Opening a Bar Checklist: Everything You Need to Know

Are you excited by the allure of owning your own bar? The camaraderie, the creativity, and the chance to be the neighbourhood hangout is all pretty enticing.

But before you jump headfirst into the decision, it’s important to know that opening a bar requires planning, preparation, and a hefty dose of know-how. To help get you started, we’ve created this quick checklist. 

So, take a deep breath, grab a pen and get ready to learn about the steps you need to take to open your very own bar. 

Is a Bar a Worthwhile Investment?

Before we get into the checklist for opening a bar, it’s first important to nail down whether owning a bar (or even a business) is the right choice for you. Let’s take a look at some of the positives and negatives.

Owning a bar can be an incredibly fulfilling experience, offering a unique blend of financial gain and personal satisfaction. Here are some of the positives to consider:

• You Can Be Your Own Boss: As a bar owner, you have the freedom to make decisions, set the tone, and create a work environment that reflects your vision.

• High-Profit Potential: With a well-run bar, the profit margins on liquor and beverages can be quite attractive. The key is to manage your costs effectively and keep your customers coming back for more.

• Creative Outlet: From crafting signature cocktails to designing a unique atmosphere, owning a bar allows you to unleash your creativity and build a space that reflects your personality.

• Strong Community Ties: Bars often become the heart and soul of a neighbourhood. You have the opportunity to build relationships with your regulars, foster a sense of community, and become a local hangout.

• It’s Fast-Paced and Exciting: The bar industry is dynamic and ever-changing. Owning a bar keeps you on your toes, offering a constant stream of challenges, interactions, and the thrill of building a successful business.

Owning a bar can be incredibly rewarding, but it's not all sunshine and happy hour. Here's a quick reality check to consider before diving in:

• High Start-Up Costs: From securing a location to obtaining licenses and permits, opening a bar requires a significant financial investment.

• Long Hours and Hard Work: Running a bar is a labour of love. Be prepared for long days, nights, and weekends - especially during busy periods.

• Competitive Market: The bar industry is saturated. You'll need a unique concept, excellent customer service, and a solid marketing strategy to stand out.

Your Step-by-Step Checklist for Opening a Bar 

What makes your bar special? Will it be a sports bar with a lively atmosphere, a sophisticated cocktail lounge, or a laid-back gastropub? Define your target audience and tailor your concept to their desires. It’s always worthwhile trying to find a niche in the area you want to open your bar, as this will give you a competitive edge. 

This is your roadmap to success! Your business plan should include market research, financial projections, staffing plans, and a detailed marketing strategy.

Location, location, location. Where you open your bar is going to be critical to your long-term success. Consider foot traffic, parking availability, and proximity to your target audience. Factor in rent, accessibility, and potential renovations into the cost of the building that you purchase.

You'll need a variety of licenses and permits to operate legally. Research the specific requirements in your area, as they can vary depending on location and country. Common ones include liquor licenses, business licenses, and health permits.

Create a welcoming and functional space that reflects your bar's concept. When you invest in things like comfortable seating, high-quality bar equipment and an attractive interior design, you’ll be able to better attract new patrons and ensure existing ones keep coming back for more.

The next step is hiring a talented team of bartenders, servers, and support staff. Look for individuals with experience, passion for the industry, and exceptional customer service skills. The less staff turnover your business has, the more seamless and enjoyable your customer experience will be. 

Need help with this step? Check out our blog, Guide to Hiring the Right Bar Staff: 5 Steps to Build the Perfect Team. 

Will you offer a full food menu or just bar snacks? Consider your target audience and what would complement your drink selection. Pricing your menu items so that they are competitive, but also profitable, can be an art form. Check out our blog, Menu Pricing: How to Price Your Restaurant Menu for a Profit, for more tips on menu pricing.

From liquor and liqueurs to beers and wines, create a well-stocked bar that caters to your customers' preferences. Don't forget about glassware, bar tools, and non-alcoholic beverages.

Having clear visibility and control over your inventory minimizes waste, ensures you always have what your customers crave, improves your ordering processes and drives up your profit margins. Here's how to achieve this:

• Invest in an Inventory Management System: A good inventory management system will integrate with your other technologies and give you the data you need to save money and boost the profitability of your business. 
• Conduct Regular Inventory Checks: Perform regular physical inventory checks to ensure accuracy and catch any discrepancies.
• Implement a Minimum-Stock Policy: Establish minimum stock levels for all your bar supplies to avoid stockouts and ensure you can always meet customer demand.
• Portion Control is Key: Especially for liquors and spirits, standardize your drink recipes and portion sizes to prevent overpouring and lost profits.

By maintaining good inventory control, you'll gain valuable insights into your bar's performance, prevent costly waste, and optimize your ordering process to keep your shelves stocked and your customers satisfied.

Now that you own an operational bar, it’s time to start spreading the word. Utilize social media, local advertising, and community events to generate buzz about your new bar. In addition, consider loyalty programs and special promotions to attract customers.

Learn how to build a marketing strategy for your bar in our blog, Bar Marketing: 10 Ways to Attract Customers and Build Loyalty. 

Finalize your staffing schedule, train your team, and conduct a thorough test run to ensure everything runs smoothly on opening day. Stay flexible, adapt to customer feedback, and continually strive to improve your bar to keep it thriving.

Congratulations! By following this step-by-step checklist, you'll be well on your way to opening a successful bar. Remember, passion, planning, and a commitment to providing an exceptional experience are the key ingredients to turning your dream bar into a reality.

Need help in ensuring your bar profit margins are up to scratch? Sculpture Hospitaliy’s team of inventory management experts are here to help. Get in touch with us today.