How Much Does it Cost to Open a Bar/Pub? (+ Cost Saving Tips)

Knowing how much it costs to start a bar or a pub can be the difference between a smooth launch and a financial hangover. On average, opening a bar or pub in the UK can cost anywhere from £150,000 and £1Million, depending on factors like location, size, bar concept, and renovation needs. A small neighborhood bar might require a modest budget, while a high-end cocktail lounge in a busy city can demand a much larger investment.

In this blog, you’ll get a realistic and detailed cost breakdown, covering everything from leasing and licensing to furniture, staffing, and inventory. We’ll also share practical cost-saving tips to help you stretch your budget without sacrificing quality. 

If you’re planning to open a bar or pub, this guide will give you the insights you need to budget wisely and build your business with confidence.

1. Location

When asking “How much does it cost to open a bar?”—start with where you plan to open it. Your bar’s location can make or break your budget, foot traffic, and future profits. It’s not just about finding a cool space. Rather, it’s about choosing a site that balances visibility, vibe, and value.

Area Type	Typical Monthly Rent
Small towns or suburbs	£1,500 – £4,000/month
Mid-sized cities or student areas	£3,000 – £7,000/month
Busy city centres or nightlife zones	£7,000 – £15,000+/month
Prime London locations	£20,000+/month

Note: Lease agreements often require a 3–6 month deposit upfront, so factor that into your initial capital.

Buying Property Instead?

If you plan to purchase a commercial space rather than lease, here’s what you might expect to pay:

• Fringe or rural locations: £150,000 – £300,000
• Mid-range urban areas: £350,000 – £700,000
• Premium city centre property (London): £1 million+

2. Type of Bar

The type of bar you open has a direct impact on your startup budget. From dive bars to high-end cocktail lounges, your concept influences everything—menu pricing, staffing, interior design, equipment, and customer expectations. In other words, not all bars cost the same to launch.

Here’s a breakdown of common bar types and their typical startup ranges:

Estimated Startup Costs by Bar Type (UK)

Type of Bar	Estimated Startup Cost (GBP)	Key Cost Drivers (Summary)
Neighbourhood Pub or Dive Bar	£90,000 – £160,000	Basic setup, minimal décor, simple licenses, lower staffing needs
Sports Bar	£120,000 – £320,000	AV systems, multiple screens, large seating, food service infrastructure
Wine Bar	£100,000 – £240,000	Ambient design, wine storage, high-end glassware, trained staff
Brewpub or Microbrewery	£200,000 – £800,000+	Brewing equipment, production space, regulatory compliance
Cocktail or Speakeasy Bar	£160,000 – £400,000+	Premium spirits, bespoke interior, skilled mixologists, branding
Music or Nightclub Venue	£250,000 – £650,000+	Sound/light systems, large venue, licensing, crowd control infrastructure

Note: Costs will vary based on location, size, licensing requirements, and how much renovation the space needs. London bars typically sit at the higher end of each range.

What Drives the Cost Differences?

• Design and ambiance: A dive bar may only need basic decor and furnishings, while a craft cocktail bar often requires a stylized interior, mood lighting, and premium finishes.
• Specialized equipment: A microbrewery needs brewing tanks and fermentation systems, while a nightclub might need sound systems, lighting rigs, and DJ booths.
• Menu complexity: Craft cocktail programs typically involve high-end spirits, custom glassware, and trained mixologists, which adds to labor and inventory costs.
• Licensing and compliance: Some bar types require additional licensing, such as live entertainment permits or brewery production licenses, which adds time and money.

3. Licenses

You can’t open a bar without the proper licenses and the cost of getting legally compliant can quickly add up. From liquor licenses to health permits, these legal requirements are non-negotiable and vary widely based on your location and the type of bar you plan to open.

