Opening a bar from scratch

Today there will be an unusual post for a blog format, at least I think so =). Surely everyone has their own dream regarding future achievements: a great trip, a cozy home, their own business. I can say with confidence that most of you who worked in the field of catering or were interested in this topic asked yourself the question: what, I can’t do the same? The fact is that bartenders, waiters, administrators, cooks have the opportunity to quickly understand the essence of the restaurant business. And, sooner or later, they will have an idea in their heads to separate from the general working mass and become the owner of their own institution.

I will not prevaricate – I myself am like that =). In addition, I will have a dozen acquaintances who have thought about opening their own institution, and some of them have already written business plans. Actually, from this post I start a section that will tell about how how to open a bar? Let’s see what happens, especially when you consider that I didn’t open anything myself =). Nevertheless, I have some experience in opening a new catering project, and I have repeatedly participated in the arrangement of old ones.

So, in order to understand for yourself, and most importantly, to convey to you what this section will be about, I will write in this post the main stages of preparing and launching my own bar into working condition. And in the next posts on the Rum Diary, I will dwell on certain points. I also want to immediately make a reservation that I will write posts in this section with the same intensity as in other sections, so that the blog will not turn into another commercial glossary.

Why open a bar?

Let me remind you that I live in Ukraine, therefore, all cases under consideration, recommendations, etc. will be considered on the example of the “Khokhol” mentality =). But this does not mean that these tips are not applicable for other countries, just some points can only be implemented here. Well, why, exactly, a bar?

It is rather difficult to answer this question unambiguously. Here I can deliver snot about the lack of saturation of the market and all that, after all, I received a diploma in the relevant specialty (read the previous post). Although, I’ll take it and write =). Actually, the market is really unsaturated to a certain extent. Looking at the example of Kharkov, I can say with confidence that there are no normal bars in this city. I mean exactly bars, not clubs, of which we have more than a hundred, restaurants, fast foods, cafes and other establishments where it is not clear what reigns behind the bar. In my understanding, a bar is a cozy place with good music, a huge bar counter, cheerful bartenders behind it, and so on. But we will talk about the format separately.

So, in general, there are an innumerable number of establishments in Kharkov, and in order to find everything in one: level, service, prices, furnishings, etc., you will have to try. I am sure that if you combine all the benefits available to bars in one institution, organize everything competently, then there will be no end to such a place. Actually, there are such places in Kharkov – our famous pubs, a couple of lounge cafes, coffee houses and restaurants. But, again, in most of these establishments, the bar is in a terrible state. Do you know why? Because alcohol is not cost-effective (I will also mention this in more detail). The kitchen is profitable, coffee and teas are profitable, but alcohol is not. Again, this position in the institution can be made profitable, but not everyone knows how.

In addition to the market saturation factor, it is worth telling how much a bar is more ideological than a restaurant:

  • of course, lower costs for equipment, premises, and so on and so forth (our option, we are just starting);
  • scanty marriage of products (in a serious institution, more serious stocks are needed, and in a bar there is nothing to waste, except for beer and fruit);
  • small staff – easier control process;
  • minimum cost of doing business.

Well, why open our own bar, we kind of decided, now let’s move on, in fact, to the process itself

Stages of opening a bar from scratch

Concept. In my opinion, the success of the event depends on this stage by 99%. I will dwell on the issue of choosing a concept in the next post, but for now, just in a nutshell: the format of the institution should be interesting, and, first of all, it should be interesting for you. Decide on the target audience (who do you want to see at the tables and at the bar) for which everything will be created. Then, you need to think about where this target audience lives. Here is just the case when “Magomed goes to the mountain …”, and not vice versa. In our case, the mountain is a group of potential consumers. Where she lives, there you need to open up.

However, sometimes it is not so easy to find a room in places where a potential consumer congregates, so sometimes it is more expedient to find a room first. In general, the essence is this: in the first case, we follow the path concept – audience – room, and in the second we follow the path room – audience – concept. Which path to choose is up to you, I personally like the first one more, but in life, as they say, not everything is so simple. In any case, I will write down the least profitable path here.

Stage 1: renting a space for a bar

It does not matter which path you have chosen and what goals you are pursuing. There are some general nuances in choosing a room for a bar. But no, stop! The place also depends on the format of the institution. Ideally, almost any tavern (let’s call our creativity that for a start =)) will suit a room on the ground floor of a non-residential building (office building, government structure, etc.). It’s good to make pubs in the basement, but nothing more – problems with sewerage and ventilation. The extreme case is the basement, when the windows are halfway out onto the street. On the upper floors, the institution is advisable only when these upper floors are located in shopping centers or hotels.

