Estimating Running Costs
Mark S. Elliott has spent 25 years working in various management roles within the tenanted and leased divisions of the UK's largest breweries and pub companies. His extensive knowledge and day-to-day involvement with pubs and publicans make him well qualified to know what is required to run a successful pub. He shares his knowledge and many 'insider tips' with you in this book. Mark is based in Cockermouth, Cumbria.
ESTIMATING RUNNING COSTS
You will require details of running costs in order to assess a pub’s profitability. If accounts are not available to you, the following table containing industry estimates of annual running costs of a lease will act as a guide:
Note: The percentage figures are shown as a % of sales turnover (excluding VAT):
- Bar staff costs are 8–12% of wet turnover.
- Food staff costs are 20–25% of food turnover.
- Accommodation staff costs are 20–25% of accommodation income.
- Other costs are shown as a percentage of total turnover (including drinks, food turnover, machine income and any accommodation income).
