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However, there are more than 65, bar establishments in the United States alone, making it a highly saturated and competitive market. Startup costs are the first major hurdle to bar ownership.
These include expenses on all physical assets needed to start up a bar. Licenses, permits, and insurance are also needed. Every bars must register within its state of operation, obtain permits, and purchase business licenses to sell alcohol. Costs of the license vary from state to state and require different application processes.
Other operating costs are needed to run and maintain a bar. As a bar owner, you put yourself at risk of being sued for injuries and damages resulting from an accident involving someone you served. Liquor liability suits can reach into the millions of dollars.
Fortunately, there are insurance plans that can help offset this risk. Liquor liability insurance pays the fees and judgments arising from liquor liability claims.
How much standing room will your customers want? How many barstools can you add without cramping the space? Putting yourself in the mind of your customers when you are planning the design of your bar can be extremely beneficial down the line. Because they have a better understanding of the area and typical clientele, other owners can provide insight on how you can be successful. Down the line, you might even work together on special promotions or marketing campaigns. To encourage customers to come in during the week, most bar owners have a schedule of regular promotions and events like happy hour, game night, and karaoke.
The customer experience at your bar makes or breaks your business. Customers remember an inattentive or rude bartender, and the poorer your service, the less likely they are to come back.
When hiring and training your employees, make sure they have a genuine manner and a customer-first attitude. Additionally, get feedback from customers as often as possible, so you can see, control, and improve the perception of your bar. Hiring the right people is vital if you want your business to succeed. Finding good employees begins with the interview process and includes onboarding and on-the-job training.
Make sure you hire employees who have the right temperament for the type of atmosphere you want to promote in your bar. Build shifts around your best employees to ensure that you have at least one experienced worker in each position and give other, less-experienced employees the opportunity to learn. Location is important whether your goal is to attract customers from a certain area or to make your bar a destination.
An effective inventory control or the lack thereof can make or break your bar in a very short time. Bars are heavily dependent on having items in stock and tracking the rate at which those items are used.
Set up a descriptive inventory management system so you can control costs and keep your bar in the black. To do that, you need to identify the types of customers you want to attract. A successful bar will make as much profit as possible without sacrificing key elements such as atmosphere, product offering or customer service. Like I said above, if your bar is consistently busy, you are obviously doing something right. The most successful bars I have seen have chosen one style and stayed with that style.
If quality is king, consistency is queen. A successful bar will be consistent in every aspect. A successful bar will chose one style and stick to it. A successful bar may have a solid reputation as an educator or thought leader in its chosen niche.
Customers love learning about their drinks and food , particularly wine and beer. Educating customers can be done in a number of ways, ranging from master-classes and advanced training programs to simple written blurbs about each cocktail in a cocktail list. Educating customers in this fashion will bring paramount value to an establishment. Customers love learning about their drinks. A successful bar educates its customers in the products it offers. This can be done in many ways, ranging from master-classes and advanced training programs through to informal teachings from bartenders.
A successful bar is considered as an educator and thought leader in its chosen niche. I hate seeing bars crumble whilst at capacity the busiest a bar can be due to lack of preparation. A successful bar will not face this problem.
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