Proactive Investors - Mitchells & Butlers (LON:MAB) came clean yesterday and admitted what many drinkers have suspected, namely that prices go up when it's busy.
Phil Urban, chief executive of the All Bar One, O’Neill’s and Harvester chains, said he could not understand what the fuss was about as the practice had been around “forever and a day” in the pub sector.
Surge pricing became a common phrase when Uber (NYSE:UBER) coined the term when it raised fare prices to maximise income during busy periods.
Pubgoers became aware of it in September when Slug & Lettuce and Yates owner Stonegate started using “dynamic pricing” in September, causing a social media outcry.
Urban told the Telegraph, “In our case, yes, we do it. It’s always been around in the industry when operating costs for particular events are high, then sometimes people price accordingly.”
“Surge pricing has been around forever and a day... It’s almost been reported as if it’s something new. I’ve been in the industry for 34 years. It’s always been there.”
He said costs during busy periods of hiring extra bar and security staff justified the move, adding that price increases at his pubs were “tiny”.
Shares in Mitchells continued their downward surge today, falling by 1% to 219.4p, adding to the near 10% fall on Thursday on the back of its full-year results.