Bar

Management

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 Content
1. Human Resource Management

i) Staffing

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Bar Operations

Operational Standards of Performance

Food and Drink Service
Setting operational standards
At its simplest, a standard is an agreed, repeatable way of doing something. From a practical perspective, operational
standards are those standards which are recognised by the organisation as
important enough to be published and monitored for continuous
improvement. In tourism businesses, they relate primarily to service, and
contain precise criteria designed to be used consistently as a rule or
guideline.

Operational standards help to make life simpler and to increase the

reliability of many practices that guide us and the services we provide.
They are intended to be aspirational - a summary of best practices rather
than general practice. Standards are created by bringing together the
experience and expertise of all employees and the expectations of the
customers.

1. Develop the standards

Establishing operational standards and making them integral to how the restaurant operates will take time. You need
to develop a careful, well-thought-out approach that recognises:

 the different types of services and customers you have;

 your knowledge of how your people currently perform; and
 your ability to monitor performance against standards.

However, rather than wait until complete and ‘perfect’ standards are developed, you should develop your operational
standards progressively. Publish standards in areas of greater importance or impact first, i.e. those critical for
operational success.

Use the MARC acronym when developing standards:

Measurable The standard must be measurable to be of assistance in targeting improvement, and the more
specifically the standard is defined, the more measurable it will be. Therefore, a standard should be measurable by
quality, quantity and timeliness.
Achievable The standard must be reasonable and attainable, and should never be so easy that it requires no
significant effort, or so difficult that it requires superhuman effort. In setting standards, you must take into account
whether the people responsible for delivering the service have the skills and resources they require to meet those
standards, supported by systems and policies that will allow the standard to be achieved.

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Relevant The standard must reflect customers’ expectations or be designed to create a benefit for the customer and
must be relevant to your particular operation, not adopted/copied/borrowed from another.
Controllable Accomplishing the standard must be within the control of a specific department and the measurement
tools for accomplishing the desired result must be set up.

Initial standards may be incomplete or embryonic in some aspects. As you gain experience, you can improve these
standards and extend the range of services they cover.

2. Communicate the standards

Operational standards are intended to let your people know the level of performance expected of them. Reporting on
performance against standards is critical if you are to make operational standards achievable. However, you can only
do so if operational standards are readily available to and understood by employees involved in their delivery, and if
they are clear and easy to understand.

3. Monitor the standards

Develop ways to measure your performance against standards, and monitor performance constantly. Setting
customer-driven standards and measuring how well your restaurant is doing is a continuous process. It should
quickly identify problems with customer service. All parts of the organisation should be involved in finding
solutions to these problems and discussing these solutions with customers, where appropriate.

There are a number of measurement tools a restaurant can use. One effective way is to use a checklist or audit of the
standards and track performance over time. Then, action plan any areas for improvement identified to eliminate the
problem from recurring.

4. Improve the standards

Continuous improvement will allow you to set higher and higher operational standards and maximise customer
satisfaction. By consulting customers, monitoring performance and encouraging innovation, you will be able to
deliver better service.

Adapting the Operational Standards to your Business

Starting on the basis that the operational standards contained in this
resource are reflective of best practice, the first task is to see how these
can be adapted to reflect the uniqueness of your own restaurant. There will
be aspects of the standards as presented that will not apply to the way you
operate or you may have a different approach that you want reflected in
your own standards.

Therefore, each of the standards should be reviewed with the team and
amended accordingly.

This template should be used having read the Operational Standards of Performance guide at Online
Business Tools

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STANDARDS OF PERFORMANCE
Food and Drink Service

Preparation for Service

Greeting and Seating

tion for Service
Service of Drink

Service of Food

Billing and Payment

Stores Management

Closing Duties

Food and Drink Service Audit

Food and Drink Service Action Plan

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 Preparation for Service

Our Standard is:

To prepare all mise en place consistently and in a timely manner, in order to facilitate an efficient service
delivery.
How to achieve our Standard: How we will know it is done correctly:
1. Ensure that service personnel  Daily supervisory checks are made to ensure that the expected
arrive on duty at appointed time requirements of personal hygiene and correct uniform/ name
badge etc. are met.
2. Explain menu items to service  Familiarity with the various service procedures for the different
personnel on a daily basis prior to dishes.
service  Familiarity with all the equipment and glassware used for
service.
3. Allocate stations/duties prior to  Clarity on duties and responsibilities for service.
service  Special requirements for each station are highlighted.
4. Ensure that the room and  Tabletops are cleaned and polished (where applicable).
equipment are clean and tidy  Table cloths/mats are free from stains, tears and placed
correctly on tables.
 Bar counters, taps, shelving and display equipment are clean.
 Tables are laid up uniformly and symmetrically.
 Display tables are arranged prior to service.
 Air conditioning and lights are working correctly and create a
positive ambience.
5. Check table reservations and  Tables and chairs are arranged in accordance with the table
allocate tables accordingly plan, are correctly laid-up and all table items are clean and tidy.
 Final check of reservations diary is carried out and last minute
changes are made where necessary.
6. Adequately stock and prepare for  Stocks of glasses, napkins and other equipment are organised
service prior to service.
 All cutlery, crockery and glasses are clean, ready for use and
stored correctly.
 Appropriate quantities of lemons, limes, and oranges are
prepared, presented and stored. Ice buckets are clean and fully
stocked.
 Requisition for dry goods, condiments, snacks and drink
garnishes is retrieved and items are stocked.
 All condiments are clean, fresh and well presented.
 An adequate supply of correct docket books, pens, and wine
openers is available.
7. Ensure that an adequate supply of  All menus are accurate, up to date and free from spelling
clean and accurate menus is mistakes.
available  Menu and covers are clean and tidy and create a positive
impression for guests
8. Prepare tills and floats  Tills are switched on, updated and till reads taken.
 Bar floats are retrieved and registers are stocked appropriately,
ensuring that the required denomination of notes and coins are
in place.
 Floats for lounge service staff are prepared.

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 Greeting and Seating

Our Standard Is:

To greet all guests in a timely and friendly manner, then seat in an efficient and polite manner. To take food and
beverage orders correctly and process the orders efficiently.
How to achieve our Standard: How we will know it is done correctly:
1. Acknowledge and greet guests, as  Guests are greeted with a smile, good eye contact and an
soon as they arrive, with a smile interested facial expression.
 Guests are addressed by their names (if known).
2. Offer to take coats  Coats are treated with care and stored safely and securely.
3. Lead guests to the table and ensure  Guests are checked that the table chosen is suitable.
they are happy with table allocated
4. Seat guests, present menus and  Chairs are withdrawn to allow guest to sit easily.
drinks list  Clean menus are opened and presented to each guest and
inform of any specials or off dishes.
 Clean wine list is presented to the host and offer of assistance is
made with selecting wine, if required.
 Any wines unavailable are explained.
5. Offer to take a drink/water order  Pre-dining drinks order is offered.
 Water is offered and served to guests.
6. Allow guests sufficient time to  Knowledge of the menu and wine list is displayed.
study menu  Assistance is offered, recommendations are made, if required.
 Service personnel are attentive, but not obtrusive whilst guests
are selecting.
7. Adopt a smiling, confident and  Service personnel establish empathy with customers and are
attentive approach when dealing responsive to their needs.
with customers
8. Take the food order in a courteous,  Service personnel are alert to sales opportunities and adopt a
friendly and professional manner positive approach to selling.
 The food order is taken correctly and written legibly.
 Cooking instructions are requested and recorded, where
applicable.
 Order is re-checked for accuracy with customer (if appropriate).
9. Take the beverage order correctly  Knowledgeable of the composition of the beverage and wine
list is displayed and recommendations are made, as appropriate.
10. Distribute dockets to the  Duplicates are retained in order pad, for reference and control
appropriate departments, i.e. purposes.
kitchen, bar, cashier
11. Use the electronic order system  All appropriate service personnel are competent in using the
where applicable electronic system.
12. Ensure that all items are charged  Items are charged correctly to the guest’s account and
to the guest’s account appropriate back up is available.

