‘That is entirely their choice’: Westminster Council responds to surge pricing at central London pub

Westminster Council has denied claims that it has advised businesses to “increase prices after 10pm”.

 

It comes after media outlets reported on a surge pricing policy in place at O’Neill’s on Wardour Street in London’s Soho.

 

Customers are charged an extra £2 a pint after 10pm, which raises the cost of some draught beers to £9.40.

 

The Caterer understands O’Neill’s implemented the surcharge to maintain public order.

 

A spokesperson for Mitchells and Butlers, which owns O’Neills, said: “Most hospitality businesses and retailers deploy a form of dynamic pricing, but this means that prices can both rise as well as fall through tactical discounts being offered in the form of time-limited promotions and fixed price menus.

 

“Dynamic pricing varies on a site-by-site basis as it reflects the local market conditions, but temporary price increases tend to reflect the need to offset additional costs such as at times when door security is required.”

 

They added the policy at Wardour Street reflects a “request from both the licensing authority and the police that we increase prices after 10pm to a level generally in line with the late-night market”. 

 

“This policy has been in place for about two years,” they said.

 

In response to O’Neill’s claims, a spokesperson for Westminster Council told The Caterer: “The council imposes licensing conditions on venues to ensure they operate legally and safely, but we do not specify anything about pricing.

 

“If businesses incur greater costs to comply with the security conditions of their licence, and they decide to pass these costs onto the customer, that is entirely their choice.”

 

“The council has not advised any business to increase prices to stay in line with other local venues,” they stressed.

 

Last year, reports that Stonegate Pub Company, the pub group behind the Slug & Lettuce and Be at One brands, was raising prices at some of its bars during busy periods sparked a debate on social media.

 

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