The only time surge pricing ever affects me is when I’m trying to hail a rideshare after a concert—I never considered that the concept could be applied to something like my bar tab. The largest pub company in the UK, Stonegate, just pulled an interesting move to maximize its profit: It has applied surge pricing to pints during its pubs’ peak operating hours, Forbes reports. That means drinks will cost more throughout evenings and weekends, when the cool kids head out to toss a few back.
How surge pricing will affect British pubs
Stonegate owns an extensive number of pubs across the UK, totaling over 4,500 locations. However, the new price increases will only go into effect at 800 of them. The dynamic pricing adjustment will cost customers an extra 20 pence, which amounts to about $0.25 per drink.
This isn’t the first time Stonegate has tested out a dynamic pricing model
Stonegate has, in fact, toyed with prices this way before. It added extra charges to drinks during the 2018 and 2022 World Cup soccer tournaments, but didn’t add that policy permanently as a systemwide operating procedure.
One London business, the Carlton Tavern, had mixed opinions on the surge pricing, and responded to a tweet regarding to the issue:
Just a stealthy price increase for more transient guests basically. Or as you more eloquently put it an ‘unhappy hour’! Sharp tactics however you look at it but those huge refurbs and investments have to be paid for somewhere I guess!
— The Carlton Tavern (@TheCarltonTav) September 12, 2023
“Just a stealthy price increase for more transient guests basically,” the tavern posted. “Or as you more eloquently put it an ‘unhappy hour’! Sharp tactics however you look at it but those huge refurbs and investments have to be paid for somewhere I guess!”
Part of me wonders if the fervor will die down and customers will simply get used to higher prices on their pints. It’s not a massive price hike, which is why this might just amount to an annoyance (considering the company could always have done an across-the-board price increase, regardless of time of day). But if the backlash winds down into more of a whimper, it’s reasonable to guess that businesses over here might follow suit. It worked for fast food menus, after all.
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