Pubs and bars hit by sharp rise in operating costs over past decade

New research: Pub operating costs jump 48% over past decade
New research: Pub operating costs jump 48% over past decade (Dojo)

Pubs and bars have seen operating costs rise by 48% over the past decade, with technology, insurance and energy among the biggest pressure points, according to new research from Dojo.

The company’s UK Inflation Index analysed changes across 10 core business cost categories between 2015 and 2025, including rent, business rates, labour, insurance, supplies and utilities.

Hardest hit

It found pubs and bars were among the hardest-hit hospitality segments, behind only catering businesses and hotels.

For pubs and bars, the steepest increase came in technology and software costs, which rose by 167% over the period, reflecting the sector’s growing reliance on digital tills, booking systems, card payment technology and back-office platforms.

Insurance costs increased by 80%, while energy costs were up 57%. Materials and supplies rose by 57%, with labour costs climbing 40% over the same period. Rent and business rates were found to be 50% higher than a decade ago.

Banking and payment processing costs increased by 47%, while transport and vehicle-related costs rose 50%. Training costs were up 60%, according to the analysis.

Higher costs all round

The findings come as operators continue to manage higher employment costs, utility bills and tax pressures, with many businesses already warning that margins remain under strain despite resilient consumer demand.

Charlie Ashworth, head of research and insights at Dojo, said: “While operating costs have risen significantly over the past decade, businesses can be better equipped to respond with a clearer understanding of their cost structure.

“Reviewing supplier contracts, improving operational efficiency, reducing unnecessary overheads and optimising payment systems can all help protect margins in a higher-cost environment.”