How to Open a Bar: From Empty Space to Cheers & Grace

Opening a bar is a long and laborious journey. But if you were to ask most people, they'd tell you it's 100% worth it. Making the experience an enjoyable one comes down to careful planning, research, and preparation - failing on any of those fronts will make things harder from the get-go. With this in mind, we've created a guide to show you how to open a bar the right way. Explore the art of bar management for a thriving establishment. From special considerations to finishing touches, BROOD's here to help you through every phase of the process. Read on!

What Do You Need to Open a Bar?

The first item on our opening a bar checklist isn't something you can pick up at the store, but is ultimately essential if you ever want to be able to legally open your doors. That's right - licensing. In virtually every part of the United States, establishments are required to have a business license, alcohol permit, and health department clearance before opening shop as a vendor. We recommend doing some research on your locality's specific laws and pursuing necessary permits at the beginning of this process.

Your Checklist to Start a Bar Business

A checklist for opening a bar with no experience sounds intimidating. Fleshed out step by step though, it's actually pretty straightforward:

1. Choose a Concept
2. Market Research
3. Create a Business Plan
4. Legal Requirements
5. Location Selection
6. Design and Layout
7. Build Inventory
8. Getting Bar Equipment
9. Hiring and Training Staff
10. Menu Creation
11. Managing Operations
12. Marketing and Promotion
13. Customer Experience
14. Adapting to Trends

But keep in mind - this opening a bar checklist is the bare minimum of what you'll need to start bar business operations. Starting a successful one will likely require a bit more work.

How to Open a Bar Step by Step

Create a Plan

1. Choosing the Right Concept

How to start a bar business step one: choose the right concept. By the concept, we mean the theme, or style you're going to adopt. Identify what resonates with your target audience. The colors, furniture, artwork, lighting, music, and scents used from here on out should match. For instance, if you're targeting a younger clientele, you may want to consider going with a more modern look or even something like an industrial pub vibe. While it may seem a bit superficial, concept is key to getting people in the door of your establishment before ever getting a taste of its drinks.

2. Market Research

Starting a bar involves more than just internal setup work. You'll also need to spend some time researching and understanding your local market. After all, it's very likely that there's already a hot place in town everyone loves. How can you expect to compete? The answer is by knowing what your competition already offers and providing something different. Maybe you're opening a lounge bar, but you plan to provide craft cocktails that are not available in the area. Or perhaps your location will be known for hosting unique events like trivia nights or live music shows that no one else does. Find a way to stand out, whatever that may be.
It's also wise to get a feel for trends in the industry. The bar business has changed drastically over the years, and those changes have created new opportunities for entrepreneurs. Capitalize upon them before someone else does!

3. Creating a Business Plan

Just like for every other type of entrepreneurial venture, starting a bar requires a business plan. This all-encompassing document is meant to include everything a potential investor would want to know, from industry and market competition to strategy.
See our breakdown below.

• Executive Summary: This summarizes your bar's concept, target market, and goals.
• Market Analysis: The data from your market research should be used to demonstrate a thorough understanding of the landscape your business will face and that you know how to open a bar that will be successful.
• Financial Projections: Estimate startup costs, operating expenses, and potential revenue here. It's also important to note whether you plan on taking out a loan from a bank or other financial institution.
• Marketing Strategies: Outline how you plan to open a bar that attracts customers, build brand awareness, and retain clientele.

4.Legal Requirements

Forget bar equipment and grocery lists - before even thinking about opening a bar, you must obtain proper licensing to avoid legal trouble. Starting a bar isn't necessarily hard, but tackling the mountain of paperwork that comes with it will definitely require some strong coffee. Aside from registering your business as a sole proprietorship, partnership, LLC, or corporation, you'll also need to arrange a proper liquor license, commercial real estate lease, and equipment lease, alongside employment contracts, independent contractor agreements, partnership agreements, liquor supplier agreements, loan agreements, sign permits, building permits, health permits, seller's permits, and general liability insurance.

It's only after all of that is sorted out that you can open a bar with any chance of making it off of the ground.

5. Location Selection

Next up on the list of things to figure out is location. You can open up a bar just about anywhere, so long as that space is suitable for preparing and serving beverages. Just keep in mind that it needs to be zoned for commercial operations, and have the proper infrastructure in place. A good rule of thumb is to try and open up near other bars, restaurants, or nightlife hotspots - that way you'll already have a built-in customer base. Budget can't be forgotten along the way either, so try to remain level headed as you browse potential options.

How to Set Up a Bar

6. Design and Layout

Now the actionable part of setting up a bar actually begins. Start by choosing a layout for your space complete with appropriate areas for serving, seating, and congregating. A good bar design plan can go a long way in keeping customers moving and business flowing seamlessly. Tying back to our first step, this is when you'll make that chosen brand concept a reality through carefully selected decor, lighting, furniture, and color accents. Whatever size of space you're working with, be sure to keep it warm, inviting, and accessible for everyone.

7. Inventory

Tracking costs is paramount for any business, especially in the bar scene. Knowing exactly what you’re spending on each item not only helps ensure your profit margins are healthy but also empowers you set the right prices for your customers.

When setting prices for your bar’s drinks, focus on selecting items that will generate the most profit while still providing an attractive offering to customers. Premixed cocktails are a great starter option for those who want to make a wide range of drinks without added hassle.

Learning how to open a bar is a complex process, but understanding the costs involved can make success that much easier. Well, that and also having reliable vendors.