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 Service of Drink

Our Standard is:

To promptly serve all drink items in the correct glassware and in a friendly and professional manner.
How to achieve our Standard: How we will know it is done correctly:
1) Serve wines at the recommended  Young Red Wines: 12oC -14oC
temperatures  Burgundy Villages: 14oC -16oC
 Château Bottled Bordeaux : 16oC -18oC
 Champagne/Sparkling/White wine: 5oC - 7oC.
2) Present the bottle to the host for  Wine bottle is rested on palm and lower arm, on top of a clean
approval napkin, with label facing customer.
 Outside rim of the bottle and the top of cork are wiped with a
clean service cloth.
3) Open the bottle and seek host’s  Capsule is cut below the lip of the bottle.
approval  Corkscrew is inserted slightly off-centre, cork is not pierced to
end, inside bottle neck is wiped.
 For Champagne/sparkling wine: the foil and wire muzzle are
removed, the bottle is tilted at a 45° angle pointed away from
guests.
 Approximately one ounce of wine is poured into the host’s
glass for tasting purposes.
4) Serve the wine following the  The first lady to the right of the host is served first, then each of
appropriate etiquette the remaining ladies, then each gentleman and finally the host’s
glass is filled to the required level.
 Wine is served from the right, filling each glass ½ way.
 The bottle is not allowed to rest on the wine glass when
pouring; the label is visible at all times.
 Glasses are replenished as necessary.
5) Serve other drink following the  Bottles (beer, mixer, etc.) are clean, with labels intact and
appropriate etiquette checked for chipping.
 Glasses are clean and correct for the drink provided.
 Bottles and glasses are handled at the base only.
 Drinks are always carried to tables on a tray and presented to
the guest using a coaster.
 Empty glasses and bottles are removed from tables by using a
tray.

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 Service of Food

Our Standard is:

To promptly serve all food items at the correct temperature and in a friendly and professional manner.
How to achieve our Standard: How we will know it is done correctly:
1) Ensure all portions are of a  Portions are evenly distributed and tastefully presented on the
consistent standard and size plate.
 Correct garnish is served with each food item.
2) Serve food at the correct  Hot meals are not left unattended for a long time at hotplate.
temperature
3) Set the correct cutlery for food  Appropriate cutlery is laid prior to service of each course.
items used
4) Observe the correct etiquette for  Each guest’s order is matched with the meals served.
food service  Presentation of food items is completed in a confident and
professional manner.
 Food is served from the customer’s left where possible.
 Appropriate accompaniments are served at the correct time.
 Staff are alert to sales opportunities and adopt a positive
approach to selling.
5) Ensure that excellent guest care is  Guest satisfaction is checked and corrective action is taken
offered during meal where necessary.
 Attentiveness to guest’s requirements is maintained.
6) Carry out clearing duties without  Service personnel are observant and clear tables in a structured
unnecessary intrusion to guests and efficient manner.
 Clearing is carried out from the right of the guest, where
possible, checking with each guest before removing items.
 Only appropriate quantities are carried at any time.
 Empty glasses are removed using trays, without handling the
insides or rims of glasses.

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 Billing and Payment

Our Standard is:

To handle billing accurately. To deal with any discrepancies quickly and with discretion. To handle payment in a
timely and friendly manner.
How to achieve our Standard: How we will know it is done correctly:
1) Present bill quickly and discretely  Bills are reviewed for accuracy before presentation to guest.
to the guest, when requested  Itemised bill is presented accordingly.
2) Correct discrepancies promptly  Billing errors are handled and resolved competently.
 No unwanted attention is brought onto guest by error made.
3) Handle all credit card and cash  Receipts are given to the guest with the correct change.
payments correctly
4) Show appreciation for custom  Guests are thanked and gratuities are acknowledged gracefully.
 Customers are bid a sincere farewell and invited to return.

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 Stores Management

Our Standard is:

To receive and store all goods in the appropriate secured area. To account for all stock by careful issuing and
regular stocktakes.
How to achieve our Standard: How we will know it is done correctly:
1) Ensure that storerooms provide a  Storerooms and equipment are kept clean on an on-going basis;
hygienic storage environment regular deep cleaning is implemented.
 Beer lines are cleaned once a week.
 Cardboard boxes/packaging are disposed of correctly.
 Correct temperatures are maintained at all times.
 Adequate pest control measures are in place to maintain a
hygienic environment.
2) Adhere to safe storage conditions  Storerooms have sufficient space and storage shelving for the
quantities of stock held.
 Storerooms have adequate lighting for safe access and use.
 Combustible or toxic items are not kept in storerooms and
cleaning agents are stored carefully.
 All bottle labels are maintained in good condition.
 Cases are not stacked too high and are easily accessible.
 Glass, bottles and other breakables are safely stored.
 CO2 containers are stored safely.
 Storerooms are locked when not in use.
3) Ensure efficient and effective  All items are stored by product.
storage of stock  Empty cases, bottles, kegs are stored away from full items.
 Spirits are unpacked and stored on designated shelves.
 Stock rotation is strictly adhered to.
 All perishable goods are kept in a cool, dry place.
4) Receive deliveries at a convenient  Delivery times are agreed in advance with suppliers and meet
time business needs.
 Supervisor ensures that health and safety regulations are
adhered to whilst deliveries are being accepted.
 Supervisor has supporting order-documentation to cross
reference with the delivery docket provided.
5) Check the delivery docket against  Supervisor checks each case for the correct quantity and
the order form quality.
 Discrepancies are noted and recorded.
 Kegs are spot checked by weighing upon delivery.
 All empty kegs, cases, etc. are returned, once delivery is
finished.
6) Ensure effective issuing and  Access to stores is strictly controlled and goods are only issued
control of stock at defined times, on receipt of the appropriate signed requisition
form.
 Items are only issued by the individual responsible for
store/cellar management, or designate.
 Stock taking is regularly completed and results are recorded.
All discrepancies are investigated.
Closing Duties

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Our Standard Is:
To carry out all closing duties efficiently and effectively at all times, to ensure the safety and security of
personnel, the premises and stock.
How to achieve our Standard: How we will know it is done correctly:
1) Ensure that the restaurant/bar is  Guests are politely informed in advance of closing.
closed, in a timely and efficient  Premises are cleared in accordance with the house policy and
manner legal requirements.
 Guests are allowed the legal permitted drinking-up time and
politely encouraged to leave.
 Security check is carried out in toilets and other areas, once all
guests have departed.
2) Thoroughly clean the  The room is well ventilated and cleaned.
restaurant/bar area  Tables and chairs are cleaned and replaced in correct positions.
 Floor area is thoroughly swept/vacuumed and mopped as
appropriate.
 All glass, chrome, doors and mirrors are thoroughly cleaned.
 Toilets are cleaned and serviced.
3) Clean and tidy the back of house  Bottle bins/skips are removed to back yard.
area  All bins are emptied, washed and bin liners replaced.
 Drip trays are emptied, washed and replaced in correct position.
 Waste/Spillage is accurately recorded.
4) Complete a stock take and  Stock is accurately counted and a requisition is prepared.
prepare a requisition  Requisition is prepared for stock of dry goods, condiments and
wine.
5) Clean and store equipment  All dirty glasses, water jugs, ice buckets and cutlery are
correctly cleaned, polished and checked.
 Glass washing and coffee machines are emptied and cleaned
then switched off.
 All electrical equipment is cleaned and switched off as
appropriate.
6) Control and secure cash  Final till reads are taken, floats retrieved and cash reconciled in
a secure location.
 Non-balances are investigated and rectified.
 Daily takings are recorded appropriately and deposited safely in
the designated location.
7) Carry out final checks to ensure  Designated personnel ensure that all closing procedures are
all closing duties completed completed, according to established procedures.
 Checks are carried out for lost property which is then tagged
and stored in designated area.
 Any deviations are identified and rectified.
 Heating, lighting and ventilation are attended to, as appropriate.
 Final security check of doors and windows is carried out and
alarms set as required.

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 Food and Drink Service Audit
Date: ___________________________ Auditor: _____________________________

Standard Measure Yes No

1. Preparation for Service Do service personnel arrive on duty at appointed time?

To prepare all mise en place Are menu items explained on a daily basis prior to service?
consistently and in a timely manner,
in order to facilitate an efficient Are stations/duties allocated prior to service?
service delivery.
Are the room and equipment clean and tidy?

Are table reservations checked and tables allocated accordingly?

Are items adequately stocked in preparation for service?

