A pub landlord in Herefordshire has introduced a bold 5% discount for customers paying with cash, resulting in a dramatic shift in payment methods as patrons embrace the old-fashioned approach to combat escalating bank charges on card transactions.
Financial Pressure Sparks Innovative Response
Alan Davies, who operates The Trumpet Inn near Ledbury and The Moon at Mordiford, decided to take action after becoming increasingly frustrated with the substantial fees banks were extracting from his business through card payment processing. The 53-year-old publican revealed that the charges had reached such a level that they equated to the annual salary of an additional staff member, prompting his innovative discount scheme.
Substantial Savings for Customers
The practical impact for customers is immediately noticeable. A pint priced at £6 now costs just £5.70 when paid for with cash, with the same 5% reduction applying to all food purchases throughout both establishments. This straightforward discount has proven remarkably effective in changing customer behaviour since its introduction several weeks ago.
Dramatic Shift in Payment Patterns
Davies reports that cash payments have surged by an impressive 45% since implementing the scheme, fundamentally altering the payment landscape within his pubs. "Before this we had 95% of our transactions on card, now it's risen to 50% cash," he explained. "So that shows people still have cash and are using it."
The landlord emphasised that the initiative isn't about avoiding taxation, as all transactions pass through the same tills regardless of payment method. Instead, it represents a direct challenge to what he views as excessive banking fees. "If you pay £50, £5 of that goes to the bank," Davies noted. "I don't understand why we accept it. If I pay my local farmer £10 for potatoes, he uses that elsewhere. Why should banks have that cut?"
Multiple Benefits Beyond Financial
Beyond the immediate financial advantages, Davies has identified several unexpected benefits from the return to cash transactions. His staff members have reportedly embraced handling physical money, developing skills that had become somewhat neglected in our increasingly digital society. "It's making the staff think as they're not used to handling cash, even just counting cash," he observed. "It's a skill that some people seem to have lost."
Regular customer Dave Holloway welcomed the initiative, stating: "Any discount in the current situation is a good idea. It's 30 pence a pint cheaper isn't it? Anything you can save, is worth saving. It brings people into the pub."
Broader Context for UK Pubs
This innovative approach comes against a challenging backdrop for Britain's pub industry, which continues to face multiple pressures despite recent government measures. Industry experts warn that many establishments remain at risk of closure, with business rates, energy bills, beer duty taxes, and employment costs creating a perfect storm of financial challenges.
Davies views his cash discount scheme as a practical response to one element of this broader crisis. "A lot of small businesses are struggling at the moment," he acknowledged, "so we've gone back to the old system like when I was young."
Customer and Staff Reactions
Staff member Bella Grinnell highlighted an additional, perhaps unexpected benefit of the scheme: "I think it's a brilliant idea that we're handling cash more. I think we spend so much time on screens every day, to then use another screen to be taking card payments, it takes you out of reality."
Davies also pointed out the psychological advantage of cash spending for customers: "With credit cards you might spend more in the pub, but you might not know how much you spent. If you went out with £20, you know what you spent."
Future of the Scheme
Originally conceived as a trial period running until February or March, the success of the cash discount initiative has convinced Davies to continue the scheme indefinitely. "For me it's a bit of a no brainer to keep it," he stated, while acknowledging that some criticism was inevitable. "You're going to get some negative comments, but at the end of the day I'm not charging anything extra, I'm just charging the correct price for things."
The publican emphasised that card payments remain accepted, but the financial incentive for using cash has clearly resonated with his customer base, demonstrating that traditional payment methods still hold significant appeal when combined with tangible financial benefits.
