Are you about starting a bar? If YES, here is a complete sample bar business plan template & feasibility report you can use for FREE.
Okay, so we have considered all the requirements for starting a bar. We also took it further by analyzing and drafting a sample bar marketing plan template backed up by actionable guerrilla marketing ideas for juice and sports bar businesses. So let’s proceed to the business planning section.
Truth is that the bar business can be said to be saturated because of the competition involved. More and more people want to go into the trade and make good money.
Whether it is with those selling the locally made brand of drinks, or the very pricey brands of wines, the truth remains that one can be a millionaire overnight in this trade. With the necessary financing, as well as the license to operate, you can be sure to start off and hit the road running soon enough.
A Sample Bar Business Plan Template
Table of Content
- 2. Executive Summary
- 5. Job Roles and Responsibilities
- 6. SWOT Analysis
- 7. MARKET ANALYSIS
- 13. Startup Expenditure (Budget)
1. Industry Overview
In the united states of America just like in any part of the world, the bar and nightclub industry is indeed a very lucrative industry. In the United States alone, statistics has it that the bar and night club industry generate a whooping sum of $20 billion in revenue annually from about 45,000 established and recognized bars and night clubs in the US.
The distilled spirits industry generates around $100 billion in United States of America. For those that run bars and night clubs, their major sources of revenue generation are the sale of assorted beers, distilled spirits, liquor, martinis, wine, food and non – alcoholic beverages.
Beer which is the major selling point for bars accounting for 37% of the revenue generated by bars in the United States is manufactured by more than 3,000 breweries (both conventional and microbrewery).
For example; statistics has it that the United States of America produced about 196 million barrels (23.0 GL) of beer in 2012 alone, and consumes roughly 28 US gallons (110 L) of beer per capita annually, and a larger percentage of this beers are sold in bars and night club.
In 2011, the United States was ranked fifteenth in the world in per capita consumption, while total consumption was second only to China. This goes to show that bar and night club business is indeed a very lucrative business in the United States.
Although people still gather to socialize in bars, just as they have always done in time past, but with factors such as driving whilst intoxicated and increase in crime rates, the drinking pattern in bars is being affected. Also, the growing concern as regards health and fitness toward the end of the 20th century was part of what redefined non-alcohol consumption in the US.
In essence, the rate at which people consume beers and other drinks alcoholic and non – alcoholic is what determines the growth of bar and night club industry. Any entrepreneur who wants to start a bar business in the US would definitely be confronted with tough competition out there.
The truth is that, you will not only compete with bars in your location or city, but you would be competing with every other entertainment options such as; night clubs, restaurants, casinos et al.
For instance, people go to bars to drink and socialize and they tend to get more when they go to night clubs or other entertainment hub. In night clubs, people do not only drink and socialize, but they also dance if they choose to and get entertained.
Lastly it is important to state that in as much as starting a bar business can be profitable and rewarding, the success of any new bar in the United States is not automatic. The chances that new bars have to struggle within the first 6 months of launching can’t be ruled out.
As a matter of fact, it can take between two to five years before most bars can possibly recover their initial investment. In order words, just like loads of new businesses, the statistics for bars do not favor the startups, you just have to have a long term investment plan if you intend starting your bar business.
2. Executive Summary
Bay Town Bubbling Bar is a neighborhood bar that will be located in downtown Los Angeles; at 300 S. Grand Central Parkway in Los Angeles, California. The facility is centrally located and it is close to the popular Market Center and a residential estate in LA.
We are set to make available assorted beers, crafted beers, wines, liquors, distilled spirits, martinis, non-alcoholic drinks, beverages and foods to the people in Los Angeles in a conducive environment that is specifically designed for socializing and networking and free from all forms of violence. Our bar facility is centrally located in a busy street and it has the capacity to accommodate 200 people per time.
Bay Town Bubbling Bar is designed and constructed to meet both the health and safety standard as recommended by the local authority. Our customers are going to be treated to good music at all times. We have made provision for a live band, karaoke, country side music and jazz et al. This will be played at the background to create the ambience that our customers will cherish.
We are in business to make profits, at the same to give our customers value for their money; we want to give people the opportunity to choose from the wide range of beers and other drinks that are manufactured in the United States of America. Bay Town Bubbling Bar will go all the way to make available in our bar most of the brand of beers produced in the US.
Our goal is to make every day a day of celebration, networking and socializing for as many people that will patronize our bar. No doubt, we will become the talk of town amongst the socialites in Los Angeles, because we have put plans in place to make our bar bubbling 24 / 7 and highly secured because who want to open attract everybody (celebrity and non-celebrity alike).