Is there an adequate supply of clean and accurate menus available?

Are tills and floats prepared?

2. Greeting and Seating Are guests acknowledged and greeted with a smile as soon as they arrive?

To greet all guests in a timely and Is an offer made to take coats?

friendly manner, then seat in an
efficient and polite manner. To take Are guests led to the table and checked that they are happy with table
food and beverage orders correctly allocated?
and process the orders efficiently. Are guests seated and presented with menus and drinks list?

Is an offer made to take a drink/water order?

Are guests allowed sufficient time to study the menu?

Is there a smiling, confident and attentive approach adopted when dealing

with customers?
Is the food order taken in a courteous, friendly and professional manner?

Is the beverage order taken correctly?

Are dockets distributed to the appropriate departments, i.e. kitchen, bar,

cashier?
Is the electronic order system use where applicable?

Are all items charged to the guest’s account?

3. Service of Drink Are wines served at the recommended temperatures?

To promptly serve all drink items in Is the bottle presented to the host for approval?
the correct glassware and in a
friendly and professional manner. Is the host’s approval sought having opened the bottle?

Is the wine served following the appropriate etiquette?

Are other drinks served following the appropriate etiquette?

4. Service of Food Are all portions are of a consistent standard and size?

To promptly serve all food items at Is food served at the correct temperature?
the correct temperature and in a
friendly and professional manner. Is the correct cutlery set for food items used?

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 Is the correct etiquette observed for food service?

Is excellent guest care offered during meal?

Are clearing duties carried out without unnecessary intrusion to guests?

5. Billing and Payment Is the bill presented quickly and discretely to the guest, when requested?

To handle billing accurately. To deal Are discrepancies corrected promptly?

with any discrepancies quickly and
with discretion. To handle payment in Are all credit card and cash payments handled correctly?
a timely and friendly manner.
Is appreciation shown to guests for their custom?

6. Stores Management Do the storerooms provide a hygienic storage environment?

To receive and store all goods in the Are safe storage conditions adhered to?
appropriate secured area. To account
for all stock by careful issuing and Is stock efficiently and effectively stored?
regular stocktakes.
Are deliveries received at a convenient time?

Is the delivery docket checked against the order form?

Is stock effectively issued and controlled?

7. Closing Duties Is the restaurant/bar closed in a timely and efficient manner?

To carry out all closing duties

efficiently and effectively at all times, Is the restaurant/bar area thoroughly cleaned?
to ensure the safety and security of
personnel, the premises and stock. Is the back of house area cleaned and tidied?

Is a complete stocktake carried out and a requisition prepared?

Is equipment cleaned and stored correctly?

Is cash controlled and secured?

Are final checks carried out to ensure all closing duties are completed?

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 Food and Drink Service Action Plan
Date From: ___________________________ Date To: ________________________

Standard Area For Action To Be Taken By By Reviewed

Improvement Who When Yes/No

1. Preparation
for Service

2. Greeting and
Seating

3. Service of
Drink

4. Service of
Food

5. Billing and
Payment

6. Stores
Management

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7. Closing
Duties

i) Operational Costs

BAR OPERATIONS PROCEDURES

Bar operations involve careful handling; of all kinds of alcoholic drinks and converting their
contents into revenue. Standard operating procedures (SOP) set by the establishment must be
strictly followed during the service. The bar staff is completely responsible for the drinks
received from the cellar and must maintain the record of bottles received, returned, quantity of
drinks sold, revenue generated, breakages, spillage, beverage cost percentage, etc. and also for
the guests' satisfaction.

Steps involved in Bar Operations

To make the bar operations successful and to control the cost effectively, the following initial
steps must be taken.
• Establish the drink size for straight drink.
• Standardize the recipes for all cocktails and other mixed drinks.
• Standardize the size and shape of the ice to be used.
• Standardize the glassware in which the drinks are to be served.
• Finalize the method of pouring the drink—freehand pour/automatic pourer/electronic pouring
device, etc.
• Finalize the mixes and juices to be stocked in the bar.
• Standardize the complimentary snacks to be offered during the drink service.
• Calculate the selling price per drink based on the bar profit (gross profit) aimed at achieving.
• Establish control system—both cost and revenue.
The starting point for beverage operations and control is establishing standard portion size for
'straight drinks' and standard recipes for 'mixed drinks'. All bar staff must ensure that it is
followed throughout the operation. Without establishing the standard drink size and standard
recipes, it will not be possible to ensure consistency in the quality of products and service
extended to the guests and will be difficult to control the cost and arrive at meaningful
information. The objectives of standardizing the size and recipes of the drinks are to
• Monitor and check if there is any deviations from SOP
• Compare and analyse the potential and actual cost
• Ensure consistency in quality of products and service
• Assist in training the staff

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• Fight against the internal and external malpractices
Establish drink size
To know how much of revenue will be generated through sale of drinks from the stock received,
bartenders must know the size of the drinks for straight and cocktail drinks. Each bar may
standardize its own serving size and it must be clearly displayed or printed in the wine list for the
customers to know and for the bartenders to serve accordingly.
Wines, Beers, cider, spirits and fortified wines, vermouth, and liqueurs must be sold in accurate
measured quantities.
Standardize the recipes for all cocktails and other mixed drinks
In the preparation of cocktail and mixed drinks, two or more ingredients and sometimes garnish,
such as cherry, olives, etc. are used. In order to ensure the consistency in size, quality, taste, and
the presentation, the cocktail and mixed drinks recipes should be standardized. They help in
maintaining the consistency in quality and controlling the cost of the drinks.
In the cocktail recipe, the ingredients, yield, the type and quantity of ice, the method of mixing
the ingredients, and the glass in which it should be served should be mentioned. The cost
involved in the preparation of each standardized cocktail should be calculated and the selling
price fixed up based on the gross profit percentage required. A photograph of each cocktail may
be taken for reference and training the new staff. The printed copies of standard recipes are kept
in the bar, training department, and the control department.
Standardize the size and shape of the ice
Ice is available in many sizes and shapes. How much of ice and what shape should be used per
portion should be standardized.
Standardize the glassware in which the drinks are to be served
glassware is the most important stock required for the bar operations and they are available in
variety of shapes, sizes, and quality. The quality of glassware used in the bar is very important as
it enhances the appearance and image of the drink it holds and also the profile of the bar. For
example, cognac served in inferior quality glassware brings down the reputation and image of
the drink and an ordinary brandy served in high quality brandy snifter looks impressive in the
glass. Each drink should be served in the appropriate glass. For example, red wine in red wine
glass, white wine in white wine glass, champagne in champagne tulip, etc. Having too many
varieties of glasses also pose a problem of not only involving huge investment and more storage
area but also resulting breakages of similar glasses as and when required may be difficult For a
practical season, many bar operation settle down for very few varieties of glasses and one variety
may be used for two or three types of drinks.
The management must decide the type of glass for each drink according to the quantity to be
served. For example, the management may decide to use 'old-fashioned/rocks' for all spirits if
ordered 'neat' and the 'highball' if ordered 'with any mixes'. So, the bar needs only two types of
glasses as far as spirits are concerned. Some bars may exempt Cognac or brandy and use brandy
balloon or snifter only when it is served 'neat'. For beers, it may consider either beer mug or beer
goblet.
Glassware should be washed immediately after its use as the dirty glasses are the breeding
ground for germs. Never touch the inside of the glass, rim, and outside of the glass below the
rim. Always handle the glasses by their base or stem. Carry the clean glasses upside down on a
salver or tray lined with clean mat or cloth and carry the used glasses upright.
Finalize the method of pouring the drinks:
There are three methods of pouring liquor.

