UNHAPPY HOUR
Fury as major pub adds £2 extra charge to pints at busy times
It's not the first time punters have faced dynamic pricing
A MAJOR pub has caused fury by charging customers an extra £2 a pint at certain times.
Drinkers at the busy O'Neill's on Wardour Street in Soho, London usually pay £7.40 for draught beers.
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But the price of the same pint will now jump to £9.40 once the clock strikes 10pm.
The surcharge also applies to other drinks sold at the boozer, as well as beer.
Angry punters have taken to social media to vent on the changes.
One person posted on X (formerly Twitter): "I imagine I'll never be drinking in an O'Neills pub ever again."
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Another said: "O'Neills is pricey anyway so would not even bother going there."
A third said: "They're already ripping people off with £7.40 a pint normally.
"If they want security, it's not up to the customer to pay for it. Hopefully, they'll lose money because of this idea."
"I'm not surprised the pub industry is in such decline," said a fourth.
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The surcharge has only been introduced at the O'Neill's location on Wardour Street in Soho, London, and has not been introduced at any of the chain's 40 other pubs.
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A spokesperson for pub group Mitchells & Butlers, which owns O'Neill's, said: "Most hospitality businesses and retailers deploy a form of dynamic pricing, but this means that prices can both rise as well as fall through tactical discounts being offered in the form of time-limited promotions and fixed price menus.
"Dynamic pricing varies on a site-by-site basis as it reflects the local market conditions, but temporary price increases tend to reflect the need to offset additional costs such as at times when door security is required."
This isn't the first time a pub group has introduced dynamic pricing.
DYNAMIC PRICING ELSEWHERE
Dynamic pricing is also a common practice in the hospitality sector in the US, although it is rarer in the UK.
Last year, the company behind Slug & Lettuce and Yates's announced a 20p increase per pint during peak hours due to rising costs.
Stonegate Pubs, which has 4,500 boozers, charges more on midweek, early evenings and weekends.
At the time, a spokesman said: "On occasions, pricing may marginally increase due to increased cost demands."
Drinkers are already struggling with the cost of living crisis.
In September, the average price of a pint of lager across the entire hospitality sector was £4.79, up from £4.62 the previous year.
Pubs attribute this increase to soaring energy, staffing, ingredient costs, and the huge hike in employee National Insurance contributions announced by Chancellor Rachel Reeves last month.
CHEAPEST PINTS IN THE WORLD
These 10 countries have the cheapest pints in the world
- Uzbekistan - 70p
- China - 90p
- Madagascar - £1
- Vietnam - £1.02
- Ukraine - £1.06
- Belarus - £1.07
- Philippines - £1.25
- Colombia - £1.28
- Azerbaijan - £1.29
- Kazakhstan - £1.34
TOUGH TIME FOR HOSPITALITY
Last week, Rachel Reeves hiked the employer rate of National Insurance (NI) from 13.8% to 15%.
She also announced a reduction to the threshold at which businesses start paying NI contributions from £9,100 to £5,000.
Last week, Wetherspoons boss Tim Martin warned of price rises in response.
The pub chairman said it would aim to stay competitive on costs for customers but that all hospitality businesses faced the same pressures.
The chain's tax bill is expected to rise by two-thirds next year after the Chancellor announced a hike in the national insurance for employers.
Wetherspoons anticipates that tax and business costs will increase by approximately £60million over the next year, including an estimated 67% rise in national insurance contributions.
Businesses, particularly within the hospitality sector, have warned that the increased financial burden could lead to higher operating costs, which may ultimately be passed on to consumers through price rises.
Greg Johnson, analyst at City broker Shore Capital, predicts that the national insurance contributions could "add a further 5p to a pint".
According to the analysis, Wetherspoon competitor Mitchells & Butler, the owner of All Bar One and Toby Carvery, will face a £40millon hit.
Yorkshire brewer Timothy Taylor's has also warned it will be forced to raise beer prices.
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The expected price hikes come despite the Chancellor also cutting tax on draught beer in pubs by 1.7%, which Reeves said would take a penny of a pint.
Other alcoholic beverages, including wine and whisky, rise 3.6% under changes to alcohol duty.
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