How to Open a Bar: Starting a Bar Business

3) Trademark the Bar Logo and Bar Name

Registering the establishment’s trademarks with the U.S. Patent and Trademark Office is vital for new bar owners. This action will protect the bar’s logo and name across the country.

While bar owners can trademark their names and logos individually, many entrepreneurs find that hiring an attorney who deals with intellectual property rights is helpful. The trademark process can be complicated and time-consuming, and a skilled attorney can help simplify the process.

Before trademarking the bar’s new logo, ensure that the logo designer grants the business owner the copyright for it or provides the rights to use the logo for business purposes.

4) Get the Correct Licenses

Since the establishment will be serving alcohol, it is crucial to set up the business correctly, including attaining the proper licenses. The correct licenses are required to serve food and alcohol and play music for patrons.

Some licenses can be easily acquired, but some require time and money. Bars that are not correctly licensed can get quickly shut down, so new owners should take this fourth recommendation seriously. If the bar shuts down, the process of reopening can be complex, and customers may not want to return.

5) Select a Location

In the bar business, location can dictate success and profits. These questions can help new business owners decide precisely where the establishment should be.

• What is the bar’s proposed style? Is it a sports bar, a formal place, or in-between? Does it have a theme, and will music be an attraction? The bar’s overall style and intended vibe determine the type of customers who visit the bar.
  
  
• What is the target demographic? Different parts of the city are popular with different sets of people. For example, if the bar’s target market is college students, it makes sense to open up near a college or university. For older or more affluent customers, choose an area where young and middle-aged professionals live.
  
  
• What is the parking situation? If the bar is in an area frequented by tourists, accessible parking is usually not a concern. However, bars geared toward tourists do not generate repeat customers. If the bar is not in a tourist area, parking and accessibility should be a concern, though some city-based establishments rely on foot traffic, even for the regulars. Therefore, the parking situation is contingent on location.
  
  
• Are there zoning restrictions? Zoning restrictions can mean the difference between a successful new bar and one that fails. So pay attention to this critical category early in the process.
  
  
• What are the rent and utility costs for the building? A significant concern for entrepreneurs with bar startups is the cost of rent and utilities. Depending on the climate, heat or air conditioning is vital, and there will be many other utility bills, including gas, electricity, and plumbing.

6) Design the Bar: Bar Concept or Theme

In the restaurant and bar business, style is essential. When people go out, they seek an atmosphere that encourages them to socialize and helps them relax. Music, interior design, and even comfortable furniture such as bar stools keep customers returning.

Whatever the bar’s theme, every aspect should match and create a coherent atmosphere. In addition, it may help entrepreneurs to consider the bars and restaurants they enjoy and why those places are famous.

An interior designer can help if there is room in the budget, but there are other ways to design an sleek, intriguing new hotspot. Researching online and soliciting employee opinions can help the business find its style. Who knows, perhaps one of your bartenders is also a designer.

The key is to use style, personality, and individual flair to create a bar that creates a buzz. While style is essential, the drinks and other offerings must still be excellent. This leads us to bar inventory.

7) Purchase Bar Inventory

The bar’s inventory is essential for recording sales costs for food, liquor, and other items. Keeping track of these sales can be accomplished through a point of sale system (POS) that fully integrates with the bar’s technology provider, such as BevSpot, Avero, or SteadyServ Technologies.

Inventory tracking helps the business owner set prices and decide which items lead the way in profitability. This information allows bartenders to recommend the correct drinks and increases the business’s profit margin.

New bar owners should also ensure that an excellent accounting system is in place. Many bar owners use Quickbooks, and others hire bookkeepers to do the accounting. Whatever option the owner chooses is integral to keeping track of business performance and knowing when to make improvements.

8) Choose a Bar Point of Sale System

New bars are not complete without a quality POS system. New bar owners must invest in a POS system as a safety precaution against possible theft by patrons or employees. POS systems have also been proven to speed up bar workflow and kitchen efficiency.

New bar POS systems are customizable, so bar owners should be able to land on a system that perfectly suits their bar business. Top POS system features include:

• Time-based Pricing: bar owners often want to change pricing based on a schedule. For example, if an owner wants the daily happy hour prices to be lower than usual, they can make that an automatic feature.
  
  
• Handheld Systems: PS systems such as Toast Go™ allow servers to take orders from customers anywhere in the bar. Plus, customers can pay and tip directly on the device, and the “repeat” button makes re-ordering drinks a breeze.
  
  
• Splitting the Check: Regardless of whether a customer moves from one area to another, transferring the check should be easy, and quality POS systems accomplish this. POS systems also make splitting checks by item or person easy. POS systems can also help bulk transfers, send paid or open checks to a new server, or close multiple tabs simultaneously.
  
  
• Management of Drink Menu: Cloud-based POS systems enable bar owners and staff to change prices from anywhere—even at home. When owners can quickly change the price of drinks to keep up with demand, profits improve.

An excellent POS system is vital for a successful bar business, especially early in the game. Bar management software has come a long way and has become a powerful and convenient tool for bar owners.

9) Hire Talented Staff Members

Even the most promising bar will not be successful without excellent employees. Bartending is a practiced skill, and the new business’s bartenders should be passionate and confident yet willing to learn.

Many managers and owners hire in the service industry based on bar proficiency, experience, and personality. Bartenders, servers, and even barbacks interact with customers daily. If an ad in the window isn’t supplying enough employee applications, try advertising in the newspaper or social media. Sites such as Poached Jobs and AllBartenders.com also can be helpful.

Barbacks are just as important as bartenders and servers since they work long grueling hours to keep drink supplies stocked. Barbacks should be hard workers who enjoy the industry and want to learn on the job. A hardworking barback often becomes a skilled bartender in a few years.

Once the initial staffing is done, quality employees can bring in their peers. Establishing a network of workers ensures that a quality bartender will always be available when needed.

One of the new bar owner’s top responsibilities is to motivate the staff. For example, posting pictures of drinks on social media and entering bartending competitions can help create passionate, happy employees. Also, when bar owners display a strong work ethic and a willingness to sweat for the business, employees take notice and work harder.

Lastly, training is vital for all new staff members. Bartender training sessions will help the team become more unified and professional, and alcohol training for servers is also essential if the establishment features table service.

10) Open the Doors and Stay Optimistic

The service industry is both rewarding and challenging, unlike any other industry. As a result, new business owners need passion, intelligence, and grit. Hopefully, this article has helped you prioritize new tasks and find an approach that will lead to success.