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Pubs warned that customers will still expect discount deals after recession

17 September 2009 by
Pubs warned that customers will still expect discount deals after recession

Pubs and restaurants offering discount vouchers are being warned that customers will continue to expect value deals even when the economy improves.

Accountancy firm Deloitte advises pubs to be wary of undermining the long-term benefits of building a brand by offering continuous discounts.

Glyn Bunting, partner in the hospitality and leisure team at Deloitte, said: "The deals clearly help to buoy up trade whilst customers focus on value for money, but continuous discounting tends to undermine long term value creation from brand building."

Bunting added that two-for-one deals offered by high street chains such as Strada and Pizza Express have become commonplace and make growing like-for-like revenue harder.

"In the long term, operators will want to build a brand that stands for more than simply being cheap. Price has to be competitive, but operators still need to have a good offering and manage their operations well," he said.

Big Pubcos triumph during recession while independents feel the pinch >>

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Consumers continue to eat out but are spending less >>

By Emma White

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Jacobs Media Group is honoured to be the recipient of the 2020 Queen's Award for Enterprise.

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