I’ve been seeing a lot of debate about where a pub’s Gross Profit should sit. 10 years ago, 65% was the “gold standard.” Today? It’s a fast track to the red.

With the National Living Wage at £12.71 and energy costs where they are, if you’re still pricing to 65%, you’re likely busy but broke. By the time you’ve paid the team and the electric bill, there’s nothing left for the person taking all the risk: you.

In 2026, we have to be aiming for 70%+.

The math is simple: Cost (ex. VAT) x 4 = Your Retail Price. If a pint costs you £1.50, you need to be at £6.00. I know that feels “expensive” for some areas, but if we don’t protect the margin, we can’t protect the pub.

We use a “Blended GP” approach at my place. We might take a hit on the draught beer to stay competitive for the locals, but we make it up on high-margin spirits and soft drinks.

It’s about “Prime Cost” (Stock + Labor). If that total hits over 65% of your turnover, you aren’t running a business; you’re running a charity.

How many of you have actually re-costed your entire menu since the last wage hike? It’s an eye-opener.