The pub, bar and restaurant operator explained it introduced a £2 surcharge on all drinks sold after 10pm at its O’Neill’s site on Wardour Street in Soho around two years ago, at the request of the local licensing authority and police service.
M&B detailed the request was made in a bid to bring the Irish themed pub’s pricing in line with other local venues, which includes multiple late-night venues.
Specific circumstances
A spokesperson for Mitchells & Butlers told The Morning Advertiser (MA): “The policy at Wardour Street reflects a request from both the licensing authority and the police that we increase prices after 10pm to a level generally in line with the late-night market. This policy has been in place for about 2 years.”
It means a pint of BrewDog IPA costs £7.40 during the day and increases to £9.40 after 10pm while a bottle of Budweiser jumps from £6.05 to £8.05.
While the operator said it does implement some form of dynamic pricing across its brands, which include All Bar One and Nicholson’s, the policies vary site-by-site.
It added the specific circumstances at the Wardour Street pub should not be conflated with its general approach to pricing,
The M&B spokesperson continued: “Most hospitality businesses and retailers deploy a form of dynamic pricing, but this means that prices can both rise as well as fall through tactical discounts being offered in the form of time-limited promotions and fixed price menus.
Additional costs
“Dynamic pricing varies on a site-by-site basis as it reflects the local market conditions, but temporary price increases tend to reflect the need to offset additional costs such as at times when door security is required.”
Last year, Stonegate's dynamic pricing system came under fire. The operator said it would increase pint prices by 20p at around 800 of its venues during evenings and weekends to help cover the cost of extra staffing, licensing requirements and additional security.
The move received backlash from the Campaign for Real Ale (CAMRA) chief executive Tom Stainer, who described it as "troubling".
