Reality check: The true start-up costs of your dream pub

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The UK pub industry is a powerhouse worth around £21.1 billion to the UK economy. In fact, there are over 51,000 pubs across the length and breadth of Britain and the pub industry continues to grow year on year, thanks to its reputation for providing a social experience unique and a fantastic selection of food and drink.

Opening a pub is a dream for many entrepreneurs. But it’s not without its own set of unique challenges. Starting your own pub requires investing a considerable amount of money and patience. You will need to consider several factors like location, licensing laws, contractors, permits and, of course, finance.

The cost of starting a pub will depend on a number of variables, such as the size of your pub, the location, the type of drinks you serve and whether you hire a contractor or do the work yourself. even. In this blog post, we’ll discuss the costs associated with setting up your own ad and the investments you’ll need to make.

start-up costs

Opening a pub is a complex business with many cost components. To better understand, let’s take a closer look at some of the costs associated with starting a pub:

Cost Average amount (USD)
License fees ,500–,000
Construction costs ,000–0,000
Furniture and decoration ,000–,000
Equipment ,000–,000
Marketing costs 0–,000
Contractors ,000–,000
Ingredient supply ,500–,000
Assurance ,000–,000
Allow 0–,000
Total ,700–8,200

Of these fees, license fees and construction costs are among the highest costs associated with starting a pub. The total cost to open a pub is usually around ,700 to 8,200, depending on the size and location of the pub.

License fees;

Opening a pub comes with a range of expenses including License fees . Depending on the city and state, license fees may vary. License fees form a significant part of the cost of opening a pub encompassing the cost of permits and processes to officially establish the pub.

In the United States, most licenses can range in cost from less than ,000 to ,000 or more for a standard license. This includes club, hotel and retail licenses. Additionally, the application and licensing process can take several months and should be considered.

Below is a list of potential license fees you might encounter when opening a pub:

  • Retail liquor license – usually costs between ,000 and ,000 per year.
  • State Liquor License – Can vary between 0 and ,000, depending on license type.
  • Special license – varies between and 0 per year.
  • Beer and wine – 0 to 0 per year.
  • Food license – between 0 and 0 per year.
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In some states, a liquor license may also carry additional taxes at 18%. It is essential to check local state laws and regulations for the exact cost and process to obtain the license.

Construction costs;

Opening a pub can be a costly undertaking and is not something to be taken lightly. Before you even start opening your doors, you will need to budget with the help of architects, consultants and other professionals to ensure that your pub meets relevant regulations for building codes, zoning laws, business permits , etc. Typically, overall pub construction costs, including building, renovations and repairs, can range from 5,000 to 0,000, but depending on specific circumstances could increase.

In the United States, the average cost of building a pub starts at 5,000 . Final cost could be more depending on size, complexity and other factors. Once the pub is built, you will also need to set aside funds for the initial furniture and supplies, which could range from ,000 to ,000 . On top of that, you’ll need to factor in other costs like taxes, insurance, and licensing, which could add another ,000 to ,000 to the total.

In Canada, the cost of building a new pub ranges from 0,000 for a smaller establishment to 0,000 for a medium-sized bar. The final cost can go much higher depending on the size, details and additional modifications. This is in addition to the cost of furniture, equipment and supplies ,000 .

In Europe, pub construction costs vary greatly depending on the country. For example, in the UK the cost of building a pub can range from 0,000 to 0,000 , while in France the average cost is lower, ranging from 0,000 to 5,000 . Additional costs for furniture, equipment and supplies should be considered for each country and can range from ,000 – .00 per pub.

Generally, the cost of opening a pub is not static and can range considerably depending on the size and location of the pub. As such, it would be wise to plan carefully and be prepared for potential unforeseen costs that may arise. Along with building and construction costs, it’s also important to have a solid business model and include additional funds for marketing, staff, and other expenses.

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Furniture and decoration;

When starting a pub, a significant portion of the budget should be set for furniture and decoration. Depending on the size of the business, the budget can vary from ,000 to 0,000 and more.

In furniture and decoration; category, expenses concerning the purchase of furniture, fabrics and works of art, above construction and installation costs. This includes the cost incurred to purchase tables, chairs and other seating, flooring, countertops, light fixtures and shelving.

