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11th August 2008

Quality of food, service and atmosphere must be kept high

Written by: Admin
With talk of a recession and the British Beer and Pub Association announcing that sales of beer are at their lowest since the 1930's, UK publicans are bracing themselves for the worst.
However, despite the apparently gloomy outlook, research commissioned by American Express shows that British pubs can survive and even increase profits during periods of economic uncertainty, provided that the service, atmosphere and food on offer is of a suitably high standard. The findings, part of American Express' 2008 Hospitality Monitor, reveal that consumers are willing to pay an average of 36% more for a gastro-pub meal (an extra £3.50 on an average £10.20 meal) if the service, food and atmosphere were of a high standard. This is a significantly higher price rise than what could be achieved by other eating establishments. For example, diners are only prepared to spend an extra 18% for the same experience at a 'fine dining' restaurant. Kathryn Pretzel-Shiels, head of hotel and restaurants at American Express explains how the perception of eating out is shifting: "Britain's attitude to eating out has changed dramatically in recent times. As our working lives become ever more hectic and stressful, we love nothing more than to relax with a glass of wine and a casual meal to unwind and dust off a busy day. Despite the fact that the UK is facing challenging times ahead, people are still eating out, particularly in more casual establishments and this should stand the pub industry in good stead for the coming year." Another social phenomenon that Britain's pubs are recognising in greater numbers is the nation's obsession with all things 'green', a trend that has gained increasing momentum with campaigns fronted by top celebrity chefs encouraging consumers to buy fair trade and locally sourced products. 42% of consumers claim to be influenced by a company's green credentials when making purchasing decisions and on average, for an item costing £5, consumers are willing to pay an extra 26p for organic produce, 28p for fair trade goods and 30p more for products produced locally. In response to this, over a quarter (26%) of pubs recognise that environmental initiatives enhance their brand image. 10% of publicans source products locally where possible, 3% only or mainly use organic ingredients and 7% only or mainly use fair trade products. Pretzel-Shiels added: "It is interesting that pubs are beginning to prioritise sourcing local products, which beyond having a positive effect on image and brand, is also better for the environment and can help businesses improve their bottom line through cheaper transportation costs. As more 'gastro-pubs' focus on the dining experience to increase profits this is a trend that we can expect to gather pace."