{"id":7073429,"date":"2026-10-02T21:55:14","date_gmt":"2026-10-02T21:55:14","guid":{"rendered":"https:\/\/fivemor.com\/?p=7073429"},"modified":"2026-10-02T21:55:14","modified_gmt":"2026-10-02T21:55:14","slug":"tandlemans-beer-blog-a-marginal-existance","status":"publish","type":"post","link":"https:\/\/fivemor.com\/?p=7073429","title":{"rendered":"Tandleman’s Beer Blog: A Marginal Existance"},"content":{"rendered":"


\n<\/p>\n

\n

I was talking to a local pub landlord recently and during the conversation, was disappointed, but not surprised, how in winter
\nparticularly, when it is pissing down as it often has been in recent
\nmonths, just how many times he had to make recourse to his reserves to
\npay the bills as the pub was so empty.\u00a0 Now you might liken this a bit
\nlike when you pay your monthly ransom to the power companies, using the
\nexcess built up in the so called warm months, to offset the cost in the
\nchilly winter months, which if you are like me, you’ll consider that is
\nmost of them. But you’d be wrong. it isn’t really like that. Let’s have a look at it.\u00a0<\/span><\/p>\n

It\u2019s
\n Friday night, the local is packed. The place is going like a fair and
\nthe atmosphere is just what you want on a good night out. To the casual observer, it looks like a gold mine. You\u2019d be forgiven for thinking
\nthe
\nlandlord is currently scouting for a second home in Marbella. But talk
\nto anyone behind the pumps, and you\u2019ll find a much
\ngrimmer reality. The “busy pub” is becoming a bit of a mathematical
\nmirage. Here is the sobering truth about why that bustling atmosphere
\nisn\u2019t making the boss a fortune.<\/span><\/p>\n

Input Costs<\/b><\/span><\/p>\n

While
\n the price of a pint has crept up toward the \u00a36 or \u00a37
\nmark (and beyond in that there London), the landlord isn\u2019t seeing the benefit of that extra few quid. He or she has to think about the fixed costs of the operation.
\nThat is the things that can’t be avoided, or discarded:\u00a0<\/span><\/p>\n

Energy:
\n<\/b>It\u2019s not just the lights. Cellar cooling, glass-washers, heating, kitchen appliances are all energy-hungry beasts. For many, standing charges and unit rates have
\ndoubled or tripled since 2022. And nobody wants a cold pub, though you like me, will have
\nnoticed plenty of times when the pub isn’t as warm as it should be. If your pub is cold, it is likely that cost which makes it so.<\/span><\/p>\n

The Beer:<\/b>
\nBarley, hops, wages and more suffer from inflation too. Brewers have had to pass on their
\nown rising costs, meaning the “wet rent” (the price the pub pays for
\nthe cask or keg of beer has continually increased to its present high level..\u00a0\u00a0<\/span><\/p>\n

The Chancellor’s Cut:<\/b>\u00a0This is where things really bite.\u00a0The UK has some of the highest Beer Duty rates in Europe.
\nWhen you buy a pint, you\u2019re effectively paying a stealth tax. and unlike the
\nsupermarket where you buy your cans of lager, pubs have to pay 20% VAT on every
\npint, snack and plate of chips sold.\u00a0<\/span><\/p>\n

Business Rates:<\/b>\u00a0The system is archaic. Pubs are often taxed based on their “fair
\nmaintainable trade” (basically, how much they could make), which penalises
\nsuccessful, busy locals.\u00a0 It also makes the somewhat unrealistic assumption of how much of turnover is profit.<\/span><\/p>\n

Dry Rent:\u00a0<\/b><\/span>What you pay to occupy the building. Typically, there will be an initial deposit then a monthly rent, agreed for (say) a three to five year term.<\/span><\/span><\/span><\/p>\n

The Minimum Wage & Staffing Costs<\/b>: Nobody
\n should grudge hardworking bar staff a decent wage, but it all costs.\u00a0A
\nbusy pub needs bodies. With the National Living Wage
\nrightly increasing to support workers, the wage bill for a fully-staffed shift has ballooned and of course, that doesn’t just apply to busy Fridays.
\nThe irony is that\u00a0to serve the crowd that makes the pub feel alive, you
\n have to hire more
\nstaff, which often eats the very profit those customers are generating.<\/span><\/p>\n

