Mitchells & Butlers PLC (LSE:MAB) shares rose 3% on Monday as its investors, if not its customers, lapped up news that it had introduced surge pricing at one of its flagship London pubs.
Anyone going to the Wardour Street outlet of Irish-themed O’Neills after 10 pm will have to pay £2 more for a pint under the dynamic pricing policy with bottles and soft drinks also getting a ‘late’ drinking surcharge.
A signature strategy of ride-hailing firm Uber, usually when people are coming out of the pub, surge pricing in boozers has become an increasingly controversial topic among patrons since Stonegate last year introduced a 20p a pint top-up at busy times over the weekend.
Mitchells & Butlers told The Telegraph that the surcharge paid for higher operating costs at night such as door staff
“Dynamic pricing varies on a site-by-site basis as it reflects the local market conditions, but temporary price increases tend to reflect the need to offset additional costs such as at times when door security is required,” it said.
MAB shares rose 7p to 240p.