Yesterday’s Sunday Times Magazine carried an informative & interesting article about the current trend within the pub trade to for pubs to upgrade to being gastropubs. Experience shows that there are, as in all things in life, good & less good gastropubs. Gastropubs have their place & you have to be very careful where that is.
We were particularly struck by the reference in the article to the cost difference for purchasing, as an illustrative example, a barrel of Heineken export (if that’s your tipple) for a tied pub as opposed to a free house. The example given explained that a tied pub probably would have to pay around £450 for a barrel, whereas a free house could buy the same barrel for around £200.
That means to make the same margin on a pint the tied pub has to charge an extra £0.87 a pint! Put the other way a free house could charge the same price per pint to their customer & make just under a pound more profit per pint!
The article also highlighted the potential margins that there were on food, nibbles, soft drinks, spirits, coffee & cocktails.
All food for thought, even if you aren’t looking to create a gastropub!
The article can be accessed at – http://sites.google.com/site/thepubinthevillage/20.10.13SundayTimesArticle.pdf