Rail station outlets face clampdown on rip-off prices

[wilbers]

I just saw this https://www.msn.com/en-gb/money/oth...p&cvid=2359230162d84f72add9d68761ea456e&ei=10
original article is at https://www.telegraph.co.uk/business/2023/06/16/rail-station-prices-investigated-food-drink-ripoff/

Text copied below in case links don't work for everyone.

Rip-off food and drink prices at railway stations are being investigated by regulators amid fears retailers are forcing passengers to pay extortionate amounts for everyday essentials.

The Office of Rail and Road (ORR) said that “preliminary research and investigations” had identified significantly higher prices in stations compared to the high street.

The regulator has now launched a full investigation into how passengers are paying over the odds.

Grahame Horgan, ORR’s head of competition, said: “As consumers across the country are affected by the rising cost of living, we want to ensure that passengers are getting affordable food and beverages when using station facilities....

I would assume the primary factor is the higher rents that the outlets pay.

The investigation will likely reveal if retailers margins are also higher than their non-travel [also thinking that airports are similarly affected, probably even more so] branches.

 

[weepingwillowb]

From what I've seen, bus station outlets can be just as bad with higher prices for such things as bottled water.

No-one is forced to buy anything from an outlet.

 

[yorksrob]

And the birds go tweet.

You can't do anything about expensive station outlets without doing anything about the people charging the rents at the stations.

Look at the buffet at Huddersfield and the shop at Dewsbury. Run out of business by the station operator.

SSP could do with being scrutinised though.

 

[Mcr Warrior]

From what I've seen, bus station outlets can be just as bad with higher prices for such things as bottled water.

No-one is forced to buy anything from an outlet.

Similarly at motorway service stations and at airports.

Invariably more expensive prices than the "High Street".

 

[heathrowrail]

About time! Gormet Kitchen at Newbury are charging anywhere between an extra 10 - 30p to "eat in". The eat in facilities being the station waiting room managed by Great Western Railway.

 

[gordonthemoron]

I don’t remember Stalybridge Buffet being particularly expensive

 

[Sealink]

At big stations, the Boots Meal deal is fantastic value. Pretty sure it's the same price as the High Street.

SSP have a virtual monopoly in many places, and their Pumpkin chain is clearly profiteering (except I don't know what rent they are being charged!)

Crewkerne and Axminster stations each have a great locally owned cafe.

 

[Richardr]

I would have thought there were other things about our railways that could be fixed first. However, in the unlikely event this leads anywhere, presumably all that will happen is that companies will have separate branded outlets on stations - no more franchised Prets from SSP, plenty of Camden Food Co. instead.

Perhaps next the government might like to look at why my local corner shop sells milk for more than Aldi.

 

[pdeaves]

Gormet Kitchen at Newbury are charging anywhere between an extra 10 - 30p to "eat in"

That might be a tax thing. Many high street stores (e.g. Greggs) have differential pricing according to whether you eat in or take away for exactly this reason.

 

[Sealink]

I would have thought there were other things about our railways that could be fixed first. However, in the unlikely event this leads anywhere, presumably all that will happen is that companies will have separate branded outlets on stations - no more franchised Prets from SSP, plenty of Camden Food Co. instead.

Perhaps next the government might like to look at why my local corner shop sells milk for more than Aldi.

Camden Food Co is SSP

 

[GRALISTAIR]

So it is not just US Airports then? Absolute, total rip-off prices. Then I am expected to tip 20% on top of the bill too!

 

[Deepgreen]

The prices may be unreasonably high at some places, but as has been said, no-one is forced to buy there.

 

[Richardr]

Camden Food Co is SSP

That was my point - rather than licence external brands where prices can be directly compared they will always use their own brands which will be used exclusively in travel outlets such as stations.

 

[Skie]

SSP also run some brands like Burger King and Tortilla as special station franchisees. It's easy to tell as they won't accept the brands loyalty cards/vouchers, so your already overpriced food can't even be discounted or contribute points! Proper racket.

WH Smith are the worst though. The little shop in the Sheffield bus station has farcical pricing, and they opened a shop in Liverpool Central opposite a Sainsbury's local and adopted their usual station pricing, and didn't last terribly long. Sainsbury's had bottles of water for 47p whilst WH Smiths opposite them wanted £2 and everything else a commuter might want had a similar gulf.

 

[yorksrob]

Never buy confectionary from WH Smith !

 

[Mzzzs]

Made the mistake of buying a Coke from the kings cross WHSmith, never again now I go to the small Waitrose across the concourse.

 

[yorksrob]

Made the mistake of buying a Coke from the kings cross WHSmith, never again now I go to the small Waitrose across the concourse.

The small Waitrose at Kings Cross actually does a good selection of canned beers, which no one else for miles does, so they are to be thanked.

 

[andythebrave]

Higher prices at transport hubs?

