While surge pricing is not a new concept, since airlines, concert organizers, and even Uber and Lyft charge more to maximize revenue, this is the first time pubs are implementing it on beers
If you think dynamic ticket pricing for Taylor Swift concerts is unfair, then you may not like this news. The UK’s largest pub chain—Stonegate—recently announced surge pricing on beer during busy hours and on weekends.
The company hopes the price increases, of roughly 27 cents (20p), will help cover soaring costs.
Stonegate owns 4,000 pubs, including Slug & Lettuce and Yates bars, and 800 of these will have beers with dynamic pricing.
Why?
Inflation and the cost-of-living crisis in Britain have led to Stongate’s decision.
The company says the surge pricing is meant to offset the rising costs of staffing, security, cleaning and to comply with “license requirements.” Stonegate also reported a loss of $28.7 million in the first six months of this year.
Unhappy hour
As expected, the beer price hike wasn’t well received. The consumer group Campaign for Real Ale called it a “troubling” and an “unhappy hour surge” that will prevent people from socializing in pubs.
While surge pricing is not a new concept, since airlines, concert organizers, and even Uber and Lyft charge more to maximize revenue, this is the first time pubs are implementing it on beers.
The move may see patrons looking at other pubs who say they will not change pricing.
Struggle
Dynamic pricing on beer throws light on the struggling pubs and brewers. An industry report in April showed that at least 51 pubs close down in the UK every month. In the first three months of 2023, over 150 pubs shut down in England and Wales.