Bay Town Bubbling Bar is owned by David Jefferson who has managed several bars and night clubs in Los Angeles and Las Vegas prior to opening his own. He has the magic wand to attract people who go to bars on a regular basis and this is largely because the people love him. The business will be managed by his trusted associate for many years, Iverson Cooper who coincidentally was recruited and trained by him 5 years ago in downtown Las Vegas.
3. Our Products and Services
Bay Town Bubbling Bar is going to operate a standard bar that will make available every product that can be found in a standard bar in the United States. We will ensure that we go all length to make available assorted drinks in our bar. These are some of the products that will be found in our bar;
- Beers (Bud Light, Coors Light, Miller Lite, Budweiser, Michelob Ultra-Light, Natural Light, Busch Light, Bush, Redds Apple Ale, Sierra Nevada Pale Ale, Keystone Light, Pabst Blue Ribbon, Bud Light Lime, Bud Light Platinum Lager et al)
- Locally Crafted Beers (Pale Beers, Amber Beers, Dark Beers, Hebrew Beers, Gluten Free, Organic Brews, Cider et al)
- Distilled spirits
- Small Chops
- Non – alcoholic beverages
4. Our Mission and Vision Statement
- Our vision is to establish a standard and secured bar Los Angeles, CA that will be the melting pot of all lovers of alcoholic and non – alcoholic drinks.
- Our mission is to establish a bar business that will make available all the brands of alcoholic and no – alcoholic drinks in the United States at every given time to our highly esteemed customers and a place where people can network and socialize.
Our Business Structure
Bay Town Bubbling Bar is a business that is established to be a pacesetter when it comes to how standard bars should be run in Los Angeles and even in the United States of America. We have the goal of assembling a team of dedicated workforce who will give our customers excellent customer service at all times, a team that will ensure that we will continue to have repeat customers and a team that will indeed make us the melting pot for beer lovers and socialites in Los Angeles.
In view of the above, we have been able to follow suit on what is obtainable in standard bars in the US and perhaps improve on the structure with time when the need arises. Below is the shape and structure we will build Bay Town Bubbling Bar on;
- Chief Executive Officer (Owner)
- Bar Manager
- Bartender / Baristas
- Accountants / Cashiers
- Procurement Officer
- Greeters / Customer Service Agent / Table Attendant
- Security Officers
5. Job Roles and Responsibilities
Chief Executive Officer – CEO:
- Responsible for providing direction for the business
- Creates, communicates, and implements the organization’s vision, mission, and overall direction – i.e. leading the development and implementation of the overall organization’s strategy.
- Responsible for fixing prices and signing business deals
- Responsible for recruitment
- Responsible for payment of salaries
- Responsible for signing checks and documents on behalf of the company
- Evaluates the success of the organization
- Responsible for managing the daily activities in the bar
- Ensures that the facility is in tip top shape and conducive enough to welcome customers
- Interfaces with vendors
- Reports to the Chief Executive Officer
- Attends to Customers complains and enquiries
- Prepares budget and reports for the organization
- Responsible for Training and Development in the organization
- Responsible for procuring of raw materials and equipment
- Handles any other duty as assigned by the CEO
Bartender / Baristas:
- Interacts with customers, take orders for drinks and snacks.
- Plans and presents bar menu.
- Checks identification of the guest to make sure they meet age requirements for purchase of alcohol and tobacco products.
- Mixes ingredients to prepare cocktails and other drinks.
- Mixes drinks, cocktails and other bar beverages as ordered and in compliance with hotel standard drink recipes.
- Prepares alcohol or non-alcohol beverages.
- Serves Wine and Beer to guests.
- Arranges bottles and glasses to make attractive displays.
- Assesses customers’ needs and preferences and make recommendations
- Makes lists of supplies in conjunction with the bar manager / management
- Prepares inventory or purchase requisitions as needed to replenish supplies.
- Ensures that the assigned bar area is fully equipped with tools and products needed for Mixing beverages and serving guests.
Accountant / Cashier:
- Collects payment for drinks served and balance all receipts.
- Prepares financial report at the end of every working week
- Handles all financial transaction on behalf of the company
- Interfaces with our bankers
- Responsible for payment of tax, levies and utility bills
- Handles any other duty as assigned by the CEO / microbrewery manager
Disc Jockey (DJ)
- Ensures that customers are entertained with the best of music per time
- Manages the sound system for the bar
- In charge of music collections
- Provides music at events.
- Responsible for developing music playlists.
- Interacts with public at parties.
- Responsible for mixing music tracks.
