Yahoo Finance Pub prices this owner says no Aussie should be paying: 'No way a schooner or schnitty should cost that'
"If someone’s beer is expensive, I just go find someone who’s got good beer that’s cheaper.”
An Aussie pub owner says punters should never accept being charged $16 for a schooner of beer, and other venues should dump things from their menu before slapping customers with “ridiculous” prices.
Ben Johnson runs The Lord Gladstone, nestled in a uni student hub of Sydney’s inner city, and has made a frank admission about the cost of running a pub: “We’ve been feeling the pinch from all angles.
“First, it was the potato shortage pushing our cheap prices through the roof for a few months. Then, stock shortages in meat and chicken, the cost of booze - both beer and liquor - and that’s not even taking in freight and rent increases,” he told Yahoo Finance.
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But there’s a very real consequence the hospitality professional keeps in mind when it comes to pricing the menu of his “gritty, grungy” live-music venue, and one of the main reasons he’s tried to keep it to just a “dollar here and there”.
“We need to make sure the pub is profitable, we're keeping the lights on,” he said. “But we also have to be price conscious because we have a younger crowd and know that, at the slightest increase, we might lose a big demographic because they will just not be able to afford to drink here anymore.”
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$16 for a schooner? $40 for a schnitty: ‘Tell em they’re dreamin’’
Outrage over pub pricing isn’t new this year, from a Sydney club being forced to defend against a heated attack for charging $38 for schnitty and salad, to an owner claiming the humble pub classic could be worth $40 in the near future if changes to gas stoves are pushed through.
But the colourful craft-beer connoisseur has called BS. He charges $27 for a schnitzel and chips and claims some price rises are simply too steep to expect the customer to cop. He instead dished out the advice to “evolve and adapt”.
“$40, that’s a big jump. If it gets to the point where you’re going to have to charge that just to cover your cost at the bare minimum, just take the schnitzel off the menu,” he said.
“I know it’s a staple, I know it’s nostalgic, but people will still eat if it’s not there. Just tell them why you took it off. They’re gonna understand because they’re gonna say, ‘I definitely wouldn’t have paid $40 for that but I’ll pay $25 for a burger instead’.”
Food margins are tight and, like much of the hospitality industry, Johnson has to be reactive with menu increases. He said being “honest and genuine” was key, but admitted there had to be some level of “rolling with the punches”.
Aussies have levelled criticism at the rising cost of a schooner this year, with craft offerings hitting $16 in some places. Even “blue collar” classics like Reschs, Carlton Draught or VB have been tracking up to $14. An ever-increasing excise on alcohol in Australia contributes, but Johnson thinks there are two other reasons for that. Pubs are either tied into contracts with suppliers “pillaging them”, or they are “just taking the absolute piss out of the customer”.
“That is just ridiculous,” Johnson said. “There’s no way any schooner should be that price. If someone’s beer is expensive, I just go find someone who’s got good beer that’s cheaper.”
Building customer loyalty as cost of living changes Aussies’ behaviours
From cities to regional towns, it’s no longer uncommon to see a Facebook post from a well-established venue advising the doors are about to close.
Johnson isn’t the first to say drinking behaviours have changed as the Reserve Bank continues its aggressive attack on inflation, forcing households to pull back on spending as consumer sentiment took a tumble ahead of a traditionally busy period for hospitality.
“People are still coming out to the pub and going out on weekends because it’s in our nature, but instead of having four beers, they might be having two, or they might not eat at the pub,” he said.
Business activity is at “disturbingly low levels” and spending from cash-strapped Aussies isn't expected to rise this year, according to CreditorWatch. Stiff competition, changes in demand and price pressure play into the “risky nature” of the sector, making hospitality businesses the most likely “by far” to plunge into administration in a bankruptcy wave predicted next year.
Aside from staying honest, The Lord Gladstone has worked to establish itself as a cultural hub, providing a spot for creatives to converge in a graffitied but “authentic” space. Johnson said the hotel hosted art exhibitions without taking a commission slice from local artists. He also fills the roster with bands who aren’t expected to pay a venue hire, which he said had helped create a loyal customer base.
“The pub is not cheap to run, it’s expensive - the square meterage compared to some other pubs in the area,” Johnson said. “But we always try to look after everyone that’s involved in the pub.
“We constantly get screamed at by our bookkeeper but we just make it work. I can cut costs in other ways or find a good deal to make this work.”
Huge profits are not a priority for Johnson, describing himself and his business partner Mitch Crum as “just two blokes doing what they love”.
“As long as I can pay my bills, I’d rather leave a legacy for what we did for the area, for the culture of Sydney, rather than cash in.”
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