The idea of owning a bar is an appealing one. After all, you’re in the business of showing people a good time. Your customers are happy and making memories. What’s not to love?
But how much does it cost to open a bar?
The restaurant and bar business can be a rewarding career, but there are many things to consider when looking to open a bar. How much it cost to open a bar is only the first question.
So Truthfully, How Much Does it Cost to Open a Bar?
The estimates for the cost to open a bar vary so widely that the numbers actually lose meaning. But to give an idea, Investopedia puts the cost to start a bar between $100,000 and $850,000. That’s such a wide range that it’s not actually that helpful.
How Much Does it Cost to Open a Bar? The Breakdown
The real question you want to ask is what you need in place to open a bar, and how much will each of those things cost?
First, are you renting, leasing, or buying an established bar? There are varying expenses involved in each of these choices, and they fluctuate with the amount of work involved.
Next, you’ll need to factor equipment into your opening bar costs. Does your ideal bar have a full kitchen to serve food, a limited kitchen to serve appetizers or no kitchen at all?
This will dictate the amount of equipment you’ll need and what type of service you offer to your patrons. It will also help inform you on how many employees you’ll need to run your bar.
What is your bar’s concept? This will help you determine your target demographic and what kind of atmosphere will be most appealing to them. Answering this question can dictate your bar’s décor, furniture, and incidentals.
Once you have these answers, you can look into what sorts of licensing and permits you’ll need to become operational. You’ll be able to look into what it will take to run your bar on a daily basis, and begin looking into inventory costs.
Knowing how much food (if you serve it) and drink to have on hand, how many people are working, and how much it costs to keep the lights on and the coolers cool every day will give you an idea of how much it costs to open a bar.
You’ll Need a Business Plan to Determine the Cost to Open a Bar
Chances are, the calculations you’ve made based on the above answers have given you an idea of how much it costs to open a bar. Now, you’ll likely need to secure financing to bring these ideas into reality.
Any bank or investor in your bar business is going to need to see a business plan before committing any money to your bar venture.
That’s where a business plan comes in. It details more than just your bar costs, though. Typical business plans for bars and restaurants include the following:
- Your bar’s concept, which informs your target demographic
- How does your bar fares against competitors and fits in your local industry
- How will your bar operate
- Financial analysis about what it’ll take to run your bar as well as how much you expect your bar to earn in revenue
- A marketing plan to grow your bar’s reputation and business
- How do you intend to launch your business and build a regular clientele
Once your business plan is in place, financial institutions and investors can see how much your particular bar will cost to open, and they can decide then about their role in your bar.
The Decision to Open a Bar Franchise
Building a bar business based on a solid business plan and with a stable foundation is crucial to the viability of the business.
The hospitality industry is notoriously competitive. While the American Express commercial in the 2000s that alleged a failure rate of 90% of restaurants and bars in the first year has been found false, that idea has stuck around, scaring potential restaurant and bar owners away.
The National Restaurant Association estimates that 30% of new restaurants and bars fail within the first year.
When you consider how much it costs to open a bar, no one wants to fail. That’s why the franchise concept, like that of Bohemian Bull Tavern & Beer Garden, can be attractive.
The business plan and build-out processes have already been tested and found to be potentially prosperous.
How Much Does It Cost to Open a Bar? The Bohemian Bull Bar Franchise
At Bohemian Bull, we’ve worked with industry experts to create a bar franchise concept from the very beginning that smoothes out the process of opening a bar.
We’ve worked out the kinks up front, particularly those that often trip up small business owners in the beginning. This saves our franchise owners both time and money during the opening process.
So how much does it cost to open a bar? For a Bohemian Bull franchise owner, that initial investment estimate begins at around $470,417.
This number includes a franchise fee of $50,000. Some of how much it costs to open up a bar are dictated by the location and build-out. For a beer garden concept, the initial investment estimate can go as high as $1,206,500.
The range is large, but in that range lies flexibility in what your Bohemian Bull location’s final footprint will be.
In Addition to Costs, Consider the Franchise Support
There are other considerations besides how much it costs to start a bar that makes franchising an attractive option.
First, you get a dedicated franchise management team that will help you from the moment you sign the franchising agreement.
We can give you expert advice on site selection, leasing, and built-out for your Bohemian Bull Tavern & Beer Garden location.
We also offer advice to our franchise owners on the best hiring tactics, and we provide comprehensive training to our franchisees and their staff.
This ensures they have all the tools necessary to run a seamless bar and beer garden that’s dedicated to keeping customers happy and helping them make memories.
We also assist with finding local vendors to supply the ingredients and choices on our delectable menu. We take our menu very seriously and go above and beyond to curate a list of both local and national craft brews.
Bourbon and whisky tastings are another essential we’ve used to build out our menus.
We understand that our exacting food and beverage standards may be more difficult to source for our franchise owners, so we do everything we can to ensure they have what they need to bring the Bohemian Bull menu to life.
Our franchise owners, after the grand opening, continue to receive ongoing support from our franchise development team, including marketing support, quick access to experts, and technology and systems that smoothly operate their tavern.
With a Bohemian Bull franchise, how much a bar costs to open may be less than you think, and it comes with a whole host of benefits you can’t find when opening a bar on your own. If this sounds appealing, contact us today or download our free ebook for more information.