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Free hand pouring: This method is a subjective form of pouring in which the bottle with the
pourer is turned upside down at full force. The bartender counts in his/her head one, two, three at
his/her practiced pace to get an ounce or whatever is the standard measure. However, this is not
an accurate method and hence not recommended.
Pouring with shot glasses or jiggers: The two basic types of measurers are shot glasses and
jiggers. Shot glasses are used for basic spirits served neat or with mixers—for example, 1 oz. 1 ½
oz. or the equivalent in metric measures. The jigger is usually made of stainless steel and
measures smaller quantities of ingredients for cocktails. These measuring devices have line
marking to measure accurately.
Automated pouring device: Automatic pourers are available that can be inserted into opened
liquor bottles which measure the liquor poured and cut off automatically when the preset
quantity is dispensed. Many of the operations use mechanical or electronic pouring devices for
accurate and fast pouring. Some electronic measuring and pouring devices may be connected to
registers that automatically record each pour and its quantity with sales value. This facilitates
effective control.
Automated pouring system is better than the other methods of pouring liquor. However, this
system involves cost. Following are the advantages of automated dispensing system:
* Spillage is reduced.
* Billing problems are eliminated as the prices are pre-programmed. As and when drinks are
poured, bill is automatically generated.
* Drinks are poured accurately.
* It is very quick and saves labour.
* Dishonest employees are prevented from stealing or giving away free liquor.
* Performance of the bar can be easily analysed.
* It has better operational control.
Mixes and juices to be stocked in the bar
Most customers prefer mixing their drink with tonic water, soda, juices, and other effervescence
drinks other than water. In the market, there are wide ranges of juices and flavoured
effervescence drinks that are available. The bar may decide to stock selected juices and
effervescence drinks that it wishes to mix with the drinks. The quantity of drinks chosen is
decided according to the volume of the business. Some bars use handgun that dispenses the
carbonated mixes at the press of a button.
It consists of a head with nozzle and seven push buttons and each button is assigned to a
particular type of drink the bar wishes to serve. It normally dispenses plain water, soda, tonic
water, cola, 7-Up, ginger ale, Sprite, etc.
Complimentary snacks
Along with the drinks ordered, most bars serve some varieties of snacks free of cost. The snacks
and its quantity to be served with the drinks should be decided before pricing the drink. The cost
of the snacks is treated as beverage cost, while pricing the drink, since it is considered as part of
the product. The type of complimentary snacks served varies from establishment to
establishment from simple 'masala puffed rice' to 'chicken tikka' according to its policy. Cheese
and pineapple sticks, roasted peanuts, wafers, finger chips, etc. are often served with the drinks.
Fix up the selling price
Alcoholic drinks are served in many ways—neat, with ice, with mixers, or as cocktails. Who will
be taking what type of drink and how the drinks will be consumed, etc. cannot be predicted.
Some bars offer complimentary snacks and if the guests want to go for some other snacks then

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they will be charged extra.
Let us assume following three situations where the guests are having house brand (well brand) of
spirit:
• Guest 1 wants to have whisky on the rocks.
• Guest 2 wants to have whisky with soda and ice.
• Guest 3 orders for whisky 'neat'.
All three of them are having whisky but guest 3 has only whisky without any addition that is in
the simplest form and guest 2 takes whisky with ice and soda in an elaborate way. The cost
involved in the above cases will be as follows.
• Guest 3; the base cost, less than the cost involved in the case of guests 1 and 2.
• Guest 1: More than the cost involved in guest 3, as his/her drink includes the cost of ice.
• Guest 2: More than guest 1. As his/her drink includes the cost of ice and soda.
All three will be served complimentary snacks.
The selling prices will be the same for all the three situations.
Now let us see the pricing process. Though bars may adopt different methods of pricing the
product, the following method is often followed as it is easier. — Calculate the total cost of
ingredients involved per portion of a drink.

30ml drink 75
Cost of ice 4
Cost of mixes 10
Snacks 15
Total cost 104
- Decide on the gross profit required. Gross profit is the excess of sales over beverage cost. In bar
operations, gross profit is also termed as bar profit
Gross profit/Bar profit required: 60%
Apply the formula to find out the selling price.
Cost per portion
Selling price = 100 x _____________________
Beverage cost %
100 x cost/ beverage cost% = 100x 140/40=260 rs
The selling price per 30 ml of spirit, however it may be consumed with mixers or without mixers
and with ice or without it, is rs.260. The cost of complimentary snacks is covered.
The selling price includes the cost of soda and the complimentary snacks that are offered. It
should be remembered that not all will be taking their drinks with soda and those who take with
soda will not consume entire bottle of soda. This will be shared by their company and hence the
consumption of soda will be less. The management is benefitted from the sale of neat and on the
rock drinks as the cost of additions is included while pricing.

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Costs of Setting up a bar
In the article on “How much does it Cost to Own a Bar” we have already explored how the
ball park figure needed to open a bar can range between a few hundred thousand dollars
all the way into the millions. Now let’s take a closer look into the breakdown of the costs
involved.

To open up a moderately sized bar, we’ll be considering an example where the investment
capital required is $305,000 with an additional $35,000 for working capital.

If you’re wondering where all the money goes and how it’s used, you should have a much better
idea after reading this detailed guide.

Company Setup & Professional Fees ($5,000)

Inexperienced entrepreneurs normally underestimate the administration and finance related costs
in a new business. These include legal, accounting, tax and costs related to forming a company
and abiding to all the requirements that are related to it.

The costs of setting up a limited liability company varies from state to state and country to
country. In general, they can be formed for under $1,000 depending on which state you intend to
open your bar, but there may be recurring annual fees and taxes, or other costs such as the
requirement to publish the notice of formation in two (county) newspapers for startups in New
York.

Although professional fees for on-going accounting, tax and legal services needed should be
classified as an operating expense rather than a start up costs, it is advisable to budget a few
thousand dollars to account for matters relating to opening the business. This includes legal
services for the lease agreement, any joint venture or shareholders agreement, tax planning and
countless other accounting related systems to give you the necessary edge to run an efficient
business.

Rental & Other Deposits ($15,000)

The business premises for a bar is one of the most important financial costs for startup capital
requirements and recurring monthly rental costs. A lot of people are aware of the need to pay
rent each month, but overlook the 2 or 3 month rental deposit that’s required in the lease
agreement.

So, if you’re renting a place that costs $4,000 a month, you may have to place a $12,000 deposit
with the landlord to secure the lease. There are also other deposits (ie utilities) that are needed
but these are notably less than the rental deposit, and a few thousand dollars should be more than
enough to cover them.

2.5 Months Rental ($10,000)

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Apart from the rental deposit, you will have to pay at least 1 month’s rent in advance. In
addition, it may be 2 months or more (for the entire build out) from the time you take vacant
possession of the premises (ie. the time when the rental costs start running) until you finally open
up when you can begin to generate sales.

So, it’s probably safe to budget for two and a half (2.5x) months worth of additional rental costs
to cover for this. If your monthly rental is $4,000 a month, this means adding another $10,000 to
the list.

Pre-Launch Operational Costs ($10,000)

Similar to the rental, in the month or two before you actually open the bar to customers, you will
need to pay for some staff costs and any other related expenses when you’re not even earning
any money.

Although you can keep payroll to a minimum by hiring part timers who are only paid when the
business is running, you’ll have key team members who will be important in the initial setup
phase to plan the operational systems, marketing strategies and how the whole bar will be run. At
the same time, every member of staff will need to be trained and properly prepped before
opening.

These pre-launch costs will depend on the size of the bar and the size of the team, as well as the
make up of the team members. For example, if there are not many highly paid managers and lots
of freelance part timers, this cost will be significantly lower than a setup that has numerous
managers and permanent staff who need to be onboard before the bar is open.

If you’re unsure of what these costs may be, it’s safer to over budget and put aside 2.5 x your
rental costs, which turns out to be $10,000 for our example of a bar with $4,000 rental costs per
month.

Liquor License & Business Permits ($20,000)

It is imperative that you do thorough research about all the business permits and alcohol
licensing requirements for the state and country where you intend to open up a bar or nightclub.
The laws vary significantly and it may take some time to get your application approved, so plan
meticulously and try to get these permits and licenses resolved before incurring hefty overheads.

Research the licensing requirements for your area carefully as there may be separate licenses
needed to serve beer and wine, and a separate one for hard liquor. In some places, it may be
necessary to get a permit for live entertainment as well, so do your homework and find out all the
costs diligently before opening up.

The cost of alcohol licenses range widely from under $10,000 for a beer and wine license in
some state’s towns to over $200,000 for a full liquor license in a major city like Boston.
Evidently, liquor licensing could be one of the largest costs to start and operate a bar, so make

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sure you’ve considered all your options in detail and incorporate licensing considerations into
your bar’s business plan.

