News

Pubs / 08 August 2018

BBPA publishes new cost benchmarking data for tenants and lessees

The British Beer & Pub Association (BBPA) has today published the latest edition of its operating cost guide for tenants and lessees. The data is intended to help those wishing to take on a tenanted or leased pub business to be as well informed as possible about the current costs involved in running a pub.

The BBPA’s guide provides valuable information for tenants and lessees on typical operating costs in the pub sector. The guide gives existing tenants and lessees the opportunity to benchmark their own business and compare their own costs against these published industry norms.

Updates included in this year’s guide are:

  • Pay-TV costs for all pub models
  • Live music costs for all pub models
  • A town/country model which brings the total number of pub models featured in the guide to nine

The guide shows the average cost of running a leased and tenanted 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.

As in previous editions, the guide’s input data and sources change each year, so the information should not be used to determine trends from year to year. The guide also makes clear that all pubs are unique and that 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 or lessee.

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

BBPA Chief Executive Brigid Simmonds OBE said:

“Whether you already run a pub or are thinking of taking one on, this new report is a must-read. It includes essential information on the current costs involved in running a Great British pub and can be downloaded – free of charge – from our website.”

The full guide can be downloaded from the BBPA website here.

Further Reading