Staff wages cost 27% of pubs' turnover on average

The newly released benchmarking report found that the average British licensed premises spent 53% of its turnover on controllable costs, with 27% going towards employee wages at the pub.

The trade body said that payroll costs had risen from around 17% 10 years ago and that the latest figures revealed the extent to which new employment laws, added immigration controls and hiring good chefs had pushed up costs for pubs.

The ALMR study of 36 companies operating a total of 2,675 managed outlets found that 11% of turnover went on premises (excluding rent), 7% on entertainment, 4% on utilities and 4% on operational costs.

Spending on entertainment was down 31% in community pubs between March 2007 and December 2007, with live music events and Sky being sacrificed as pubs struggled to keep a lid on costs.

ALMR head of communications Kate Nicholls however, pointed out that the poll had revealed that all licensed premises, including food-led pubs, wine bars and sites with accommodation, as well as nightclubs spent money on security and door staff.