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< Back to news 19 August, 2009

Your drink offer

Drinks are invariably high margin products and managed carefully, can help hospitality businesses maximise profitability. The range of products and suppliers available has never been bigger so the opportunity is greater than ever. Here are some of Beacon’s tips for getting the offer right for your customers:

Drinks are invariably high margin products and managed carefully, can help hospitality businesses maximise profitability.  The range of products and suppliers available has never been bigger so the opportunity is greater than ever.  Here are some of Beacon’s tips for getting the offer right for your customers:


The customer knows best!  Take the time to research and understand what your customers want.  A range that is too aspirational/costly may turn off customers in bars where there is a more budget conscious clientele but similarly if your customers have the money, give them an upper end range to choose from too.

Brands and Branding - Customers are brand loyal when it comes to drink and recognise that brands usually attract premium pricing.  If you use branded drinks, including in cocktails, make sure the customers know, whether that is Tazo teas or Hendricks Gin.  Also, talk to your suppliers about brand support – there are often opportunities for product sampling events, promotional materials like tent cards, posters, ice buckets and branded glasses – even branded fridges.

Pricing – the hospitality industry has always been hammered with frequent Duty hikes.  However, many businesses fail to pass on these increases to customers, often because they are in a highly competitive environment.  Explore opportunities for introducing alternative brands as a means to increase prices of some products or promote the fact that you are swallowing the price rise for a certain period of time.

Cash margin vs GP percentage – a higher quality product may cost slightly more but sells at a premium price, often generating a greater cash margin.  Cheaper products may command a higher GP percentage, but it’s what you bank that counts.  Look at the success achieved by ‘premium session’ beers such as Becks Vier, and the higher price points of packaged ciders such as Kopparberg or Magners versus draught.

The Perfect Serve - Get the basics right - it seems obvious but we’ve all been to places where this doesn’t happen! Make sure the beer lines are regularly cleaned, you have fresh lemon or lime for long drinks, the right amount of ice, shining glassware (branded where appropriate) – all of these contribute to a better drink experience for the customer which in turn drives repeat purchases and more profit for the outlet.