Whats the profit in a pint

TOM999

Hi all

We hear about pubs losing money all the time especially in rural areas what i want to know is how much profit is actuallly in a pint, and also the profit in spirits ,


Appreciate the help

hussey

I think you may actually want to think about what you just asked ...

how much profit in a randomly priced object?

we cannot answer that unless we come up with outgoings & incomings etc

1) how much per pint to buy
2) how much storage/maintenance (electricity, wages, cost of furniture)
3) How much you charge
4) Over what period is turn over

It would be naive at best to think (made up figures).. "well i buy it for 20euro per keg, and sell 20 pints at 4euro" = 60 profit

EKRIUQ

The problem with rural pubs isn't the profit in the amount of the pint it’s the lack of custom midweek and some weekends. Most rural pubs I know open at 5 in the evening but might not get their first customer until to 10:45 at night and then it might be only be the regular 3 or 4 people. They still make their gross profit of €1.40 on a pint but selling 10 in a night isn't going to keep the bills paid. Bills like heating, wages, sky, electricity, Guinness direct debit, bank loans, insurance, the list is endless.

I know of villages having 2 and 3 pubs all through their history and now there's not one pub in them anymore, killing all the social scene and atmosphere in them.

There is a huge amount of money in selling alcohol in a pub but you need a huge flow of people.

Mickk

Whats the profit on a gym membership? 100% as it costs them nothing to let someone use the gym.
How many gyms go out of business? I would honestly say over 75% of startup gyms go out of business within 2 years. (only a guess but I am in the business...)

Zascar

What he means is how much does a pub pay for a Keg, and how many pints are in a keg. So what is the cost price of a pint and what is the Gross Profit of that pint.

Alyosha

There are 88 pints in a keg. Not sure how much a keg costs, some more expensive than others obvviously. €250 for a standard beer maybe?

MrPillowTalk

Kegs of guinness are around the €165 mark assume 85 pints and its a cost of €1.95 per pint.

A 1L bottle of vodka comes in at around €28 per bottle and has 26 measures so a cost of €1.08 per shot.

elgransenor

TOM999 wrote: »

Hi all

We hear about pubs losing money all the time especially in rural areas what i want to know is how much profit is actuallly in a pint, and also the profit in spirits ,


Appreciate the help

The gross profit margin on alcoholic on sales ranges between 42%-50%.
The problem is that you only make a profit when you make a sale and the pubs are in dire straits........I sold one a couple of years ago.
Margins are great,sales are crap and will get even worse with the societal changes we have witnessed in the last 10 years.

byrne0f56789

Pubs are being hit hard. People have changed their social behaviour. The thousands in negative equity won't be hitting the sauce for a while to come.

However, there are a number of pubs in every town that seem to be still doing well. Publicans just have to put a lot more effort into attracting customers and making them happy.

TOM999

Thank you for the replies everyone, obviously i was being fairly general in my questions, what i think myself is there is still money to be made if a small pub is run right,I suppose it is foot flow that will determine success at the end of the day, the profit in a pint is as i expected roughly. In these times i will be happy with a good weeks wages and no boss to be answering to. Not asking for much am i !!

elgransenor

TOM999 wrote: »

Thank you for the replies everyone, obviously i was being fairly general in my questions, what i think myself is there is still money to be made if a small pub is run right,I suppose it is foot flow that will determine success at the end of the day, the profit in a pint is as i expected roughly. In these times i will be happy with a good weeks wages and no boss to be answering to. Not asking for much am i !!

You should lease one initially to see how things are.....you would get a good deal now,no problem but it gives you the opportunity to see what it is like without betting the farm.