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Premium Pub Positioning: How to Go Upmarket and Increase Profits

Premium Pub Positioning: How to Go Upmarket and Increase Profits Let's address the elephant in the room: you're never going to compete with Wetherspoons on...

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Peter Pitcher

Peter Pitcher

Founder & Licensee

10 min read
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Premium Pub Positioning: How to Go Upmarket and Increase Profits
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Quick Answer

Focus on quality over quantity with curated drinks selection, elevate food presentation and ingredients, create unique experiences like tasting events, improve atmosphere with better lighting and decor, and train staff to provide knowledgeable service that justifies premium pricing.

Premium Pub Positioning: How to Go Upmarket and Increase Profits

Let's address the elephant in the room: you're never going to compete with Wetherspoons on price. And that's exactly why you're going to win.

While chains race to the bottom with £2 pints and microwave meals, smart publicans are discovering a powerful truth – there's a growing market of customers who'll happily pay £8 for a pint if you give them a reason to. The secret isn't just charging more; it's delivering an experience that makes premium prices feel like excellent value.

The Premium Paradox: Why Expensive Can Be More Attractive

Consider this: The Harwood Arms in Fulham charges £16 for a pint of craft beer and has a three-week waiting list. The Wetherspoons 400 metres away charges £3.50 and has empty tables.

Why? Because premium positioning isn't about price – it's about perception, experience, and the stories customers tell themselves and others.

Understanding the Premium Customer Mindset

Before transforming your pub, understand who you're targeting:

The Premium Pub Customer:

  • Values experience over expense: Happy to pay for memorable moments

  • Seeks authenticity: Wants real stories, real ingredients, real expertise

  • Craves exclusivity: Not necessarily snobbish, but wants to feel special

  • Shares experiences: Their social media is their personal brand

  • Quality-conscious: Understands and appreciates craftsmanship

  • Time-poor, cash-comfortable: Wants maximum value from limited leisure time

What They're NOT:

  • Necessarily wealthy (many prioritise spending on experiences)

  • Snobs (they want warmth with their sophistication)

  • Disloyal (premium customers are the most loyal when satisfied)

The Five Pillars of Premium Positioning

1. Product Excellence: The Non-Negotiable Foundation

You cannot fake quality. Every element must deliver:

Drinks Programme:

  • Curation over selection: 6 exceptional gins beat 60 average ones

  • Provenance stories: Know your producers personally

  • Exclusive products: Private cask whiskies, brewery collaborations

  • Perfect execution: Right glass, right temperature, right garnish

  • Education elements: Tasting notes, pairing suggestions

Real Example: The Anchor in Ripley stocks just 12 gins but offers 30-minute "gin journey" experiences at £25, where customers learn about botanicals, distillation, and create their perfect serve.

Food Excellence:

  • Hero ingredients: One perfect steak beats ten average dishes

  • Visible craft: Open kitchen, bread baked on-site, butchery displays

  • Seasonality: Menu changes that reflect genuine availability

  • Dietary excellence: Premium plant-based options, not afterthoughts

  • Plating theatre: Instagram-worthy without being pretentious

2. Service Sophistication: The Emotional Differentiator

Premium service isn't stiff formality – it's intuitive excellence:

The New Service Standard:

  • Anticipation: Remembering preferences without being asked

  • Knowledge: Staff who can discuss provenance and pairings

  • Personalisation: Tailoring experiences to individual guests

  • Discretion: Knowing when to engage and when to disappear

  • Recovery: Turning problems into memorable solutions

Training Investment: The Pig hotels spend £2,000 per staff member annually on training. Their average spend per customer? 300% above sector average.

3. Atmosphere Architecture: Designing Premium Feelings

Your space should whisper quality, not shout it:

Design Principles:

  • Layered lighting: Multiple sources, all dimmable

  • Quality materials: Real wood, proper leather, honest stone

  • Comfort investment: Chairs people want to stay in

  • Acoustic management: Conversations possible at every table

  • Sensory signatures: Subtle scent, carefully curated music

The Details That Matter:

  • Hand towels in bathrooms (not air dryers)

  • Proper coat storage (not hooks on chair backs)

  • Phone charging built into tables discreetly

  • Fresh flowers (never fake)

  • Spotless glassware (invest in proper glass washers)

4. Experience Engineering: Beyond Food and Drink

Premium pubs sell memories, not just meals:

Signature Experiences:

  • Chef's Table: Monthly dinners with kitchen interaction

  • Masterclasses: Cocktail making, wine tasting, butchery

  • Producer Dinners: Meet the farmer/brewer/distiller

  • Seasonal Rituals: Oyster openings, game preparation

  • Private Experiences: Whisky vault access, cellar tours

Example: The Hand & Flowers charges £250 for their monthly "Kitchen Table" experience. It sells out in minutes, creating buzz and desire.

