The BBPA has today published the latest edition of its operating cost guide for tied tenants and lessees. The 2016 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 tied 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.
New for this year are categories for gaming machines and pay-TV for some models, as well as a higher turnover, community pub model, which brings the total number of pub models featured in the benchmarking guide to eight.
The guide shows the average cost of running a tied 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. For example, this year’s guide includes a new cost line (pay TV) and income stream (machines) for some models. The data should also be used in conjunction with sources such as the ALMR’s annual benchmarking survey and other pub trade data. 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 typical costs, providing a range of scenarios across different types of business.
Brigid Simmonds, Chief Executive, BBPA, says:
“Our updated report will provide very useful benchmarks that should help anyone thinking of taking on a pub, or those who are already in the trade. It can be downloaded free of charge from our website. It should be a great help to all those running a Great British Pub.”