<\/a><\/div>\n

Back
\n to my landlord friend. Everything costs more he tells me and people
\nneed to be enticed out of their homes to come to the pub. A musician for
\n example, will often attract customers and fill the pub, but the
\n\u00a3300\/\u00a3400 bill for that needs a hell of lot more drinks to be sold,
\njust to break even. It is done though to make the pub more attractive,\u00a0
\n and in the hope the customer will like it and come again at other times,
\n but ……<\/span><\/p>\n

Supermarkets- the elephant in the room:<\/b>\u00a0One
\n of Tim Martin of Wetherspoon’s pet hates, this is where the “pre-drink”
\nor “instead of” culture is the enemy of margin. In the 90s, the gap
\nbetween a supermarket beer and a pub pint was a
\nmanageable jump. Being very old, I can remember when that gap was tiny
\nand hardly game changing. Today, it\u2019s a veritable chasm.\u00a0\u00a0<\/span>\u00a0If a customer
\nstays for two pints instead of four, either because they can’t afford more, or because they drank a cheap few cans at home
\nfirst (or intend to after) to offset high pub prices, the pub still has to pay the same fixed costs for the heating, the
\nlive band and everything else.\u00a0\u00a0<\/span><\/p>\n

And then there is food.\u00a0Pubs often rely
\nheavily on food sales to survive, but food carries additional and\u00a0 higher overheads\u00a0 – chefs, wastage, supply chains with their own struggles – and of course VAT. No wonder so many have decided that game isn’t worth the
\ncandle, but maybe, looking on the bright side, the pub snack may make a
\ncomeback as seems to be happening in some cases? Filled rolls and Scotch eggs anyone?<\/span><\/p>\n

Margins in the hospitality industry used to hover around 10%
\nto 15%. Now, many independent publicans are operating on a knife-edge of 3% to
\n5%. One broken glass-washer or gas boiler, or a quiet rainy midweek is enough to wipe out the profit
\nfrom a successful weekend.\u00a0 While brewery owned pubs and national chains have different issues, it all is very costly for them too. Debt is everywhere in the pub trade since the Beer Orders.<\/span><\/p>\n

These are just some of
\nthe issues which vary from pub to pub depending on size, location, local
\n authority, type (managed\/ leased\/free or whatever) and so much more,
\nbut fixed costs are a killer.\u00a0<\/span><\/p>\n

<\/a><\/span><\/div>\n

The type of beer sold has different costs and margins, so that affects things too. It all boils down to margins being squeezed and viability on a knife edge. If you can just about come down on the right side, then you are surviving at least.<\/span><\/p>\n

So, next time you see your local packed to the rafters,
\ndon’t begrudge them that extra 40p+ on a pint. Most of them aren’t getting rich; they\u2019re
\njust trying to keep the lights on, preserve tradition and hopefully make a few bob so we all have somewhere to go when want a bit of conviviality rather than drinking alone in the house.<\/b><\/span><\/p>\n

\u00a0<\/b><\/span><\/p>\n

This is just a brief dip into what is a very complex area.\u00a0 Price of a pint? You tell me. It varies so much, as there are so many factors to take into account.<\/b><\/span><\/p>\n

What is also for sure is that the drinker has to get value out of their experience too and that isn’t helped by pricing them into the supermarket.\u00a0 The government has to make its mind up here. Do they want to preside over more and more closures? Chances are they will continue to screw hospitality and just hope for the best, so probably.<\/b><\/span><\/p>\n

Apologies too for the Ai photo use, but I felt the Mr Macawber definition needed suitable illustration.\u00a0<\/b><\/span><\/p>\n

\u00a0<\/span><\/p>\n<\/div>\n\n","protected":false},"excerpt":{"rendered":"

I was talking to a local pub landlord recently and during the conversation, was disappointed, but not surprised, how in winter particularly, when it is pissing down as it often has been in recent months, just how many times he had to make recourse to his reserves to pay the bills as the pub was […]<\/p>\n","protected":false},"author":1,"featured_media":7073430,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[114867,154882,234176,234177,234178],"tags":[3171,3767,234179,33420,102810],"dealstore":[],"offerexpiration":[],"class_list":["post-7073429","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-comment","category-margins","category-opinion-2","category-price-increases","tag-beer","tag-blog","tag-existance","tag-marginal","tag-tandlemans"],"yoast_head":"\nTandleman's Beer Blog: A Marginal Existance - Som2ny Network<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/fivemor.com\/?p=7073429\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Tandleman's Beer Blog: A Marginal Existance - 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