When thinking about opening your own beer bar franchise, you need to think about investment, profit, and how much does a beer bar make.
Is Now A Good Time to Invest in A Bar Franchise?
On average, a gastropub makes about $27,500 per month, which means that annually, the bar brings in $330,000. Typically, the average beer bar incurs $24,200 in monthly expenses, leaving an annual profit of $39,600. Keep in mind that those numbers are climbing every year.
Considering the impressive figures for the beer bar market, investing in a customizable beer garden franchise makes sense for many reasons.
Bars and pubs have a very high-profit margin of 70-80%. That’s much higher than other industries like retail (25%).
How Much Does a Bar Make on Draft Beer?
Draft beer is one of the most popular drinks ordered in bars. The markup on draft beer is 200-300%. Macro brews are becoming trendy also, and the markup on those can be as high as 500%. Craft beers have a lower markup.
The profit on bottled beer is around 75%, but for draft beer, the payoff is closer to 80%.
Draft beer comes in kegs, and the cost per ounce is 40-45% less than if you purchase the same beer in cans or bottles. Therefore, the profit is higher if you sell more draft beer.
How Much Profit Does a Bar Make on Beer?
Depending on the type of beer you sell, generally, the profits are very high. Draft beer profits hover around 200-300%. Profits on bottled beer are roughly 75%, and low-overhead beers like macro brews can earn profits over 500%.
How Much Does the Average Bar Make Off a Beer?
The rule of thumb on pricing beer products is to aim for a cost of 20-30% and then mark your products up from there. Many bars price draft beer higher because of the overhead associated with the draft system, maintenance, changing kegs, pour cost, and routine cleaning. You must also purchase CO2 and Nitrogen for your draft system. Pour cost includes spills, over-pouring, and spoilage.
Many beer bars pay roughly $1 wholesale for a bottle of beer. Prices vary from $3.35 to $5 per bottle to the customer. To answer the question: how much does a beer bar make? The average beer bar makes about $2-$4 off a single beer.
Bars often price craft beers the same regardless of whether they are served as a draft, in cans, or in bottles. The less you pay for your beer and the more you mark it up, the higher your profits will be.
Other Revenue Streams for a Beer Garden
Although the profit from beer and wine is enormous, other revenue streams exist within a beer bar franchise. Some fun ways to increase your beer garden profits are:
Hosting special event nights can draw in big crowds. For example, consider hiring local talent to put on music performances. Other fun ideas include karaoke night or trivia game night. You could also host theme nights with costumes and decorations that fit the holiday or special event.
When a popular show on TV or a new movie is coming out, you can host a special viewing night and offer pre-sale tickets on social media. Other ideas include speed dating, board games, painting nights, charity events, stand-up comedy, and even an open-mic night to showcase hopeful stars’ talent.
Big TVs for Sporting Events
One of the best ways to promote your beer garden or bar is through a sporting event on big game days. Be sure to have plenty of large TVs so everyone can see the action. You might also consider pairing a sporting event with a happy hour menu and special drink prices for beer.
A Spectacular Food Menu
When you offer hearty, crave-able food alongside your vast selection of craft beers and liquor offerings, you can’t lose. Customers love a friendly, open atmosphere where they can hang out with friends or family and enjoy unique, delicious food and an assortment of the best beverages.
To increase the profits of a beer bar, offer a spectacular food menu with a wide selection of tasty treats to go along with your world-class cocktails.
Bohemian Bull: A Better Beer Bar Franchise
When thinking about owning your own franchise, you will have to ask yourself how much does a beer bar make, as well as other questions. Bohemian Bull offers a unique beer bar opportunity allowing owners to personalize their locations, decorations, menu items, names, incentive programs, and events.
Bohemian Bull has developed substantial brand equity and name recognition using only quality ingredients and mouth-watering recipes. Our franchise model is solid, and we offer plenty of support to help owners breeze through onboarding, their grand opening, and beyond.
Aspiring entrepreneurs can team up with Bohemian Bull to launch a craft beer franchise, benefiting from the company’s industry experience and individual guidance in creating a realistic budget and navigating the path to a successful grand opening.