Pubs / 08 June 2016

BBPA releases 2016 benchmarking data for tenants and lessees

The BBPA has today released the updated 2016 cost guide for tenants and lessees. The information provided is intended to help those wishing to take on a tenanted or leased pub business to be as well informed as possible about the costs involved in running a pub.

When developing business plans, and negotiating over leases and tenancies in the UK pub trade, it is very important to know all of the facts, and the BBPA’s guide provides valuable data for tenants and lessees on typical operating costs in the tied pub sector. The guide gives existing tenants and lessees the opportunity to benchmark their own business, and compare their own costs against industry norms.

The 2016 data shows that energy costs take up a significant proportion of turnover for pub companies. With this in mind, the BBPA has recently published wide-ranging guidance for tenants and lessees on how to lower their energy costs, which can be found on the BBPA’s Environment web pages.

The guide shows the average cost of running a pub over a range of pub models based on turnover and business types. It covers a wide range of pubs, from those with little in the way of food sales, to those that are largely food led, and takes account of the significant variations that exist in the cost base even within those pubs that are broadly in the same category.

Such costs are based on the size and location of the pub, the age and state of repair, the operating style and the experience of those in charge.

As well as providing average costs, the guide also includes the minimum and maximum typical costs providing a range of scenarios across different types of business.

Brigid Simmonds, Chief Executive, BBPA, says:

“Our updated 2016 report provides the latest figures to help anyone thinking of investing in a pub, or those who are already in the trade. Publicans in the leased and tenanted sectors, or anyone else, can download it free of charge.

“Business plans, and the negotiations over leases and tenancies, need to be as well informed as possible, and so this should be a great help to all those running a Great British Pub.”

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