Who has any experience in the bar/restaurant biz?

[arod15]

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I just took a well paying job, selling/maintaining/installing Point of Servce (POS- flat screens, touch screens, av equip, cash registers etc at restuarants/small biz etc) equipment, along with poker, and a few other business options I am working on, I should be out of the 60k debt by the time I graduate, and maybe have a few bucks saved up. I really like selling this stuff, and I dont mind installing it, Ive also networked with a TON of restaurant owners, and have decided that by the time Im 27/28, (23 now), I want to open up a little corner bar, at the same time I open up my own biz (rather than working for someone), in the POS industry. I figure that I will be able to open the bar, after I get some help w/ training from the connections I make, then hire 2-3 bartenders etc to bartend, then I can do my POS thing during the day, and do the GM stuff at the bar at night. How feasible is something like this? How tough is it (time/talent-wise) to make a bar profitable, if its a smallish neighboorhood bar, and thoughts on the rest?

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It is very difficult. There is a ton of start up costs in opening a bar. First is getting the liquor license. Most towns have a limit to the number of licenses they can issue. Therefore to obtain one you need to buy it from somoeone. And people arent that willing to sell those, at least not at a reasonable price. Then you need to find great location, which equates to big money. The biggest factor in most of these pubs success or failure is location. So with high start up cost, and what appears to be a very low understanding of the framwork, i think your idea is unrealistic. If you are really interested, tend bar part time learn a bit about that aspect, you have to learn to opperate the business. Also, its good to know the bar aspect as it has a high probabiliy of shrinkage. Bartenders are all crooks i know i was one.

[STLantny]

Well, see thats the best part about my new job, I am privvy to EVERYTHING the places that I install stuff at. I have to understand their whole operation to be able to install and sell equipment, so I think over the next couple of years, my learning curve will shoot way up. thanks for the info though, keep it comin

PS. My uncles chain has bars in them, could I buy a liquor lisc off him, or do I need to actually apply for it?

[arod15]

Some sheer numbers to consider. To start a place you will definatly need at least 300K capital Not to mention the loan you will have to take out. ANy place will cost you at least 300K to buy if it has good location, also you must think of supplies needed, possible remodling, the stools bar itself and of course the liquor license. I assume 1 million will be a rough estimate of what a hole in the wall will cost. This might seem high, but keep in mind you will need some reserve as the business might not take off. Also, 70 hours a week a minimum for several years. People will rob you blind. The bartenders drink for free, the buy back rounds and steal cooks eat for free if your not watching it it will be stolen piece by piece. So if you are willing to risk 1M dollar investment, try it, its too risky for me. ALl conditions have to be right. Also, getting a line of credit will be hard as you dont have that much relative experinece, they will make you vouch personal assets which is always risky.

[arod15]

Yes you could buy it from him but that would mean he would have to close one down. Is he willing to do that? If he is than you have a great opportunity. Why not try to buy one of his 30? and keep it as your own. THe groundwork would be in place and you could give him a % of sales until you repayed him. I think that would be ideal. Also it is good you get to learn for free. Perhaps banks my extend you credit with less start up but i still doubt they would give you a loan without you pledging personal assets which is a scary thought.

[Jim Kuhn]

Hyde - are you my brother posting in secret? This sounds just like his life story!

Thank you,

Jim Kuhn
Catfish4u
[img]/images/graemlins/spade.gif[/img] [img]/images/graemlins/diamond.gif[/img] [img]/images/graemlins/club.gif[/img] [img]/images/graemlins/heart.gif[/img]

[coffeecrazy1]

I agree. Get with this uncle of yours, and make him your second dad. I'm in the same boat, only a few years older(25), but I've come to the conclusion that I want to be rich, and guys older than me know how to do that better than I do...so I'm going to stick with them. If your uncle is richer than God, he must know what he's doing...it didn't just happen that way. So...if you're serious about doing it, I'd say move in and say uncle.

[STLantny]

bump for jakethebake

[benfranklin]

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So far, all I have heard is negatives? Why are there succesful bars than?

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I don't know a lot about bars except as a customer, but my neighbor ran a nice Italian restaurant. He had no life except the restaurant, and his wife was there working most of the time too. This was a nice up-scale suburban place. No drunks, no bartenders pouring free drinks for friends and big tippers, just suburban couples coming in and spending $50-60 bucks on a couple of dinners and a bottle of wine. I don't think he had much of a problem with theft, because virtually everything was credit card, unlike a local bar.

The big problem is staff. High turnover, lack of motivation, in-fighting, egos, etc., etc., etc. The "high-end" help (waiters, chefs) are putting in their time until they get the experience and the savings to move up to the next level or to start a place of their own. The basic help are just wage slaves. Both always had personal problems that involved juggling shifts, days off, etc. He hated it, and sold it after he couldn't stand it any more.

There are successful bars because the owners live there and deal with the constant problems, or they eventually find a good manager to help run the place. In that case, the owner is still putting in a lot more work than a regular job.

[Rick Nebiolo]

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in general, owning a bar or restaraunt is a sucker's game. very few make it.

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Not only that, but a bar is facing tough problems with the trend of increasing penalties for DUI.

~ Rick

[Durs522]

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coming from twenty years experiance.


A small hole in the wall will not generate enough income that you can afford to be an absentee owner.
You will spend way more time than you think necessary in the joint.
You will drink more than you think you will.
Your bartenders will steal you blind unless they are related to you. Then they will steal less.
Giving free drinks is stealing.
Small neighborhood joint are like Cheers without the laughs. You will end up listening to every tale of woe you can imagine. A crying man is not a pretty sight.
Have I mentioned the belligerent drunk yet?
And I only worked at fairly high end places.....


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These points are all amazingly true. I think that most of the negatives have been pointed out in this thread because obviously everyone is aware of the positives. I read a great website about opening a bar, I'll see if I can find it for you.

Durs

Edit: Starting a Bar