Punch Pub Company has teamed up exclusively with Milton Keynes company Hanco to offer its licensees a unique deal to install cash machines in their pubs at minimum cost.
The move follows a trial carried out by PPC, which showed a 4.5% increase in beer sales when an ATM machine was installed.
The research also showed an average withdrawal of £40 per customer, with 9% of the cash spent in the pub as additional wet trade.
However, purchasing and installing a machine and renting a phone line can cost more than £5,000, and for many licensees the price proved too high.
Punch Pub Company director of machines, Bill Knowles said the new deal would allow licensees to enjoy the benefits of an ATM machine without the initial cash outlay.
“We have negotiated a deal with Hanco to purchase machines in bulk, which allows us to rent the machines to our licensees at a far lower cost than the going market rate,” he said.
“We will also pay for the installation and rental of a BT phone line, in return for a minimum rental.”
A convenience fee is levied on the customer, which is split between PPC, the licensee and Hanco
When a certain number of transactions is reached, the cost of the machine rental is covered and the machine becomes profitable for the licensee.
Tom Lewis, licensee of the Cross Keys in Crewe, has had a cash machine installed for more than two months and has seen a substantial increase in sales.
“We took part in the initial trial and saw the benefits straight away so when PPC started the new scheme, we got involved straightaway,” he said.
“Customers appreciate the convenience of having a machine in the pub and we see the benefits as they draw out the cash and spend it over the bar.
“We have been extremely busy in the last few weeks due to the World Cup, and we can see a direct correlation between the number of transactions and an increase in our turnover.”
Carl Thomas, Corporate Sales Director for Hanco said: “We’re delighted at Punch Pubs’ decision. It clearly emphasises the importance of three crucial aspects of our service.
“First – as landlords have already reported – machines produce a marked increase in trade; secondly the landlord has control over the system; and thirdly, the machines are simplicity itself to install and operate. It’s great news for the Punch Pub Company licensees and their customers.”
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