Common UK Bar Licences and Their Estimated Costs:

Licence Type	Estimated Cost	Notes
Premises Licence (to sell alcohol)	£100 – £1,905	Cost based on the venue’s rateable value
Personal Alcohol Licence	~£137 – £237	Includes mandatory training course and council application fee
Business Registration (with HMRC)	Free	Required for all trading businesses in the UK
Food Registration (if serving food)	Free	Must register with local council at least 28 days before opening
PRS/PPL Music Licence	£300 – £1,000+/year	Based on venue size, music usage, and type of performance
Outdoor Signage Consent (if needed)	£50 – £500	Depends on signage size, location, and local council policies
Fire & Safety Compliance	Varies	May include fire risk assessments, alarms, extinguishers, and upgrades

Note: Most of these licences are regulated at the local authority level, so specific costs and timelines may vary slightly by council.

Licensing Factors That Affect Cost:

• Rateable value of your premises
  The fee for your premises licence is based on the property’s rateable value. Larger or centrally located venues will pay higher fees than small bars or pubs in suburban areas.
  
• Operating hours & entertainment
  If your bar plans to open past 11 PM, host live music, or provide dancing or amplified sound, you’ll need additional permissions via a licensable activity request under the Licensing Act 2003.
  
• Type of alcohol licence
  Most bars will need a full premises licence (for both beer, wine, and spirits sold on-site). Off-site sales or takeaway alcohol may require extra permissions or conditions.

4. Legal and Accounting Fees

Behind every successful bar is a solid legal and financial foundation. While licenses get most of the attention, legal and accounting fees are just as critical and often overlooked. From forming your business entity to keeping your books in order, these upfront and ongoing costs ensure your bar runs smoothly and stays compliant.

Typical Legal and Accounting Costs (UK)

Service	Estimated Cost Range	Notes
Business Registration (Companies House)	£12 – £100	Online filing is cheapest; postal and agent-assisted services cost more
Legal Fees (contracts, leases, T&Cs)	£500 – £2,500+	Depends on business complexity and number of documents
Accounting Setup & Initial Consultations	£300 – £1,500	Covers chart of accounts, software setup, and financial structuring
Monthly Bookkeeping & Tax Filing	£150 – £800/month	Varies based on transaction volume, VAT, and payroll complexity
Trademark or Name Registration (UK IPO)	£170 – £300+ per class	Cost increases with more classes or legal help

What These Fees Cover:

• Business structure setup
  Registering your bar as a limited company via Companies House helps protect personal assets, establishes your legal entity, and affects how you’re taxed.
  
• Legal support
  Lawyers can help draft lease agreements, partnership contracts, supplier terms, and employment agreements—all of which reduce risk and confusion later.
  
• Accounting systems and compliance
  Getting your books in order from the start is critical. Your accountant can help set up cloud-based software like Xero or QuickBooks, advise on VAT registration, and make sure you stay compliant with HMRC.
  
• Payroll and tax duties
  If you hire staff, you’ll need to register as an employer, handle PAYE, NI contributions, and stay current on employment tax requirements—your accountant can manage all of this on your behalf.

5. Insurance

Insurance isn’t just a formality. It’s a non-negotiable cost of opening a bar or pub. Serving alcohol, managing crowds, and operating late hours come with unique risks. The right insurance coverage protects you, your staff, and your investment from unexpected events like accidents, injuries, property damage, and lawsuits.

Common Types of Bar Insurance in the UK

Service	Estimated Cost Range	Notes
Business Registration (Companies House)	£12 – £100	Online registration is cheaper; postal or agent services cost more
Legal Fees (contracts, leases, T&Cs)	£500 – £2,500+	Covers lease reviews, supplier contracts, employee agreements, etc.
Accounting Setup & Initial Consultations	£300 – £1,500	Includes setting up accounts, software, and financial systems
Monthly Bookkeeping & Tax Filing	£150 – £800/month	Varies by business size and transaction complexity
Trademark or Name Registration (UK IPO)	£170 – £300+ per class	Cost increases with additional classes or legal representation

Note: Average annual insurance costs for bars and pubs in the UK range from £1,000 to £5,000+, depending on location, venue size, capacity, entertainment offerings, and risk profile.

