The UK hospitality industry, particularly the pub sector, is facing fierce head-winds. With rising costs, evolving customer preferences and economic uncertainty, pub operators are trying to strike a delicate balance between cutting expenses and driving sales.
There are mounting pressures; energy costs, increasing supply chain challenges, and rising prices on all essentials, especially food and drink. Coupled with higher wages due to National Living Wage increases, the cost of running a pub has never been higher, and that’s ahead of recent budget increases effective from April next year (2025), notably the double blow around National Insurance contributions (NICS).
Meanwhile, consumer behaviour has shifted. Many households, grappling with the cost-of-living crisis, are limiting discretionary spending, meaning fewer pub visits and greater scrutiny of perceived value.
To navigate these challenges, pubs are having to be innovative to survive. Being more energy efficient, streamlining menus or negotiating supplier contracts all help. Or there’s the option of working harder to increase revenue; by focusing on customer service and experience; hosting more events, offering food and drink ‘specials’, adopting loyalty schemes and supporting community events and charities - all with the aim of giving more people, more reasons to spend time and money in the pub.
An often-overlooked area where pubs can save money is through merchant services.
Hidden fees and unfavourable contracts on card processing can quietly erode profits. By switching to transparent, better-value merchant services, pubs can reduce transaction costs, enabling more revenue to stay within the business. For most businesses the percentage of card transactions has dramatically increased over recent years, which means card expenses have also escalated. Switch4Profit averages a saving of 20%+ for all new customers we switch from their incumbent suppliers.
Modern merchant services pay current day’s takings, next day into your bank account, which on its own can transform cash flow. Card machines are also quicker than ever, toggling between 4G/ WiFi which is especially important in old pub buildings. Reception used to be a common pain-point; remember when staff often had to walk nearer the till, or away from thick walls.. this has all moved on now! Since card payments are such a large percentage of revenue for most businesses, there’s also actionable insights into sales and trends, helping businesses make informed decisions about menu selection, promotions, and peak sales times.
However, managing costs is just half the story, more importantly for a sustainable future, is generating more sales.
Pre-booked sales are a powerful tool; knowing who is visiting means the business can plan, prepare and provide optimum service levels. Encouraging customers to book, not just for food but also for drinks, or regular events is so advantageous, rather than reacting to walk-ins and whatever the day throws at you. Offering deals for pre-bookings, such as discounts on group events, exclusive party menus or added value, such as complimentary drinks, can incentivise early commitment. Promoting these offers through social media, emails and loyalty schemes engages both existing and new customers. Additionally, using online booking systems simplifies the process for customers, making it more likely they will commit to future visits.
There’s also the general point that if a business does not have a booking facility, customer perception is that it probably isn’t serious, or confident about its offer. After all, is it reasonable in this era to expect customers to pick-up the phone (which will usually ring-out as pubs, understandably haven’t got resource to answer phones or emails)? Booking systems also keep data secure; not only are operators obliged to comply with GDPR legislation but customers are increasingly concerned about handing over their personal details - a professional system captures pre-booked sales, saves the operator dealing with enquiries and stores data correctly.
We know about all the main providers; who are best value, who will deliver new business and those that will keep you GDPR compliant. Plus our advice is completely free of charge.
To thrive in 2025, pubs must adapt to cost and revenue challenges with innovation and resilience.
Adopting energy-efficient technologies, reducing waste, and streamlining operations are vital. However, embracing digital tools, such as robust merchant services and online booking platforms, offers a dual benefit; cutting costs while enhancing customer convenience and therefore driving revenue.
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