How to Open a Profitable Beer Bar from Scratch?

How to Open a Profitable Beer Bar from Scratch

A beer bar is a catering establishment where customers are offered a wide range of beer and serve visitors through the bar counter. An important attribute of such an enterprise is an interesting design of the premises and the organization of services for customers.

An attractive design distinguishes the establishment from a huge number of already functioning outlets, which, in turn, allows the venture to become profitable. In this article, we will find out how to open a beer bar from scratch and make money on it.

How to find a winning idea for a beer bar and bring it to life

Selling beer and related products through the bar is a popular business with very high competition. It is not an easy task to become visible in this market.

The businessman has only 4 effective tools that will help to attract clients and keep them: quality beer, professional service, friendly and interesting atmosphere, loyal pricing policy.

Aspiring entrepreneurs often worry about the question: how important is the location of the pub and does the profitability of the business depend on it? Experts do not advise to put this issue at the forefront because the hunt for a profitable place can take more than one month, and time is money, especially in the beer business.

The search for an idea for a beer bar can begin with answers to the questions: for which visitors the establishment is created, where to look for such customers, and what this type of people finds attractive.

For example, a beer bar that is located near a garage cooperative on the way to public transport will be a success. The main visitors of this institution will be motorists who have left their vehicles in the boxes and are heading home. A car theme is suitable for such an institution. The bar menu can include a small number of cold snacks and a good selection of draft foam drinks.

How to finance a start-up?

If you want to start a beer bar business from scratch and realize that you do not have enough money, then you will have to look for partners. The easiest option for a partnership is to find a like-minded person who is ready to invest money in the business.

The second financing option is to apply for payday loans in Massachusetts. It’s important to choose a lender offering the lowest rates and flexible terms. When applying for a payday loan, you do not need to provide collateral. You can apply online get approved within several hours. When approved, the funds will be deposited into your bank account within 24 hours. Lenders usually provide money for any purpose, including opening a beer bar.

How to choose the right beer bar premises?

The most effective solution for those who want to open a beer bar is to look for interesting places and beat their advantages.

Bars are considered to be promising for areas near the city’s parks and shopping malls in residential areas.

It is hardly a good idea to open a beer bar near a market or a transport station (bus station, railway station, etc.). In these places, men rarely spend their leisure time.

The optimal area for a beer bar is 150 sq. m. On this square meter, you need to place a customer service hall-about 80 sq. m. and utility rooms-about 70 sq. m. (hall, bathroom, warehouse and administration office).

Requirements for the trading floor, bathroom and warehouse are determined by fire and sanitary standards. Moreover, you will have to get all the necessary permits and licenses to open a bar.

To fully determine what is needed from the equipment for opening a beer bar, it is necessary to finally form the concept of the institution. Basic set of equipment:

  • cold storage room for beer kegs with columns and taps;
  • gas mixer;
  • bar counter;
  • furniture for a hall.

According to experts, the cost of the equipment will be about $15,000.

Yes, it IS a popularity contest

If you plan to open a beer pub under an already promoted brand, then you should study the franchise market and find a suitable beer bar franchise. A large and profitable network sells franchises at high prices. Therefore, if the budget is limited, it will be difficult to purchase a guaranteed franchise.

Working independently to promote your own bar is difficult but interesting. For this purpose, you can use the following tools:

  • bright advertising;
  • active participation in the life of the city (arrange promotions, sponsor contests like a beer mile – a drinking game combining running and speed drinking);
  • promotion of the bar uniqueness through social networks;
  • delivery from the pub.

Before you engage in active promotion of a beer bar, you should consult the local government about the rules for holding public events related to the advertising and promotion of alcoholic beverages.

How much does it cost to open a bar?

All in all, you’ll need roughly $25,000 or $20,000 to cover the initial costs of opening a bar. Later, costs can reach $100,000 or even more.

The amount a beer bar can earn depends on its location, size, advertisement, and other factors. Some estimates show that an average beer bar makes between $25,000 and $30,000 a week.

The initial investment can be returned for six months of work.

High profitability is the main advantage of a beer bar as a business, but there are also disadvantages. The main negative point is seasonality. The entrepreneur should be prepared for the fact that in the cold season, the attendance of the institution will significantly decrease and it is almost impossible to influence this circumstance. Therefore, competent owners create a financial safety cushion for the “off-season”, which allows them to save expensive resources when the inflow of free funds is small.