5. Brand Building: Perception Management

Premium positioning requires consistent brand reinforcement:

Visual Identity:

  • Professional photography (never phone snapshots)

  • Consistent colour palette and typography

  • Quality printed materials (feel matters)

  • Thoughtful merchandise (not cheap tat)

  • Curated social media aesthetic

Reputation Management:

  • Respond to every review thoughtfully

  • Seek quality press coverage

  • Build relationships with food critics

  • Create shareable moments

  • Partner with premium brands

Strategic Implementation: The Transformation Roadmap

Phase 1: Foundation (Months 1-3)

Audit and Plan:

  • Mystery shop premium competitors

  • Survey existing customers about premium appetite

  • Identify your unique premium proposition

  • Create financial projections

  • Design training programmes

Quick Wins:

  • Upgrade glassware and crockery

  • Improve lighting (fastest atmosphere upgrade)

  • Launch one signature premium product

  • Begin staff wine/spirit training

  • Refine music and scent strategy

Phase 2: Evolution (Months 4-6)

Product Development:

  • Launch premium drinks menu

  • Introduce chef's specials at premium prices

  • Create exclusive experiences

  • Develop supplier relationships

  • Test premium pricing strategies

Service Enhancement:

  • Implement reservation system

  • Launch table service

  • Create customer preference database

  • Develop service standards manual

  • Mystery shop your own service

Phase 3: Establishment (Months 7-12)

Experience Amplification:

  • Launch signature events programme

  • Develop loyalty scheme for premium customers

  • Create private dining options

  • Build PR relationships

  • Measure and refine continuously

Pricing Psychology: The Art of Premium

The Price-Quality Signal

Higher prices can actually increase satisfaction through expectation:

Pricing Strategies:

  • Anchor pricing: One very expensive option makes others seem reasonable

  • Odd pricing: £8.75 feels more considered than £9

  • Bundle elevation: Premium packages that add value

  • Time-based premiums: Peak pricing for peak experience

  • Member pricing: Exclusivity through access, not discounts

Justifying Premium Prices

Never apologise for prices. Instead, reinforce value:

Value Reinforcement:

  • Origin stories on menus

  • Production method highlights

  • Exclusivity messaging

  • Quality guarantees

  • Experience inclusions

Example Menu Copy:

"28-day aged Belted Galloway ribeye from Jamie's farm in Northumberland, served with triple-cooked chips and bone marrow butter - £32"

vs

"Ribeye steak and chips - £32"

Premium Marketing: Attracting the Right Customers

Digital Sophistication

Your online presence must match your premium positioning:

Website Excellence:

  • Professional photography throughout

  • Easy reservation system

  • Detailed menus with prices

  • Story-rich content

  • Mobile-perfect experience

Social Media Strategy:

  • Quality over quantity posting

  • Behind-the-scenes craft stories

  • User-generated content curation

  • Influencer partnerships (micro, not macro)

  • Platform-appropriate content

Partnership Positioning

Align with other premium brands:

Strategic Partnerships:

  • Luxury car dealerships (designated driver packages)

  • Premium hotels (restaurant recommendations)

  • High-end retailers (joint events)

  • Cultural institutions (pre-theatre menus)

  • Business clubs (corporate membership)

Managing the Transition: Common Challenges

Challenge 1: Existing Customer Resistance

Solution: Gradual elevation with options

  • Maintain some accessible options

  • Communicate the why behind changes

  • Reward loyalty during transition

  • Create "classic" menu section

Challenge 2: Staff Capability

Solution: Invest heavily in development

  • Send staff to premium competitors

  • Bring in expert trainers

  • Create advancement pathways

  • Reward excellence financially

Challenge 3: Cash Flow During Transition

Solution: Phase investment strategically

  • Start with highest-impact changes

  • Use increased margins to fund next phase

  • Consider investment partners

  • Apply for quality-focused grants

Measuring Premium Success

Financial Metrics

  • Average transaction value (target: +40-60%)

  • Gross profit percentage (target: 70%+ on drinks)

  • Customer lifetime value (should triple)

  • Revenue per available seat hour

Quality Metrics

  • Review scores (target: 4.7+ average)

  • Return visit rate (target: 60%+ monthly)

  • Recommendation rate (Net Promoter Score 70+)

  • Premium product mix (target: 40%+ of sales)

Brand Metrics

  • Press coverage quality

  • Social media engagement rate

  • Photography usage requests

  • Waiting list/booking lead times

Case Studies: Premium Transformation Success

The Marksman, London

Before: Traditional East End boozer

After: Michelin-starred pub

Key Changes: Kept pub feel, added exceptional food

Result: 400% revenue increase, two-month wait for weekend tables

The Pipe and Glass, Yorkshire

Journey: Village pub to destination dining

Strategy: Local ingredients, luxury rooms added

Result: Michelin star, average spend £95 per head

The Sportsman, Kent

Approach: Simple looking, complex flavours

Philosophy: "Ordinary ingredients, extraordinary techniques"

Outcome: Two Michelin stars, pilgrimage destination

FAQs

Won't I lose all my regular customers?