Greeters / Customer Service Agent / Table Attendant
- Opens door and welcome customers
- Ensures that customers feel relaxed and at home
- Handles customers enquiries
- Assesses customers’ needs and preferences and make recommendations
- Ability to Sell or influence others for up selling and suggestive selling.
- Provides recommendations and suggestions to guest for choosing Drinks and Snacks.
- Serves customers in a friendly and helpful manner.
- Provides guidance to guests on resort activities, dining options and general resort and Regional information.
- Determines when a customer has had too much alcohol and if required refusing any further serving on a polite way.
- Demonstrates a thorough knowledge of food and beverage products, menus and Promotions
- Handles any other duty as assigned by the bar manager
- Handles and move objects, such as glasses and bottles, using hands and arms.
- Cleans up after customers and clean work area.
- Clears ashtrays as and when required.
- Washes glassware and utensils after each use.
- Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
- Ensures that toiletries and supplies don’t run out of stock
- Handles any other duty as assigned by the restaurant manager,
- Ensures that the facility is secured at all time
- Controls traffic and organize parking
- Give security tips to staff members from time to time
- Patrols around the building on a 24 hours basis
- Submits security reports weekly
- Any other duty as assigned by the restaurant manager
6. SWOT Analysis
Bay Town Bubbling Bay is established with the aim of becoming the melting point for socialites and lovers of beers in Los Angles which is why we have taken our time to critically analyze and conduct SWOT analysis to be able to identify areas we need to work on if indeed we want to achieve our business goal.
No investor would want to invest his or hard earned money without assessing the risks involved in the venture and also his or her capability to deliver and make profits from the business. The ability to make profits from any business and to favorably compete with competitors in the industry starts with the result you get from your SWOT analysis.
In view of that, Bay Town Bubbling Bar hired a business and HR specialist to help conduct SWOT analysis for the business and below is a summary of the result that was generated;
Our strength as a company is, excellent and detailed customer service. Wide range of assorted drinks, beverages, tobaccos and food. Excellent facility, excellent ambience and perfect location for a bar in metropolitan city like Los Angles.
Our perceived weakness could be that we are new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.
There are unlimited business opportunities available to bar businesses in busy cities like Los Angeles; Los Angeles is one of the cities in the world where social life is at its peak. Another opportunity that we stand to leverage on is the fact that we can easily order any brand or beer and drinks directly from the manufacturer with little or no stress.
One of the threats that are likely going to confront us is the government policies, downturn in the economy which is likely going to affect sales and perhaps the emergence of new bars (competitors) within the same location where our bar is located.
7. MARKET ANALYSIS
- Market Trends
In recent time, the societal shift away from alcoholic drinks toward healthier lifestyles is to a larger extent contributing to a steady decline in the amount of household spending allocated to trips to bars and nightclubs plus the fact that nobody wants to be caught driving while drunk
The recent market trend is such that the increase in the number of consumers choosing packaged beverages for home consumption rather than at bars or nightclubs is also on the increase. This trend is surely going to have lasting impacts on both the bar business and nightclub business.
Statistics has it that the number of bar and nightclub business establishments is forecast to decline slightly but that does not in any way affect the revenue generated by those who are still in business. In fact, the revenues are expected to grow as the economy improves and consumer spending increases.
The industry revenue is projected to grow to about 2.5% per year over the next 6 years. It is also important to point out that personal income and entertainment contributes greatly to the numbers of people that patronize bars and night clubs.
Although there are loads of clients for bar business, but the profitability of individual bars within the location where they operate depends largely on their ability to drive traffic and develop a loyal customer’s base. Bars and nightclubs do not only compete with one another alone, they also share the available market with other businesses like restaurants, hotels, casinos and outlets that retails drinks for home consumption.
8. Our Target Market
We have done our feasibility studies, market survey and drafted out our juice & sports bar marketing plan. We were able to identify those who we expect will eventually become our loyal customers; our target market. Below is our target market;
- Corporate Executives
- Business People
- Sports Men and Women
- Government Officials
- College Students
Below are the statistics that we intend working with when developing our marketing and sales strategy (culled from the internet);
Householders under 35 spend 51% ($108.40 for 25 to 34 year olds) t0 58% ($113.55 for under 25 year olds) above the average household expenditure of $71.98 on beer and ale at restaurants and bars. Further, people who live by themselves and spend less than average on most typical consumer staples, tend to spend 6% relative to the rest of the population on beer at bars and restaurants.
