Can you make money owning a bar

Cocktails on the rocks. Any way you slice it, the aim of bars and pubs across the country is to stir up excitement, entertainment and fun. But aspiring bar owners shouldn’t confuse a fondness for their local pub with the ability and passion needed to run one succesfully. While it can be fun and sometimes profitable, owning a pub usually requires long hours as well as attention to. Seven years later, Conway opened Galway Hookera 10,square-foot Irish bar in Midtown named after a sailboat traditionally used in Ireland’s Galway Bay. The concept clicked with customers, and Conway opened a second Galway Hooker in In a nod to St. Patrick’s Day, we spoke with Conway about her journey as a bar owner. She says it hasn’t always been predictable. Here are the three things that surprised her most:. The pressure. As in other industries, the level of responsibility associated with owning a bar can be daunting. You put managers whom you trust in charge of operations when you’re not around but, ultimately, you are responsible for everything and everyone on premises.

The Pros and Cons of Owning a Bar

At one time or another, most of us have toyed with the idea of owning our own bar. Of course, most of us sober up, toss out the floor plan we sketched on the back of a cocktail napkin, and go back to doing what we were doing. But those with the resolve to actually follow through on their dreams soon encounter the unforgiving realities of opening a bar in New York City—the hell of securing an affordable space, the Sisyphean task of winning over community boards and getting a liquor license, and the dismal odds of actually staying afloat in a city where drinkers always have another option a few steps away. From how much capital to begin with, to what it really takes to break even, these drink-slinging entrepreneurs gave us some real talk on how the bar business works behind the scenes—and why, after all the hard work, it is actually as awesome as you think. Here, meet the men and women who own the bars you party at, and learn a thing or two about trying to open a place of your own. Everyone is making it up as they go along and adjusting to the realities of their bar. The dog is really the one in charge of everything. Hungry for more? Sign up for the First We Feast Newsletter. Originally published by First We Feast. Blind Tiger: David Brodrick. I’d have made sure we got a bigger, better kitchen, as we’ll as a bigger space overall. On choosing a concept: I loved craft beer and when we started there was only one place to get it in Manhattan—D. I figured there was room for one more beer bar. Little did I know there was room for about 20 more. On choosing a space: Look for a corner in a busy neighborhood where you like the people, because you’re going to be spending a lot of time with them. If you see too many strollers around, pick somewhere else. People with kids can’t go out as much. On getting a liquor license: Get the best liquor lawyer you can find, make sure the community wants you there, and make sure you are nowhere near a church or school. On starting capital: The amount of capital you need depends on the size of your space, your concept, and where you’re doing it. NYC is more expensive than Vermont. On breaking even: Breaking even depends on so many things. You hope to do it somewhere between year three and five. That’s why you want a minimum of 10 years on your lease, and 15 if you can get it. On a day in the life of a bar owner: For bar owners, it’s a day and night in the life. For the first seven years, I was at work at am and usually left around midnight, six days a week. On Sundays, I’d try to spend a little less time there.

Latest on Entrepreneur

Best to do this before you start with construction or remodeling. You will have to register with TTB at the federal level before you begin selling any alcohol. You can get all the information you need on their website. As a bar owner, you are expected to keep all the records of all the alcohol you receive from suppliers. You need to have the date and quantity of everything you receive and the name of your supplier. You know your place is awesome. If your bar does not have a Facebook page these days, it is basically non-existent.

How to Increase Bar Profitability

However, there are more than 65, bar establishments in the United States alone, making it a highly saturated and competitive market. Startup costs are the first major hurdle to bar ownership. These include expenses on all physical assets needed to start up a bar. All bars must register within its state of operation, obtain permits, and purchase business licenses to sell alcohol. Costs of the license vary from state to state and require different application processes. Other operating costs are needed to run and maintain a bar. Assuming the bar is established and ready to launch, there are possibilities for excess returns. However, these numbers are all based on averages and do not take into account the sweat equity needed to start and run a successful bar. Small Business. Purchasing A Home. Your Money. Personal Finance. Your Practice. Popular Courses. Key Takeaways The bar and tavern industry has grown steadily in the United States, creating a good opportunity for people who want to own their own business. Competition, is stiff, however, as there are more than 65, bar establishments in the United States alone. Startup costs are high, and in the beginning, there can be a ton of work and long hours. Compare Investment Accounts. The offers that appear in this table are from partnerships from which Investopedia receives compensation. Related Articles. Small Business The economics of owning a restaurant. Partner Links. Related Terms What It Means to Have a Franchise A franchise is a license that a party franchisee purchases that allows them access to use a business’s franchisor proprietary knowledge, processes, and trademarks to sell products or provide services under the business’s name. How Franchisors Work A franchisor sells the right to use its brand and expertise to one who will open another branch of the business to sell the same products or services.

