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  • irishtimes.com - Posted: December 1, 2008 @ 4:03 pm

    Pub price freeze – is it enough?

    Conor Pope

    The Vintners Federation of Ireland and the Licensed Vintners have called on their members to respect a price freeze to keep pub prices at today’s levels for 12 months. I had to laugh when I read that the VFI and the LVI were suddenly concerned with their members providing value for money because the provision of good value has not seemed to be at the top of either group’s list for a very very long time.

    When I heard the news this morning it took me by surprise because I didn’t realise the lobby groups had anything at all to do with pricing. I know that when we have complained about rip-off prices in Irish pubs in the past both groups have always been very quick to wash their hands of it and say they have no control over the price of a pint .

    Having said all that, this voluntary “price freeze” is probably good news and it’s hard not to welcome it. Hard, but not impossible – the price of a pint in too many pubs in Ireland is just ridiculous and has been ridiculous for a long time so freezing the price at these levels is hardly good enough.

    A pint of Guinness in some well known pubs in Dublin costs €5.40 up to 11pm and then €6 after that. Six euro for a pint of stout is scandalous. Lagers cost even more and spirits and mixers are even more extravagantly priced. Some pubs think nothing of charging €3 for a pint of water and a dash of blackcurrant. This is a drink on which there is no tax and one which costs the publican around 10 cent, if it even costs them that much. Yet a charge of €1.50 and up to twice that amount for a non-alcoholic drink is not uncommon.

    What I, and I suspect many other people, would like to see is a significant price reduction across the board. That might be the only thing that will bring customers back. A combination of rip-off prices, the smoking bans, stricter drink driving laws and sometimes pretty woeful public transport is what is driving people away from the pubs and this move which a cynic might call a publicity stunt is probably not going to be enough to reverse the tide.

  • 24 Comments »

    1.
    December 1, 2008
    5:26 pm

    The pubs are still caught in a perfect storm of declining demand (demography as much as the economy), rising costs (duties and tarrifs, not just staff and rates), and growing competition (off licences, coffee shops and – of course – cross border shopping).

    This is just the start – expect price cuts from January, traditionally the weakest time of the year for the pub trade. And expect lots (and lots) of pub closures …

    http://www.turbulenceahead.com

    Comment by Gerard O'Neill
    2.
    December 1, 2008
    8:26 pm

    At least bar staff might be told that the consumers hard earned money is now required to keep them in jobs and hope of all hopes one might be served a tasty pint with a smile for once

    Comment by bren
    3.
    December 1, 2008
    10:06 pm

    A famous Australian larger is available for the excellent price of EUR3.50 in a South Dublin pub named after a famous writer.

    I couldn’t give a XXXX about drinking rip off prices.

    Comment by markg
    4.
    December 2, 2008
    12:41 am

    Say what you like but as long as sucker punters continue frequenting these places that charge 6 quid a pint then the places will keep charging that. Gotta vote with your feet people!

    Comment by Cupid Stunt
    5.
    December 2, 2008
    12:48 am

    the joke info that 1500 pubs closed since 2001
    is passed around as some sort of fact it happened since the smokeing ban in 2004 which i figure was the the day the country went to the dogs the goverment has since took on and removed other sections of the irish community all in the name of we know best while the rest looked on .save what is left of the country by letting little pubs of 75 sm resume smoking forget the pride of what martin done and look at what damage it has caused in ireland . in bavaria the tried the same stunt but the population looked at ireland [smokers and non smokers ]and just said it would kill the pub community

    Comment by mike
    6.
    December 2, 2008
    1:25 am

    hh

    Comment by mike
    7.
    December 2, 2008
    8:43 am

    Talk about an Irish solution to and Irish problem.
    How do you fight inflation in Ireland? Put a price freeze on booze.
    Now how sad is that?

    Comment by Jonathan
    8.
    December 2, 2008
    9:21 am

    I had to laught when I heard it too. Prize freeze indeed – the prices should be tumbling. Perhaps the trouble the Thomas Reed group have found themselves in has alarmed the association into action. It’s just marketing and the floodgates of pric-drops will begin soon….

    Comment by PeterG
    9.
    December 2, 2008
    9:31 am

    A famous Australian larger is available for the excellent price of EUR3.50 in a South Dublin pub named after a famous writer.

    Yeah but there’s no way I’m going to Tramco.

    Comment by Steve K
    10.
    December 2, 2008
    11:23 am

    i find it hard to fathom that in a city whose chief brewery is smack bang in the centre, that a price of a pint of guinness or any of the other of the lagers it is licensed to brew is more expensive or on par with its competitors who either incur transport and fuel costs for shipping it from abroad or from the other side of the country! What is even more baffling is the discrepency between the cost of a pint of Guinness in the South West (usually cheaper) and that of it in the capital. So based on that knowledge are we to believe Dublin is subsidising cheap drink for counties further away from the brewery? or more logically as has been pointed out, people accept these exorbitant prices and so fuel this higher pricing.

