Price pubs pay for drink

Murt10

Irish indo

Man on trial charged with stealing 136 kegs of beer (6 Dec 2011)

A MAN has gone on trial charged with using a fake cheque to steal 136 (fifty litre) kegs of beers from Diageo Ireland....... worth €23,120..........for 75 kegs of Guinness, 11 kegs of Smithwicks, 25 kegs of Budweiser and 25 of Carlsberg lager...


23,120/136 = E170 per keg

50 litres = 88 pints

170/88 = 1.93 per pint


http://www.independent.ie/irish-news/courts/man-on-trial-charged-with-stealing-136-kegs-of-beer-29216985.html

Saruman

If you are asking how a pub can justify charging €5 for something that costs less than €2 then you should try and remember just what that profit has to pay for. Actually I would have thought the pub paid less than that per pint.
The cost of running a pub is enormous and margins are very tight. They really have to be offering food to try and make any real profit and even then it's hard.

Remember a few years ago someone drove off with a truck full of Guinness? Well Guinness and other beers brewed there. He was kind enough to supply his own truck, he just drove in, hitched a trailer full of kegs (450ish) and drove off.

ironclaw

Also check if your 'worth' figure is before or after tax. And the price of a pint has to include the governments cut. All considered €5 is not bad. Retail / fashion mark up is always 50% or more. Far closer to 100% and in some cases multiples of that. And I've never heard anyone say 'My clothes are too expensive to buy'

Saruman

Not if they shop in Penneys anyway

Mountjoy Mugger

ironclaw wrote: »

All considered €5 is not bad.

This attitude is why pubs increase their prices/charge what they want and get away with it.

briman1983

Take 23% vat off the 5 euro price (which is a very good price for a bar to be getting for a pint), that leaves the pub with a taking of €4.06-€1.93(cost of pint)

So a grand total of €2.13 profit and also taking in that there is no wasteage which could be as high as 5 pints per keg. This profit needs to pay for exemptions (€440 +VAT), security (180-400), Band/DJ (€100-800) bar staff (€100-400) advertising (0-€1000). All these costs are for one night of opening a late bar or nightclub. I wont even start on all the other costs, imro, rates, insurance, PPI, morgage, PRSI etc etc) While you could open your standard hours sadly these bars are dieing out.

While some places have a cover charge which covers a lot of these costs the cost of doing business is well documented as being very high in Ireland.

Also the price that diagio and other suppliers charge publicans is a disgrace. They are the ones making the biggest profit and the finger is never pointed at them.

Thats my rant, and yes I am in the bar business.

bladebrew

It depends on location what seems good value though, I bought a pint of Heineken recently for €4.80 in cork, I said it to my brother who lives in Dublin and he said "not bad" I was shocked at the price!
€4.80 to me is a bit expensive for Heineken but he thought it was good value, about 2-3 years ago I paid €5.50 for a Heineken in the G hotel!

Saruman

Value for money is one of the reasons that our Independent breweries and craft beer in general has taken off so much during the recession.
People have less money so they want value for that money.
No one wants to pay €5+ for a pint of beer that they can get in an off-license or supermarket for €1 if you buy a case of 24 or so.

However an increasing number of people will not mind spending the same €5 on a pint of craft beer produced independently. Hand made with love and care, batch by batch rather than the press of a button. The reason for that is the same beer in an off license is going to cost closer to €3 or more.

Big Nasty

briman1983 wrote: »

Take 23% vat off the 5 euro price (which is a very good price for a bar to be getting for a pint), that leaves the pub with a taking of €4.06-€1.93(cost of pint)

So a grand total of €2.13 profit and also taking in that there is no wasteage which could be as high as 5 pints per keg. This profit needs to pay for exemptions (€440 +VAT), security (180-400), Band/DJ (€100-800) bar staff (€100-400) advertising (0-€1000). All these costs are for one night of opening a late bar or nightclub. I wont even start on all the other costs, imro, rates, insurance, PPI, morgage, PRSI etc etc) While you could open your standard hours sadly these bars are dieing out.

While some places have a cover charge which covers a lot of these costs the cost of doing business is well documented as being very high in Ireland.

Also the price that diagio and other suppliers charge publicans is a disgrace. They are the ones making the biggest profit and the finger is never pointed at them.

Thats my rant, and yes I am in the bar business.

I've brought this up before but what really annoys me is that Diageo et al charge publicans cq. €1.56 (ex. VAT) / pint of beer yet can sell 500ml cans to the multiples cheap enough for them to retail at €1 and still make a profit. :mad: