How To Open a Cocktail Bar

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

  1. 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
  1. 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.
  1. 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.
  1. 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.

  1. 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.

  1. 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.
  1. 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.
  1. 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.
  1. 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.
  1. 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.

Reviews of Pinstripe Bar



Made IndiraMade Indira
07:32 29 Jun 24
I went to Pinstripe while me and some friends had a staycation in Tegalalang for the weekend. After had dinner we decided to go check the bar at Pinstripe to get maybe one or two glass of margarita. Once I saw their cocktails menu, I had difficulties to choose between their well-crafted menu. Then Panji, the head mixologist served us a welcome drinks, I never expect the taste to be sooo delicious. From there I totally forgot the margarita and just let Panji surprise me with the magical taste of the cocktails that are so delicious I cannot stop sipping them. I tried to guess the ingredients Panji use in my cocktails, which of course mostly failed. The cocktails ingredients are source locally which really interesting because many of them usually use as cooking ingredients.Definitely will come back to try all the menu.
ros Marchros March
15:32 28 Jun 24
One of the best Ubud area cocktail bar here!!!Cocktail & atmosphere & Music,I highly recommend here!!!!
Keisuke YamamotoKeisuke Yamamoto
15:28 28 Jun 24
Great ConceptGreat atmosphereGreat Cocktails
I MI M
15:05 28 Jun 24
Best cocktails weve had in a while! Definitely a must go when in Ubud looking for a hip place to drink and smoke some cigar.
perdana yogaperdana yoga
14:19 15 Jun 24
The best bar in bali
louise melochelouise meloche
05:29 30 May 24
This is one of my favourite cocktail bars in Ubud! Pinstripe is a must visit bar that is great to visit solo or with a group of friends. They have a huge range of premium spirits, if you are into tequila, gin or whiskeys, this place has the biggest range in Ubud.The cocktails are really inventive and aesthetic. Personally I love the Mezcal one with the peacock feather, it is delicious and the flavours are balanced perfectly.The atmosphere is cosy yet it’s a large space with an indoor and outside terrace with jungle views. Perfect place to sit of an afternoon with cocktails or wine and then move inside for the lively atmosphere at night time.This bar is really unique and I recommend to all my friends visiting Bali to make sure they don’t miss out on visiting!
t hornt horn
15:05 27 May 24
The best and most spectacular cocktails in Bali his bar is extraordinary and elegant. Sophisticated classy and sexy. Changga is a master mixologist that makes every cocktail come exiting with the story of the name as well as detailed preparation. Must visit must indulge must experience if you are in Ubud !!! The service is impeccable, the drinks the best in Bali, the atmosphere is sexy old Hollywood with class and sophisticated touch. The BEST!! Thank you for amazing memories.
Coming here just for the vibes, not expecting the foods and sides are so delicious. Definitely worth coming back again. The Servers are very nice and very informative. Adit, one of the waiters took the time explaining everything, props to him!
Marlene KyrönenMarlene Kyrönen
03:32 17 Apr 24
Highly recommend pinstripe bar. The best cocktails on the island. My personal favorite is The artist! So delicious. We had a great time here and service is amazing. Must must visit when in Ubud. 10/10!!
Heru kecilHeru kecil
21:02 28 Feb 24
Best place that i've ever visited in Bali!Can't describe by words.The cocktails, the service, the ambience, the music, most of all the bartenders are legends.Definitely will be back.
Nana MooreNana Moore
20:48 22 Feb 24
Nice place to having a dinner and chill while enjoying Live music 🎶 it was incredible and good memories. The Bar absolutely amazing, indoor area with air conditioning, outdoor area for some people smoking. What is the most I like is the bathroom, very clean and cozy to do my make up 😂😁🤣
ChonTea idChonTea id
14:33 20 Feb 24
Panji and his team are best that’s all!!Its bar ambience will bring u to different world, a good getaway in Ubud
Ca BiCa Bi
13:23 18 Jan 24
We started our degustation at the bar with our complimentary cocktail served with 3 different amuse bouche.The atmosphere is lovely. We felt taken back to the 1930sMake sure to get early to your restaurant reservation so you can enjoy an aperitif here.
Nathan CawoodNathan Cawood
19:09 28 Oct 23
This is simply as good as a bar gets. It is somewhat hidden and more a speak easy than a bar. Staff is impeccably talented. The atmosphere is perfect right down to the smallest detail. I only wish we went here earlier. It may just be the best bar experience in Bali, and that is truly quite that statement.
Calvin VoonCalvin Voon
08:49 12 Oct 23
Exquisite drinks. Didn’t eat this time. Will be back 100%.Come here if you value:- exceptionally drinks with presentation- fluent English speaking, attentive waitstaff- a low-key vibe, fancy atmosphere, tastefully decorative and clean facilities that sets a 1950s moodWent here an hour before closing for nightcaps. And no they didn’t kick us out even after it was closed. Managed to have 4 cocktails between two people plus complimentary welcome AND send off drinks. The send off drink is that light purple potion, which I forget the name of, and it’s unforgettably delicious.Smoking allowed on the deck area. Think cigars are available for purchase.Look forward to returning for more poisons.
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Pinstripe Cocktail Bar and Restaurant

Pinstripe Cocktail Bar
A cocktail journey through the grandeur of the 1930’s

Aperitif Restaurant Ubud

Apéritif Restaurant

Explore the world through an eclectic
fine-dining degustation menu

Opening Hours

Open Daily 4PM - 11.30PM
Food Menu 5PM - 10PM
© Pinstripe Cocktail Bar 2024. Developed by Gaia Digital Agency.