It’s exciting to open a cocktail bar. However, your success depends on careful planning and credible guidance.
When you rely only on advice from peers or do uninformed research, you can make big mistakes, like choosing the wrong location or running into legal problems. It can seriously hurt your chances of success.
This guide breaks down the ten most important steps. It provides straightforward advice that simplifies the process and helps you avoid common pitfalls. Whether you’re just starting or refining your plans, these clear steps will give you the confidence to build a successful bar.
Opening a Bar: Ten Essential Guidelines
Write a Business Plan
A business plan is your bar’s foundation. It sets the direction for everything from concept to finances.
Your cocktail bar business plan should feature the following:
- The bar’s concept
- Target market
- Competitive analysis
- Mission statement and vision
- Capital required
- Budgeting for licences, equipment, and staffing
- Revenue projections
- Marketing strategy
Set Up Your Business Structure
A business structure means the legal setup of your bar. It defines how you’ll organise your business, pay taxes, and handle liabilities.
You should consult with a legal or financial advisor to choose the right fit among the four options below:
- Sole Proprietorship: It’s best for solo owners who want a simple setup. But if your bar has financial issues, you’re responsible for any debts or legal problems.
- Partnership: This structure shares responsibility between your partners and you. Each partner is responsible for the other’s actions.
- Limited Liability Company (LLC): This is a popular choice because it protects your personal assets (like your home or savings) from business debts. It’s also flexible. You can choose how to manage it.
- Corporation: This type of entity is ideal for bigger businesses that need more protection and plan to raise a lot of money. However, it’s more complex and comes with extra paperwork and regulations.
Secure Funding and Loans
You’ll need to calculate your startup costs, including rent, equipment, and licences. Once you know how much money you need, explore your funding options:
- Personal savings: This is the best route. It frees you from any obligation.
- Bank loans: Banks ask for a solid business plan and good credit.
- Investors: You can pitch your business idea to investors. You will offer them a share in exchange for funding.
- Crowdfunding: You can use platforms to raise money from supporters.
Obtain Licences (Liquor and Others)
Before opening your bar, you’ll need the right licences to operate legally. Foremost is a liquor licence. It allows you to sell alcohol.
You may also need other permits, such as:
- Health permits if you’re serving food.
- Zoning permits to ensure your bar complies with local laws.
The licensing process can take time and involve fees. So it’s important to apply early. Check with local authorities to understand the specific permits you’ll need.
Select the Right Location
Location can make or break your business. It affects customer flow and visibility. A well-chosen spot can attract walk-in customers. In contrast, a poorly chosen location may need help to draw a crowd, no matter how great your concept is.
City streets and tourist spots are perfect for classic bars and speakeasies. Quieter areas are better for bars with a niche clientele.
Trendy nightlife districts are suitable for upscale bars. Residential neighbourhoods are perfect for laid-back bars.
Design the Bar Layout
A well-designed layout creates the right vibe and enhances your staff’s efficiency. Keep in mind the following aspects:
- Bar flow: Make sure there’s enough space for customers to move comfortably. The layout must enable your staff to access equipment and supplies conveniently.
- Seating: Ensure there’s an adequate balance between bar stools, tables, and lounge areas to suit your bar’s atmosphere.
- Lighting: Use lighting to set the mood, whether dim and cosy or bright and vibrant.
- Bar equipment: Arrange drink stations, sinks, and coolers so that bartenders can quickly access everything they need to make and serve drinks efficiently.
Develop a Cocktail Bar Menu
The menu is what attracts and keeps customers. Follow these guidelines:
- Balance traditional drinks with new and unique creations that match your bar concept.
- Use the freshest and finest ingredients for drinks.
- Match the drinks’ prices with the cost of ingredients and your target customers’ budget.
- Keep the menu simple for bartenders to manage. At the same time, offer enough variety for your customers.
- Create a unique cocktail theme. Use storytelling to make the drinking experience more engaging.
- If possible, hire a sommelier to suggest wine pairings for your food offerings.
Plan Branding and Marketing
Branding sets you apart from competitors. Marketing drives customers to your bar. Both are critical for long-term success. Follow the below steps.
- Create a strong brand identity that includes your bar’s name, logo, and theme.
- Build a website and active social media profiles to promote events, specials, and your bar’s story.
- Use flyers, partnerships with nearby businesses, or host opening events to attract local crowds.
- Offer loyalty programs, special nights (like live music or themed events), or happy hours to keep customers coming back.
Purchase Cocktail Bar Equipment
The right equipment helps you run your bar easily. This approach ensures that drinks are served fast and to a high standard and customers are happy.
Include the following details in your bar setup:
- Drink stations to mix cocktails and prepare drinks.
- Sinks and dishwashers to clean glassware quickly during busy hours.
- Refrigeration to store beverages, garnishes, and ingredients at the right temperature.
- POS system to manage orders, payments, and inventory.
Hire and Train Staff
The staff are your cocktail bar’s face. So hiring the right people and training them well is important to deliver the best experience to your customers.
Hire experienced bartenders. They must be skilled in making cocktails. It’s a bonus if they’re engaging conversationalists.
Ensure that all staff are trained in drink preparation, customer interaction, and POS use.
Train your staff to provide excellent service, even under pressure. Create clear Standard Operating Procedures (SOPs) for guest relations and customer-focused service. A great customer experience builds loyalty and keeps customers coming back.