POURMYBEER: DIYDRAUGHTS REVITALISE THEWATERING HOLE

Keen for a few but can’t face the queue? The traditionalBritish pastime of going down the pub is waning asimpatient drinkers are opting to raise a glass at home.Could the introduction of self-service beer stations restorethe pub to its former glory? PourMyBeer thinks so. Is DIYdrinking about to replace the barman?

Location United Kingdom

CASE STUDY 13 Feb 15

Highlights & Data

Long queues for bar service is driving people away from pubs and bars and towards drinking more at home·The impact is being felt by pubs, as closures increase each year and Gen Y start to bail on this British tradition·The introduction of PourMyBeer in the US has been hugely effective at keeping people happy by stopping them queuing·Beer tables and wall-fit stations ensure quick service, but also encourage responsible drinking by helping people pacethemselves·Pubs waste less beer and customers enjoy a wait-free night·The concept has huge potential for diversification across other venues including hotels and entertainment spots likebowling alleys·

Are you being served?

That is my real name, Creative Commons (2012) ©

Average pub visits by 18-25 year olds have fallen from 42% in 2010 to 36% in 2014

·First applied to a Baltimore tavern in 2009, PourMyBeer now operates in 200 outlets across 28 US states and Canada

·

The company made $800,000 in sales last year, and expects to extend this to $2 million in 2015

·

In 1970, nine out of ten pints of beer were consumed at the pub, only about five are today – and it’s estimated that

approximately 12 pubs shut every week·

A similar app, Bar Pass, has reported that the average person spends 30-40% more when using its service

·

Heineken’s SmartDispense means owners no longer need to clean beer lines every week, saving around £2,300 of product

annually·

ScopeFrom the old-school all-you-can-eat self-service buffet to supermarket self-checkouts and coffee pre-ordering apps, we’re

more accustomed than ever to the DIY approach to consumerism. We’re used to having things at our fingertips, and

increasingly, dispensable without reliance on anyone other than ourselves and our mobiles.

Perhaps that’s why waiting for service at the local pub now seems all the more frustrating. ‘I want it now’ culture has made

us impatient. So how can brands capitalise on our desire for instant gratification?

While going to the local pub is – according to a Carlsberg survey – still the UK’s favourite pastime, its attraction is waning

among 18-25 year olds. Average pub visits in that demographic have fallen from 42% in 2010 to 36% in 2014. [1]

Could self-service beer re-enamour a generation of restless, tech-reliant drinkers with more regular pub and bar visits?

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It was the annoyance of having queue up for a pint that prompted Josh Goodman to launch PourMyBeer, a service allowing

bar customers to be in control of dispensing their own drinks. First applied to a Baltimore tavern in 2009, the service now

operates in 200 outlets across 28 US states and Canada, and hopes to tap into the Brazilian and Italian markets this year.

The company made $800,000 in sales last year, and expects to extend this to $2 million in 2015. [2]

So, how does it work? Participating bars offer either 'beer walls' or 'beer tables', both of which are equipped with self-serve

taps. Drinkers load up a card with prepaid funds – much like a metro pass – and simply scan a screen above the tap,

allowing the nectar to flow. Thanks to radio-frequency identification technology (RFID), the system recognizes each

individual, and is therefore aware of the amount this person has already consumed. It puts a temporary halt on serviceafter two drinks – ensuring that neither underage drinking nor over-consumption is an issue. [3]

Will beer’s embrace of tech keep us in pubs?Tom Anderson, Creative Commons (2013) ©

ContextThe decline in pub visits might be construed as a sign people are drinking less, but this isn’t the case. People are stilldrinking, they’re just doing it elsewhere. Namely at home, in the queue-free living room. While in 1970, nine out of tenpints of beer were consumed at the pub, only about five are today – and it’s estimated that approximately 12 pubs shutevery week. [4] Though self-service beer taps won’t decrease prices – a major sticking point for bar-avoiders – they certainlyrepresent a novelty, which is perhaps what’s needed to bring the reluctant back to the social drinking scene.