The costs of these items vary greatly and depend on the types of materials and finishes you choose. For example, bar stools can be as cheap as for basic models, all the way up to 0 each for the most high-end models. Similarly, a high-end custom lighting fixture can cost 0 and up, instead of basic fluorescent fixtures available for per fixture. Other expenses include window treatments, wall coverings, rugs, accents and any custom items.

For DIY creations, you may be able to save some money. However, be aware that do-it-yourself projects often add to what you would have spent had you hired someone to do it. Also, some projects require specific skills and not everyone will have those skills, so it’s best to leave it to the professionals.

Statistics in 2019 indicate that the average cost of furnishing and decorating pubs was around ,000, with larger companies spending up to 0,000 or more. This included all items from furniture, accents, artwork and lighting.

All in all, budget is one of the main deciding factors for a successful pub and taking it into account furnishing and decoration; Expenses are the most appropriate thing to do.


When considering the equipment needed to start a pub, there are a few main pieces to consider. These include: refrigerators, faucets and ice machines. Although each of these items varies depending on the size of the pub, the average cost often ranges from ,000 to ,000 .

In terms of refrigerators and coolers, there are different options to consider. For smaller establishments, a one to two door display refrigerator may suffice. However, for larger establishments and those looking to create a superior establishment, a three to four door refrigeration system may be required. The cost of these systems can range from ,500 to ,500, depending on the model and size.

The configuration of the taps is another area that one must consider when starting a pub. This includes the installation of draft systems, beer towers and the purchase of beer kegs. To properly serve beer, one will probably need a minimum of 8 taps. It can cost anywhere from ,000 to ,000. You will also need to consider the cost of the beer itself and the cost of the kegs.

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Finally, an important element to consider is the ice cube. This equipment is necessary to properly cool beer and other beverages served. The cost of a good quality ice cube can range from ,000 to ,500 depending on the size and style needed.

All in all, it is important to consider all the necessary equipment needed to open a pub. From refrigerators and coolers to faucets and ice makers, the cost of all these items can add up quickly. Taking the time to understand what is needed and finding the most cost effective options can help save time and money when opening a pub.

Marketing costs;

When opening a pub, one of the most important considerations is marketing expenditure. These costs can vary greatly depending on the desired marketing strategy and available resources. It is important to consider the cost of advertising when budgeting for an ad launch.

Average advertising costs

Statistics from Sprout Social in 2020 put the average cost of a sponsored post on Facebook between and 0 per 1,000 followers. However, for an ad launch, it is recommended to set aside even more for marketing, as the target audience will likely be over 1000 subscribers.

The average annual cost of launching a large-scale advertising campaign on all possible channels is estimated between ,000 and 0,000. Of course, with careful planning, these costs can be significantly reduced.

Strategies to reduce costs

One strategy to cut costs for an ad launch is to focus on local marketing tactics such as flyers, radio ads, and partnerships with local businesses. Working with local communities is a great way to introduce a new pub and raise awareness. Additionally, offering discounts and involving community members in events can be a great way to build excitement and hype around the pub.

Other profitable strategies can include using influencers and social media. Influencers can be less expensive than more traditional forms of advertising and can also be appealing to potential customers because they appear to be more relatable and trustworthy. Social media can be a great tool for cultivating a pub’s audience, and with careful planning can be used without spending too much.

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Marketing is a key part of launching the pub and should be carefully considered when planning costs. The average cost of advertising campaigns can range from ,000 to 0,000, but these costs can be significantly reduced by focusing on local marketing tactics, using influencers and social media, and offering discounts and involving community members in events.

contractors; Costs

Starting a pub can be a daunting process, but the right steps don’t have to be taken and all the necessary procedures are followed. Hiring the right contractors can be one of the most important steps in this process. To understand what it might cost to open a pub, potential owners should consider the size, complexity and design elements of the business.

Location costs Location costs can vary greatly depending on where the pub is located. Renting a space in a high traffic area is always more expensive than a location in a poor neighborhood. On average, the annual cost of rent, in the United States, can be ,000 to ,000 or more.

Contractor Costs Contractors are needed to build the space and for other tasks including plumbing, wiring, painting and decorating, and security measures. The cost of contracted services will depend on the task and the contractor, but on average it is between ,000 and ,000.

Equipment Costs Buying the right equipment is essential to starting a pub. These costs will depend on the type of food the pub will be serving but, generally, costs can range from ,000 to ,000. This equipment should include refrigeration and cooking, food and beverage equipment, dishes, cutlery and furniture.

