. Many other operators must have thought of following suit but decided it would be a piece of commercial suicide. JDW has handed its competitors a pretty large operating advantage. Critics say its spirits are still too cheap since very low prices are in themselves a reason for binge drinking. But JDW deserves credit for acting to slow down the rate at which its customers drink. Almost 18 months after it made the decision, it is still stands alone on this piece of moral high ground.