In addition to the fee paid to the state’s alcoholic beverage commission for this license, you may
also need to pay for a ‘Late Hours Permit Fee’ if you intend to open for business into the early
hours of the morning.

Renovation & Interior Design ($35,000)

The build-out costs can also vary greatly and it is one of the largest costs of starting a bar.
Construction cost overruns can bankrupt new bar ventures even before they’re open, and they
commonly drain bars of their startup capital to the point that many other areas such as marketing
are insufficiently funded to the point of causing the business to fail.

Unless you’re from the construction or interior design industry, or you’re experienced in setting
up similar retail outlets, you should place very close attention to how you’re going to build your
bar and appoint trustworthy consultants to help you out.

There is tremendous room for overspending on designing and kitting out your bar, and the sky is
literally the limit, so it’s imperative to work to your budget as tightly as possible. If you have
experienced designers and builders working with you, you’ll be able to save a lot of money, but
if you engage unscrupulous contractors, you could be in for a tough ride as they take advantage
of your inexperience and squeeze as much as they can out of you.

For the purposes of our example, we have a budget with an upper limit of $35,000 for the build
out.

Furniture, Fittings & Equipment ($85,000)

The cost for a bar’s furniture and fittings may be incorporated into the build out costs if there’s a
main contractor that is handling it all. Or, you may be billed from various sources if you’re
actively managing the project and dealing with various suppliers.

From lighting, decorative items, and bar stools, to wall features and the bar itself, every inch of
the premises will need your attention and money to solve. Your decisions are critical in ensuring
that you get the best value for every dollar spent.

For example, if you’re buying 100 bar stools, and you spend an extra $30 each, that means that
there will be an additional cost of $3,000. But if you try to save that three grand at the outset and
end up with poorly designed products that need to be completely replaced after a few months, it
could cost you much more than the initial savings.

When it comes to bar, audio-visual, point-of-sale (POS) and all the other equipment needed in a
bar, it’s safe to say that if you’re a first time bar owner, you’ve never purchased these items
before. If you’ve worked in a bar previously, you may have some knowledge of using some of

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the equipment, which gives you an added advantage, but you’ll still be in the dark for all the
others.

There are lots of areas where you can potentially make very costly mistakes because you’ve
never set up a bar before. Try to read as much as you can, talk to as many experienced people as
you can and pay for professional advice to avoid the countless potholes you’ll have to avoid.

In our example, we’ve budgeted $85,000 here, which makes a total of $120,000 for the entire
build out and all the furniture and equipment needed in the bar.

Bar Inventory & Other Supplies ($17,500)

The amount of money needed to buy stock inventory depends on the scope of your menu, your
anticipated sales volumes, your negotiated purchase prices and the payment terms offered by
your suppliers.

If you only serve the popular beers and a limited range of wines, you won’t have to purchase as
many stock items compared to a full bar that has a broad range of beers, an extensive wine cellar
and a comprehensive choice of liquors offered for sale.

This range of stock items has a big impact on the total cost of your inventory, as it can all really
add up if you try to cover all the potential brands for each type of beverage.

In addition, once you’ve confirmed the number of different stock items you intend to have in
your inventory, you need to decide on how many units of each to stock. This is when your
inventory costs start to balloon enormously if you havn’t controlled the range of drinks listed in
your menu.

To decide on the quantity of each stock item to buy, you need to project your anticipated sales
and the turnover of each stock item, as well as the frequency that you intend to replace your
stock. All these factors will directly affect your purchasing pattern and how much money you
need to invest in your inventory.

Naturally, if you can get attractive pricing and good payment terms from vendors, you’ll need to
invest less capital in the inventory, but for most new bars without any track record, you’ll
probably have to pay in cash until you’ve established a solid relationship with your suppliers.

We’ve budgeted $17,500 for the bar in our example, which is probably on the low side if you’re
opening a fully stocked bar for a big nightclub, but it should be more than enough for a local
watering hole where beer is the main seller.

Marketing & Advertising ($7,500)

Once you’ve got your bar set up, you need to let your target market know that it’s the place to be.
Money needs to be allocated for a huge launch party, placing ads in local media, conducting
public relations exercises, spending on marketing activities and investing in brand building.

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A bar or nightclub’s marketing plan is extremely crucial, as it will ultimately determine the fate
of the business. Successful bars will normally attract patrons via an effective word-of-mouth
strategy that is much cheaper than paid advertisements. If you can’t get people to talk about your
bar and bring friends along, you’re going to have a tough time getting the critical mass that you
need to make some serious money.

A great marketing and branding strategy doesn’t necessarily need a lot of money to make it
work. However, if you have an awful plan, no amount of money is going to build your brand
equity and continually bring paying customers into your outlet.

Assuming that you have an innovative approach to engage your targeted clientele and a frugal
promotions plan, $7,500 should be sufficient to cover for all marketing materials and any launch
party activities, especially if you know how to tap on vendors to help sponsor the costs of the
marketing blitz.

Posted on August 23, 2013Categories Opening a BarTags startup costsLeave a comment on

What are the Costs of Setting Up a Bar Business

How to Run a Profitable Bar

The first thing to do when you want to be profitable in a bar or any other business is to
understand the basics of how profits are generated.

Some people think that the path to huge profits is to have lots of sales. Although this is partly
true, it is not necessarily so as there are plenty of bars that are packed with customers and
generate sizeable turnovers, but end up loosing money at the end of the month. If you’re
inexperienced in business, you make be asking, how is this possible?

Profit = Sales – Costs

This is because a company’s profit is calculated by subtracting its costs from the sales. In other
words, Profit equals Sales minus Costs. Hence, to generate a profit, your sales revenue needs to
be higher than the costs incurred by the business. And to generate higher profits, you need to
increase sales and/or decrease costs.

Evidently, there is a direct relationship between profits, sales and costs. Cash inflows from sales
is vital to all bars and the majority of owners put most of their resources towards this goal, but
cost control is also extremely important and far too many people give this insufficient attention.

Operational Expenses vs Cost of Sales

In fact, there are two types of costs in any trading related business like a bar – the cost of goods
sold (or the direct cost of the sales generated) and the fixed operational costs (commonly known
as overheads).

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Although they are both outflows for the business that must be controlled, each of these costs
should be treated and managed with different strategies.

It is essential to keep the monthly operating expenses as low as possible by managing payroll
tightly, ensuring that you’re not overpaying for rental, and keeping a lid on unnecessary staff,
marketing and administration costs. By watching these operational costs closely, a bar will have
a lower breakeven sales level, be profitable more easily and produce higher profits each month.

Profit from Lower Inventory Costs

The purchase cost of beverages and other goods sold is vital in determining the profitability and
price competitiveness of a bar. Basically, you’ll be able to make a higher profit on each sale if
you can source your products as cheaply as possible. In the same way, if you overpay for your
inventory, your profit margin will be less, assuming that you’re selling the product at the same
price.

Inexperienced bar owners often pay a little more than they should because they feel that there’s
not much difference between paying $2.40 for a product vs trying to get it for 40 cents cheaper at
$2. Although in absolute terms, 40 cents is not much on a single unit, if you’re purchasing 5,000
units per month, that’s an additional cost of $2000 that has to be paid. So, try to buy your bar’s
stock for the lowest possible price, as every dollar saved will be added directly towards your
monthly profit.

Sales Revenue = Price x Volume Sold

Once you’ve got your costs as tight as possible, the key to high profits is through solid revenues
from sales in the bar or via any other income streams.

There are normally 2 main components that produce the monthly sales in a bar – the price of
drinks sold and the number of drinks sold. For example, if you sell 1,000 bottles of beer at a
price of $8 each, you’ll generate $8,000 sales revenue from that product.

Clearly, both the unit price and volume sold both affect the sales produced, but in reality, a bar
can’t change its pricing often, so the main determinant of sales on a month-to-month basis tends
to be the volume of drinks sold. This is where the sales and marketing plan for the bar is crucial
in attracting and retaining lots of customers.

Drinks Pricing Strategy

Even though it can’t be changed on a regular basis, the pricing strategy for drinks in a bar is
absolutely vital in affecting its profit levels. It’s obvious how the selling price is directly related
to how much profit is generated per unit sold, but pricing also has a huge impact on the total
volume of products sold. This is because it’s harder to sell huge quantities of highly priced
drinks, since customers are generally quite price sensitive. In the same way, if you price your
drinks lower, you’ll be able to sell more volume but each sale will generate a lower profit.

