Bars and taverns are the institutions where customers are offered a drink. As a rule, they also have an entertaining program allowing to detain people at night. These can be night clubs, billiards, adult clubs, etc.
The restaurant and bar business is considered the most profitable all around the world. On average, the payback period is 2-3 years. It’s no surprise that the owners try to attract the largest number of clients during this time and after radically change the concept to attract the new audience. At the same time, this business is the most risky one, since the smallest mistake made by management or hired personnel may destroy it.
Lack of funds has always been a major problem for the bar business. Frequently, the owners do not have enough money to open a decent institution that will become popular. Ineffective management is another widespread mistake.
Review of the US bar market in 2019
The American market of bars and drinking places enjoys an ever-increasing trend. Therefore, opening a bar as a new business is one of the most popular among investment projects. Over the recent years, the market volume exceeded 30 billion dollars and continues to grow by 800 million dollars a year.
According to the 2017 statistics, alcohol sales in specialized locations through the US amount to about 30 billion dollars. The market experienced a sharp leap during 2016-2017, which is associated with the higher solvency of the population.
Schedule of alcohol sales in the specialized rest places in the USA
It should be noted that thematic bars gradually passed their peak of popularity. People cease to be astonished by the owners’ fantasy and tend to choose a pleasant place for rest located near their houses.
Beer is the main product offered to customers at the bar. Cocktails and various liqueurs, which are quite expensive are also popular. Wine bars are less popular but they also exist on the market.
Strengths and weaknesses of the bar business
– high profitability in terms of the proper management
– short payback period
– ability to create new niches
– dependence of product quality on staff performance
– dependence of the visit on the geographic location
– serious impact of new players representing a new concept on the market.
PR and advertising for the bar business plan
People have always been curious to visit new places. That is why the main emphasis in developing a marketing campaign is made on attracting the clients for a long time. The bar should have enough entertainment space to allow the client stay there for 2-3 hours. Unlike restaurants, people visit the bars to have a good time. That’s why the owners invite musicians, install the billiard tables and organize various games.
How to prepare a bar business plan in Excel
In order to predict how much money is needed to open a bar, one should carefully consider the way visitors will stay in the bar. The space for ideas is unlimited, they may be relatively inexpensive or require significant investment. Most of the money will be spent to rent a room. However, if the premises are in your property, you can win the pricing competition, as the cost of its acquisition affects the price during 10 years. That is, if the cost of the premises is $700000, then the cost per year is only $70000 (about $200 a day).
The average check is formed according to what the bar can offer its customers. It can range from $10 to $50. Depending on the number of visitors involved, the staff to serve them is recruited. On our website you can download typical calculations for the bar with a payback period of three years. The volume of investments is $1000.