UK-Specific Insurance Notes:

• Public Liability Insurance is legally required and protects you if someone is injured on your premises.
• Employers’ Liability Insurance is mandatory if you employ any staff, even part-time.
• Loss of Licence Insurance covers the financial impact of losing your alcohol licence—an often overlooked but valuable layer of protection.
• Property & Contents Cover protects fixtures, stock, and equipment against fire, flood, theft, or vandalism.

Pro Tip: Work with a broker who specialises in hospitality and bar insurance. They’ll help you understand what’s legally required, what’s recommended, and how to tailor your policy to match your business model. Cutting corners on insurance could cost more than you save.

6. Inventory

Your first inventory order is more than just a checklist of bottles. It’s the lifeblood of your bar. From liquor and beer to garnishes, glassware, and cleaning supplies, your starting inventory plays a huge role in both your upfront costs and customer experience.

How Much Does Bar Inventory Cost?
Most new bars spend £8,000 to £30,000+ on initial inventory, depending on:

• The size of your venue
• The type of drinks you serve (e.g. beer vs cocktails vs wine)
• Whether you offer food
• Your target audience and drink pricing strategy

Key Inventory Categories & Cost Breakdown

Inventory Type	Estimated Cost (GBP)	Notes
Alcoholic Beverages	£4,000 – £20,000	Spirits, beer, wine, liqueurs; varies by bar size and drink offerings
Non-Alcoholic Stock	£400 – £1,600	Mixers, soft drinks, coffee, tea, garnishes
Barware & Tools	£800 – £2,500	Glassware, cocktail tools, disposables (straws, napkins, coasters)
Food Inventory (if serving)	£1,500 – £8,000+	Snacks, finger food, or full kitchen ingredients depending on menu
Cleaning & Sanitation Supplies	£150 – £400	Towels, sanitiser, detergents, glass cleaners

7. Equipment

Bar equipment is the backbone of your daily operations. From fridges and keg systems to glass washers and EPOS terminals, investing in the right kit helps your team serve efficiently while maintaining high standards of hygiene and speed. It’s one of the largest upfront investments, but one that pays off in smooth service, safety, and customer satisfaction.

How Much Does Bar Equipment Cost in the UK?

Expect to spend £15,000 to £90,000+ on equipment, depending on the size of your venue, your service format (pub vs nightclub vs cocktail bar), and whether you’re buying new or refurbished.

Essential Bar Equipment and Estimated Costs:

Equipment	Estimated Cost (GBP)
Underbar Refrigeration	£1,500 – £8,000+
Keg & Draught Beer System	£2,500 – £10,000+
Ice Machine	£1,200 – £5,000
Glasswasher / Dishwasher	£1,800 – £6,000
Speed Rails & Bottle Shelving	£400 – £1,500
EPOS System & Touch Screens	£800 – £4,000+
Bar Sinks & Drainboards	£600 – £2,500
Blenders & Mixers	£150 – £1,500
Furniture (bar stools, tables, etc.)	£2,500 – £8,000+

Note: Don’t forget installation and setup costs, which can add 10–20% to your equipment total—especially for refrigeration, draught lines, and dishwashing units.

8. Renovation and Interior Design

Your bar’s design is how your space feels, flows, and functions. From the bar counter to the lighting and seating, renovation and interior design costs can be substantial, but they directly influence customer perception, staff efficiency, and time spent in your venue.

Expect to invest significantly in renovation, furniture, and fixtures to bring your bar’s concept to life.

Average Renovation & Design Costs (UK):

Category	Estimated Cost (GBP)
Basic Renovations	£25,000 – £60,000
Complete Build-Out (bare unit)	£80,000 – £200,000+
Interior Design Services	£1,500 – £12,000+
Bar Furniture (tables, stools, chairs)	£4,000 – £18,000+
Lighting & Mood Décor	£800 – £8,000
Bar Fixtures (shelving, back bar, rails)	£2,500 – £12,000+

Note: The more custom or themed your bar is, the higher the design and build-out costs will be. A minimalist craft beer bar may cost less to design than a moody, speakeasy-style cocktail lounge.