    Sure you can say there are higher charges on rent for pubs in Dublin and other large cities, cost of paying staff etc but at the end of the day if this ‘good relationship’ that the vinters federation talks about is just that then why has the brewery not seen fit to drop the price in line with or at least closer to the cheapest pint going in the country? In harder times surely quantity of custom will beat that of a smaller number of those who believe the bubble hasnt burst.

    A price freeze at its current level is a joke. If you want people to come back into the pubs get a control on the price discrepancies of a pint of plain (3euro highest and lowest in Dublin) and at least one of the ‘local’ lagers. 4.50 is really pushing it for lager let alone a pint of stout.

    Comment by paul m
    11.
    December 2, 2008
    3:20 pm

    We need to get away from the notion of a price being ‘wrong’. Pubs charge a price that they think will achieve the greatest net profit- too high and the margin is great but volume insufficient, too low and volume sold is huge but margin is too low to pay a sufficient return. If the price is too low to make a living and the pub closes, is this still the ‘right’ price? Looking at the current situation, if the pubs are actually making a sufficient margin to allow for price cuts across the board but choosing to go out of business instead I’d be very surprised.
    On the issue of voting with your feet, I can’t remember ever hearing anyone saying that they chose one pub over another because of the price differential- nearly always down to what crowd, music, etc. If the competition is with the off trade, again I seriously doubt the pubs have the margins to compete on a price basis.

    Comment by Tom Ennis
    12.
    December 2, 2008
    10:31 pm

    Price is not wrong Tom. The lack of competition is.

    I’d like to think I could have the choice between paying a fortune or saving a fortune for a pint.

    The Government, however, has deemed that expensive on license booze is the best way to combat rampant drunkeness the grips the land. It hasn’t stopped a damn thing. This move has culminated in the public getting drunk, the Government looking foolish and the publican (until now) getting wealthier.

    Comment by markg
    13.
    December 3, 2008
    1:24 am

    I am an ex-pub worker of many years both in Dublin and outside. I can tell you now that cutting the price of drink in your pub does nothing for the business, not beyond the very short term at least.

    The idea that, say, the level of custom in each of a number of pubs on a street will reflect their pricing differentials in the same way that people would move around supermarkets according to the cost of a basket of groceries in each is just wrong.

    That’s not saying that people don’t care about the price of drink, it’s just saying that a publican won’t be rewarded for dropping the price of his pints with a proportional rise in regular custom.

    I don’t have the figures to hand but I’m quite sure the CSO had stats that showed that drink cost a higher percentage of disposable income 30 years ago than it does today, as did food.

    There are a number of factors that have affected the pubs and they’re all related – the smoking ban isn’t one of them although morning breathalysing might be. But you just can’t finger one thing.

    The customer the publican wants the most are the young middle classes, yet these have been driven out of towns into commuter estates in the desperate rush to buy property. Public transport is non-existant and taxis add a notable extra expense to a night out. Childminding is also expensive, and friends often live a lot further apart these days. There is the fear of the morning breathalyser yet, on the flipside, people don’t see the point of spending 20 quid on two taxi rides to go out for just, say, four drinks.

    People also have more choices in entertainment, people are more health conscious, people have more things they want to spend their money on, people can afford more foreign trips but still cut their cloth in between those trips somewhat… and so on, and so on.

    There are so many reasons why trade has dropped and most of them are entirely outside a publican’s hands, which is why they are floundering and why they sound ridiculous when they complain about it.

    Lastly it’s very hard to pitch your pub to an audience – just like a newspaper or a radio station. You want to achieve customer loyalty yet the people who spend the most money are also the most fickle. Young women are terrible customers! They’ll go to a place for only as long as they believe it is fashionable to do so. When they leave the men follow. But young women and their male sheep are the best spenders hence so many crap pubs with high-priced drinks, loud music and no comfort.

    Tourists are mostly dreadful customers and seasonal. Students and the elderly don’t spend much. The older middle classes get it into their head that pubs are full of people that are too young for them, don’t want to miss the Late Late and restrict their nights out to maybe one night a week accordingly. Young working class males scare everyone else off as do Travellers (that’s a fact, I’m sorry – I know it’s a wrong state of affairs, but it is still a fact). The very wealthy are as bad as young women for only wanting to be seen in the fashionable joints.

    Young middle class couples love the idea of the comfortable yet classy looking pub with indie music audible but not loud enough to ruin conversation. The trouble is, as I’ve tried to explain above, they don’t go out enough.

    However pubs will make a comeback. Within a couple of years people will realise they’re bored drinking off-sales and watching reality tv in silence and will go looking for company and atmosphere again… if they can sort out the transport and the child minding…

    Comment by dealga
    14.
    December 3, 2008
    6:16 pm

    To dealga:
    Just because people are going to pubs less does not mean they are going out less. Maybe they have decided to use their imagination and do other things.
    Has this ever occured to you?
    And in my humble opinion, the less people go to pubs and do other things instead, the better.

