Opening on Public Holidays: Pros and Cons
Should you open on the bank holiday or take the day off with everyone else? There is no single right answer. Opening on public holidays can bring in sales you would never see on a normal Monday, or it can cost you more in wages, energy and goodwill than it earns. This guide lays out the pros and cons, the questions to ask and a simple scorecard you can reuse for every holiday on the calendar.
Key takeaways
- Decide holiday by holiday, because a summer bank holiday and Christmas Day behave very differently for most businesses.
- Compare the extra sales you expect against the extra costs, including any higher pay, energy and the wear on your team.
- Check the rules that apply to you: employment contracts, holiday pay rules, your lease and, for large shops in England and Wales, Sunday trading limits on some days.
- Whatever you decide, tell customers early and clearly on every channel.
The question usually comes up a week or two before a holiday, when someone on the team asks whether they are working. By then, the decision gets made in a rush, often by copying last year. With the UK summer bank holiday on Monday 30 August 2027 and US Labor Day on Monday 6 September 2027, late August is a natural moment to step back and set a policy that works for the whole year.
A quick note: this guide is general information, not legal or employment advice. Pay, rest and holiday rules differ by country, state and contract, so check the official guidance where you trade and speak with an employment adviser or attorney if you are unsure.
Why public holidays are a real business decision
A public holiday is not just a day off. It shifts how your customers behave. Office workers are home, families are out together, tourists are about, and many competitors are closed. For some businesses, that is the busiest day of the season. For others, the street empties and the till stays quiet.
The holiday also changes your costs. Staff may expect extra pay or time off in lieu, either because their contract says so or because it is your local custom. Suppliers may not deliver. Childcare is harder for parents on your team. And everyone, including you, needs some rest before the next busy stretch.
That is why the best approach is to treat each holiday as a small business case, not a habit.
The pros and cons at a glance
Pros of opening
- Extra sales from people who are off work and out shopping or eating
- Less competition if nearby businesses close
- A chance to reach new customers, such as visitors and day trippers
- Staff who want extra hours or holiday pay get the chance to earn it
- Your reputation as the place that is reliably open
Cons of opening
- Higher costs if you pay more for holiday shifts
- Lower footfall for businesses that rely on office workers or commuters
- Harder staffing, with more requests for time off
- Missed rest for you and your team before a busy season
- Supplier and delivery gaps that make it hard to restock
Businesses that often do well on holidays
Cafes, ice cream shops, garden centers, gift shops in tourist areas, leisure and activity businesses, and many restaurants often see stronger trade on holidays, especially in good weather. Retailers that tie the holiday to a promotion can also do well.
Businesses that often do better closed
Businesses that serve other businesses, office district lunch spots, many professional services and trades that depend on clients being at work often find holidays slow. For them, closing and giving the team a rest may be the smarter move.
Pro tip
Look up your sales for the same holiday last year and for the normal day of the week around it. If you have two or three years of data, even better. Real numbers beat gut feeling, and they make the conversation with your team easier.
The rules to check first
Before you weigh sales and costs, make sure opening is allowed and that you know what it will cost in pay. These are the areas to check.
Employment contracts and holiday pay
In the UK, there is no general legal right to extra pay for working a bank holiday, and whether bank holidays count toward paid holiday depends on the contract. In the US, private employers are generally not required by federal law to give paid holidays or premium pay for working them, though overtime rules still apply to hours worked, and some states and contracts add requirements. In both places, what your contracts, handbook and past practice say matters a lot. Check them, and the current official guidance, before you set your plan.
Trading hours rules
In England and Wales, large shops over 280 square meters may open for only six consecutive hours on Sundays and must close on Easter Sunday and Christmas Day. Smaller shops are not covered by those limits. Your lease, planning conditions or a premises license may also set hours. In the US, most trading hours are a matter of local rules and your lease, with some limits for certain products such as alcohol in some places.
Your lease and shopping center rules
If you trade in a shopping center or mall, your lease may require you to open during the center's hours, including some holidays. Check before you announce a closure.
Common mistake
Assuming staff will happily work because they did last year. People's situations change, and some contracts give them rights you may have forgotten. Ask for availability early, honor existing commitments and spread holiday shifts fairly across the team.
How to decide, one holiday at a time
Use this short process for each public holiday in your year. Once you have done it once, next year takes minutes.
- List the holidays. Write down every public holiday in the places you trade, plus any local events that act like one.
- Pull past sales. For each one, note last year's sales and the sales on a normal comparable day.