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As you can see, pricing has a very significant impact on potential profits and it is essential for
new bar owners to get this right from the start. There’s a fine line between trying to price as high
as possible, and knowing your target customers’ thresholds and price sensitivities.

At the end of the day, your pricing plan should suit your bar’s brand offerings and market
positioning, If you’re a no-frills watering hole for the layman, then make sure you serve
affordable booze, but if you’re an up-market bar for high-rollers, you should have your Cristal
priced appropriately.

In summary, to run a profitable bar, you need to know how to generate as much sales as possible,
as well as be aware of all costs and keep them under control. Ultimately, you will need to
understand the basics of accounting too and work closely with your accountant to constantly
review the Income Statement and fully incorporate all the administration, finance, taxation and
other costs into the calculation of your operation’s profit figure.

Posted on January 21, 2013Categories Operating a BarLeave a comment on How to Run a

Profitable Bar

The Business Model for Bars and Clubs

It’s amazing how new and even experienced entrepreneurs can often
get tangled up in trying to define the business model for a club or bar when it can actually be
very simple if you don’t over complicate it.

Revenue Model

In essence, the majority of bars and nightclub businesses make money by selling drinks. In
addition, some also generate revenue by charging patrons to enter the establishment through
ticket sales that may or may not include a first drink.

As such, there are a couple of revenue streams, each with a differing profit margin. In the case of
drinks, the profitability will depend on the pricing and purchase cost of each product type. For
front door charges that do not include a drink, the gross profit margin is technically a 100%
unless there are any direct commissions given to sales agents. If the entry charge includes a first
drink, then the margin will depend on the type of drink that is provided with the entry fee.

Direct Costs

There may also be special occasions when the club hires a famous DJ or performer to play for
the night, paying thousands of dollars in fees to the celebrity and any other agents, as well as

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incurring additional marketing and advertising costs to promote the event. As a result, the tickets
for these events will be significantly more than the usual entry fee, as it needs to make up for the
artist’s professional fees and all the other costs involved. However, sponsors will often cover
some of the expenses and the heftily priced tickets may generate a huge profit for the club
owners.

The bulk of a club’s income is derived from selling drinks, where there is usually an average
margin of about 50% to 80%, depending on the pricing, type of bar and purchasing power.
Having said that, it is worth noting that the margin for some items could be well over 100% a lot
of the time. For example, a beer that is sold for $10 may cost $6 to buy. In this case, the profit is
$4 and the profit margin is $4 divided by $6, which comes to 66.66%. This should not to be
confused with the Cost of Goods Sold (COGS) or Cost of Sale, which is $6 divided by $10 or
60%.

The revenue model for a club or bar is made up of the income streams that we’ve just looked at,
and together, they produce the gross sales for the business. When we deduct the direct costs
related to generating these sales, such as the purchase price of the beverage items, we are left
with the Gross Profit.

Operating Costs

Next, comes the fixed expenses or operating overheads that need to be incurred even if there are
no sales at all. These include the property’s rental, staff costs, utility bills and other expenditures
required to run the club.

Profit Before Tax

This Operating Expense (or OPEX) needs to be deducted from the Gross Profit to arrive at the
Net Profit (before taxation). To calculate the real profits that are made each month, you have to
further deduct the tax that is payable on the profits to work out how much is left.

In a nutshell, this is the basic financial model for almost every bar and club all around the world.

Posted on February 26, 2012Categories Operating a Bar, Owning a BarTags business model,
costs, profit, revenue, taxLeave a comment on The Business Model for Bars and Clubs

Is it Profitable to Own & Operate a Bar

Can bars make money for their shareholders? This is the question that
almost all budding bar owners are trying to figure out before they take the plunge to open
their own dream bar.

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Unfortunately, there is no simple yes or no answer because it really depends on a number of
factors that vary for different companies and ventures.

Can it vs Will it Make Profits

So if you want to know if you CAN make a profit by running a bar, the answer is yes, of course
you can, since there wouldn’t be so many bars in existence if it wasn’t profitable for the people
who own them.

However, if you’d like to know whether you WILL make lots of money by setting up the bar you
have in mind, then the answer is that it is certainly possible, as long as you have all the
knowledge, experience and a fair bit of luck on your side.

Profitable Cash based Business

The bottom line is that bars can be extremely profitable cash businesses that have very few bad
debts from customers who owe them money, assuming you’re not foolish enough to give credit
to your regulars.

It is one of those businesses where customers pay up front for a product even before it is
consumed, and credit doesn’t have to be given, which means no collection problems. At the same
time, if you play your cards right, your suppliers may give you 30 to 60 day (or more) payment
terms to settle your purchases, so you’ve got the best of both worlds.

Possible to Consistently Make Money

If you have the right formula, location and team, it is possible to earn a lot of money every week,
especially during the initial months when you’re the new and hip place in town. Even after this
honeymoon period, if you know what you’re doing, you could be cash flow positive for a good
few years or more, and end up making a huge return on the initial capital invested.

Unfortunately, while it is certainly possible to generate extraordinary amounts of profits from a

bar, the majority of businesses end up loosing money. The ones that are successful tend to be
owned and run by experienced operators who have normally been in the industry for many years
and have learned the tricks of the trade from their past failures.

Therefore, the question that aspiring bar investors should be asking is, what does it take to own
a profitable bar, or, how can new entrepreneurs set up and operate a bar that consistently makes
profits.

Posted on May 2, 2011Categories Operating a Bar, Owning a BarTags COGS, costs, experience,
knowledge, OPEX, profit, profitable, revenue, sales2 Comments on Is it Profitable to Own &
Operate a Bar

How much does it Cost to Own a Bar?

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Anyone who is thinking of opening a bar naturally wants to know how much it takes to
setup the business in order to decide on whether it’s a feasible project to pursue.

In general, most bars are started up with a capital investment of somewhere between $125,000
and $500,000. Depending on the size, location and type of place you have in mind, some small
bars can be opened with under $100,000 and large nightclubs in popular areas may require more
than $1 million to be invested, but on the whole, small to medium sized outlets need about one or
two hundred thousand dollars to get going.

Now, even if these seem like lofty numbers, you may not need to invest so much money if you
have other partners and co-owners who will contribute their share of the startup capital.

Less Money for a Minority Ownership

If you want to be a bar owner but you don’t have much money, you can always take a small
stake in a venture. Technically speaking, if you invested $10,000 to own a 10% share in a Sports
Bar that cost $100,000 to set up, you’re already a bar owner. Although your investment is
significantly less than someone who owns 100% of a million dollar Nightclub, you’re both still
bar owners all the same.

So, depending on whether you’re a sole proprietor, a major investor or a small shareholder, the
cost of owning a bar business may range between $10,000 (for a minority partner in a small bar)
to half a million or more (if you put up all the money yourself for a sizeable nightclub).

Example Breakdown of Bar Setup Costs

These are most of the major areas where the startup capital will need to be spent to set up a new
bar. It includes placing deposits, investing in assets, purchasing inventory and incurring expenses
before the bar is open for business, as well as budgeting for a few months of working capital to
ensure there’s money in the bank to cover for any unforeseen events.

 Company Setup & Professional Fees ($5,000)

 Rental & Utility Deposits ($15,000)
 2.5 Months Rental ($10,000)
 Pre-Launch Operational Costs ($10,000)
 Liquor License & Business Permits ($20,000)
 Renovation & Interior Design ($35,000)
 Furniture, Fittings & Equipment ($85,000)
 Bar Inventory & Other Supplies ($17,500)
 Marketing & Advertising ($7,500)
 Working Capital ($35,000)
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Total ($340,000)

(Note: You can find out how each of these costs are broken down in What are the Costs of
Setting Up a Bar Business)

The cost for your bar is unlikely to have exactly the same capital requirements, as it will depend
on the type, concept and size of bar you’re opening. Some costs such as the liquor license will
also vary depending on which state or country you’re operating in. In addition, rentals and rental
deposit costs could also be significantly higher or lower depending on the location leased.

Hopefully, you have now got a better idea of the main costs involved in setting up a bar. The
example discussed should have provided you with a framework to modify and use for the bar
you have in mind.

