# Net Profit in The Pub Trade



## dow jones (17 Jun 2008)

anyone have a clue about net profit in the licenced trade? a pub selling booze only (no food) with a turnover of 15k a week 3 staff, trying to figure out its net profit margins...


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## Kilise (17 Jun 2008)

It all varies on things like ratio of sales,location, retail prices, cost prices, expenses such as waste, staff drinks, line cleaning, comps etc.

Generally pubs in ireland operate on gross profit percentages of 50% - 70% as a guide.

Hope this helps.


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## Graham_07 (18 Jun 2008)

Minimum GP in a pub now such as that should be of the order of 50% as Kilise mentioned. So GP of around €6K per week (ex VAT). NP is, as mentioned more complex as staff are only part of the equation. Your GP will disappear very fast on the overheads and that must take into account rent or mortgage so the NP% is not as easy to work out without access to some historical data from the premises concerned and then putting in your expectations on the other costs specific to your proposal.


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## simplyjoe (18 Jun 2008)

I feel a GP of 50% would be considered very low. A Figure of 57/58% would be more like a minimum with a higher figure of 70%.


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## Kilise (18 Jun 2008)

simplyjoe said:


> I feel a GP of 50% would be considered very low. A Figure of 57/58% would be more like a minimum with a higher figure of 70%.


 
This may be the case in Dublin where higher retail prices can be achieved. But as we do not know the location of this particular pub it is difficult to say.
For Example a pub in a typical working class area of Cork with Draught sales accounting for 90% of overall sales could not expect to achieve anything like 57/58% more like 50%/52% and that would include achieving a minimum surplus of 3 pints per keg.


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## simplyjoe (18 Jun 2008)

Probably true but a draft trade of 90% would be very rare.


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## Kilise (18 Jun 2008)

simplyjoe said:


> Probably true but a draft trade of 90% would be very rare.


 
Not So.
In Fact it is not uncommon to have higher than 90% in some area's but 
I would agree that it is at the higher level but not uncommon none the less.


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## dow jones (18 Jun 2008)

great help there, thank you. the pub is in a town of about 25,000 with a very good location. a friend of mine is thinking of leasing it and we were trying to put together some figures..


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## KDA man (20 Jun 2008)

5%-10% net profit is would be a industry guide


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## dow jones (22 Jun 2008)

KDA man said:


> 5%-10% net profit is would be a industry guide


 

in calculating net profit from gp i take wages/prsi/rent/insurance/rates/electric/repairs/accounting am i forgetting anything else? thanks again


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## KDA man (23 Jun 2008)

no, as long as you are accounting for all your suppliers, services and expenses.


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## Akira (26 Mar 2010)

dow jones said:


> in calculating net profit from gp i take wages/prsi/rent/insurance/rates/electric/repairs/accounting am i forgetting anything else? thanks again



Normaly, you take all those costs from your turnover, before the gross profit calculation. The gross profit does not include the cost of the runing the business, it's the net profit plus taxes (for the company or for the sole trader business).
So, just need to calculate your taxes and you will know the net profit.
Am I wrong?


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