Subscribe to keep reading
Get new posts and unlock the full article.
You can unsubscribe anytime.Pool Hall Business Plan
- 30+ Business Plan Pages
- Investor/Bank Ready
- Pre-Written Business Plan
- Customizable in Minutes
- Immediate Access
Key Takeaways
- Monthly running costs for a pool hall are projected to average between $60,000 and $70,000 in 2026, driven primarily by labor and occupancy.
- Payroll represents the largest single expense category, demanding approximately $33,542 per month to cover the required staffing levels.
- Fixed overhead costs, including rent, utilities, and insurance, total $21,200 monthly, requiring immediate high utilization to cover the base burn rate.
- A substantial minimum cash buffer of $670,000 is required to sustain operations through the initial ramp-up phase until the projected profitability timeline in June 2026.
Running Cost 1 : Venue Lease
Lease Cost vs. Hours
Your $15,000 monthly lease is your biggest fixed hurdle. If the location can't deliver the projected 25,000 annual table hours in 2026, this fixed cost will quickly kill profitability. You need high utilization immediately to cover this overhead.
Justifying the Rent
This $15,000 expense covers the physical space for your upscale venue. To justify it, you must map required hourly utilization against your table rental pricing. If you need 25,000 hours annually, that's about 2,083 hours per month, or roughly 69 hours of play every single day.
- Monthly fixed cost: $15,000.
- 2026 utilization target: 25,000 hours.
- Minimum required daily usage: 69 hours.
Managing Fixed Space
You can't easily cut the base rent, but you must maximize revenue per square foot. Focus on driving ancillary sales—food and beverage—to cover the gap if table hours lag slightly. Avoid signing long-term lease commitments until utilization is proven past the 18-month mark.
- Push table density during peak times.
- Negotiate tenant improvement allowances upfront.
- Review common area maintenance (CAM) fees closely.
Break-Even Check
If your average hourly table rate is, say, $25, you need about 600 billable hours per month just to cover the rent. Any downtime means that $15,000 is eroding capital fast. That's a serious drain, so monitor utilization daily, not monthly.
Running Cost 2 : Payroll & Wages
2026 Payroll Snapshot
Your 2026 payroll budget hits $33,542 monthly across 85 Full-Time Equivalent (FTE) roles. This total covers key management, like the $75,000 General Manager, and essential floor staff, including four Servers/Bartenders. That’s a substantial fixed cost for a venue.
Cost Inputs
This $33,542 estimate aggregates all 85 FTE positions, including the salaried $75,000 General Manager and the four dedicated Servers/Bartenders. To verify this, you need detailed wage schedules for every role, plus employer burden costs like payroll taxes and benefits, which aren't in this base figure. Here’s the quick math: 85 roles averaging $393.44 monthly suggests heavy reliance on part-time staff or low base wages needing review.
- FTE headcount breakdown by department.
- Average loaded hourly rate calculation.
- Employer burden percentage applied.
Staffing Control
Managing 85 FTEs means controlling scheduling density, especially during off-peak hours when table rentals are low. Avoid overstaffing the bar during mid-week afternoons. Cross-train the four Servers/Bartenders to cover basic floor support, reducing reliance on dedicated floor staff FTEs. If onboarding takes 14+ days, churn risk rises, which defintely inflates replacement training costs.
- Schedule based on table booking forecasts.
- Cross-train front-of-house staff.
- Review benefits structure vs. market.
Leverage Point
With fixed lease costs at $15,000, payroll represents the largest variable expense center. If table revenue doesn't hit targets, cutting even 10% of the 85 FTEs ($3,354 savings) significantly improves the operating margin. Focus rigorously on scheduling efficiency to protect this major cash outflow.
Running Cost 3 : Food & Beverage COGS
Variable Inventory Costs
Your food and beverage costs are direct variable expenses that eat into contribution margin quickly. Food inventory costs start at 45% of food sales, while beverages clock in at 40%. Tight supply chain management is non-negotiable to protect profitability here.
COGS Inputs
These figures cover the raw cost of items sold, like ingredients for gourmet small plates and the wholesale price of craft beverages. To model this accurately, you need projected sales mix between food and drink, then apply the 45% or 40% rate to those revenue lines. This cost scales directly with volume.
- Track actual purchase prices weekly
- Forecast sales mix shifts
- Set target inventory turnover rates
Managing Spend
Managing these variable costs means controlling purchasing and minimizing spoilage, defintely for perishable small plates. Negotiate volume discounts with primary suppliers for high-volume items like beer kegs or staple mixers. Track waste daily; high turnover on craft ingredients means spoilage risk is real.
- Centralize beverage procurement
- Audit portion control strictly
- Review vendor contracts quarterly
Mix Risk
If your sales mix shifts heavily toward lower-margin food items, the blended COGS percentage will rise above the 40-45% baseline quickly. Review your menu pricing structure monthly against actual ingredient costs to ensure your gourmet plates aren't subsidizing beverage sales.
Running Cost 4 : Utilities & Maintenance
Utility Budget Reality
Utilities are budgeted at $2,500 monthly for this pool hall concept. However, high consumption from the large venue footprint, constant HVAC use, and extended operating hours means you must plan for significant seasonal spikes above this baseline.
Inputs for Utility Estimates
This $2,500 covers electricity for lighting, POS systems, and refrigeration, plus gas for heating. You need precise square footage estimates and planned operating hours (e.g., 14 hours/day) to model peak summer cooling loads accurately. This cost sits separately from the $1,500 tech overhead.