9. Staff

Behind every great bar is a great team. From friendly bartenders and skilled mixologists to efficient servers and kitchen staff, your employees are essential to delivering a smooth, memorable experience. But hiring, training, and paying your staff can be one of your largest ongoing expenses—so it pays to plan ahead.

Average Staffing Costs in London (2025 Estimates)

Position	Average Hourly Rate	Estimated Monthly Cost (Full-Time)
Bartender (plus tips)	£11 – £15	£1,900 – £2,600+
Barback / Runner	£10 – £13	£1,700 – £2,200+
Server / Waitstaff (plus tips)	£10 – £14	£1,800 – £2,400+
Bar Manager	£15 – £22+	£2,600 – £3,800+
Security / Door Staff	£13 – £18	£2,200 – £3,200+
Kitchen Staff / Chef	£12 – £18	£2,100 – £3,200+
Mixologist (trained cocktail staff)	£14 – £20+	£2,400 – £3,400+
Sommeliers / Wine Specialists	£14 – £22+	£2,500 – £3,800+
Brewmaster / Brewer (for brewpubs)	£16 – £25+	£2,800 – £4,200+

Note: Staff costs also include insurance, pension contributions, holiday pay, and potential bonuses, which can add another 20–30% to your monthly payroll.

How Many Staff Do You Need to Launch?
For a typical London bar or pub, your opening team might include:

• 2–3 bartenders (rotating shifts)
• 1–2 servers or floor staff (for table service or food)
• 1 barback or runner (for busy periods)
• 1 chef or kitchen assistant (if food is served)
• 1 part-time door supervisor (for evening trade)
• 1 general manager (owner-operated in early stages)
• 1 specialist (e.g. mixologist, sommelier, or brewer) depending on your concept

10. Technology & Software

Modern bars run on smart tech. From processing orders and managing stock to tracking sales and handling reservations, the right software can streamline your operations, boost profits, and make life easier from day one.

Investing in reliable bar technology may come with upfront costs, but it will save you time, money, and headaches in the long run.

Essential Bar Technology & Software:

System	Estimated Cost (GBP)
EPOS System (Electronic Point of Sale)	£50 – £150/month or £1,000 – £3,000+ upfront
Inventory Management Software	£30 – £100/month
Staff Scheduling Tools	£20 – £60/month
Accounting Software	£10 – £50/month
CRM / Loyalty Programme Tools	£25 – £100/month
Online Reservations / Table Booking	Bundled or transaction-based; some monthly subscriptions
Contactless Ordering via Mobile / QR	£20 – £75/month or per-use fee
Payment Processing Solutions	1.4% – 2.5% per transaction

Why EPOS Is Non-Negotiable

A good EPOS system is the command centre of your entire bar. It enables you to:

• Track sales and revenue in real time
• Manage stock and inventory levels automatically
• Assign and monitor staff shifts and performance
• Speed up service with table and bar order integration
• Accept all major payment methods
• Generate reports for accounting, VAT, and forecasting

Recommended: eTakeawayMax EPOS System

eTakeawayMax EPOS is a powerful, all-in-one solution built specifically for UK bars, pubs, and restaurants. It includes real-time sales tracking, mobile & QR code ordering, staff time management, stock control, and integrated payments—all with zero commission on orders. What sets ETM apart from many other EPOS systems is its affordability, zero-commission model, and no long-term contracts, making it perfect for independent operators and growing venues alike.

11. Marketing

You could have the best drinks in town, but if no one knows about your bar, it won’t matter. Marketing is a critical (and often underestimated) startup cost when opening a bar or pub. From pre-launch buzz to ongoing promotions, a smart marketing strategy helps you attract customers, build loyalty, and drive consistent revenue.