Licensing Costs Obtaining a license to serve alcohol can cost between and 00. An Employer Identification Number (EIN) will also need to be acquired, which is exempt from the IRS.

Other Miscellaneous Costs Other necessary costs include signs, advertising, food storage, insurance and staff salaries. Larger pubs may need to hire a chef and various managers, all of which should be considered.

By considering all of these factors before opening a pub, owners can be better informed of the total likely expenses. With proper planning, a pub can be opened without breaking the bank.

Ingredient supply

When deciding to open a pub, some key ingredients need to be facilitated. The biggest expense of any pub’s business model is the supply of ingredients. This includes a range of items, such as food and drink – both alcoholic and non-alcoholic. It is important to consider the costs for purchasing and storing your ingredient supplies.

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Recent statistics regarding the cost of opening a Pub PEG Ingredients offer at around ,000 to ,000 USD. This cost can be broken down into several categories: beer, wine, sake, spirits and mixers, as well as food ingredients such as meats, dairy, bread, fish and condiments. The pub ingredient can also include snacks such as chips, popcorn, pastries, and other items.

It is essential to consider the costs of equipment associated with pub supplies. This includes the types of machine settings to create desired items, such as refrigerators, coolers, a kegerator, and a dishwasher (among others). Depending on the size and type of your pub, some of these machines may need to be purchased.

The cost of sourcing ingredients will vary depending on the types of beverages and food items offered and the volume of merchandise purchased. It’s important to carefully plan your inventory to stay within your budget, while ensuring you have enough ingredients to sustain your ad. It’s important to consider how long your ingredients will break even. This will help ensure that you are only storing what you need and not overspending.


Opening a pub involves a lot of expenses. Without the right preparations, this endeavor can quickly become overwhelming. One of the costs that must be considered is insurance. Insurance can help protect your business in the event of a claim or lawsuit and it’s important to shop around for the best coverage with the lowest cost.

According to 2019 reports, the average small business will pay 5 per month for liability insurance, with a range of to 5 per month. This can vary based on business type, business size, geographic location and more. Unique or higher risk businesses may require specialized insurance policies, such as malpractice insurance for doctors, which can cost significantly more. As such, it’s important to research the costs and shop around for the best coverage for your particular business .

Another type of cover a pub may need is property insurance, which covers damage to physical construction, equipment and other items that belong to the pub. The cost of home insurance varies depending on the type of coverage. For a standard pub, the average property insurance cost is 9 per year, but this cost can range from 1 to ,071 per year. When researching this cost be sure to include the cost of basics such as fire, natural disaster, theft and vandalism as well as any other coverage that may be relevant.

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It is important to note that these insurance costs are an estimate only and may be more or less for different pubs. The main purpose of getting business insurance is to give a piece of mind and protect your business from being wiped out due to a claim or lawsuit. Be sure to shop around and get the best possible coverage for the lowest possible cost, but remember that peace of mind is priceless.


Any bar, tavern, and pub must have the necessary state, county, and local licenses to operate. These permits typically cost 0-600 however required permits may vary depending on location. They may include a liquor license and tavern license, entertainment license, work permits, retail license, building occupancy license and dance cabaret, or THR license. They may also include a live music license, sound license, cultural arts license, and game room license.

The cost of obtaining a liquor license or allowance can increase significantly. For example, in California, the cost of obtaining a liquor license can cost anywhere from 5 to ,500, depending on the number of establishments and county population. This cost also varies greatly between different states. Additionally, all business owners need a vendor permit, also known as state tax identification. This allows them to collect sales taxes from customers and pay them to the state.

When budgeting for these permits, it is important to consider the cost of any inspection or assessment required. In some cases, permits can cost between and 0 or more depending on the scope of the project. All new business owners must also pay for any permits required to operate their business and any specific licenses, such as a food or health permit.


Setting up a pub takes careful planning, but it is doable. You need to determine the type of ad you want and plan accordingly. License fees, building fees, furniture and decor, equipment, marketing fees, contractors, ingredient supplies, insurance and permits are the major costs associated with starting a business. pub. The payback period for your investments should be short, depending on the size of your pub and the location.

Overall, it is essential to calculate all the costs involved beforehand to get an accurate figure of the investment needed. With the right planning and foresight, you can successfully open a pub and reap the rewards it provides.