As you can see, it takes quite a fair bit of money to start up a bar, so make sure you find out more
about whether it is profitable to own a bar before you invest your hard earned cash.

Posted on May 2, 2011Categories Opening a Bar, Owning a BarTags bars for sale, capital,
concept, cost, location, owners, startup2 Comments on How much does it Cost to Own a Bar?

What are the Pros and Cons of Owning a Bar?

There are different pros and cons to owning a bar for people
with different mindsets, financial positions and industry experience.

This article will share a range of advantages and drawbacks of being a bar owner, where readers
should adapt the tips to suit their individual profiles.

We will examine the strengths and weaknesses of the business from various perspectives
including:

 Finance & Investment

 Social & Business Networking
 Lifestyle & Working Hours

Financial Pros & Cons

From an investment angle, bar businesses offer a number of significant advantages for owners:

1. Cash Business
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 2. High Margin Sales
3. Can be Very Profitable
4. Potentially Short Payback Period

However, these benefits also come at a cost:

1. Large Initial Investment

2. Limited Business Lifespan
3. High Operational Costs

Networking Pros & Cons

Customers at bars often want to know the owner, especially at successful bars.

For most people, this is a huge perk of owning a bar as it provides great opportunities to meet
lots of new people for business and pleasure.

However, for people who value their privacy, being popular may actually be one of the
downsides of being an owner.

Lifestyle Pros & Cons

People who run the bar as well owning it have the benefit of:

1. Working in a fun and entertaining environment

2. Earning a Living by doing what you love
3. Getting out of a 9 to 5 desk job at an office

At the same time, there are also hazards to your lifestyle by operating a bar:

1. Working in the Evenings

2. Working on Weekends and Holidays
3. Getting home late every night

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Summary of Economics of Owning a Bar
The bar, tavern and nightclub industry in the United States is expected to have total revenues
greater than $24 billion in 2015. Of the total sales, 42% is made up of beer, 31% is made up of
distilled beverages, and the remaining 27% is made up of food and other sales. The average
revenue per employee for a bar establishment is roughly $64, making it an attractive business for
an entrepreneur. However, there are over 65,000 bar and bar-like establishments in the U.S.
alone. This means there is high saturation in the industry, making it challenging to own a
successful bar. Still, it is important to understand the economics of owning a bar to assess
whether ownership is the correct decision.

Costs
Startup costs are the first major hurdle to bar ownership. Total startup costs for a bar that rents or
leases its location are estimated to be between $110,000 and $550,000, depending on size. A bar
that purchases its location and pays a mortgage has an average startup cost of between $175,000
and $850,000. Already established bars for sale, on the other hand, provide a potential owner
with startup costs of as little as $25,000. These include expenses on all physical assets needed to
start up a bar.

Licenses, permits and insurance are also needed. All bars must register within the state of
operation, obtain permits and purchase business licenses to sell alcohol. Costs of the license vary
from state to state and require different application processes. The New York State Liquor
Authority, for example, issues Alcohol Beverage Control licenses to bars within the state of New
York, for a fee of around $4,500.

Other operating costs are needed to run and maintain a bar. First is the product, which can run
more than $6,000 for food and alcohol. When ordering alcohol inventory, it is recommended to
purchase 45% beer, 40% liquor, 5% wine and 10% mixers. An average of $13,000 per month is
needed for a properly staffed, average-sized bar. Rent runs an average of $6,000 per month.

Earnings
Assuming the bar is established and ready to launch, there are possibilities for excess returns.
While the amount a bar can earn depends on size, location and other factors, an average bar
makes between $25,000 and $30,000 a week. This is assuming average-priced drinks of $8,
average main dishes of $13 and average appetizers of $6. It is widely accepted that bars can
make between 200 to 400% on drinks served, providing attractive margins for bar owners.

Economic Bottom Line

Putting all the numbers together, it is easy to see what is needed from a profit and loss
perspective to run a successful bar. First, for small to average bars, it costs around $110,000

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initially to rent and prep a place for operations. Roughly $4,500 is needed for a liquor license,
and along with smaller costs for permits and insurance, it is safe to assume a total of $5,000 is
needed. The amount of $6,000 is needed for the initial product, bringing the total cost, prior to
operation, to roughly $121,000.

Once the bar is open for business, an owner needs to spend $13,000 on staff, $6,000 on rent and
a small amount on utilities and miscellaneous monthly purchases, bringing total monthly costs to
$20,000. This does not include inventory replenishment, which can be done periodically for a
smaller amount than the initial $6,000.

This means an average bar has monthly revenues of $25,000, monthly costs of $20,000 and
monthly profits of $5,000. With an initial investment of $121,000, a bar owner can expect to pay
himself or his investors back in a little over two years. However, these numbers are all based on
averages and do not take into account the sweat equity needed to start and run a successful bar.

ii) Duties and Responsibilities

BAR MANAGER JOB DESCRIPTION

General Purpose

Plan, direct and oversee all bar operations including managing staff, ensuring product and
service standards are met and implementing and maintaining procedures for maximum operating
efficiency.

Main Job Tasks and Responsibilities

 set objectives and targets for beverage unit/bar

 determine staff needs and recruit staff
 performance manage staff
 assess development needs and train and coach staff
 delegate duties and tasks to staff to meet objectives and maximize resources
 set and monitor quality and service standards for staff
 communicate company policy, standards and procedures to staff
 direct and manage staff members to meet standards and objectives
 ensure staff operate within company policies
 organize and adjust staff rotas and schedules in accordance with available resources and
labor regulations
 oversee the preparation and presentation of beverages to meet set standards
 resolve customer complaints promptly
 monitor cleanliness and hygiene of bar area

34
  promote and practice compliance with fire, health, safety and hygiene standards and
regulations
 oversee accurate cash-up procedures and ensure necessary paperwork is complete
 ensure adherence to cash management procedures
 ensure adherence to stock control procedures
 monitor and order supplies
 liaise with suppliers and sales representatives
 confirm that procurement of supplies is on the best possible terms
 make certain all deliveries are checked in correctly and documentation is correct
 check stock is correctly rotated and stored to reduce wastage
 oversee the bar display to maximize functionality and attractiveness
 set, monitor and control budget for the beverage unit/bar
 plan and implement cost control measures
 plan and implement systems to maximize sales and revenue
 organize promotional activities
 generate and present financial reports
 implement improvements for products and service
 maintain regular communication with staff and management through meetings and
discussions
 stay current with relevant legislation regarding service of alcohol, sale of tobacco and
licensing

Skills and Experience

 High School Diploma

 tertiary qualification preferred
 experience in the management of a bar or beverage service operation
 complete working knowledge of alcoholic and non-alcoholic beverages
 knowledge of business management principles and practices
 knowledge of basic accounting procedures
 knowledge of cost control procedures
 knowledge of human resource management practices
 knowledge of administrative procedures
 knowledge of relevant computer applications

Key Competencies

 judgment
 decision-making
 problem-solving
 organizing and planning
 resource allocation and management
 delegation
 communication
 attention to detail
 coaching

35
  stress tolerance
 team member

Job Description: Bar

Supervisor

July 2016 1
JOB DESCRIPTION
Job Title: Bar Supervisor
Responsible to: Bar Manager
Purpose: Responsible for ensuring the effective operation of the bar during shift
This includes supervising staff, stock, cashing up and customer care.
DUTIES AND RESPONSIBILITIES
 Assist the Bar Manager in ensuring that the bar is effectively managed and provides optimal
quality value for money products and services.
 Ensure the health and safety of Union Staff, members, customers and any approved contractors
utilising the services / facilities of the shop.
 Ensure that you and the student staff present an appropriate image to customers.

OPERATIONAL MANAGEMENT
Ensure that the bar is sufficiently stocked to meet demand, stock awaiting sale is kept at
optimum condition and wastage is minimised and recorded.
 Ensure the equipment is in good working order and maintained on a regular basis.
 Ensure compliance with the terms of any liquor licence, fire certificate, the general law of the
land and any other constraints applicable to the supply of the products and services (including
environmental health legislation and Union safety, building and security regulations).
 Ensuring that both you and all student staff aspire to the highest standards of customer care at
all times.
 Maintain a clean and tidy bar area.
 Assist the Bar Manager with the effective promotion and advertising of bar services activities
and products, completing all required paperwork.
 Ensure the daily and weekly cleaning schedules are completed to a high standard.
 When on duty, supervising the video and amusement machines operated by the bar, referring
matters of concern to the Bar Manager and repair/maintenance issues to the relevant
person/organisation.
 When on duty during the last shift, ensure that the bar is secured and alarmed appropriately.