Not if managed properly. Keep some accessible options, communicate changes clearly, and show existing customers extra appreciation during transition.

How much investment is required?

Initial investment can be £20-50k, but phased approach works. Often, improved margins fund ongoing improvements.

What if there's no premium market locally?

Create it. The Sportsman is in Seasalter (population: 500). Excellence creates its own market.

How quickly can I increase prices?

15-20% immediately with visible improvements, then 5-10% quarterly as quality demonstrates value.

Should I change my pub's name?

Usually no. Heritage has value. Evolution beats revolution for community acceptance.

What's the biggest mistake in going premium?

Pretension. Premium means excellent quality delivered warmly, not snobbery.

Your Premium Positioning Action Plan

Week 1-2: Research and Reality Check

  • Visit five premium pubs (different styles)

  • Analyse their pricing, experience, and customers

  • Survey your top 20% customers about premium appetite

  • Calculate current margins and improvement potential

Week 3-4: Strategy Development

  • Define your unique premium position

  • Create 12-month implementation plan

  • Design staff development programme

  • Set measurable success metrics

Month 2: Foundation Changes

  • Upgrade glassware and lighting

  • Launch staff training programme

  • Introduce three premium products

  • Begin collecting customer data

Month 3-6: Build Momentum

  • Roll out enhanced service standards

  • Launch premium experiences

  • Develop supplier partnerships

  • Refine based on customer feedback

Month 6-12: Embed Excellence

  • Achieve consistency across all areas

  • Build premium reputation

  • Expand premium offerings

  • Celebrate and share success

The Premium Promise

Going premium isn't about excluding people – it's about including them in something special. It's not about being expensive – it's about being excellent. It's not about pretension – it's about passion.

In a world where everything's becoming commoditised, standardised, and digitised, the hunger for real, crafted, human experiences is growing exponentially. Premium positioning puts you directly in front of this trend.

Yes, Wetherspoons will always be cheaper. Let them. While they're converting price-shoppers, you'll be creating advocates. While they're processing transactions, you'll be crafting memories. While they're cutting costs, you'll be adding value.

The future belongs to pubs that stand for something more than just a place to drink. Premium positioning isn't just a business strategy – it's a declaration that excellence matters, that craft deserves recognition, and that some experiences are worth paying for.

Your pub deserves to be one of them. Your community deserves to have one of them. And you deserve to run one of them.

The only question is: are you ready to stop competing on price and start competing on priceless?

Frequently Asked Questions

How quickly will I see results?

Most strategies show initial results within 2-4 weeks. Quiz nights attract regulars immediately, social media engagement grows within days, and operational improvements like GP optimization show impact in the first month. Full transformation typically takes 3-6 months of consistent implementation.

How much will this cost to implement?

Implementation costs vary by strategy. Many improvements like social media optimization and operational changes cost nothing beyond time. Events may require £50-200 initial investment. Professional support is available at £62.50 per hour plus VAT.

Can this work for my type of pub?

Yes, these strategies are proven across wet-led, food-led, and hybrid pubs. The key is adapting the approach to your specific circumstances, customer base, and local market. All strategies come from real-world success at The Anchor.

Do you offer payment plans?

Yes, payment plans are available to help with cash flow. Services are charged at £62.50 per hour plus VAT. Contact us to discuss a payment arrangement that works for your business.

Do you offer payment plans?

Yes, payment plans are available to help with cash flow. Services are charged at £62.50 per hour plus VAT. Contact us to discuss a payment arrangement that works for your business.

Need Help Implementing These Ideas?

I've proven these strategies work at The Anchor and will start training other pubs from September 2025. Let's chat about your specific situation - no sales pitch, just licensee to licensee.

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Peter Pitcher

Peter Pitcher

Founder & Licensee

Licensee of The Anchor and founder of Orange Jelly. Helping pubs thrive with proven strategies.

Learn more about Peter →
Tagged:premium strategyupmarket pubspub positioningprofit marginsgastropub
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