- Ethnicity. Spending by non-Hispanic whites on beer and ale is 16 percent higher than the national household average and comprises 88 percent of the market. Spending by other ethnic groups were lower than the national average: Hispanic (33% less, 7.7% of market), Black (73% less, 3.3% of market), and Asian (50% less, 1.9% of market).
- Geography. Differences in spending on beer and ale at restaurants and bar emerge regionally: Midwest (38% higher, 32% of market), West (2% higher, 23% of market), Northeast (11% less, 15% of market), and South (19% less, 29% of market).
- Income levels. Households earning $100,000 or more spent 84% more than the average household on beer and ales, households earning $70,000 – $100,000 spend 21% more than average, households earning $40,000 to $70,000 spend about 15% more than average, while households earning less than $40,000 spend about 50% less than average.”
Our Competitive Advantage
Part of what is going to be our selling point in Los Angeles is the fact that we operate a standard bar, in a perfect location for the kind of business that we run and also the fact that bar facility is highly secured. Another factor that will give Bay Town Bubbling Bar competitive edge is that we have enough packing space to accommodate the numbers of customers our bar can contain per time.
We are not ignoring the fact that we are amongst the few neighborhood bars in downtown Los Angeles that sell almost all the brands of beers, crafted beers, wines, distilled spirits, liquors et al and obviously, that will surely count towards our advantage in the market place and also the robust experience of our CEO and the bar manager is also a positive for Bay Town Bubbling Bar.
9. SALES AND MARKETING STRATEGY
- Sources of Income
The sources of income for Bay Town Bubbling Bar are stated below;
- Sales of Beers (Bud Light, Coors Light, Miller Lite, Budweiser, Michelob Ultra-Light, Natural Light, Busch Light, Bush, Redds Apple Ale, Sierra Nevada Pale Ale, Keystone Light, Pabst Blue Ribbon, Bud Light Lime, Bud Light Platinum Lager et al)
- Sales of Locally Crafted Beers (Pale Beers, Amber Beers, Dark Beers, Hebrew Beers, Gluten Free, Organic Brews, Cider et al)
- Sales of Assorted Wines
- Sales of Distilled spirits
- Sales of Liquor
- Sales of Martinis
- Sales of Small Chops
- Sales of Non – alcoholic beverages
- Sales of Tobacco
10. Sales Forecast
It is important to state that our sales forecast is based on the data gathered during our feasibility studies and also some of the assumptions readily available on the field. Below is the sales projection based on the location of our bar and all the products we have for sale;
- First Year-: $300,000
- Second Year-: $450,000
- Third Year-: $900,000
- Marketing Strategy and Sales Strategy
Top of the list on our marketing and sale strategy document is generating a buzz for our bar via word-of-mouth and leveraging on road show.
The model of bar we intend running is a neighborhood bar, hence we are not going to rely only on the conventional ways of marketing. We don’t have the plans to run paid adverts on Local TV stations, local radio stations or even local newspaper but we will sure maximize every other available means to promote our business.
Our unique selling proposition is that we have a collection of almost all the brand of beers produced in America in our bar, we have assorted drinks and tobaccos et al. In view of that, we are going to adopt the following strategies to ensure that we do not only attract customers but generate repeated sales from them. Parts of the marketing and sales strategies that we will adopt are;
- Open our bar in a grand style with a party for all.
- Ensure that we have a wide range of beers, wines, liquors, distilled spirits, martinis and non-alcoholic drinks at all times.
- Make use of attractive hand bills to create awareness and also to give direction to our bar
- Position our signage / flexi banners at strategic places
- Position our greeters to welcome and direct potential customers
- Create a loyalty plan that will enable us reward our regular customers
- Engage on road shows within our neighborhood to create awareness for our bar.
11. Publicity and Advertising Strategy
Bay Town Bubbling Bar is a neighborhood bar and we will ensure that we create the buzz that will make people in our area know about us and what we do. We are quite aware that one of the effective ways of promoting our bar is to create special internal promotions which in turn will help us achieve our aim of leveraging on word of mouth publicity. Here are the platforms we intend leveraging on to promote and advertise Bay Town Bubbling Bar;
- Encourage our loyal customers to help us use Word of Mouth
- Sponsor relevant community program
- Leverage on the internet and social media platforms like; Instagram, Facebook , twitter, et al to promote our brand
- Install our Bill Boards on strategic locations
- Engage in road show from time to time
- Distribute our fliers and handbills in target areas
- Position our Flexi Banners at strategic positions around our bar location.
