Add to Cart 5. Hire the Right Bartenders The bar industry has a very high turnover ratewhich results in lots of money wasted on training new employees.
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One of the keys involved in having a successful bar is being organized. Ray Foley, the founder and editor of Bartender Magazine, estimates that about 75 percent of bars fail in their first year. Riley Lagesen, a lawyer based in Portland that specializes in the restaurant industry.
There are different types of licenses—such as ones that only permit the sale of beer and wine, or ones that establish that a certain percentage of sales come from food. Finding a Location Another key decision is finding a space.
Mike Wiley and his brother Ben wanted to open a bar that specialized in craft beer and microbrews on Smith Street in Brooklyn. They approached a divey, consistently empty bar and asked the owner if he wanted to sell. Within about five weeks of getting the lease, Bar Great Harry was up and running.
A few years later, the brothers wanted to try a second project, one with a unique layout and outdoor space. They found an old auto repair shop in the Park Slope neighborhood of Brooklyn that they thought would be perfect.
But altering the space to use as a bar presented more challenges and delays than they were anticipating, including numerous permits and inspections. They worked to install noise-dampening material into the bar, but the outdoor space can still cause problems.
After noise complaints, and disputes with the neighborhood community board and the New York State Liquor authority, the bar was shuttered for week-long periods, and had to operate for several months with a midnight last call. Eventually, the bar was able to maintain a 2 a.
Your location can also dictate what type of bar would be successful. Rather than the traditional model where people started as barbacks or bartenders and slowly worked their way up, young talent was being scooped up to run bars. Along with business partner Christy Pope, Solomon hosted seminars in New York and at Tales of the Cocktail, a weekend annual festival in New Orleans, advising mixologists how to negotiate business partnerships and how to open their own establishments.
Know the area you are moving in to. Whereas a bar might be able to only serve alcohol in New York, the average number of drinks per ticket would be lower in a place like Los Angeles—where people might not stop in right after work, or might tend to leave earlier at night.
Foley said that many bars fail because they are undercapitalized. He recommends having enough money on hand to carry you through a year, and Lagesen said people should plan to have at least four to six months worth of rent and operating expenditures.
Lagesen said that as commercial lending has tightened, many businesses are funded at the entry-level stage by friends and family or strategic partnerships with landlords. If working with friends and family, Lagensen stresses that they need to be made aware of exactly what they are getting in to.
Some states require that those who have 10 percent or more of an equity interest be on the liquor license—which requires personal financial information, fingerprinting and a background check—something the can make some investors uncomfortable.
Keep an Eye on Details None of individual tasks of running a bar are all that difficult—like dealing with late deliveries or leaky faucets—but keeping on top of all of them at once can be exhausting, said Joel Teitelbaum, the bar manager for Zero Zero in San Francisco.The Bottlecap microbrew bar business plan executive summary.
The Bottlecap is a university neighborhood bar specializing in microbrews.3/5(30). Opening a bar can be a great adventure. But as with any other business, knowing how to write a business plan for opening a bar is very important. Apr 07, · But if you're going to open a reservation-only craft cocktail bar, and you pay $50, rent a month, don't do it.
If you are opening in a high volume location, you have to have a . Create a business plan. Research other bakeries and their rates of success to determine the right strategy for you. Consider aspects such as the type of business (whether sit-down or take-out), the location, hours of operation and the number of employees needed.
Let our craft cocktail, bar service, and bar operations experts provide their extensive knowledge to take your bar and beverage business to the next level. Our restaurant and bar consultants will help you launch and develop your bar business plan, strengthen your bar operations, and guide you and your team as bar managers.
Specialty Bar Specialty bars focus around a certain theme (e.g. cigar bars) or certain types of drinks (wine, martini bars). Yet, in both cases a specialty bar should offer a vast variety of products. For instance, martini bars, except for serving different types of .