There are hundreds of costs involved in operating an Irish Pub or any restaurant, some variable, some semi-variable and some fixed. An illustration of these costs is as follows:

Fixed Cost:                 Rent and occupancy costs

Semi-Variable Cost    Utilities, paper & linen goods, uniforms, tableware, marketing

Variable Cost             Labor Cost, Food Cost, Beverage Cost

 

Roughly speaking, these categories break down as follows in overall percentage cost:

Fixed Cost                  Between 5% and 10%

Semi-Variable Cost    Between 12% and 17%

Variable Cost             Between 55% and 60%

 

Therefore, if you had a pub that was generating $1,500,000 in revenues, your cost would look something like the following:

Fixed Cost                  Between $75,000 and $150,000

Semi-Variable Cost    Between $180,000 and $255,000

Variable Cost             Between $825,000 and $900,000

 

So your total costs might be between $1,005,075 and $1,305,000, leaving you approximately $200,000 to $500,000 in annual pre-tax profit. Of course many factors can impact on these numbers, but under normal circumstances, these would be typical operational margins.

What you will see from this illustration is that fixed cost and semi variable cost are not only relatively low, they are also somewhat out of your control……rent is something that the landlord sets and the volume of business controls many of the semi-variable costs. The greatest amount of variability comes from your food, beverage and labor cost and it is in these prime costs that your battle for profitability resides, and where we’re going to focus.

Owner Insights
As I see it, many restaurants do not provide an ambiance that encourages a more relaxed response from the guest to alcohol.
Irish Pub Operator | COLORADOView Owner Insights
Fun Facts

47.4% of Irish Pubs have an Average Check Spend of more than $21 while 42.1% of Irish Pubs
have an average beverage check spend of more than $11. Both of these numbers significantly out-perform industry averages.

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