Poor beer quality and management cause losses in the on-trade

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Drinks: Beers, Drinks
Other: Business

IT company Vianet has revealed the results of its analysis of costs, wastage and quality for draught beer in the on-trade, shedding light on several areas in which pubs can improve their operations to boost profits.

Vianet initiated the research due to concerns over rising costs, particularly those resulting from extra employment regulations, business rates and tax.

Data was collected from over 250,000 Vianet devices installed in pubs across the UK over a period of 12 months from October 2017. Participating pubs included the Brewhouse & Kitchen chain and The Yummy Pub Co group.

By analysing more than 777 million pints served, the study revealed that 71% of the pubs are underachieving in terms of their target pouring yield and that, on average, three beer lines are underused, causing the on-trade an overall loss of £190 million.

‘Many [pubs]are missing out on the additional profit through the lack of or disregard of actionable insight,’ said Vianet’s managing director Steve Alton.

In addition, the analysis found that an average of 2% of drinks are not charged to customers, costing pubs a whopping £230m. ‘We may have got a freeze on beer duty this year, but that doesn’t mean that pubs don’t need to keep a rigorous control on their costs,’ Alton commented.

The report also raised concerns over beer quality. It showed that one in three pints is served from a beer line overdue a clean, and that 22% of sites serve beer at the wrong temperature, resulting in a decreased likelihood of repeat purchase.

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