Cost of running a pub continues to rise, says ALMR

04 July 2008 by
Cost of running a pub continues to rise, says ALMR

The cost of running a pub has risen to 53% of total turnover, as staff wages and premises costs continue to escalate, research revealed today.

In a survey of 2,675 outlets across the UK, run by 36 managed pub operators, the average cost of staff payroll per pub has risen to 27.4% of total turnover according to the Association of Licensed Multiple Retailers (ALMR).

Staffing costs are up from 22% when the same survey was conducted last year and overall operation costs have risen from 51% of total turnover.

Kate Nicholls, head of communications at the ALMR, said that the industry was suffering under successive rises in national minimum wage and the rising cost of payroll administration.

"We are a very labour intensive industry and our employment costs are significantly higher than other industries," she said. "Food-led and accommodation led operators will have seen their costs rise even higher."

The ALMR unveiled the figures in its Benchmarking Report to the All-Party Parliamentary Beer Group community pub enquiry.

The survey will form the backbone of its Love Your Local campaign which aims to promote the positive economic impact the community pub has on the British economy.

Pubs losing £5m a week in food sales >>

Raising minimum wage won't solve 10p tax row >>

Community pubs collapsing under red-tape and soaring costs >>

By Christopher Walton

E-mail your comments to Christopher Walton here.

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