Do you want to start a sports bar and want to know the cost? If YES, here is a cost breakdown for opening a sports bar business and the profit margin/ROI. Sport bar is a business that can be classified under the sports and entertainment industry. A sports bar is a place where customers can eat, drink and socialize while watching the latest televised sports events. Since sports bars are tailored to a specific clientele, they must have certain business objectives in place to ensure success.
Football viewing centers and cafes that also show live matches and allow people who buy at least a bottle of drink from their bar to relax and watch live matches are also considered as sport bars.
Lastly, if you have plans to start a sport bar in your country, then you must employ strategies that will help you attract football and other sport lovers to your bar whenever there are live matches. That is perhaps one of the major ways you can maximize profits in the industry.
The Estimated Cost Breakdown for Opening a Sports Bar
When it comes to starting a sport bar, the major areas that you look towards spending the bulk of your cash is in renting or leasing a standard facility and converting it into a sport bar and equipping the bar with the needed gadgets.
This are the key areas where you are expected to spend your startup capital on;
- The total fee for registering the business in the united states of America – 0.
- Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
- Marketing promotion expenses for the grand opening of the sport bar in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- The total cost for hiring a business consultant including writing a business plan – $2,500.
- The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- The cost for renting or leasing a space or warehouse that will be converted into the sport bar and that can accommodate the number of fans that will come to watch live sport evets for at least 6 months (Re – construction of the facility inclusive) will cost – $80,000.
- Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500) and phone and utility deposits ($2,800).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
- The cost for Start-up inventory (stocking with a wide range of liquors, wines, beers, tobaccos et al) – $15,000
- The cost for the purchase of storage hardware (bins, rack, shelves, food case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- The cost for serving area equipment (plates, ash trays, glasses, flatware) – $3,000
- The cost for store equipment (cash register, security, ventilation, signage) – $4,750
- The cost of purchase and installation of CCTVs: $2,000
- Equipping the dance studio (Flat Screen TVs, sound system, DVD players, Pianos, Satellite dish and decoder, furniture (table, stools and sofas), telephones, filing cabinets) will cost – $40,000
- The cost of launching a website: $600
- The cost for our opening party: $3,000
- Miscellaneous: $2,000
From the rough estimate as listed above, you would need a minimum of two hundred and eighteen thousand nine hundred USD ($218,900) to establish a medium-scale but standard sport bar business in any city in the United States of America. Please note that this amount includes the salaries of all the staff for the first three months of operation.
Please note that this is a rough estimate and we usually advise our readers who are interested in opening a sport bar to have a clear picture of what they want to achieve, go to the market or directly contact wholesalers and suppliers of the types of flat screen TVs, sound system and satellite decoders they want to have in their bar in order to get the real time prices of these items.
The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.