Pub Wi-Fi: get connected

Not so long ago, free Wi-Fi access gave pubs an edge. Now it's increasingly expected by a wide range of customers, reports Robyn Lewis.

It was McDonald's that started it all really, with its offer of free Wi-Fi in most of its 1,200 UK outlets back in 2007. Now there's not just Starbucks, Pret A Manger and Krispy Kreme offering free access, but also Slug & Lettuce, JD Wetherspoon — and now Punch Taverns has teamed up with internet provider The Cloud to install Wi-Fi in at least 1,000 of its locations by September 2010 as well.

Like it or not, new-fangled Wi-Fi is becoming as much a part of a standard pub offer as ice and a slice — and if you haven't cottoned onto this yet, it's time to start thinking about it before you get left behind.

As Scottish & Newcastle Pub Company (S&NPC) points out in its Bar Boosters business advice, "Every time you walk into a coffee-bar you'll see someone working on a laptop. And it's not just business people or students — laptops and mobile devices are constantly being used to download music and keep in touch on the go."

In fact the company reports that in its pubs that have already installed Wi-Fi, 80% of users have been using handsets rather than laptops to access it, proof that Wi-Fi is about more than just travelling salesmen.

"It's about offering customers a service that is becoming more and more standard as the world becomes more connected," says Tom Arundel, business development manager at provider Soundnet.

"If you don't provide a service these days, you simply aren't competing with your peers. It's about providing an extra reward for your existing customers as well as attracting new ones."

Keep customers for longer​

Some estimate that adding a Wi-Fi service can boost business by as much as £10,000 per pub per year in extra customers and food and drink sales. This is backed up by McDonald's data, which suggests that 71% of Wi-Fi users in outlets say they spend more because Wi-Fi keeps them in the outlet longer, while Compufix statistics show pubs gain an average of three new customers using the service each day.

"These figures come from our experience of working with pub companies such as the Orchid Group, Barracuda and Fuller's," explains Compufix managing director Greg Lomax.

Getting your offer right is vital if you are to make the most of the opportunity however, and a recent announcement by the Government about the proposed Digital Economy Bill will have major implications for any business installing public Wi-Fi.

Lomax explains: "It's vital that licensees ensure they meet the requirements of the bill, as once it passes into law the owners of public Wi-Fi will be held responsible for content that is illegally downloaded by users of the service."

There are also issues around data retention under EU regulations, which require venues to be able to store information about anyone who has used Wi-Fi, and the websites they visited, for up to 12 months.

"The bottom line is pubs need to choose their Wi-Fi provider very carefully, and also not provide their own Wi-Fi solution — and we are aware that some individual licensees do so — otherwise they will be liable to huge fines," he adds.

Providing the extras​

It isn't just about the law though, as Soundnet's Arundel explains.

"Make sure you provide appropriate areas, with sofas, high (desk height) tables and plug-points for example, and offer daytime snacks, coffees and soft drinks.

"Finally, make sure your signal is optimised all around your venue. There's nothing worse than choosing somewhere specifically because it has Wi-Fi, only to discover it works in just one corner."

Once this is all in place, though, the rewards are high. "Pubs are increasingly becoming comfortable, convenient and pleasant places for consumers to spend their time, and Wi-Fi access is another example of the industry being able to offer customers great facilities while they have a drink," says The Cloud UK managing director Naunton Dickins.

To charge or not to charge?​

A rough estimate puts the percentage of pubs charging for Wi-Fi use at around 60% — but while using the service as an extra revenue stream may seem tempting, the experts advise caution.

"As more and more hotels, coffee shops and pub chains offer free access there is a danger that charging will become less and less acceptable to the general public," says Soundnet's Tom Arundel.

Kevin Georgel, group operations director at Punch Taverns, agrees.

"Figures show that pub venues offering free Wi-Fi are benefiting from a four-fold increase in users per day over the last eight months, compared to the paid-for-service, which is diminishing month by month," he says.

"If the service carries a cost to the end user, there's not so much of a draw, so people tend to use it more as a necessity — for example to check an email urgently — as opposed to a much-welcomed extra."