As pub outlays climb to 48 per cent of turnover, digital jukeboxes could provide a cost-effective alternative to background music services for landlords under pressure from squeezed profit margins.

The latest Benchmarking Survey from the Association of Licensed Multiple Retailers shows the average cost of running a pub has risen for the first time in four years, with rents alone increasing by 10 per cent across the leased sector. Understandably, this places a strain on many UK landlords in a sector already under pressure.

As Kate Nicholls, the ALMR’s strategic affairs director, outlined to industry publication, The Publican’s Morning Advertiser;

“Cost control is a critical determinant of business profitability – particularly in the pub sector where it is a key variable in rent and valuation calculations. The report shows that overall outlet net profit margins are extremely slim.”

On a more positive note though, for many landlords when it comes to entertaining customers, there may still be an untapped opportunity to not only cut costs, but also generate additional revenues.

While a number of bar and pub managers are still paying significant monthly fees for a background music system, digital jukeboxes represent a much more affordable alternative for entertaining customers. Through Hire Jukebox’s profit share payment option in particular, landlords are able to forego installation and rental fees, instead contributing a proportion of monthly jukebox takings to cover costs.

This provides pub customers with access to an online track library of up to 7 million available songs from a variety of genres, including every top 40 chart single since 1952. Regular automatic uploads through the jukebox’s digital connection, including the latest chart releases, also ensure the music selection remains fresh, fuelling interest in the jukebox.

Beyond generating a way to keep customers engaged, this also offers landlords a chance to add vital extra income to the cash register through jukebox revenues.

Contact Hire Jukebox to learn more about replacing your venue’s background music system with a cutting-edge digital jukebox.