- Stonegate Group announced 800 of its bars to begin using surge pricing
- Prices in the pubs will rise at times of increased demand.
- The company said this is to offset higher costs for staffing and licensing requirements.
British pubs have been facing headwinds contributed by high inflation in recent years. Stonegate Group, reported a €23 million ($ 28.7 million) in the six months ending in April. To try to counter this, the group announced the adoption of surge pricing at 800 of its locations across the UK.
The pubs informed patrons with “Polite notice” signs warning them of increased costs during peak hours.
Surge pricing, also known as dynamic pricing, is a common feature in aviation where airlines charge more during peak seasons of the year.
The pricing mechanism is famously used by Uber, with prices rising automatically when more people are trying to get a cab.
With more industries trying to adopt dynamic pricing, other companies have retreated from this strategy. With Lyft and AMC abandoning their forays into this pricing strategy owing to negative feedback from their customers.