Many pubs need to get a better grasp of the profit potential in soft drinks to make the most of this important category, according to Punch Taverns director of marketing Geoff Brown.
He said: “There are lots of licensees out there who would benefit from doing a quick calculation of the profit contribution that soft drinks make to their business.
“Many would be surprised by the results and start to realise that soft drinks deserve more attention in the future. They need to understand their importance and develop this increasingly valuable income stream.
“Range, quality, temperature and presentation are all important aspects of serving soft drinks – but first of all licensees need to understand the potential profits that will help focus their minds.
“Many just see it as a service product that just needs to be available, so they do not put effort into making it another quality aspect of what they are proud to serve.
“I am surprised how some pubs and restaurants still serve warm, flat, unbranded cola and expect customers to be happy to pay upwards of £1 for a half pint, even though they would never dream of serving warm, flat, unbranded lager.
“Customers are becoming more discerning and this change in demand requires a change in sales approach. Also, more customers are making positive soft drink choices, not just when forced into it as the designated driver.
“Over the next couple of years soft drinks is expected to be the second biggest growth area, behind only bottled ciders. Also, licensees who prepare for the changing demands of the smoking ban will benefit from even more of a sales acceleration.”
While appreciating the need for a change in approach from retailers, Geoff also sees the importance of making the right impression.
Punch’s Profit Through Quality (PTQ) training course covers the perfect serve on draught beer, wine and spirits, as well as soft drinks. This involves:
- A tall, clean and cool glass, preferably branded
- Fill it ¾ full with quality cubes of ice – not chipped pieces
- Fill the drink to the top of the glass
- Add a wedge of appropriate fruit
The company has also produced a ‘Pop Stars’ marketing brochure to help its pubs make the most of thirst quenching soft drink sales during long summer evenings.
He added: “Quality is essential to make people enjoy their soft drink choices, with properly carbonated drinks served at the right temperature. After all, you need to provide quality in order to achieve good retail margins by charging premium prices for a premium product.
“Upsizing to 16oz glasses from 10oz also increases the perceived value for money for the customer and improves margins. Even though this seems like a basic step it can bring in more than £2,000 a year extra profit.
“Merchandising, presentation and good visual displays help generate sales, especially in food driven pubs. Soft drinks need to be promoted as desirable purchases and customer should not be left disappointed by a lack of choice.”
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