[zacd]

My uncle owns a bar and in effect knows many other people that own bars. I grew up around that type of business (Ithaca, NY) so I'll try to list some aspects that I think are important...

1) Location and Demographic: I'm sure you've already thought about all of this. Obviously college towns are great but often way too many open in a small area and basically eat themselves. In Ithaca new bars open every year with a lifespan of 1-4 years usually. I'd say the ones that survive are the ones who a)are located far enough from other bars but still close enough to get to by foot and b)establish themselves quickly as a fun place. Don't even bother opening a bar if your target area is already over-saturated. Every new owner always thinks they can pull business away from others with their sweet idea but it rarely happens. The goal is to get a core group of returning customers and they will bring new people who become part of the core, etc etc. If you never establish repeat business you will fail.

Stock product based on your consumers. If you're catering to mainly college kids you don't need to stock much JW Blue and if you're pulling mainly professionals you won't need alot of Natural Ice.

2)Being an Owner: Very important. So many bars fail because the owner creates the perfect place for HIMSELF to party. Falling asleep at the bar every night fully cocked is a great way for your employees to rob you blind and ruin the chances of you living a long, healthy life. I applaud your decision to stay behind the scenes. Owning AND running a bar is a life-draining experience.

3)Pool-tables, music, arcade machines, etc: Pool-tables, pinballs, and especially whatever music device you choose will all make bank. Arcade cabs for the most part will not, unless you can magically get a new game rotated in twice a year. Most bars bring in an amusement company to stock their place and split the profits 50/50, 60/40, or lower if you make nothing. My advice, if you have some excess capital, would be to purchase all your own equipment. It will pay itself off reasonably quickly and after you've sufficiently profited -- home-owners buy second hand pool tables like they're going out of style. Remember if you do choose to buy all of your own equipment you are responsible for the upkeep (pool tables will jam monthly at least).

4)Food: Some bars do well just selling terrible food way overpriced. Some bars use their food services to bring customers in. I've seen $1 burgers and $.10 wings do exceptionally well. You sell the food at near loss and make the $$ from the alcohol sales. Oh that's another thing, I'm not sure if you're doing live music or other forms of entertainment but make no mistake -- all of your profit is from alcohol sales. Everything else is just a lure. If you're doing exceptionally well and can get away with charging a cover that's awesome. But beware, covers often drive customers away.

5)Employees: You'll never have a shortage of help but you'll always have a shortage of good help. Always schedule your best bartenders for your busiest nights. When you have to run 2-3 bartenders at once make sure they work well together and don't step on each others feet. A good bartender is worth so much and dont be afraid to spend lots on one. Especially on slow nights, a good bartender can turn a Tuesday night into a Thursday or Friday. Have one bartender exclusively for your waitresses on fri/sat.

6)Laws, licenses, etc: Read up as much as you can about all of that stuff. In New York the ABC Board will usually send a minor into your place every 1-3 years. First offense is a fine I believe. Second might be your liquor license (in which case it's game over folks).


Anyway I hope I gave you some things to think about. As you can tell most of my experience is with college bars. If you're planning a more upscale place I don't really have any advice other than charge lots.

The most important thing to do first is to establish an idea of your chances of survival. If you can make it 5 years profitably you're generally golden until you want to sell, lose your license, or they raise the drinking age or something. Go to the other bars around where you're planning to establish yours. Go every night of the week and take it all in. Figure out what they're doing right and what you could improve on. If there are no other bars in your target area you're either extremely lucky or it's not a profitable area.

Good luck!