Quality Home Cooked Food with Daily Specials at The York

[Reue]

Regrettably the Scream Pub model did not work in Broomhill in profit terms. yes the York was busy doing £1 a pint and yellow card deals, but the profit was next to nothing. Students may well enjoy cheap drinks, but to sell for less than we can buy it for is not good business, I am sure you agree.

 

Scream sold The York as it was losing money fast, despite being busy, and the same fate also took hold of other Scream pubs in many towns. You cannot make much money selling mega cheap beer, and I think you will find the profit margins on most discount pubs abysmally small. (Scream Pubs are in fact in pretty dire financial depths and preparing to dispose of many more outlets)

 

Its quite simple, u take say £10,000 a week selling cheap beer and u may make 15% gross profit which equates to £1,500 as an example from drink sales, then take off staffing, rent, rates, bills, etc and you are left with ZERO!! Good Business ?

 

On the other hand you take just £5,000 with a gross profit margin of 65% and you may be less busy, but you make a sustainable income even after costs and a business model that is not forever close to the wall due to its low mark ups. Good Business? I would say so....

Add to this Scream pubs sold up and we were then tied to other suppliers at different wholesale prices, so even if we WANTED to copy Scream, it would have been impossible to do so......

 

And despite what you say, many of our customers are students living nearby, looking for something different to noisy cheap discount bars, and hence they love us for what we are doing. Not ALL students are as you describe! The ones looking for ultra cheap beer go to town, that's fine as we could never make a living from them at this site in 2009 due to our product ties.

 

Thanks for your reply. Obviously being unable to view the specific financial data I was unaware that the profit margins were quite that low!