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I understand what you are saying, food and drink and most FMCG products don't make massive margins because of the volumes they shift. Beer is affected more than most because of the levels of duty tax. Other alcohols by volume such as cider have much Lower duty levels simply because they haven't been around for as long.

Beer tax is 18.37p a litre x % strength

 

Cider tax is 38.87p a litre x % strength

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Beer tax is 18.37p a litre x % strength

 

Cider tax is 38.87p a litre x % strength

Incorrect Cider tax is 38.87p per litre full stop (up to 7.5% ABV). Beer tax is 18.37p x % ABV per litre. So for your standard 4% beer it's 73.48p per litre.

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Are places like the OEC able to have guest ales or could their contract with JW Lees specify that they can only sell Lees beers.

We don't know the exact details, but unlikely to have any room for another Brewery's beers. There could be Lees guest beers though.

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We don't know the exact details, but unlikely to have any room for another Brewery's beers. There could be Lees guest beers though.

It's highly unlikely....they have probably signed an exclusive supply agreement where even if the club wanted guest ales JW Lees would price them accordingly to discourage it.

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So that's why Stella is underpowered these days

Yep many brands have done it...AB InBev dropped Budweiser draught from 5% to 4.3%, Stella, Budweiser bottled and Becks Bottled from 5% to 4.8%, all tax savings. Carlsbergs 3.8% rather than other standard lagers at 4%.

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There was a good programme on last night, Tricks of the Restaurant Trade. I did not see all of it, so it might be not quite so even handed, but it showed how much of a meal a place makes.

 

Before you even start, 80p of that is VAT. So the actual income drops to £3.20 for that pint.

 

In the case of the beer/food in the OEC.

 

You have Staff to serve you, unlike at home. NI. Tax.

Pay extra to have the food and drink delivered to the premises

You have the heating, lighting.

Business Rates.

A management structure.

3 yearly Food Hygiene training courses for all staff. For the whole day. Up to 3 levels. Level 3 for the Chef is a 3 or 4 day course costing over £250.

Holiday cover for the staff.

Till Equipment

Catering Equipment

Bar service

Servicing arrangement for all the equipment and possibly repair costs.

Uniforms

Table Cloths and Laundry

Nicer cutlery and probably glasses. The glasses cost more becasue they have to be Weights and Measures stamped

Fire Safety Equipment

 

The list goes on.

 

It's not really captive,because you have to get people to book into the place

 

And all that is more than the cost of the ingredients.

 

True, diners will usually go back to a place where they enjoyed their meal, I do many times to my local fish and chips cafe, costs me £6.40 for a full meal, but then again it's only money. :)

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