How is this pub making money at these prices?

r/

I don’t know why but I’ve had these adverts from a pub in Sussex appear on my Facebook feed, even though I live in London.

How on earth can they be making any money on food at this price?

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Comments

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  2. lunarpx Avatar

    By selling drinks.

  3. Opening-Worker-3075 Avatar

    Cheap ingredients? 

  4. limitedregrett Avatar

    fuck me, they’ve really ramped up the word count!

  5. True-Abalone-3380 Avatar

    They will be buying in the cheapest ingredients they have and running a limited menu so there is minimal food waste.

    They will also be anticipating people spending money on drinks, using this to get people through the door.

  6. HellPigeon1912 Avatar

    Anytime I see a non-chain pub with suspiciously cheap food or drinks my best guess is that they own the building outright.

    Most pubs will be paying rent on their premises.  That’s a huge expense, and if you don’t have it you can afford to drop your prices lower than everyone else

  7. Little-Watercress566 Avatar

    Admittedly I very rarely go in pubs, but £10 for fish and chips is daylight robbery. I’m confused why you think this is cheap.

  8. Venus_Gospel Avatar

    That’s still pretty expensive by my standards for pub food. If it was anything more than this id be skipping food and just not eating, cheaper to get drunk that way too.

    Eating out anywhere in general, even takeaways these days is going on extortion

  9. Kaskills Avatar

    I don’t imagine they would if this was always on offer but it’s only on certain days, maybe it’s worth is for the increase in custom?

  10. chasingkaty Avatar

    They make money off the drinks sold.

  11. OptionalQuality789 Avatar

    That menu is a visual abomination 

  12. one_pump_chimp Avatar

    I’m prepared to bet that you aren’t getting fillet steak but rather a fillet of steak.

  13. PetersMapProject Avatar

    They are probably not making much money on the food. But they will be getting some money towards the overheads like rent and rates, and hopefully making some money on the drinks as well. 

    Alternatively, they’re terrible business people and are actually losing money on this. It’s not unheard of.

  14. ThatGothGuyUK Avatar

    It’s a pub, when people eat in they buy more alcohol and soft drinks on which they make a lot more profit.

  15. Dry_Action1734 Avatar
    1. They own the building, so don’t have rent to pay.

    2. It’s a loss leader. They lose money with every one, but it gets people liking their pub to come back some other time to pay full price / drink.

    3. The ingredients are cheap shit.

    4. This is Reddit, so of course it must be money laundering.

    It’s likely 1 and 2 together.

  16. tskir Avatar

    I was wondering the same question when a pub nearby advertised a very lucrative lunch deal to try and lure us away from our office canteen.

    Turns out the trick was to serve small portions of really, truly terrible quality food.

  17. Confudled_Contractor Avatar

    My Dad lives out in rural Essex and there’s pub near him, he calls the Ol’ Geezers (and Gals!) pub. It serves decent if unspectacular food at £7-8 a plate, good sized portions and a selection of Roasts on a Sunday and great service.

    It’s Rammed out with retirees and their guests for the most part. You have to book all weekend and often on a Thursday/Friday. Drinks are reasonably priced too.

    I’m guessing they’re making money hand over fist.

  18. NoFewSatan Avatar

    Everything is just frozen and re-heated.

  19. Exotic-Knowledge-243 Avatar

    They buy food in bulk and cheaply. Go the asda and you can buy a steak for £3. I’ve seen my local pub staff in there buying for the pub at times

  20. cooky561 Avatar

    My local chippy has better prices than those, but they also charge £2 for drink, they always make the money somewhere.

  21. Cultural_Tank_6947 Avatar

    It’s essentially a loss leader and means to drive customers into the pub earlier on a particular day.

    Even if they breakeven on the meals but that helps them sell 50% more booze than they would have otherwise sold, it’s a win.

  22. Complete-Painting307 Avatar

    The above comments could be right, but most likely they don’t own it, and prices like that are due to sheer desperation to get people in the door.

    If the pub has a weather spoons nearby it’s likely trying to complete with it.

    Sources: My mum does this in her pub.

  23. Piccadil_io Avatar

    You’re gonna be waiting an hour, be design, so you buy at least two drinks per person. I don’t think this is a bad business practice, it’s still a good deal. Good on ‘em. Get yourself round, OP.

  24. maldax_ Avatar

    Lots of salt

  25. PiscineIllusion Avatar

    > I’ve had these adverts from a pub in Sussex appear on my Facebook feed, even though I live in London.

    When I lived in Italy I was getting targeted adverts for a restaurant in the Netherlands.

  26. oktimeforplanz Avatar

    I skimread both, but I don’t see any mention of drinks being included. Strong possibility they rinse you on drinks. You come in the door for the cheap food, but most people aren’t content with tap water with their meal, so you pay for the drinks too. Drinks, especially soft drinks, are very high margin as it is, even more so if you’re using them to top up a “loss leader” offer like this one.

    They may also have lower overheads (building owned outright maybe?), the ingredients themselves might be cheap as hell, but my guess is drinks are expensive.

  27. PresterLee Avatar

    Nah you can buy cheap ready meals and get the bar staff to nuke them to order and the dishwasher. No chef to pay, no waste, no prep, no KP. Perfect for a quiet, down at heel boozer.

  28. BastardsCryinInnit Avatar

    It’s called a loss leader.

    They’re hoping you buy drinks, maybe a dessert, maybe come with something who doesn’t like fish so has to order a la carte, maybe you’ll enjoy the service and food and come back on another day when there isn’t a promo running…..

    Also a lot of the food is “boil-in-the-bag” which is the term for places that primarily heats pre-prepared food like in the fryer, microwave, in a pan rather than cooking from scratch. 

    Heating up sauces, throwing things from a freezer bag into the fryer etc. Bought at a cash n carry,

  29. JoeDaStudd Avatar

    It will be the cheapest food you can get and likely heavily salted, seasoned and dry to encourage you to drink more.
    Good chance the portion sizes are small too.

  30. Mrwonderful-hnt Avatar

    Frozen cheap food and they are making money from the alcohol.

  31. ToThePillory Avatar

    Break even on the food and make money on the drinks.

  32. dazrog Avatar

    This place is local to me. The same company used to own another place that operated the same way, they closed it during the pandemic and then never re-opened.

    The food is actually pretty good.

    Their business model relies on a high turnover of customers, getting you in, fed, and out again as quickly as possible so the next customer can come in. Food is prepared ahead of sittings and reheated for service to speed things up.