12. Our Pricing Strategy
The prices of our Beers, Locally Crafted Beers, Wines, Distilled spirits, Liquor, Martinis, Small chops, Non – alcoholic beverages, and Tobacco will be what is obtainable in the market. In fact we will try as much as we can to sell below the industry’s average so as to attract loads of customers. We also have plans in place to discount our products once in a while and also to reward our loyal customers.
- Payment Options
Our payment policy is all inclusive because we are quite aware that different people prefer different payment options as it suits them. Here are the payment options that will be available in every of our pub;
- Payment by cash
- Payment via Point of Sale (POS) Machine
- Payment via online bank transfer (online payment portal)
- Payment via Mobile money
In view of the above, we have chosen banking platforms that will help us achieve our payment plans without any difficulty.
13. Startup Expenditure (Budget)
This is the key areas where we will spend our start – up capital;
- The Total Fee for Registering the Business in Los Angeles, CA: $750.
- Legal expenses for obtaining licenses and permits as well as the accounting services totaling $1,200.
- Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
- Cost for hiring Consultant – $2,500.
- Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
- Cost of accounting software, CRM software and Payroll Software – $15,000
- Cost for payment of rent for 12 month at $1.76 per square feet in the total amount of $105,600.
- Cost for facility remodeling – $25,000.
- Other start-up expenses including stationery – $500)
- Phone and utility deposits ($2,500).
- Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
- The cost for Start-up inventory – $16,027
- Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
- The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
- Cost for serving area equipment ( glasses, flatware) – $3,000
- Cost for store equipment (cash register, security, ventilation, signage) – $13,750
- Office equipment and furniture – $3,600
- The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al): $4,000.
- The cost of Launching a Website: $600
- The cost for our grand opening party: $5,000
- Miscellaneous: $2,500
We would need an estimate of $500,000 to successfully launch our bar in downtown Los Angeles, CA. This amount includes the salary of all employees and the CEO (Owner) for 3 months.
Generating Funding / Startup Capital for Bay Town Bubbling Bar
Bay Town Bubbling Bar is a private business that is owned by Mr. David Jefferson and he intends to finance the business alone. Although he has plans to make the bar manager part owner of the business after 3 or 5 years of services, but that does not stop him from reserving well over 80 percent stake of the business for himself and his family.
Since he is the sole financier of the business, he has decided to adopt the following means to generate start – up capital for the business;
- Generate part of the start – up capital from his personal savings and sale of his stocks
- Source for soft loans from family members and friends
- Apply for loan from my Banks
N.B: Mr. David Jefferson has been able to generate $250,000 the breakdown shows that he generated $150,000 from his personal savings and sale of his stocks and he generated $100, 000 soft loans from his family members and friends. The balance of $250,000 will be generated as loan facility from his bank.
14. Sustainability and Expansion Strategy
Part of the grand plan of sustaining Bay Town Bubbling Bar is to make the bar manager a part owner of the business. The truth is that if the owner of the bar is not going to be active in the running of the bar, the chances of being defrauded will be higher.
From our findings, another factor that kills new businesses is financial leakages. In order to plug financial leakages, the management of Bay Town Bubbling Bar will adopt the use of payment machine and accounting software to run the business.
In the bid to building a successfully business, we will ensure that all our employees are comfortable and we will provide them with the best of facilities and welfare package that will help them achieve peak performance in all their duties and in turn help the organization achieve its goals and business objectives.
Check List / Milestone
- Business Name Availability Check: Completed
- Business Registration: Completed
- Opening of Corporate Bank Accounts: Completed
- Securing Point of Sales (POS) Machines: Completed
- Opening Mobile Money Accounts: Completed
- Opening Online Payment Platforms: Completed
- Application and Obtaining Tax Payer’s ID: In Progress
- Application for business license and permit: Completed
- Purchase of Insurance for the Business: Completed
- Renting of facility and remodeling the facility: In Progress
- Conducting Feasibility Studies: Completed
- Generating capital from family members: Completed
- Applications for Loan from the bank: In Progress
- writing of business plan: Completed
- Drafting of Employee’s Handbook: Completed
- Drafting of Contract Documents and other relevant Legal Documents: In Progress
- Design of The Company’s Logo: Completed
- Graphic Designs and Printing of Packaging Marketing / Promotional Materials: In Progress
- Recruitment of employees: In Progress
- Purchase of the Needed furniture, electronic appliances, office appliances and bar accessories: In progress
- Creating Official Website for the Company: Completed
- Creating Awareness for the business both online and in the neighborhood: In Progress
- Health and Safety and Fire Safety Arrangement (License): Secured
- Opening party / launching party planning: In Progress
- Establishing business relationship with vendors – suppliers of all our needed drinks, tobacco and small chops: In Progress