Running a pub comes with unique financial challenges that can catch even the most experienced owners off guard. After working with pub owners over many years, we’ve spotted some recurring mistakes that are quietly eating away at profits.
Here’s what to watch out for.
Miscalculating operating costs
Most pub owners are brilliant at knowing their beer prices and wage costs, but not the best at tracking everything else. We know this because we’ve sat with pub owners who are genuinely shocked when we total up their monthly outgoings.
It’s the sneaky stuff that usually gets you: the emergency glass washer repair, or the fact that the electricity bill doubles in winter because the punters want it toasty. These aren’t one-offs, they happen every year – yet somehow they always come as a surprise.
Being realistic with your calculations means you can find out your actual monthly costs – and it’s probably higher than you think.
Skimping on staff training
Training costs money and time you don’t have, but untrained staff can haemorrhage profits every single shift. The bartender “eyeballing” spirit measures, the server who doesn’t know the till system and voids transactions to fix mistakes, the food safety issues that can shut you down entirely – they’re all costing you.
Proper training costs upfront, but it pays for itself within week through reduced waste and fewer costly errors. Plus, trained staff stick around longer, saving you recruitment costs.
Living in a bubble
Burying your head in the sand when it comes to pub trade changes can be very expensive – so don’t get caught completely off guard by things like business rate hikes or new licensing rules.
The changes could be energy costs, minimum wage increases or changes to business support schemes. Whatever it is, you need to know about it before it before your accounts start suffering. Join your local pub association, follow the trade press or just have a proper chat with fellow pub owners.
The “I can do everything” trap
A lot of pub owners will have started their business to be their own boss, so naturally you want to control everything. But the reality is trying to be landlord, accountant, marketing manager and compliance officer usually means you’re doing at least one badly.
Do you really want to be dealing with VAT returns instead of talking to customers? Getting professional help doesn’t mean you’re failing – it means you’re smart enough to focus on running a great pub.
Getting back on track
If any of this sounds familiar, don’t panic – most of these issues are fixable with the right approach. As accountants who work specifically with pubs and hospitality businesses, we see these patterns all the time.
We can help you get a proper handle on your costs, identify where money’s leaking out and set up systems that work for your business.
Want to learn more? Get in touch today.