In general, the premises must be chosen very carefully, otherwise you can also rent a bunch of problems with renting a hall, which will lead to tangible losses in the budget. By the way, in each article I will try to operate with approximate amounts, and at the end of the post cycle I will publish a record with the total costs. So, what to look for when choosing a room for a bar:

  • serviceability of utility systems (sewerage, water, heating, light, etc.);
  • you definitely need to look for a room that is rented for a long period, so that you have time to recoup all costs and withdraw some profit; I won’t poke my nose into the nuances of drawing up a contract – a good lawyer is needed here (don’t be greedy);
  • convenient approach / entrance / swimming to the entrance of the establishment, in addition, it is desirable that the establishment has a convenient access to the service entrance for suppliers;
  • great if the area can be upgraded and enlarged while the bar is open, because you need to be an optimist; in addition, these areas can be redeemed in the future if the owner is not particularly greedy.

Be sure to stick to these basics! Otherwise, look at the circumstances. It will be just fine if the selected areas were previously used as a dining room or other catering facility – there will already be equipped with appropriate ventilation and other benefits that will not have to be spent on. In addition, these benefits will help to pass all sorts of checks less painfully (there will be a separate post about them).

Stage 2: collecting and analyzing data on the target audience

Here, not everything is as complicated as it might seem at first glance. Found a room – look for people who will come to this room. To do this, it is enough to study the houses where our clients live in the selected area, the cars that are next to these houses, the level of development of the selected area and its infrastructure. You can also watch the movement of people past the selected building throughout the day. In general, you need to be a bit of a sociologist: assess the average age, the status of the prevailing number of people, and so on. It is clear that it is worth going through all the establishments in the area and see what kind of audience hangs out there, and what format the competitors have.

To make it clear why all this is done, I will give a few vivid examples. In Kharkiv, almost all pubs are located away from the big traffic, in cozy and relatively quiet places. Many do not even suspect about them, in any case, not the target audience does not suspect. A good institution does not even need to be promoted – word of mouth has always worked (transmission of information from mouth to mouth, so to speak). So, our best pubs are already visited by a formed group of people who bring a lot of friends with them – that’s popularity.

The other side: coffee shops. These things are located closer to the centers, in particular, business centers. On the main streets in busy places, near offices, universities and other crowded but prestigious areas. With examples, you can continue indefinitely, but I hope you get the point.

Stage 3: bar concept

This is where you need to be extremely careful. It is this fad that inspires the most confidence among the guests of the institution. The concept can be expressed in everything that can be organized in a bar: music, bar assortment, interior, staff uniforms, and even in the name of the bar. In general, it is worth immediately starting with examples. Pub Patrick near the Metro Historical Museum: ground floor, a small room, decorated in English, pub style, a large bar counter, finished in oak, like all tables and chairs in the establishment, plays Irish folk, Irish-themed parties are constantly held. They sell good dark beer, supposedly made by them, all kinds of imported beer, and many whiskey positions. Here the concept of the institution is immediately clear – an Irish pub (there is also an Irish Pub in Kharkov, which is decorated according to the same principle). There are always people in both pubs, and they bring a lot of money there, because it’s not for nothing that Patrick was recently opened on the central square of Kharkov, which means that the owners of the institution had something, but they had it over the past years.

Another example: the coffee shop Kofein, where I actually learned bartending. Cozy rooms (this is a whole chain all over Ukraine), decorated with caves and African motifs. The decoration there is generally a masterpiece and deserves special attention, but I think you get the point. Only fresh, own-roasted coffee in a wide range, cool coffee machines, a decent level of service from waiters dressed in themed clothes, a lounge that is constantly changing (a selection of music is made by a separate DJ every month). The audience there is not poor – a cup of coffee from 14 UAH seems to be, or maybe even more expensive. But the public goes around – they are attracted by the cozy atmosphere, pleasant music and, of course, the best coffee in Kharkiv.

Well, these are, in principle, the main stages of preparing your own drinking establishment. It is at the third stage that I will dwell in more detail in the future, as this is the most important feature when opening a bar. I will also consider the technical aspects of arranging a bar: what kind of shaker to buy and where to look for other bar equipment, as well as where to find tequila or gin. In general, if you still have a dream to open your own bar and you definitely want to realize it, then be sure to subscribe to blog updates in the form below and you will be happy =)

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