Briefings

This BBPA guidance provides valuable information for tenants and lessees on typical operating costs in the tied pub sector, helping you to understand the costs associated with running a pub. The paper gives existing tenants and lessees the opportunity to benchmark their own business, and compare their own costs against these published industry norms.

Utilities and inflation: As the costs in this report relate primarily to 2021, they will not reflect the full extent of the 2022 energy crisis where pubs are frequently seeing price increases of over 100% on their energy bills. Such large increases, on what is usually the second biggest cost line, will have a significant impact on a pub’s overall cost and operating margin. High inflation generally in 2022 will also impact other elements of the model and, therefore, particular caution is required when reviewing the data this year.