Pubs Must Embrace Digital Technology to Survive

Posted on 31 August, 2013 by Kirsten Kennedy

In most areas of British industry, especially those geared towards consumerism, advancements in technology now play a vital role in day to day business. Retailers have widely embraced online shopping and “click and collect” services to meet the demands of customers, while restaurants and cafes frequently offer free Wi-Fi for customers as well as utilising apps such as Foursquare to gain positive reviews.

However, according to a new report, the pub industry has failed to move with the times, and this is a factor which risks alienating  the vital 16-24 age group. The study, conducted by Casio’s Business Solution Division and entitled the “Pub of the Future”, states firmly that should pubs continue to ignore crucial technological developments, the strong spate of closures seen since the start of the recession could continue for quite some time.

Senior Product Marketing Manager at Casio, Guy Boxall, believes that technology lies at the heart of the problems facing the pub industry at present.

He says; “It’s clear that pubs aren’t doing enough to stay relevant to the crucial 16-24 age group.

“To secure its long term future, the industry needs to make a shift – and this research suggests that will be driven by digital trends.”

The study was conducted in partnership with the Association of Licensed Multiple Retailers and Punch Taverns, and surveyed the opinions of 2000 UK consumers. It found that, at present, 67 per cent of pubs do not offer their customers access to free Wi-Fi, while three quarters are yet to implement customer loyalty schemes through smartphone apps.

This is despite the fact that over two thirds of respondents aged between 16 and 24 would be more likely to visit a pub where internet connectivity was an option. Furthermore, 70 per cent believe it is important that pubs show appreciation for their customers by offering personally tailored discount packages or promotions based on their social media check-ins.

With the rate of closures in the pub industry remaining worryingly high, at an average of 26 per week, it seems only logical that pubs should begin to incorporate new technologies into their existing setups. It need not be expensive either – simply creating a social networking page for people to “like”, where updates and promotions can be posted, is a completely free first step.

Additionally, utilising smartphone payment methods such as the new PayPal initiative is relatively inexpensive, and at the same time customer orders could be recorded on their individual profiles allowing for individually catered promotions. With 29 per cent of participants in the study predicting that pubs will offer customers the ability to digitally order drinks from their table in the next 10 years, taking the first step will allow establishments to remain ahead of the trend.

Mr Boxall concludes; “To the young people of today, online social currency converts into real-world social activities.

“By tapping into this untouched digital demographic, pubs could soon see a noticeable boost to their profits.”

In a separate development, the Good Pub Guide has this week warned that as many as 4,000 UK pubs could close over the next year because they are “stuck in the 1980s” in terms of food, drink and service.

Furthermore the respected publication goes as far as to say that this fate will be deserved and that it’s “high time that they closed their doors” to make way for more forward thinking and dynamic licensees.

The remarks have drawn criticism from the Campaign for Real Ale (Camra) which describes the views as “bizarre.”




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