- Factor in 25,000 annual table hours forecast.
- Model HVAC load based on venue size.
- Account for high-demand beverage cooling.
Managing Energy Consumption
Manage this cost by investing upfront in high-efficiency HVAC units, which reduces long-term energy draw. Also, enforce strict shutdown protocols for non-essential lighting during slow hours, even if only for 30 minutes. Defintely check utility provider rates for off-peak usage plans.
- Audit lighting fixtures immediately upon lease signing.
- Negotiate commercial energy contracts early.
- Track usage daily during the first quarter.
Risk of Under-Budgeting
Don't treat this as a fixed expense; treat it as variable tied to utilization. If table usage exceeds projections in summer months, expect utility bills to jump significantly, potentially eroding the $15,000 lease coverage margin quickly. High usage directly impacts operating cash flow.
Running Cost 5 : Marketing & Promotion
Marketing Spend Target
Marketing is budgeted high at 40% of 2026 revenue to aggressively capture market share for table time. This translates to a planned monthly investment of about $4,000, specifically targeting event ticket sales and maximizing hourly table utilization. That’s a big chunk of the budget, so every dollar needs to drive bookings defintely.
Cost Inputs
This $4,000 monthly allocation covers all promotional activities needed to fill the venue in 2026. You need projections for total revenue to confirm this number, as it scales with success. It directly supports filling the 25,000 annual table hours forecast by driving event sign-ups and general play.
- Event league entry fees.
- Driving higher table occupancy.
- Promoting premium beverage sales.
Cost Optimization
Since marketing is tied to revenue, focus on low Cost of Customer Acquisition (CAC). Don't waste money on broad awareness campaigns early on. Instead, double down on high-intent channels that directly result in bookings. If event sign-ups are slow, churn risk rises.
- Prioritize organic social growth.
- Track CAC per booking source.
- Use referral discounts heavily.
Spend Reality Check
Remember, this 40% rate is aggressive for a venue relying on recurring hourly usage. If your initial Average Revenue Per User (ARPU) is low, this marketing spend will quickly outpace contribution margin. You must monitor event ticket conversion rates closely to justify this high spend level.
Running Cost 6 : Insurance & Taxes
Fixed Insurance & Tax Load
These fixed costs are non-negotiable overhead. For the Pool Hall, budget $2,200 monthly for base insurance and property taxes before factoring in specific liability riders. This must be covered regardless of hourly table rentals.
Calculating Fixed Coverage
The $1,200 property tax relies on the assessed value of your physical space. Business insurance is set at $1,000 monthly, covering general liability for patrons using the tables. Definintely get quotes based on expected revenue and the high-value billiard tables.
- Property tax is based on location assessment.
- Insurance must cover liquor liability.
- Total fixed overhead is $2,200.
Managing Property Costs
Property taxes can be appealed if the assessment is too high relative to comparable venues. Review your insurance policy annually; increasing deductibles slightly might cut the $1,000 premium, but be careful not to underinsure the lounge atmosphere and equipment.
- Challenge property tax assessment values.
- Review insurance riders for redundancy.
- Taxes are fixed, but insurance is adjustable.
Overhead Reality Check
This $2,200 fixed cost must be covered by your table rentals or beverage sales before any other operating costs are addressed. It’s pure fixed burden.
Running Cost 7 : Technology & Security
Tech Overhead Snapshot
Your monthly technology and security overhead totals $1,500, which is a fixed operating expense you must cover before making money. This budget covers essential security monitoring, point-of-sale (POS) software for table rentals and bar sales, and basic communication lines. Keeping this cost controlled is crucial since it sits outside variable costs like COGS.
Cost Allocation Details
This $1,500 technology budget is a fixed monthly commitment for core operations at The Break Room Billiards & Lounge. Security services require $800 monthly to protect the upscale venue and assets. Software subscriptions, likely including the tech-integrated table reservation system, cost $400. The remaining $300 covers essential internet and phone systems needed for transactions.
- Security services: $800
- POS software: $400
- Comms (Internet/Phone): $300
Controlling Tech Spend
Managing this fixed tech spend means rigorously auditing software licenses, especially the POS system. Avoid paying for premium features you don't use, like excessive user seats or advanced analytics you won't need defintely right away. Negotiate long-term contracts for internet/phone services to lock in lower rates, perhaps saving 10% to 15% annually if you commit upfront.
- Audit POS software tiers now.
- Lock in internet contracts early.
- Ensure security monitoring is essential.
Security Benchmark Check
While $1,500 seems small compared to the $15,000 lease, this tech overhead is non-negotiable for an upscale, modern venue relying on reservations. If your security provider charges more than $900, you need to challenge that quote immediately, as it exceeds the benchmark provided for this type of operation.
Pool Hall Investment Pitch Deck
- Professional, Consistent Formatting
- 100% Editable
- Investor-Approved Valuation Models
- Ready to Impress Investors
- Instant Download
Related Blogs
- How Much Does It Cost to Launch a Pool Hall?
- How to Launch a Pool Hall: A 7-Step Financial Blueprint
- How to Write a Pool Hall Business Plan: 7 Steps to Funding
- 7 Critical Financial KPIs for Running a Profitable Pool Hall
- How Much Do Pool Hall Owners Typically Make?
- 7 Strategies to Increase Pool Hall Profitability and Cash Flow
Frequently Asked Questions
Monthly running costs are around $63,000, covering $21,200 in fixed overhead and $33,542 in payroll, plus variable costs like COGS and processing fees