Technology
Plug in - or get switched off
It is now abundantly clear technology is valued in pubs. This is the top-line conclusion from the Association of Licensed Retailers (ALMR) and Orderella Always On-Trade report, which was released last week.
In what is inevitably going to be a continuing and long-running trend across the pub sector, more than half of the 2,000 adults surveyed in this new report said technology improved the overall experience in a pub, nightclub or restaurant. This rose to more than two thirds — 67% — for the 25-34 age group.
It appears Millennials are engaging with new digital systems to such an extent that it is estimated pubs could lose £4.32bn because of a lack of payment options.
This alarming statistic was calculated through potential lost revenue from the 24% of consumers polled that claimed to have actually left venues due to an inability to pay how they wanted. It certainly appears the days of ringing cash tills are well behind us.
Fortunately for the sector, it appears venues are increasingly aware of technology and are working to improve matters. All of those polled by the ALMR for this report already had a website, Twitter and Facebook account.
But, as for the kind of new technology required, there is an interesting disconnect between what pub operators believe to be the future technology for their venues with what the customer believes will be the case. Only 35% of consumers believe interactive tables — a digital display that allows you to choose pizza toppings for example — will be commonplace, unlike almost two thirds of operators. It is intriguing a lack of consumer engagement with this technology was revealed, as such tables and interactive boards are already being tested within the hospitality industry, like those trialled by Britvic on fonts and tablet-style screen concepts on tables.
Maybe it is merely a case of being in the early days of such technology.
Another issue that was raised by the report was tipping culture in pubs. According to the survey, 6% of consumers said they didn’t tip in restaurants — but this rises to almost half of all customers in pubs.
This is particularly surprising when you consider the rise in food-led operators in recent years — a point the report is keen to highlight.
Technology could have an impact on this issue though. When quizzed on quicker service, 22% more consumers said they would tip more in pubs when service speeded up. But it remains unclear how exactly forms of payment, especially mobile, would impact on what is a broader culture issue of tipping in such venues, especially when combined with the relationship between cash and tips. There are some issues deeper than mere surface technology.
The issue of rural pubs and semi-rural operators also posed an interesting question. Can technologies such as mobile payment be used in a pub where even low level 3G signal is difficult to obtain? Chief executive of the ALMR Kate Nicholls said technology could be applied through Wi-Fi alongside working with network providers to improve coverage.
And, she explained, it was useful to do this because quick service actually helped with ensuring the primary social function of such isolated pubs, by freeing up time for staff to talk to local daily custom.
This point was also made by Orderella CEO Dennis Collet who said it was “all about working on the positive interaction with consumers”.
There was another important point made about mobile payments by Nicholls — it means a potentially vulnerable rural pub is carrying less cash in the till. A point that is probably of benefit to all pubs — if not all small businesses.
Although the idea of free Wi-Fi in a rural pub may sound like a stretch at present, the reality is consumers want it — or even demand it. Some 58% of people surveyed said they embrace free Wi-Fi — growing to 65% in the youngest demographic of 18 to 24-year-olds.
It looks like licensees need to jump on board the technology train.