This kind of revitalisation of the industry is visible in the development of queue-jumping apps. Lining up in busy bars is sooff-putting that customers will deliberately draw out their drinks, preferring to ‘nurse’ them rather than brave the crowdsto get another. Q App allows customers to pre-order bar drinks, but also in coffee shops, and then to proceed straight tothe “fast lane” for pick-up. [5] A similar app, Bar Pass, has reported that the average person spends 30-40% more whenusing its service. [6] 

People take pictures of themselves using Pour My Beer, and tag their friends. That'sgreat advertising for us and it's also indirectly driving more traffic to the bars and

restaurants

Josh Goodman, founder Pour My Beer

Tedious bar queues aren’t the only threat to sales. Perhaps more significantly, owners report considerable wastage from

pulling pints. PourMyBeer estimates that its system saves an industry average of 23% per keg (almost $143 worth of beer)

in comparison to traditional service. This is partially down to the no-sampling policy. That is, samples are available, but you

have to pay for them. With a pay-by-ounce system, the customer pays for every drop. [3]

Beer wastage is such a problem that several big-name companies have taken steps to tackle it. Heineken has developed

SmartDispense, an appliance that cools beer as it leaves the barrel. It means owners no longer need to clean beer lines

every week, which means they can save around £2,300 of product annually, as well as other subsidiary resources. [7] By

the same token, Japanese beer giant Asahi has invented a robotic dispenser that pours draught beer with supposedly “zero

wastage” – and by filling cups from the bottom, no less. [8]

Less waiting and less waste; could this spell the end of the traditional tap?

Ian Sane, Creative Commons (2014) ©

Insights and Opportunities

According to PourMyBeer, the possibilities for expansion are huge thanks to the number of venues where the service could

be easily installed. In addition to the obvious pub and bar scenario, PourMyBeer could easily be implemented in hotels,

where a room card can serve as the tap activator. Equally, bowling alleys and golf clubs are also potential markets, as areall manner of sporting events. Transit hubs, where speedy service is even more desirable than on the standard Friday nightout, have also expressed interest, with Chicago O’Hare Airport receiving its first self-serve unit last month. [3][9]

Rival company DraftServ last summer introduced self-serve machines on a trial run at Target Field, home of the MinnesotaTwins, when the team hosted the Yankees. It proved, at the very least, that the service works not only with premium craftbeers, but also with mainstream Anheuser-Busch brews. [10] 

We see self-serve beer and wine as the future of the hospitality industry…we areexcited about what the future holds

Christopher Blum, PourMyBeer

PourMyBeer doesn’t even necessarily need to bring punters back to the bar. If the drinking-at-home trend lingers, thesystem could potentially be adapted to bring taps home. The outfit’s parent company, Innovative Tap Solutions, hasalready worked with such high-profile hospitality businesses as Hilton and Marriott. And either way, the facility isn’t limitedto beer: despite its name, the company also offers wine dispensing by the ounce where legal. [3]

There's one other benefit to PourMyBeer. The self-service beer taps are prime Instagram fodder. "People take pictures ofthemselves using it, and tag their friends," says Goodman. "That's great advertising for us and it's also indirectly drivingmore traffic to the bars and restaurants." [11]

The notion of self-service is nothing new, but when applied to new market frontiers, it can positively affect waning salesand enthusiasm. Christopher Blum, PourMyBeer’s Las Vegas representative, shared his optimism at a recent Nevadalaunch. He said “We see self-serve beer and wine as the future of the hospitality industry…we are excited about what thefuture holds for the industry and our company.” [12]

pourmybeer.com

Talib Visram is a copywriter, editor and journalist. He has been published in numerous magazines and websites, mostrecently in The Atlantic. He also runs a blog on entertainment and pop culture.

Related behaviourSelf and System: Living in an internet of things.Attention Economy: More stimulus means less time for bullshit.Mobile Living: Information – any time, any place.

Sources1. ‘Carlsberg UK’s Consumer Insights Report 2014’, Carlsberg (August 2014)

2. ‘Self-service beer taps coming your way’, CNN Money (January 2015)

3. pourmybeer.com

4. ‘Stay-at-home drinking and socialising on the rise as Britons avoid paying premium of being served food or drink in pubs and bars’, The

Independent (December 2013)

5. ‘Beer ordering apps could be the last bell for bar queues’, Financial Times (November 2013)

6. ‘Beat the queues with this innovative app’, The Telegraph (April 2014)

7. ‘Heineken's beer dispenser saves landlords 90% of their energy bill’, The Guardian (May 2014)

Canvas8 Ltd © 2013

8. ‘Asahi unveils robotic beer dispenser for high-volume bars’, Gizmag (November 2013)

9. ‘Self-service beer taps coming to a bar near you’, Fox News (January 2015)

10. ‘Drink up: Self-serve beer hits MLB’s All-Star game’, CNBC (July 2014)

11. 'Self-service beer taps coming your way', CNN Money (2015)

12. ‘Self-serve beer wall is a huge hit at Nacho Daddy’, PRWeb (January 2015)