IN A climate of rising food costs and ever-fiercer competition for consumer spend, the choices facing pub operators are stark.
Raising menu prices in order to maintain margins runs the risk of handing market share to competitors. Cost engineering dishes by using lower-priced ingredients risks alienating customers if the dip in quality is noticed.
Maintaining both price and product quality is viable beyond the short term only if the lower margins are balanced by increased customer footfall.
This last option is the one being followed by Whitbread as it competes for market share with other managed pub operators. Last year saw the launch of two new pub-restaurant brands, adding Table Table and Taybarns to a portfolio that also includes Beefeater and Brewers Fayre.
In December, the company reported total pub-restaurant sales up 5.9 per cent across the 39 weeks to November 27 2008, and as it launches its first menus of 2009, the group believes it can continue to push both sales and market share without compromising menu quality.
"We've taken the view that we don't want to compromise on the quality or portion size of the food on the plate," says Janine Wills, Whitbread's head of food development. "Customers notice any fall in standards very quickly."
The company's choice of scampi for the Table Table and Brewers Fayre menus typifies this approach. There are many products on the market sold under the description 'scampi', from breaded fish to premium wholetail. Whitbread is working with
supplier Lyons Seafood to serve a brined scampi. This is made with scampi tails with an added brine solution. Paul Murray, Lyons Seafoods foodservice director, says: "We estimate that 95 per cent of scampi on the market contains phosphate."
Also widely used in meat processing, phosphate helps with water retention, so foods treated with it are bulkier and plumper - although on the downside, its use also means that pubs, and ultimately their customers - are paying for water as a percentage of the price of their meal.
Whitbread has been using phosphate-free scampi for some time, and was determined to continue despite the increased pressure on costs.
"We did point out that the company could reduce costs by using the same scampi as its competitors," says Paul. "The general pub industry norm is to use scampi with a significantly higher level of processing because of its cost benefit.
"Whitbread's decision to use premium quality brine-based scampi places it on unique moral ground - it is resisting pressure to use lower-quality, cheaper scampi and this is something that must be commended."
The flavour of the brined scampi served by Whitbread is undoubtedly clean and natural - but whether it's enough for customers to truly appreciate the difference is another question.
"We hope they'll recognise that it's a very high-quality product," says Janine. "If they can taste the difference, that's great - but reducing the use of phosphates and other chemicals is also important to us in terms of corporate social responsibility."