Pub groups are absorbing price hikes
A report into menus and the way they are priced has been published showing that pub groups are absorbing the rising costs of food instead of charging customers more.
The Menurama report from the Friary Marketing and Consulting Group (FMCG) highlighted how outlets are attempting to lure customers back to their tables by holding down the cost of a meal.
One example is the rump steak, a staple item on the Great British pub menu, which was down by 1.9% in comparison to last January.
In 2007 the likes of Vintage Inns, Harvester, Beefeater and Chef & Brewer reduced the cost of their main dishes, overriding the previous trend of lowering the price tags for starters and desserts.
The report also found that operators have doubled their breakfast offerings as they battle against tighter market conditions.
Topping the list of most expensive dishes was Livebait's Platter for two, setting customers back £65.
The priciest meal for one was The Grills' 8oz Kobe Fillet Steak which costs £50 without side dishes.
Consumers can still bag a bargain, even in Greater London, with the Sizzling Pub Company's 6oz burger without chips at £1.75.
Restaurants and high street bars went in a different direction and seemed confident enough to put prices up.
In London the cost of a meal rose by 3.9% compared with the previous year but further up the country from the Midlands to Scotland prices increased by a more modest 1.6%.
Director of FMCG, David Humphreys explained more about the report's findings: "Margins are being sustained by astute management of the sales mix via the menu, purchasing economies and opportunistic pricing."
David described how operators are name-dropping well known brands to boost profits further: "More and more outlets are giving details of the regional origin of their food and in the 'value' and 'mainstream casual' segments of the market, household food brands are becoming more widely listed with one outlet even listing Bisto gravy by name in eight of its dishes."
Menurama contains the prices of over 25,000 dishes from branded and multiple-operated eating establishments up and down the UK, including JD Wetherspoon, M&B, Whitbread, The Restaurant Group and Greene King.
Words: Clare Riley
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