Now, there's a surprise.

 

[NoRoute]

The prices may be unreasonably high at some places, but as has been said, no-one is forced to buy there.

That's generally true but it doesn't encourage people to use the railways when the experience is expensive and the quality of the station experience is poor. It doesn't have to be like that, we don't have to have such low standards.

 

[NSE]

I still don’t get how WHSmiths is still in business. I’m partial to a Red Bull and I don’t mind paying an extra 10/20p here and there in a station scenario. But Smiths are over £3. Exactly the same with the water someone mentioned above me. Now I have a subscription to Total Guitar, I don’t even need to go there for that.

 

[yorkie]

That's generally true but it doesn't encourage people to use the railways when the experience is expensive and the quality of the station experience is poor. It doesn't have to be like that, we don't have to have such low standards.

I completely agree. Sadly the 'powers that be' appear to be doing everything they can to encourage people not to use railways! You really see the huge cultural difference when you go to countries like Switzerland.

Higher prices at transport hubs?

Now, there's a surprise.

Slightly higher is acceptable, but not to the extent that we see in some cases. Outlets at Swiss stations are often far better value than UK station outlets, despite the unfavourable exchange rates!

About time! Gormet Kitchen at Newbury are charging anywhere between an extra 10 - 30p to "eat in". The eat in facilities being the station waiting room managed by Great Western Railway.

I'd refuse to pay; the waiting room is an area open to the public where anyone can consume food. It would be interesting to hear from a legal expert whether this is likely to be lawful or not.

Who do they think they are, GTR?

 

[johntea]

McDonalds is the odd one out at Leeds station, as a result it is often by far the busiest outlet in the entire station! (Sainsburys is also welcome at both Leeds and York although they do chuck a 10 - 20p price increase on quite a lot of items as a bit of a convenience charge!)

I actually can't think of any other railway stations with a McDonalds, obviously excluding the likes of King's Cross which has one virtually next door and London Victoria which has one in the weird 'shopping centre attached to transport hub' thing that London seems to like! Manchester Arena used to have one which you could access via Manchester Victoria station from memory

 

[Bald Rick]

You can't do anything about expensive station outlets without doing anything about the people charging the rents at the stations.

And the people charging the rents are doing so because they are driven to do so by the financial settlements imposed upon them … by the Office of Rail & Road.

Outlets at Swiss stations are often far better value than UK station outlets, despite the unfavourable exchange rates!

This is interesting. Swiss airports are invariably far worse value than UK airports; £4 for a bottle of water, and £13 for a Mc Meal Deal (My experience this year).

 

[Dai Corner]

A 'tax' on the disorganised that probably benefits the railway via the rents charged for outlets in stations?

 

[Bishopstone]

I thought this would be a matter for the Competition & Markets Authority, rather than the ORR.

What remedies do ORR have, if they conclude the prices SSP charge for a can of fizz are a bit steep?

 

[yorkie]

This is interesting. Swiss airports are invariably far worse value than UK airports; £4 for a bottle of water, and £13 for a Mc Meal Deal (My experience this year).

I've never bought anything at a Swiss airport and likely never will, but the outlets I use at railway stations (mostly Coop!) are pretty reasonable; some items are quite expensive e.g. sandwiches, but that is true of anywhere in Switzerland, and the quality is among the best I've experienced; much better than you get in the UK, so the overall value isn't that bad. Whereas at stations in the UK you can end up paying rip-off prices for stuff that isn't of good quality.

 

[NoRoute]

I completely agree. Sadly the 'powers that be' appear to be doing everything they can to encourage people not to use railways! You really see the huge cultural difference when you go to countries like Switzerland.

I was thinking of a station in Germany, it had a 'Kamps' bakery which is a local chain, big open fronted store with a great selection of fresh breads, sandwiches, pretzels all on display as you walked past and you didn't just see it, you could smell the freshly baked bread as you walked past, the selection and display was better than a lot of supermarkets and the prices were surprisingly low. There was a 'Nordsee' fish restaurant with fresh fish on display, along with a McDonalds and a lot a number of other food outlets and some small metro type stores.

Granted it was a reasonable, 500k pop, sized city station but you don't see anything in the same league in a comparable British railway station. But even a smaller station, with fewer units could have something like a good quality bakery outlet, with freshly prepared food.

 

[yorksrob]

And the people charging the rents are doing so because they are driven to do so by the financial settlements imposed upon them … by the Office of Rail & Road.

Because they are the Government.

That is the key to everything.

The whole reason that we have this rotten system is that we have the government dictating everything.

 

[Bald Rick]

Because they are the Government.

If you were to talk to the ORR, they would vehemently object to being known as part of Government.

(apart from the civil service pensions).

 

[InOban]

Isn't it usual for leases at airports and I assume stations to specify a % of revenue on top of the basic rent?