Will minimum pricing help the industry?

Whilst a recent survey on industry leaders found that the majority of respondents believe minimum pricing on alcohol will not curb binge drinking, are the new regulations proposed by government actually a good thing for the hospitality and leisure industry?

Many operators have suffered the effects of supermarkets discounting alcohol prices, particularly through people pre-loading on drinks before going out in the evening - or not going out at all. This has led some operators to respond by offering their own incentives to get people through the door.

The danger of such practices was high-lighted this weekend by Luminar chief executive Stephen Thomas. He pointed out that reducing prices was not good for business and argued that the knock on effects of deep discounting in his night-clubs would be fatal to sales revenue, often only serving the purpose of seeking to placate a small decrease in customer numbers. Thomas also stated that the practice would reduce opportunities for reinvestment in the premises.

However, it was also reported that drink deals in supermarkets have fallen in January compared to last year from 26% to 22%, with ASDA reporting a reduction in drink deals from 27% to 13%.Is this a sign that retailers are adapting their behaviour to respond to increasing pressure? Or simply an indication that they are changing tack in order to remain competitive and serve a different market mix?

Interestingly minimum pricing may also be a good thing for the industry in terms of encouraging sales, as the recession and increasing regulation have taken their toll on pubs, clubs and bars throughout the UK. A more level playing field may encourage people to rely less on home drinking and spend more time in these establishments.

The Sting in the Tail may be that operators are better off with minimum pricing to drive customer levels - but only if supermarkets follow suit.

Do you have any comments on this topic? We would like to hear your views.
Please email: stinginthetail@epmagazine.co.uk

Here are some comments received from our most recent Sting in the Tail on the whether we need to toughen up following this month’s spell of snow and ice:

"I do not see this as a problem. I will be writing to the postman, gasman etc asking that if they wish to use my driveway, when there is snow, then they will be required to carry out a full risk assessment prior to stepping foot on my premises. When each risk has been identified and a clear methodology agreed between us, in writing, then we will look at the training required to enable them to proceed to deliver my letters, read meters etc. Meanwhile I will be talking with my insurance company, copying in my solicitor, informing them of the potential for a claim and asking them to evaluate and underwrite the risk. Contracts will then......."

"Amazing isn$t it...so few people could get to work, yet they all managed to get to the supermarket on Saturday! Equally amazing how everyone expects hospitality employees to be there to staff the local pub and restaurant (and are not disappointed)...as ever, our industry rises to the challenge! The media have a lot to answer for...they love nothing more than dramatising the weather and its effect. Their disappointment when we failed to get a second dump of snow as forecast was palpable. The weather forecasters aren$t much better, as they are terrified of failing to forecast the weather being as bad as it could possibly be. In the meantime, employees might like to wonder how their employers will generate the cash to pay them whilst they sit at home twiddling their thumbs!"

Didn$t read the last sting in the tail? Read it here