How to set a realistic staffing budget for a pub
Updated 23 October 2026 · 6 minute read · By the RotaFox team
In short
- Start from expected sales and the share of sales you’re prepared to spend on labour.
- Remember the budget must cover employer costs, not just hourly pay.
- If you budget monthly, split it by days, not by four weeks.
A staffing budget is the most you’re prepared to spend on wages in a week or a month. Set it too high and margins disappear; set it too low and Friday night falls apart. The most practical way to set one is to start from what you expect to take.
1. Forecast your sales
Use the same week last year, adjusted for anything you know about: a bank holiday, a big match, a local event, a new menu, the weather. Most pubs find their week is shaped by a few busy sessions, so forecast by day if you can.
2. Choose a labour percentage
Labour as a percentage of sales is the simplest control figure: weekly labour cost divided by weekly sales. There’s no single right number; it depends on your service style, food offer, opening hours and how much of your team is salaried. Look at your own recent weeks: when did service feel right and margins hold up? That’s your starting point.
3. Turn the percentage into a budget
Budget = forecast sales × labour percentage. The budget needs to cover the full cost of employing people, including holiday pay, employer National Insurance and pension, not just hourly pay. If those add around a quarter on top of pay for your team, only about four-fifths of the budget is available for hourly wages.
| Step | Calculation | Result |
|---|---|---|
| Forecast sales | Same week last year, adjusted | £18,000 |
| Labour target | Chosen by the owner | 28% |
| Weekly budget (full cost) | £18,000 × 28% | £5,040 |
| Available for pay before on-costs | £5,040 ÷ 1.25 (25% on-costs) | £4,032 |
| Paid hours at an average £13.20 | £4,032 ÷ £13.20 | about 305 hours |
Those 305 hours are your rota’s shape: share them across the week in line with your trading pattern, with your busiest sessions getting the most cover.
4. Weekly or monthly?
Weekly budgets match how rotas are built and published, so problems show up before the week starts. Monthly budgets match your management accounts. You can use both, as long as you convert between them properly.
5. Plan for exceptions
Christmas, bank holidays, festivals and sports tournaments need their own figures. Set them in advance as one-off budgets for those weeks, rather than stretching the normal budget and hoping it evens out.
6. Check it every week
Compare what you planned, what was actually worked and what you took. If labour runs high two weeks in a row, change the rota pattern, not just the budget.
This guide is general information, not financial advice.
Sources
- GOV.UK: Rates and allowances, National Insurance contributions
- GOV.UK: Workplace pensions for employers
Rates and thresholds change, usually each April. Check the sources for the current figures.