Greene King latest to face backlash for dynamic pricing
According to reports, Greene King increased the price of its beer by 29% at one of its London sites during England’s UEFA Nations League game against Ireland on Sunday 17 November.
The Torch pub in Wembley hiked the price of a pint of San Miguel by £1.20, from £6.20 to £8, during the game due to increased staffing costs, The Sun newspaper reported.
However, the operator asserted higher prices were required on occasion to cover increased costs during busier periods.
A spokesperson for the Torch told The Morning Advertiser (The MA): “Alongside many other businesses in the area, we sometimes raise prices during high-profile events at Wembley to help cover the increased costs of safely managing our pub during this time.
Increased costs
“This does not happen for every event but was the case for Sunday’s England v Republic of Ireland game, due to the higher number of people working, increased numbers of door staff as well as all pubs in the area being required to close an hour before kick-off and while the game is on.
“We strive to offer good value for money for our customers and give them a great experience before the game.”
Greene King said it does not implement dynamic pricing across its estate but some venues, including the Torch, sometimes increase prices during certain events to help cover costs.
Earlier this month, Mitchells & Butlers (M&B) faced backlash after it introduced a £2 surcharge on drinks sold after 10pm at one of its Irish themed O’Neill’s pubs in Soho.
The multiple operator outlined variable pricing had been introduced at the site around two years ago at the request of the local licensing authority and to offset additional costs during peak times, such as additional staff and security.
Tread carefully
It meant a pint of BrewDog IPA went from £7.40 during the day to £9.40 after 10pm while a bottle of Budweiser increased from £6.05 to £8.05.
Last year, Stonegate's dynamic pricing system also 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.
Dynamic or variable pricing systems have been used in the hospitality sector for a number of years.
Though Dimitris Hiotis, who is senior partner and head of travel, tourism & leisure at global strategy consultancy Simon-Kucher, told The MA while it can be beneficial, firms should “tread carefully” to avoid alienating customers, especially at pubs.
He said: “There is increasingly more talk about dynamic pricing and, as more chains indicate they would do it, people are getting more used to [the idea].
“It has to be justified to customers, otherwise it can create a backlash, which could harm a business in the long term.”
