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How do beer prices vary across different pubs? An empirical study

Ekaterina Shakina (Department of Accounting and Financial Management, Newcastle Business School, Northumbria University, Newcastle upon Tyne, UK)
Ignazio Cabras (Department of Accounting and Financial Management, Newcastle Business School, Northumbria University, Newcastle upon Tyne, UK) (EU*Asia Institute, ESSCA School of Management, Anger, France)

International Journal of Contemporary Hospitality Management

ISSN: 0959-6119

Article publication date: 14 March 2022

Issue publication date: 4 April 2022

494

Abstract

Purpose

This paper aims to investigate the impact of pubs and breweries’ attributes on beer prices by exploring and examining the variation of beer prices across pubs in York, UK.

Design/methodology/approach

Data gathered from five surveys of pubs conducted between 2012 and 2020 are used to test six research hypotheses analysing how factors such as location, type of ownership and management of pubs, beers’ characteristics and breweries’ attributes affect beer prices in the on-licence market.

Findings

Beer packaging, type of brewery, pubs’ ownership and management all have a significant impact on beer prices, with beer on average cheaper in premises owned by pub companies and breweries compared to independently owned pubs.

Research limitations/implications

Findings can have implications in the first instance, on current fiscal policies affecting beer prices and, on a broader scale, regulating alcohol consumption.

Practical implications

Understanding beer price mechanisms in the pub sector offers valuable insights to practitioners and policymakers about designing and delivering policies and actions aimed at halting the decline of pubs in the UK.

Social implications

Findings provide original information relevant for developing initiatives aimed at preventing excessive alcohol consumption in private premises, an issue commonly associated with problems such as alcohol-related diseases, loneliness and antisocial behaviour.

Originality/value

To the best of the authors’ knowledge, this study is the first, providing an empirical analysis of beer price mechanisms within the pub sector at such a granular level; findings have important implications for pubs and on-licence businesses and for local communities and economies.

Keywords

Acknowledgements

The authors wish to thank the three anonymous referees for their valuable comments during the review process. They are also genuinely grateful to Dr Lucy Buykx and the organisers of the York Beer Census who provided access to the information used to develop this study.

Citation

Shakina, E. and Cabras, I. (2022), "How do beer prices vary across different pubs? An empirical study", International Journal of Contemporary Hospitality Management, Vol. 34 No. 5, pp. 1984-2003. https://doi.org/10.1108/IJCHM-08-2021-0981

Publisher

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Emerald Publishing Limited

Copyright © 2022, Emerald Publishing Limited

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