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-   -   Is opening a bar in this economy a bad idea? (https://gfy.com/showthread.php?t=882223)

After Shock Media 01-17-2009 11:06 PM

Why does it seem that a lot of people seem to be associating the idea of a bar with a nightclub?

Seems to me that many nightclubs must reinvent themselves all of the time to keep the young clientele in the place. Would be a pain in the ass wanting or needing to stay current with the current crop of 21 to 29 year olds all of the time with emphasis on the 21-25 market.

Whereas a small dive bar or hole in the wall that was not a run down scary place with toxic toilets and stuff, always seem to have massive staying power. Especially if they take care of a small group of patrons typically from nearby businesses. Add in some quality grub and keep it the opposite of a meat market and it seems these things never close.

Hell I would do it myself but there are no liquor licenses available around here, even no lotteries for them any time soon. Hell traderjoes had to pay a fucking arm and a leg to buy one off of someone else here - like an obscene amount.

Axzar 01-17-2009 11:08 PM

Burritos, Frozen Margarita Pitchers, free chips and salsa, acoustic music on the patio, good location.You can't lose. Get the soap opera ladies in for lunch (they love free chips and the oh so healthy taco salad).

andy83 01-18-2009 12:44 AM

in a downturn there will be some businesses that make it and some don't. some people rather start their business in a downturn (if they have the cash and resources to keep it going for a few years) because of the low costs and so on.

if you really want to, and you do have the cash to keep it going for a few years and wouldnt mind losing it, then go ahead. just be more creative and not like any tom or dick or harry's pub that can be found in every neighbourhood.

good luck

Your Mothers Secret 01-18-2009 12:54 AM

A trendy nightclub is a risk.
A smaller neighborhood bar catering to alcoholics would be a long term business because
unfortunately alcoholism doesn't go out of style.

collegeboobies 01-18-2009 01:02 AM

Dont charge too much

sortie 01-18-2009 08:35 AM

Quote:

Originally Posted by BV (Post 15346971)
I would asume it's the same for both. (or close)

Say it's 10%

10% of a 2 dollar shot is 20 cents
10% of a 6 dollar shot is 60 cents

It doesn't work that way.

A $2.00 shot has a cost of $1.00 tops unless it's a "loss leader" just to get
people in the door.

Typically a $1.00 cost turns into a $3.00 shot.

So there is the problem with expensive booze, you are looking at $2.xx cost which
goes to a $5 shot. You don't want to run people away by charging $6, $7 or $8 for
a shot.

So selling one $5 shot instead of two $3 shots is less money taken in and less
profit margin on the intake.

BV 01-18-2009 10:36 AM

Quote:

Originally Posted by sortie (Post 15348439)
It doesn't work that way.

A $2.00 shot has a cost of $1.00 tops unless it's a "loss leader" just to get
people in the door.

Typically a $1.00 cost turns into a $3.00 shot.

So there is the problem with expensive booze, you are looking at $2.xx cost which
goes to a $5 shot. You don't want to run people away by charging $6, $7 or $8 for
a shot.

So selling one $5 shot instead of two $3 shots is less money taken in and less
profit margin on the intake.

Well now you have me curious.

Check this thread and forum out, looks like some good info: http://www.nightclub-business.com/fo...ead.php?t=6092

F-U-Jimmy 01-18-2009 10:44 AM

Quote:

Originally Posted by sortie (Post 15346510)
I'd think a funeral service would be more expensive than a small bar though.

You may be right ? I own a few bars /Restaurants / Cafes, and i've seen profits rise in the last 8 months about 25%. Normally during the winter months ( a freezing 75 F . today here in San Diego) takings are reduced by as much as 40%, so im guessing there are more people drowning their sorrows ?

Last Bar/Restaurant i brought for around $120,000 and spent $325,000 on the remodel. Payback is going to be 5 years on this one.

Violetta 01-18-2009 11:18 AM

nah... more problems = more drinking!

Jman 01-18-2009 11:20 AM

Quote:

Originally Posted by sortie (Post 15346495)
I know it would be better to try when things are good but with the money that
some bars make I would be glad to make just half their regular income.

Depends... If you have money to launder I'd say go for it.

If you have 1 million to burn then give it a try.

If you are opening a bar to make money... Make sure you have a profitable day job...

TyroneGoldberg 01-18-2009 11:30 AM

Quote:

Originally Posted by Your Mothers Secret (Post 15347352)
A trendy nightclub is a risk.
A smaller neighborhood bar catering to alcoholics would be a long term business because
unfortunately alcoholism doesn't go out of style.

yep, cheap beer and whiskey. and have sirloin specials on wedendays...


edit- are you near any colleges?

TTiger 01-18-2009 11:40 AM

small niche bar is winner :)

Ice 01-20-2009 12:47 PM

Quote:

Originally Posted by Fungus (Post 15346521)
Too bad we don't have Euthanasia for humans, I would sure vote for you!

You are very close to crossing the line and getting banned for a death threat.

Consider this a warning

Strike 1


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