- Estimate extra costs. Include wages and any holiday premium you choose or are required to pay, energy, and any extra stock or marketing.
- Check rules and contracts. Confirm hours limits, lease terms and what your contracts say about holiday working.
- Ask the team. Find out who wants to work, who needs the day off and who is flexible.
- Choose an option. Open full hours, open short hours, open with a smaller team, or close.
- Announce it. Update your website, Google Business Profile, booking tools, door sign and social posts at least two weeks before.
- Review afterwards. Record what happened so next year's decision is easier.
A holiday opening scorecard you can copy
Copy this table into a spreadsheet and fill in one row per holiday. All amounts are made-up examples for illustration only.
| Holiday | Last year's sales (example) | Normal day sales (example) | Extra costs to open (example) | Staff available | Rules check | Decision |
|---|---|---|---|---|---|---|
| Summer bank holiday | £1,900 | £1,100 | £350 | 3 of 5 | OK | Open 10 to 4 |
| Labor Day | $1,200 | $1,500 | $400 | 2 of 6 | OK | Close, promote online |
| Christmas Day | Closed | n/a | n/a | 0 of 5 | Check lease | Close |
Add a column for "net gain" (holiday sales minus normal day sales minus extra costs) and a column for "team impact" so you weigh people as well as money.
Hypothetical example
Imagine Tom, who runs a cafe near a seaside path in England. Using made-up numbers, last summer bank holiday he took £1,900 against a normal Monday of £1,100, while the extra costs of opening were about £350. That suggests roughly £450 of extra profit before considering his team. Three of five staff want the shift, so he opens with a shorter day and a simpler menu. On New Year's Day, the numbers are thin and nobody wants to work, so he closes and tells regulars a month ahead.
Middle-ground options worth trying
Opening or closing is not always the only choice. These in-between options often capture most of the upside with less of the cost.
- Short hours. Open for the busiest part of the day only, such as late morning to mid-afternoon.
- Reduced offer. A smaller menu, fewer services or a limited product range makes a lighter team possible.
- Online only. Close the physical shop but run an online promotion or take orders for the next working day.
- Volunteer rota. Ask who wants the shift first, and offer a perk or extra time off to those who work it.
- Swap days. Open on the holiday and close on a quiet weekday that follows, giving everyone rest.
- Event tie-in. If your town runs a holiday event, open only during it and plan a small promotion.
Pro tip
If you close, use the day well. Post a friendly "we're resting" message, point people to your online shop or booking page and set an auto-reply on email and messaging channels that tells customers when you are back.
Telling customers and your team
A good decision can still go wrong if people do not know about it. Customers who turn up to a locked door may not come back, and staff who learn their shift late will feel it.
- Team first. Share the plan and rota with staff before you announce it publicly, ideally two to four weeks ahead.
- Google Business Profile. Set special hours for the holiday so searches and maps show the right times.
- Website and booking tools. Update opening hours and block out any closed days.
- In the shop. Put a clear notice on the door and at the till a week or two before.
- Email and social. Mention your hours in your regular messages rather than sending a separate one just for hours.
Your holiday opening checklist
- List every public holiday for the year in each place you trade
- Pull last year's holiday sales and a normal comparable day
- Estimate the extra costs of opening, including any holiday pay
- Check contracts, lease terms and any trading hours limits
- Ask the team for availability and preferences early
- Choose open, short hours, online only or closed for each holiday
- Update Google Business Profile, website, booking tools and door sign
- Review results the day after and note them in your scorecard
Frequently asked questions
Do I have to pay staff extra for working a public holiday?
It depends on where you are and what your contracts say. In many cases there is no general legal requirement for extra pay, but contracts, handbooks, collective agreements, overtime rules and some local laws can create one. Check the official guidance and your own documents.
Is it bad for my brand to close on holidays?
Usually not, as long as you tell customers clearly. Many people respect businesses that give their teams a break. The damage comes from surprise closures and out-of-date hours online.
Can a small shop in England open on Christmas Day?
The Sunday trading closure on Easter Sunday and Christmas Day applies to large shops over 280 square meters. Smaller shops are not covered by that rule, but check your lease, licenses and any local conditions before deciding.
Related reading
The bottom line
Opening on public holidays is a business decision, not a tradition to follow by default. Look at last year's numbers, count the real costs, check the rules and listen to your team. Then pick the option for each holiday that serves your customers without wearing out the people who make your business work.
Build your scorecard before the late-summer holidays arrive, and next year's decisions will take a few minutes instead of a stressful week.
