Payday effect a factor for pubs

Pubs are increasingly seeing the 'payday effect' as customers plan their spending more carefully, says cash and carry group Booker.

Analysis of pubs' buying patterns shows that the peaks and troughs of trading have become more pronounced over recent months.

"It definitely looks as though consumers are going out less often," said Ron Hickey, director of catering at Booker, "but when they do they are spending a bit more, in order to give themselves a treat.

"In the run-up to the last weekend in February, just after people had been paid, we saw our pub customers stocking up on food and drink to be ready for the rush."

This 'payday effect' was first identified in the USA by retailer Wal-Mart. It found customers in poorer areas tended to focus their spending on the end of the month when salaries were paid, and cut back at other times.

Independent pubs are also increasingly looking to stress value-for-money on their menus in order to tackle discount offers being heavily promoted by managed pub operators.

"Our customers are increasingly looking to offer deals of their own," said Hickey.

This month saw Booker launch a range of pub food meals including bangers and mash, fish and chips and burger and chips, which pubs can sell at £2.99 each and make at least 65 per cent gross profit.