8. Bar Equipment

You don't plan to open a bar without equipment, do you? Bar equipment is a big but critical investment you'll need to make upfront before letting any customers in the door. It's smart to focus on quality and durability, then cost when selecting individual items. We've listed some of the most essential below.

• Jigger: A measuring tool used for accurately pouring spirits and other cocktail ingredients.
• Shaker: Used to combine ingredients and chill them with ice.
• Bar Spoon: A long-handled spoon used for stirring, layering, and measuring cocktail ingredients.
• Citrus Press: Used to extract fresh juice from citrus fruits like lemons, limes, and oranges.
• Muddler: A tool used to crush ingredients like herbs and fruits for flavor release into cocktails.

If you're looking for the best bartender kit for your bar outright, we recommend taking a look at BROOD's all-in-one package.

9. Hiring and Training Staff

Whether you've taken on the task of starting a bar on your own or with the help of the partner, that bar will need staff to operate reliably. Kick off the recruiting process early on to ensure you have a team of qualified staff members ready when the doors open. A well-crafted job description can help set expectations, outline responsibilities and qualifications, and ensure that the person hired will fit into your bar's culture. Remember that you'll still end up needing to train onboardees on standards of practice and quality; above all else, customer service will be paramount to your establishment's success.

The Grand Opening

10. Menu Creation

How to open a bar: check. How to open a bar with great drinks: read on. Because there's no given guarantees that your place will be a hit from the get go. Most of the time, it's the menu that will get people talking. So don't skim over this step - take the time to really analyze your customers' needs and craft a selection of offerings that stops them in their tracks. A great selection of cocktails, beer, and wine is essential, but avoid going overboard and be sure to keep price differences in check. It's also a common best practice to separate the food and drink menus from one another and add some visual interest.

11. Managing Operations

Although the steps we've been through up until now have certainly required effort, this next one will probably test you the most. It's time to learn how to own a bar that can keep itself running on a day-to-day basis. A long-term practice, proper management involves regularly training and supervising staff, managing inventory, dealing with customer feedback, and scheduling shifts. Do yourself the favor of investing in a Point-of-sale system that can help you automate time-intensive tasks like creating and tracking orders, as well as tracking sales.

12. Marketing and Promotion

You could have the best drinks in the world, but they won't do a thing if no one knows your bar exists. Marketing is essential to sustaining any business in a competitive market and it couldn't be any more important during the start up stage. Utilize both online and offline strategies, from social media channels to in-person events. Everyone loves a good trivia night, and by hosting one, you'll be sure to put your name on the map. One of the most important parts of learning how to open a bar business wise is capitalizing upon reviews - ask customers for feedback, and be sure to respond promptly. You can also generate referrals by encouraging customers to spread the word with incentives, prizes, and special discounts.

Ensuring Long-Term Success

13. Customer Experience

Even after you've done a great job of opening a lounge bar, keeping people coming will require ongoing work. This is where customer experience comes into play - although simple, it can have a monsterous impact on how sustainable a business' operations are long-term. Strive to set high standards while getting engaged with your bar's clientele through exciting events like live music, karaoke nights, and more.

14. Adapting to Trends

So, you now know how to own a bar. But that's today. What about tomorrow? Success down the line will depend on your ability to follow and stay fluid with trends as they emerge. Craft beverages are a great example of this. People always want unique tastes, new experiences, and creative takes on their drinks. Opting to use espresso martini premix with an innovative serving system could add just that extra something to your patrons' visit.

Elevate Your Beverage Game

We've already said it once, but we'll say it again: starting a bar comes down to more than just good planning. You'll also need exceptional bar equipment to leave a lasting impression on your customers. To this end, BROOD's machines are designed to provide reliable service for a wide range of drinks - from cocktails all the way to coffee. Opening a bar with BROOD will... Carefully streamline your cocktail-making to craft drinks in less time. Enable you to pour premium quality cocktails instantaneously by pre-batching in advance. Reduce your bar's need for costly labor.

DRNX

DRNX represents the foundation of BROOD's bar equipment. This high-caliber machine isn't some average coffee maker - it's capable of producing five cups of espresso per minute, flash chilling liquid, infusing beverages of all kinds with nitrogen, and so much more. Modern design elements only add to the appeal, creating an inviting atmosphere and topic of discussion anyone who comes into your bar will surely take interest in.

DRNX DUO

If you love DRNX but are in search of something with a bit more capacity, look no further than DRNX DUO. It comes with the same amazing capabilities as its counterpart only doubled. That's right - two taps that can pour perfect coffee in mere seconds. We highly recommend this unit for those who plan to open a bar that serves a lot of iced-based drinks, specialty coffees, or that expects to see heavy foot traffic on a regular basis.

DRNX BRW

Now, do you want to start a bar, or do you want to start the city's best bar? DRNX BRW can help you get there. Specifically designed for highly demanding commercial environments, this nitro cold brew system tops our catalog off with a slew of advanced features and functionalities. Fill it with coarse beans and water to both brew and infuse consistently ice-cold beverages for up to 12 hours. As a self-contained unit, you'll have no problem finding a space for this machine on your busy countertop.

Conclusion

Hopefully by now, this article has taught you how to open a bar that checks off all the boxes customers have to fill. The key to success throughout the process is patience and careful execution. Those two things can never be supplemented, nor can great customer service. With that and the above tips in mind, you're ready to start bar planning and make your entrepreneurial dreams a reality. Good luck!