Franchise Opportunities: bar ownership
Owning your own bar is probably on the bucket list of everyone. Who doesn’t dream of getting paid to party?
There are many types of bars and night clubs and at least one could fit your personality type. You can open the neighborhood pub where the same people hang out and have a beer after work or you can operate a cocktail bar where you serve fancy Limoncello cocktails and tartelette bites. The possibilities are endless.
Of course, first you have to research the market needs so you don’t end up at square one. You don’t want to open the bar of your dreams just to find that people at your area are not really interested in it. The demand of the market and your expectations should meet in order the bar to be successful.
Owning a bar might seem like fun but if you don’t have a clear vision things could go the wrong way. There is more than liquor, dances, fun conversations, and entertainment. As any other business, bar ownership means risks and responsibilities.
Statistics show that the bar and night club market is not dominated by a few companies. Instead, the market share is relatively evenly distributed across different businesses. However, that doesn’t mean that all bars that open are successful. I will not lie to you; there are many new pubs and bars opening each month. Many of them close within the first year. It is a tough industry.
Facing challenges by yourself means you have no one to lean on when you stumble and may result in financial losses, especially if you don’t have previous experience. Not to mention it can ruin the fun of owning your own bar.
As a bar owner you are competing with other bars and entertainment facilities but you are also in competition with liquor stores. Since the economic crisis and with increased unemployment, people buy more liquor to drink at home. However, they still go out and cubs are full; the tendency of choosing home over bars is slowly changing but is still present. The bar industry is estimated to over $23 billion in revenue per one year.
By choosing a bar franchise, your dream of owning your own bar can come true without risking all you have. There are many affordable bar and club franchises that ensure a better business start and competitive advantages that new businesses cannot afford. Franchisors provide support and a tested know-how. Instead of dealing with administrative stuff, suppliers, and menus, franchisees focus on having fun and interacting with customers while making money out of it.
There are some disadvantages but they accompany the start of every business. One of them are the long working hours. Forget about vacations and flexible work hours. At least in the beginning when the business is still not stable and needs you. However, once things go right on track, you can hire more personnel and enjoy bigger freedom.
When opening a bar, you should keep in mind that in different areas there are different license requirements. Research your area of operation and make sure you have all the necessary documentation and permits. Make sure customers respect the rules, too. For instance, if your bar is at the beachside and you only have a license to sell booze at site, make sure they do not carry full bottles and glasses outside the bar’s area. You will be the one in trouble if they break the law.
How do you know what type of bar to choose? Well, it depends on you preferences and your personality type. There are endless possibilities that await you. You can choose the type of drinks you serve, the setting, whether to serve food or not, but you can also target your clientele.
If you are like more relaxed type of people, brew pubs and neighborhood bars might be good for you. They attract customers that like casual settings and beer. Neighborhood bars are for people who go there all the time to meet with friends for a drink or two after work.
If you consider serving food, open a sports bar. You’ll serve food to customers who like branded beer and fries or wing to go with it. Provide large screens on which to play sports games occasionally. You can make extra money from bets on games.
Wine bars and cocktail bars, on the other hand, are for a more sophisticated and richer clientele.
Gay bars are preferred by people who like pop music and brightly-colored cocktails with attractive names. Karaoke bars bring you customers who are into singing and coke-and-rum drinks.
Of course, there are many other types of bars and business opportunities. In the second part of the article we will introduce you to some promising bar franchises.
