Pub running costs are hard to gauge – it depends on so many factors, we couldn’t begin to explain all cost bases in this article.
But thankfully the good people at the BBPA (British Beer & Pub Association) produce an annual report on the costs & profits you may expect to earn when running certain types of pubs & bars.
The BBPA report covers 8 different types of pub models, & are generally representative of tenancy or leasehold.
- Small community local (c100% drink) turnover c£4,000/week
- Community wet-led (c90:10 drink/food) turnover c£5,000/week
- Community wet-led (c90:10 drink/food) turnover c£8,000/week
- Community wet-led (c90:10 drink/food) turnover c£12,000/week
- Rural character (c50:50 drink/food) turnover c£5,000/week
- Rural character (c50:50 drink/food) turnover c£8,000/week
- Town/country food-led (c30:70 drink/food) turnover c£10,000/week
- Town centre pub or bar (c70:30 drink/food) turnover c£10,000/week
It is worth noting that:
Costs are shown on the basis that the pub business is directly operated by the tenant or leaseholder and that their income is derived from the profit remaining after operating expenses and rent payable is deducted.
The examples and figures supplied in the survey give an indication of costs that are likely to be incurred in the types of pub businesses described in this guide.
Where these figures are to be used in preparing business plans or for other purposes it should be borne in mind that all pubs are unique and that the actual costs incurred will be dependent on the different aims and styles of the business according to the location, the market and the skills of the tenant/lessee.
To look at the other examples provided by the BBPA data, please visit their website & download the PDF: https://beerandpub.com/briefings/running-a-pub-2017-cost-guide-for-tenants/