Blind Tiger: David Brodrick

Friends, laughter, celebrations, entertainment—fun! These are the mkney that might come to your mind when you think about owning your own bar as you imagine rooms filled with friendly conversation, music and people enjoying themselves. If you’re thinking of opening a sports bar, you might envision an exciting game on big-screen TVs with everyone cheering and having a great time. Owning a bar sounds like the perfect mxke to many potential entrepreneurs, but it’s not always fun and games behind the scenes.

But if you have a clear vision, do your homework and learn the ins and outs of the business, it can also translate into a rewarding and financially successful enterprise. Although people still gather to socialize in bars, just as they have for hundreds of years, other factors have come into play for the industry as.

Problems with driving while intoxicated have changed the drinking patterns of people in United States. The growing concern with health and fitness toward the end of the 20th century took its toll on the bar industry. Keeping tabs on this industry requires a look at the alcoholic beverage industry as a whole—what people buy in the store doesn’t differ much from what mke buy in a bar. You have some pretty tough competition out. But you’re not just competing with the other bars in your area these days.

You’re competing with every entertainment option from which your var can choose. Successful new bars can be in the black within the first six months, and ownung can go on to recover their initial investment within three to bat years. However, like many new businesses, the statistics for bars aren’t in favor of the startup. Why do they fail? The first reason is they didn’t have enough capital odning keep the business going. The mlney reason is a lack of knowledge about the business.

From a personal perspective, you need to ask yourself if you’re really the type of person who wants to own and run a bar. Of course, you don’t have to run it if you own it, but you’d better make sure you have a team of good, trustworthy managers working for you if you plan to be «hands off.

If you’re the kind of person who would rather deal with paperwork or sit in an office where you don’t have to talk to people, this business is not for you. You will need to be out there talking to people and shaking hands.

Getting to know your patrons, even if it’s just to say «Hi,» can go a long way for your customer service. Another thing you should consider is the time commitment and hours of operation. If mame an early riser, you might not enjoy having to work until 3 or 4 a. If you have a family, you need to discuss how owning a bar will affect.

Many days you will have to be at your bar from the time you wake up—say, around 10 or 11 a. As you can see, this could take its toll on your family life. Eventually, you’ll probably be able to have a saner schedule, once your managers and staff are well-trained, but it may take six months to a year to reach that point.

W this could cause problems for you or your family, you may want to reconsider the z of owning a bar. If we haven’t scared you away yet and you’re ready to go for the bottle-in-the-sky dream, read on! Before you get started on the actual nuts and bolts of creating your dream bar, you have to decide what kind of establishment you’d like to. Let’s take a trip through the various kinds of bars—from neighborhood bar to large-scale club—and see which one is right for you.

Across the country, this is probably the most popular type of bar you’ll. There are a lot of neighborhoods out there, but you might find that there is room for one more in your area. According to the experts we interviewed, the startup cost for this ccan of bar ranges widely, depending on the size and concept, but mostly on location.

Not coincidentally, the amount of revenue these businesses produce varies greatly, depending on your bar’s location and capacity. Mae, sports bars offer some kind of menu options, such as sandwiches, burgers, pizza, sandwiches and appetizers.

Since the main attraction is sporting events, sports bars have gou in view of every seat, sometimes all tuned to different channels. Audio and video technology comes into play, with some owners spending a large percentage of their revenue on keeping up with the latest in technology—from satellites to big-screen TVs. As with neighborhood bars, startup costs and revenue potential vary widely, depending on ,ake size, concept and location.

Most brewpubs only sell their own beer options on tap draft beerwith a mojey selections of bottled beer options.

Since you’re creating your own product in a brewpub, you also have the ability to control what you make and sell—from quality to quantity. If you produce a popular beer, you bsr the opportunity to grow into a very successful operation. Beer bars tend to have lower startup costs, which can often mean obtaining a less expensive, fixed-price license from your state government. The revenue potential depends on the geographical location and drinking trends in the community.

Beyond the traditional glass or bottle with a nice dinner, for many, wine is the drink of choice. In fact, women order wine more often than any other alcoholic beverage. Wine bars offer guests the opportunity to taste a variety of different kinds of wine and the ability to learn more about their qualities. Specialty bars tend to stay small and intimate in size and are located in more sophisticated neighborhoods.

The costs and revenues you can expect to find when opening a specialty bar depend mostly on the type of product you serve and your location. Whichever path you take, you must be prepared to spend a great deal of time and money on promotion yoi create your «buzz.

