The Complete Guide to Open A Bar in Six Steps


When determining how to start a pub, you should start by exploring different kinds of bar companies (sports bar, pub, brewery). In general, bars can be expensive to begin, with prices ranging from $150,000 to more than $1,000,000, depending on how much space and the type of liquor and meals licenses required.

To take and process credit card payments at your pub, you’re going to need a point-of-sale (POS) system. A POS system is generally a tablet computer or small enroll station where bartenders swipe a patron’s credit card. ShopKeep is a POS system that is especially created for bars. Along with accepting payments, it comes with features like bottle inventory management, staff monitoring time, and built in suggestion reporting applications for bartenders. Join with ShopKeep for $69 per enroll per month.

Research Different Types of Bars And Prices

The first thing you need to do before opening your bar is research the various kinds of bar you may open and their related costs. You shouldn’t start by making any significant decisions or spending cash on your own bar–just doing research. You have to appear into costs related to buildings you may use, state licenses, equipment, and pub staff. Knowing the costs you’ll need to cover before beginning will help when you start writing your business plan and deciding how much capital you will have to acquire.

Choose the Type Of Bar You Want

It is important to get clear and zero on the sort of bar you want to open. Each of these businesses has different features and therefore different expenses. For example, a brewery will probably cost more than the usual sports bar, since beer brewing gear can be costly.

Along with deciding on the kind of bar you’d like to function, deciding whether you will build your bar from scratch, then buy an existing pub, or a franchise is also important. Purchasing an present bar may require more startup costs than building one from the bottom up, but it is going to include branding, a customer base, and current systems; it must also already be rewarding.

Franchises are another option and may be costly as well. By way of example, the World of Beer franchise requires business owners to have a general net worth of more than $1 million and pay a $50,000 franchise fee, a continuing 5 percent of earnings in royalty fees, and 1.5percent of earnings in advertising fees.

Bar Location Prices

Another important decision to make is if you’re going to lease a location out of which to operate or buy a building outright. Purchasing a building will need more capital and be a lengthy procedure. If you go that route (purchasing a building), it’s a best practice to assemble quotes from several general contractors regarding the build-out, which comprises both interior and exterior construction expenses. To set up the bar the way you need, you might need to pay for structural work, like moving air ducts.

You’ll require a beer and/or liquor license prior to serving alcohol in your institution; its affirmation of the city and nation’s approval your business can legally sell alcohol. The costs to get a beer or spirits license depends on many factors, including the type of bar you’re starting, your state’s regulations, and the kinds of licenses required. The cost of full liquor permits ranges from $300 to $14,000 with the average price approximately $1,500.

Regardless of the state you’re in, you’ll need an”on-license” liquor permit, which will be for businesses selling alcohol intended to be consumed on the premises. Examples of the different licenses required for bars are tavern permits, which are for companies that get the majority of their revenue from alcohol sales, and restaurant licenses, which allow establishments to sell alcohol but limit the percentage of overall revenue they could receive from alcohol (generally under 50%).

Equipment Costs

At the low end, you might cover $30,000 for pub equipment. If you’re adding a kitchen, however, your equipment costs could exceed $200,000.

Based on the sort of bar you’re opening, you might have additional expenses. For example, it’s easy to justify the price of 10 big screen T.V.s for a sports bar. Furthermore, if you want to stay competitive, you might have to follow current trends in the world of sport pubs such as having small, personal televisions at every booth. Even buying a sports station package could cost hundreds of dollars a month. As another example, a bar that specializes in high excellent music and live bands will have sound equipment and stage costs.

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