Bar and pub gross profit margins

Bar and pub gross profit margins

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OK, so we accept pubs in different parts of the country are charging different prices for their products. Given that they must be paying equivalent amounts for the product, presumably you would expect a pub in Middlesbrough to run on a lower GP % than one in central London. I know there are other factors, such as sales mix, brewery discounts etc, but generally speaking is that assertion correct. Presumably the pubs in lower rent areas can get away with it because they have lower overheads.

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By The Grammar Police
14th Dec 2014 20:33

Ask the Pubcos

Brewers' prices vary as well as retail prices.

Clubs (mutual) show 36-40%, Pubs 45-50%.

But Wetherspoons may be lower.

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Glenn Martin
By Glenn Martin
14th Dec 2014 23:11

depends on setup.

A free of tie operator pays roughly £1 for a pint of draught session bee/lager.

A tied operator may pay £1.45 for the same pint. in a city centre (Newcastle) they may be able to charge £5 per pint (on a Saturday night) whereas the tied house may be a village pub and charge between £2.50 to £3.00.

I used to work in leisure and best GP I ever achieved and sustained for any period of time was 82% but I have seen tied pubs achieving about 40% so it really depends on how the purchasing is tied up.

Weatherspoons are cheap as they buy up short code stock which only have 30 days left on its sell by date but because of the number venues they can sell it in that time.

if you want to discuss in more detail pm me.

 

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By DMGbus
15th Dec 2014 08:43

Wet / food sales mix

A lower GP %age is to be expected if the food sales are low.

A lower GP %age is to be expected with tied houses.

A Walsall suburban free-house pub that does NOT sell food that I deal with achieves around 49% to 51% GP.    I believe that the prices charged to customers are "low".

Even as a free-house getting good prices can be challenging.  With spirits it is sometimes the case that it is cheaper to buy from Tesco than from a wholesaler as the brewing industry has, in recent years, "got into bed" with the retailers at the expense of wholesalers and pubs - the extra low prices / high discounts given to national retailers might well be cross-subsidised by increased wholesale prices charged to public house suppliers (the growing market is favoured, the shrinking market is not).

 

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By Peter Kilvington
15th Dec 2014 14:24

What is the reason for the question

We do quite a few pubs and the GP can vary a lot.  The highest we have at the moment is about 65% the lowest we have is just over 45%.  The variation is explainable there is no such thing as a standard pub.

Can you let us know the reason for your question and that may allow me to give a more detailed answer.

If you want to keep it private PM me and I will see if I can help.

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By Cheesy-peas
15th Dec 2014 15:40

Wetherspoon

The 'Wetherspoons sell short dated stock' is a commonly held belief but is an urban myth. Their cheap prices are simply down to purchasing power.

Beer and Lager, with the exception of real ales, have a long enough life so that is a brewery stock builds up they simply brew less next week, no need to sell at cheaper prices.

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