UK Pub Menu Pricing Guide: Price Classics, Roasts, and Burgers with VAT in Mind

Pub menus look stable to guests. Your margin usually is not.

In UK pubs, pricing mistakes often come from mixing VAT-inclusive menu prices with VAT-exclusive cost math, then adding portion drift on top. This guide gives a practical 2026 workflow built for local trading reality, not spreadsheet theory.

Quick Summary

• Run cost and margin calculations on net (ex VAT) prices.
• Convert to VAT-inclusive menu prices only at the final step.
• Lock roast meat, chips, and gravy portions before repricing.
• Use separate pricing decisions for different pub models, even within the same region.

2026 UK Cost Context (Use Absolute Dates)

• ONS reported CPIH for restaurants and hotels at 3.8% (12-month rate, December 2025 release published on 2026-01-21).
• UK National Living Wage for age 21+ is GBP 12.71 from 2026-04-01.
• Standard VAT remains 20% for most restaurant/pub dine-in pricing.

If you reprice only once a year, these three lines quietly decide your margin for you.

Start With Net Price Math, Then Convert to Menu Price

For standard-rated items:

Net price (ex VAT) = Gross menu price / 1.20
Gross menu price = Net price x 1.20

For food cost targets:

Target net price = Plate cost / Target food cost %

This sequence matters. If you run food cost on gross menu prices, you will underestimate cost pressure.

Where Pub Menu Margin Usually Leaks

1. Roast meat portions drift during busy Sunday service.
2. Chips are not weighed, so line cost climbs quietly.
3. Add-ons (extra gravy, extra yorkie, extra meat) are given away without a price.
4. Fish size and purchase price move weekly, but menu price stays fixed.
5. Delivery channel pricing is copied from dine-in pricing without separate packaging/fee math.

Local Scenario: London Commuter Pub vs Leeds Neighbourhood Pub

Both models can be healthy. What fails is forcing one blanket markup rule across both.

Worked Example 1: Sunday Roast Reprice

Assumptions:

• Plate cost (beef + potatoes + veg + yorkie + gravy): GBP 5.10
• Target food cost: 32%

Target net price = 5.10 / 0.32 = GBP 15.94
VAT-inclusive menu price = 15.94 x 1.20 = GBP 19.13

Operationally you would set a clean card price (for example GBP 18.95 or GBP 19.25) based on your local positioning.

Worked Example 2: Fish and Chips Reprice

Assumptions:

• Plate cost (fish + chips + batter/oil + tartar): GBP 5.80
• Target food cost: 30%

Target net price = 5.80 / 0.30 = GBP 19.33
VAT-inclusive menu price = 19.33 x 1.20 = GBP 23.20

If your local ceiling cannot support that ticket, reduce portion variance first, then redesign sides, then reprice.

Weekly Control Routine for Pub Operators

• Weigh portions for top 5 high-volume dishes.
• Update fish, meat, dairy, and oil costs from current invoices.
• Recalculate net food cost % on top sellers.
• Flag any item running 3+ points above target.
• Check add-on attachment and whether add-ons are correctly priced.
• Sync updates across POS, online ordering, and printed menus.

Do This Now

1. Pick one core dish per section (roast, fish, burger) and rework pricing in net terms.
2. Run one London-style high-pressure service simulation and one neighbourhood-style service simulation.
3. Apply one concrete change this week: portion standard, add-on price, or selective reprice.

Related Guides

• UK Restaurant Menu Pricing Guide
• UK Menu Pricing Calculator
• UK Restaurant VAT Pricing Guide
• UK Restaurant Labour Cost Calculator
• UK Restaurant Prime Cost Calculator
• UK Menu Price Review Checklist

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Sources (checked on 2026-02-13)

• ONS — Consumer price inflation, UK: December 2025
• GOV.UK — Minimum wage rates for 2026
• GOV.UK — How VAT works (how much VAT you must charge)