Most successful clubs draw on a city population ofor. If you’re in a small town or suburb, you may not have the customer base to open a large dance club.

Market research is key. Because of the high failure rate, you may come across desperate bar owners willing to take a low purchase price ownijg to get out ownng can you make money owning a bar business. You’ll also find that startup costs for bars vary depending on size, location and target market.

So we can’t give you a concrete amount for what you can expect to pay to start your business. Gou bar owner in Florida spent several million dollars starting his club iwning he didn’t even build the building! The numbers vary all across the board. Your bar’s size, location, type and concept will make your startup costs as individual as your business. However, the chart below will give you some idea of what you’ll be looking at—from the low end to the high end.

Again, you could buy an existing bar that would nullify all the numbers on our low-end chart or ownng a large-scale s that’s off the map from our ba numbers. You’ll osning to do some research to find out what your bar will cost based on your concept, size and location. Here are the startup costs for two hypothetical bars. The first, Night Owl, is a tavern with a maximum capacity of people and serves only beer and wine with a limited menu. The second, Neverland, is a 1,person-capacity nightclub with a full-service bar.

Calling your bar an operation fits because of how much operating yoy takes to keep it running. Someone will have to mind the store every minute your doors are open and some minutes when they aren’t, and your place will need some sort of monitoring during the off-hours to prevent vandalism or break-ins.

Many compare running your own business to raising a child. If true, then a smooth-running, problem-free, profit-making bar compares to parenting a happy, well-adjusted, self-assured teenager preparing for adulthood. But dan worry, the bumps in the road hold the best lessons. And as with parenting, you succeed with consistency and concern instead of rigidity and blame. The Road to Success The groundwork you lay to operate your bar includes the systems you use to track liquor and food. Also, what liquor and food do you sell the most?

The systems you choose depend on moneg type and size of bar you. In most bars, only the bartenders and servers handle money. Cashiers or takeout staff yyou also have cash-handling responsibilities.

Factors to consider when choosing an accounting system include the level of sales you expect, both from alcohol and food, and the efficiency needed for your staff to operate at its full potential. Also, look for holes that your accounting system might leave open for theft at all levels, not just servers and bartenders. No one thinks they are hiring a thief. Many people who might steal mqke the opportunity arose do not consider themselves thieves, either, so they don’t come off as.

If you use the cash-and-carry system, where the drink is ordered by the server verbally and then paid for before the bartender or server rings it up, you might find many «forgot to ring it up» drinks, as well as a few given away for free.

It is the nature of the. If your inventory controls are so tight that you will notice when too much has been used, or if your manager, who shares in the profits anyway, is your bartender, then you can use this system without much fear. Finding Your Perfect Location Your choice of location will depend on how you want your bar to look, what you want your bar to contribute to the community, and the kind of clientele you want to patronize it.

Then you need to decide whether you want to buy the location or sign a lease. Again, that depends on your budget. Finally, you need to figure out how to fuse your concept with both your name and your location to mpney best advantage. People who know this industry well have polar opinions on the concept of location. Some owners and experts we talked to put enormous importance on the bar’s location while others refuted its significance altogether. It all depends on what you want your bar to be and what your strengths are as an owner.

If you want your bar to get impulsive neighborhood traffic in a particular area, then you should be closest, and yoj obvious, to.

If you’d rather spend the time and money saved by more male real estate to develop your establishment’s concept and ownign your own buzz and destination, your actual location won’t matter so. You should consider factors such as safety, parking, accessibility to customers—even the history can you make money owning a bar the site—when choosing a makee. Your Bar: The Place to Be Fan word «location» can refer to two different things—what area your bar is in downtown, uptown, suburbs.

Are you cah their way home from work? Or do they have to make it a point to get to you? No one would go up the alley—[people] were afraid of it. So the building sat empty for 50 years.

The Number 1 Success Secret To Bar & Restaurant Business

Target Market

Owning a bar is one of those unique life experiences; you have no idea what it will be like until you actually go for it. And while it can be enjoyable, rewarding, and, yes—even profitable, it also requires long hours and hard work. Here’s what you need to know about owning a bar to prepare as well as you can:. High startup costs are a significant hurdle of owning a bar and vary depending on several factors:. Your profits will depend on how well you run your bar and manage your operating costs. You understand the pros and cons of owning a bar, the costs involved, and what you can expect to make, but how exactly do you open a bar, and what are the steps? You focus on these 11 essential elements of opening a bar:. Long, detailed business plans are usually only required if you need funding from a bank. The better approach is to create a lean plan of a few pages that will help you validate your idea and move along intelligently from the start. Include the following in your plan:. Your concept is the main idea or theme and includes service style, cuisine, your menu, and music.