[Neil]

Originally Posted by entwisi

Ymmv, let me play devils advocate

How much is the a red cap worth as a building, 1 million? Add in catering equipment, bar fittings, cellar equipment, fixtures, tables, chairs, etc and I bet you aren't far off another 500k

Then to open the doors, you need at least 6 staff(8 hours cover shifts of 3 each x2), even on min wage with employees and employers ni etc you are looking at a min of 200k costs for wages, then there's training, uniforms etc. And let's face it at peak periods you probably have 4x that number available. Add in electric, gas, rates, water, telephones,

All that is before you have the product cost and of course you don't run a pub as a charity so let's add in some profit.

now do you see where some of that 1.60 comes from?

No I don't because the beer is cheaper and it is heavily taxed.