pub margins - any standard %

pub margins - any standard %

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Just looking at one of my publican clients.

I wonder what similar brewery tied businesses are performing like, and indeed untied.

This particular freehouse client has a restaurant too included together with the wet sales.

I think that there may be a cash/stock pilfering issue as GP% on wet just below 50% -I thought nearer 55 to 60%

Food generally 50%

Any comparisons out there with your similar clients?

Replies (6)

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Glenn Martin
By Glenn Martin
22nd Sep 2015 11:46

Seems low

If its tied it depends on cost of his beer and also where its situated, ie village pub or town centre. I do a lot in town/city centres were wet margin can be as high as 75% and food about 70% for un tied venues. Does your guy not use an external stocktaker, it could be worth bringing someone in for a few months to highlight if there is some pilferage. Failing that you could do some pricing exercise to see what margin he should be making. But I think your margins of 55 to 60% sound nearer to what it should be unless it is a cheap pub competing with Witherspoons on the offering,

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paddle steamer
By DJKL
22nd Sep 2015 14:12

Worth considering  number of taps, pipe length to cellar and average cask/keg sale volume per line per day if a low volume operation. If they carry a high number of taps and have low daily cask/keg sales per line the waste re both clearing stock held overnight in the lines and in line cleaning might, in percentage terms, be  a lot higher than the average.

Introducing cameras over tills  and monthly stocktakes can sometimes lead to a marked improvement for some strange reason.

However the above is based on eight years working in a bar in my extreme youth( a long time ago now), I suspect there are more modern solutions available andit is over sixteen years since I last prepared accounts for a pub.

 

 

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By Peter Kilvington
22nd Sep 2015 16:13

There is no standard

A wet margin between 48% and 75% can be achieved.  Depends on product mix, location where the product is purchased from.  You could work out an expected GP from purchase volumes and sales prices.  If you have an EPOS till these will give you very accurate sales details, brewlines or similar will tell you what has gone through the lines the two may not marry up.

 

I would expect a food margin between 60% and 75%.

 

PM me if you want to as we deal with quite a few pubs and I can narrow the expected margin down in a less public forum.

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RLI
By lionofludesch
22nd Sep 2015 16:27

Ullages

I don't deal with many pubs now but, when I did, there were several occasions when maintaining an ullages book was invaluable.

It's easy enough to work out sale price v cost for a gallon of bitter but you also need to work out all the costs of pipe cleaning, wastage, spillage, etc.  And for that, you cannot beat a contemporary record.

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Nichola Ross Martin
By Nichola Ross Martin
22nd Sep 2015 16:28

I agree with Peter

seen lower for food with inexperienced chefs.

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By northernman
30th Sep 2015 19:19

anyone know of expected gross percentage profit margin in baby care shop, including baby clothes, pushbuggys tec

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