How Much Does it Cost to Open a Pub: Savings with the Right POS and Payments Solution

Opening a pub in Australia can be a costly exercise, and we’re not just talking dollars. Opening up a new hospitality venue requires time, blood, sweat and tears and is not for the faint-hearted.

There are many cost factors which we will delve into, but one of the most crucial is to partner with the best point of sale and payments platform for your business. Making the right decision here alone can save you thousands of dollars annually.

Impos’ POS and Payments Bundle will save the average pub a whopping $18,000 per year with $0 EFTPOS.*

ImposPay’s advanced POS terminals also integrate automatically with your existing POS system to deliver fast, secure transactions at every customer touchpoint be it online, in person or a multi-channel combination tailored to your business.

Here’s a detailed summary of additional potential costs:

1. Property Costs

Lease or Purchase: Commercial property leases can range from AUD 50,000 to AUD 200,000 per year, depending on the location and size. Purchasing a property will be significantly more expensive.

Renovations and Fit-Outs: Renovating and fitting out a pub can be a major expense, often ranging from AUD 100,000 to AUD 500,000 or more, depending on the extent of the work and the quality of the materials and design.

2. Licenses and Permits

Liquor License: Obtaining a liquor license is crucial and can vary widely. In New South Wales, for instance, a liquor license might cost between AUD 1,000 and AUD 5,000 annually. Other states and territories have different fee structures and requirements.

Food Handling and Health Permits: If you plan to serve food, you’ll need to comply with food safety regulations, which may involve additional permits and inspections. Costs might be a few hundred dollars initially.

Business Registration and Local Permits: Registering your business and obtaining local council permits can cost several hundred to a few thousand dollars.

3. Fit-Out and Equipment

Bar and Kitchen Equipment: Purchasing equipment for both the bar and kitchen (if serving meals) can cost between AUD 50,000 and AUD 200,000. This includes items like refrigerators, ovens, taps, and point-of-sale systems.

Furniture and Fixtures: Setting up the interior with tables, chairs, décor, and other fixtures might cost between AUD 30,000 and AUD 100,000.

4. Staffing Costs

Wages: Staff wages will be a significant ongoing expense. Minimum wages in Australia vary, but you should budget for competitive pay rates, which might start from around AUD 25 per hour for bartenders and up to AUD 50 per hour for management positions, depending on experience and role.

Training and Uniforms: Initial training and uniforms could add a few thousand dollars to your startup costs.

5. Operational Expenses

Utilities: Electricity, water, and gas bills can be substantial. Monthly costs might range from AUD 2,000 to AUD 10,000, depending on the size and usage.

Insurance: Public liability insurance, property insurance, and worker’s compensation insurance will likely cost between AUD 5,000 and AUD 15,000 annually.

6. Stock and Inventory

Initial Stock: For a pub, your initial stock of alcohol, soft drinks, and other supplies could range from AUD 10,000 to AUD 50,000, depending on the size of your venue and your inventory strategy.

7. Marketing and Promotion

Initial Marketing: Launch marketing campaigns, branding, and promotional materials might cost between AUD 5,000 and AUD 20,000, depending on the scale of your marketing efforts.

8. Contingency Fund

Unexpected Costs: It’s prudent to have a contingency fund for unforeseen expenses, typically around 10-20% of your total startup budget.

Summary

In total, opening a pub in Australia can require an investment ranging from AUD 200,000 to AUD 800,000 or more, depending on the size and location of the pub, the extent of renovations needed, and the scale of operations. A well-prepared business plan and thorough research into local regulations and market conditions will help you manage these costs effectively.

Consulting with industry professionals, such as business advisors, accountants, and legal experts, can provide additional insights and help ensure you’re well-prepared for the financial demands of opening a pub.

Check out our free Pub/Hotel Buyers Guide for everything you need to know and more.

*POS and Payments savings based on the annual earnings of the average Australian pub