Average Marketing Budget for New Bars

Most new bars allocate £3,000 to £10,000+ for initial marketing, depending on their goals and launch strategy. This includes branding, digital marketing, events, and promotional materials.

Common Marketing Expenses:

Marketing Channel	Estimated Cost (GBP)
Logo & Brand Design	£300 – £2,000
Website & SEO	£500 – £3,000+
Social Media Marketing	£300 – £1,500/month
Photography & Promo Videos	£300 – £2,000+
Launch Events & Giveaways	£500 – £2,500
Printed Materials (menus, flyers)	£100 – £1,000+
Online Ads (Google, Meta)	£500 – £3,000/month
Influencer / PR Campaigns	£250 – £2,500+

Pre-Opening Marketing Must-Dos:

• Secure your social handles and domain name early.
• Start building hype on Instagram and TikTok—show behind-the-scenes content, menu teasers, and bar design updates.
• Host a soft opening or launch event for press, influencers, and locals to spread word-of-mouth.

Want a Proven Marketing Strategy for Your Bar?

eTakeawayMax delivers expert digital marketing for food and hospitality businesses through social media, SEO, websites, and more. Get more customers, more bookings, and more buzz—without the guesswork.

Cost-Saving Tips When Opening a Bar

Opening a bar doesn’t have to break the bank. With the right strategies, you can launch a stylish, fully functioning venue without draining your life savings. Below are practical, creative, and proven cost-saving tips to help you cut expenses—without cutting corners.

Smart Ways to Save on Startup Costs:

• Choose a second-generation bar space
  Leasing or buying a venue that was previously a bar or restaurant can save you tens of thousands in build-out, plumbing, and licensing costs. Look for spots with existing infrastructure (bar counter, grease traps, restrooms, etc.).
  
• Start lean with your drink menu
  Instead of stocking every spirit and mixer, launch with a focused cocktail or beer list. This reduces inventory costs, limits waste, and simplifies staff training.
  
• Buy used or refurbished equipment
  Save 30–70% on fridges, glass washers, furniture, and back-bar essentials by shopping at restaurant supply auctions or online marketplaces.
  
• Handle some of the build-out yourself
  If you’re handy (or have creative friends), take on low-skill renovations like painting, décor, or furniture assembly to save on labour costs.
  
• Negotiate your lease terms
  Ask for rent abatement during build-out, or request landlord contributions to renovation (especially in revitalizing areas). Every month of free rent adds runway.
  
• Hire slowly and cross-train staff
  Begin with a small, versatile team and add roles only as customer traffic grows. Staff who can bartend and serve, or cook and clean, will give you more flexibility early on.
  
• Use affordable or free marketing tools
  Canva, TikTok, Instagram, and email platforms like Mailchimp allow you to create a buzz without a big ad budget. Word-of-mouth still works—especially if your opening week offers a standout experience.
  
• Outsource strategically
  Instead of hiring full-time legal or accounting staff, use freelancers or trusted online services for setup tasks like business registration, payroll, and tax planning.
  
• Bundle software services
  Choose an EPOS provider like eTakeawayMax that includes payment processing, table ordering apps, and kitchen display systems in one affordable package—helping you avoid the cost and hassle of managing multiple disconnected platforms.

Final Note on Ongoing Costs

While this guide covers the major upfront expenses of opening a bar, don’t forget to factor in ongoing maintenance and professional support services. Routine upkeep like equipment servicing, repairs, and cleaning can add hundreds to thousands of pounds annually. 

You’ll also likely need continued support from professionals such as an accountant, solicitor, or commercial real estate agent, especially when navigating tax filings, legal compliance, or lease negotiations. Planning for these costs will help you run a more resilient, profitable bar in the long term.

Frequently Asked Questions

Disclaimer: This guide is intended for general informational purposes only and does not constitute financial, legal, or professional advice. All figures provided are estimates based on typical UK bar setups and may vary significantly depending on your location, concept, and operational needs. Always consult with a qualified accountant, solicitor, or licensing expert before making business decisions or financial commitments.