    Comment by Jonathan
    15.
    December 4, 2008
    3:03 am

    Jonathan,

    I would have hoped my line: “People also have more choices in entertainment” would have covered that point enough without me labouring it further.

    Obviously I was wrong.

    Comment by dealga
    16.
    December 4, 2008
    10:50 am

    Dealga,
    Point taken.
    One further question: You say “tourists are mostly dreadful customers and seasonal”.
    We can’t hold it against them that they are only here temporarily, and usually in the so-called “summer”. But why are they “dreadful”? Is it because they might only have one or two drinks and not drink themselves into oblivion like Irish customers usually do?

    Comment by Jonathan
    17.
    December 4, 2008
    3:16 pm

    I think Dealga made the point far more eloquently than I could. Too few of the punters choose their pub on basis of price to make it worthwhile for the publican to chase them.
    I think its perfectly fair to describe a customer who requires a lot of labour ot service yet has a low average return as dreadful.

    Comment by Tom Ennis
    18.
    December 8, 2008
    12:53 pm

    Jonathan,

    Like Tom says there is nothing wrong in classing service with no return as dreadful. It’s no different to describing expenditure with crap service as dreadful.

    Tourists often sit in a pub for a number of hours to observe ‘the craic’, a trad night or whatever without having a single drink or nursing a single glass of Guinness (which they feel obliged to try, yet regularly dislike!). Tour groups in particular are notorious for it.

    And I could also tell you which nationalities are, in general, known for it, but I don’t want the point to be masked by an accusation of lazy national stereotyping…

    OK – it’s the Italians.

    Comment by dealga
    19.
    December 8, 2008
    7:14 pm

    Dealga,
    There are lots of people out there, myself included, who were not brought up to believe that in order to socialize you have to drink yourself legless. Instead, they were taught that alcoholic drinks are a wonderful accompaniment to food – the drink makes the food taste better, and the food makes the drink taste better, everybody gets in a great mood and they have a wonderful time.
    Go to a Spanish tapas bar, a German bierkeller or a Japanese izakaya and see how it’s done. In addition to beer or wine or whatever drinks, there are dozens of delicious nibbly bits on offer, and they are absolutely brilliant places to pass an evening.
    On the other hand, in most Irish pubs you can hardly even get a sandwich and the only thing you can do is knock back drink till you’re on the floor. If pubs want to widen their customer base, maybe they should widen the choice of what’s on offer.

    Comment by Jonathan
    20.
    December 9, 2008
    11:54 am

    Can’t agree more about the drinking culture- we go out purely with the intention of getting battered and there’s little other option in majority of establishments. In fairness, the smoking ban makes a pub a more amenable place to eat and a lot of places are trying to do a bit more than just ham & cheese toasties, with wildly varying degrees of success.
    At the end of the day, the price of the pint itself is not going to decide fate of the pubs- its going to be all the other stuff, whether it’s quality food or growth of home drinking.

    Comment by Tom Ennis
    21.
    December 9, 2008
    4:18 pm

    I’d like to strike the cliche from above comment, after all, at the end of the day it’s a game of two halves going forward

    Comment by Tom Ennis
    22.
    December 9, 2008
    5:28 pm

    Tom,
    I quite agree. I’d just hesitate to use the words “drinking” and “culture” in the same sentence.

    Comment by Jonathan
    23.
    December 11, 2008
    10:25 pm

    “Go to a Spanish tapas bar, a German bierkeller or a Japanese izakaya and see how it’s done.”

    Hmmm. I’ll assume, in the interests of polite debate, that you’re not being deliberately condescending. This isn’t 1908 – most Irish people have managed to ’see how it’s done’ at this stage.

    The original post is about the price of drink. My posts are not about saying all pubs are wonderful; they are an attempt to explain why pubs are losing business and how none of the three main reasons typically offered for that – the price of drink, the smoking ban and the drink driving clampdown – tell anything like the complete story.

    In doing so I simply made a point that, for the average pub, tourists make dreadful customers simply because many spend no money in pubs and they’re seasonal. I’m not really sure why you’re seizing on that specific point – it’s quite straightforward. Your pleasant explanation of how you find a tapas bar an absolutely brilliant place to pass an evening is neither here nor there in that regard.

    If, however, your point is that Irish pubs need to evolve to provide a more holistic experience (for want of a less cringe-inducing turn of phrase) to attract more, regular custom then fine – I didn’t argue against that at all and I’m sure that’s all part of the bigger picture I was trying to paint too.

    Although, personally, I think wild levels of personal indebtedness, and urban sprawl coupled with our crap transport system, are far more responsible for the demise of pubs

    Comment by dealga
    24.
    September 25, 2009
    7:17 pm

    Having just returned from a year outside Ireland, the price of a night out baffles me. The elaborate presence of empowered security persons in Dublin bars and the lack of any meaningful transport system makes the capital a very flawed European city. It is immoral for Dublin bars to charge 6 euros for a pint of Guinness which is brewed less than a mile away. Let them close and go into debt because their greed deserves only this.

    Comment by Returned Traveller

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