FINANCIAL AND STOCK CONTROL

 Assist the Bar Manager in ensuring effective control of relevant stocks and assets, ensuring
any transfer of stock to other departments is correctly recorded.
 Assist the Bar Manager in achieving the daily sales targets.

36
 When requested by the Shop Manager, prompt and accurate cashing up at the end of the
shift, and transfer of money into safe.
 Ensure you and all relevant staff adheres to current financial policies.
 Supervise deliveries, including the checking of delivery notes and verification
of delivered goods. Notify Bar Manager of any price rises that are notified with the delivery of
goods.
 Assist the Bar Manager with regular stock takes as required.
 Operate such other systems of control and keeping such records as shall be required by the
BarManager.

STAFFING
 Supervise and support student staff, so as to effectively and safely discharge the department’s
aims and objectives.
 Report to the Bar Manager on staffing matters as required.
 Training new student staff to CH1 standards.

GENERAL
 To respect the democratic structure of the Students’ Union at all times. The post holder will be
expected to work closely with the Officers of the Students’ Union.
 To ensure the delivery of a positive image of the Students’ Union, both internally and
externally by displaying high standards of professionalism, politeness, conduct and service.
 To operate the IT systems and related software used by the Union.
 The post holder is expected to ensure that Ultra Vires is not committed by any individual or
group of members (staff and/or student), ensuring that the Students’ Union operates within the
legislation set out in the Education Act 1994.
 Shall abide by all Policies and Procedures as laid out in Chester Students’ Union Articles of
Association
 Shall undertake duties and responsibilities commensurate with this position as may be
determined by the needs of the Union through the Trustee Board via the line manager
 It is important to be aware that the Students’ Union expects all staff to participate in, and take
ownership of, their Induction, Personal Development Plan, departmental staff meetings and be
responsible for undertaking duties with full regard for others within the conditions of
employment detailed in the Staff Handbook.
 Shall keep accurate records of hours worked, furnishing the line manager with completed time
sheets on a monthly basis for authorisation.
 A condition of employment is that all staff are expected to assist in key events throughout
the year e.g. elections and freshers’ week.

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Bartender job description
This bartender job description template is optimized for posting in online job boards or careers
pages. It’s easy to customize bartender duties and responsibilities for your restaurant or bar’s
needs.

Bartender Responsibilities:
 Preparing alcoholic or non-alcoholic beverages for bar and patrons
 Interacting with customers, taking orders and serving snacks and drinks
 Assessing bar customers’ needs and preferences and making recommendations

Job brief
We are looking for an enthusiastic bartender to provide an excellent guest drinking experience.
Good bartenders will be able to create classic and innovative drinks exceeding customers’ needs
and expectations. Compensation includes salary and tips.

Responsibilities
 Prepare alcohol or non-alcohol beverages for bar and restaurant patrons
 Interact with customers, take orders and serve snacks and drinks
 Assess customers’ needs and preferences and make recommendations
 Mix ingredients to prepare cocktails
 Plan and present bar menu
 Check customers’ identification and confirm it meets legal drinking age
 Restock and replenish bar inventory and supplies
 Stay guest focused and nurture an excellent guest experience
 Comply with all food and beverage regulations

Requirements
 Resume and proven working experience as a bartender
 Excellent knowledge of in mixing, garnishing and serving drinks
 Computer literacy
 Knowledge of a second language is a plus
 Positive attitude and excellent communication skills
 Ability to keep the bar organized, stocked and clean
 Relevant training certificate

38
Barback Job Description
Assists Bartenders by keeping bar areas clean and stocked and providing necessary support to
ensure prompt and friendly service.

Duties & Responsibilities

 Emptying trash cans
 Collecting dirty glasses
 Wiping down the bar counter
 Fetching clean towels
 Stocking ice for all the wells
 Bringing out clean glassware
 Cutting fruit and garnishes for drinks
 Stocking juice, liquor, beer, and wine
 Changing out kegs

Requirements
 Excellent customer service skills and able to work a flexible schedule including rotating
shifts
 Pleasant and helpful personality
 Must be able to pass a drug test and background check
 Must be able to read, write and speak English
 Able to be on your feet for long periods of time
 High School degree or equivalent

Skills
 Communication
 Teamwork Oriented
 Maintains a Good Energy Level
 Thorough and Organized
 Professional
 Punctual

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 iii) Bar Check Lists

Bartender Checklist Week Starting_______________

Opening Procedures MON TUE WED THU FRI SAT SUN

Unlock beer & wine coolers & taps

Place floor mats behind bar

Place liners in trash cans and position appropriately

Stock & ice down bottle beer & wine

Cut lemon wheels, wedges and twists, lime wedges,

orange wheels and celery

Make garnish skewers

Make sweet & sour, juices, bloody mary mix, pina

mix and other mixers

Setup margarita rim salter at each service well

Assemble, fill & start frozen drink machine

Stock straws, cocktail napkins, stir-straws, coasters,

skewers, etc. at each service well
Stock rocks glasses, highballs, pilsners, wine
glasses, snifters, coffee mugs

Setup blenders & mixers at each service well

Stock bar utensils & supplies (strainer, shaker,
jigger, ice scoop, ice cream scoop, wine opener,
bottle opener, stirrer, bar mats, pour spouts, etc.)
Ice down and stock garnish caddy with cocktail
onions, olives, cut lemons, limes and oranges,
twists, and cherries at each service well
Fill ice bins at each service well

Check liquor, beer and wine backups for each

service well and back bar

40
Stock silverware (rollups)

Stock plateware & linen napkins

41
Opening Procedures - continued MON TUE WED THU FRI SAT SUN

Stock bar and food menus

Fill bar sink with soap water, rinse and sanitizer

Brew coffee & tea

Setup Espresso machine

Have back-up beverage canisters and CO2 tanks

ready to replace empties

Turn on music, bar TV, etc.

Turn on neon lights and signs

Get and count opening bar bank from manager

Get new comp & waste log from manager

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Bartender Checklist Week Starting _________________

Weekly Cleaning & Maintenance MON TUE WED THU FRI SAT SUN

Clean beer cooler

Pour Clorox in floor drains

Polish brass railing

Polish brass and chrome beer taps

Polish espresso machine

Wipe down displayed liquor bottles

Clean bar mirrors

Rotate beer & wine coolers

Clean cash register, credit card terminal, telephone

Clean back bar

Rotate, soak & sanitize pour spouts

43
Bartender Checklist Week Starting _________________

Shift Change Checklist MON TUE WED THU FRI SAT SUN

Re-stock bar fruits & garnishes

Re-stock Beer cooler

Re-stock liquor empties

Re-stock & ice down bottle beer & wine

Cut lemon wheels, wedges and twists, lime wedges,

orange wheels and celery

Replenish garnish skewers

Restock sweet & sour, juices, bloody mary mix,

pina mix and other mixers
Restock rocks glasses, highballs, pilsners, wine
glasses, snifters, coffee mugs
Re-ice down and stock garnish caddy with cocktail
onions, olives, cut lemons, limes and oranges,
twists, and cherries at each service well
Refill ice bins at each service well

Check liquor, beer and wine backups for each

service well and back bar

Restock silverware (rollups)

Restock plateware & linen napkins

Restock bar and food menus

Fill bar sink with soap water, rinse and sanitizer

Get and count PM bar bank from manager

44
45
Bartender’s Checklist Week Starting _________________

Daily Closing Checklist MON TUE WED THU FRI SAT SUN

Lock beer & wine coolers & taps

Take floor mats to back dock

Empty trash cans

Burn all ice bins

Cover & store all bar fruit (discard as required)

Cover & store all mixers and juices sweet & sour,
juices, bloody mary mix, pina mix and other mixers

Clean margarita rim salters

Empty frozen drink machine; refrigerate leftover

and clean machine
Re-stock rocks glasses, highballs, pilsners, wine
glasses, snifters, coffee mugs

Clean all blenders & mixers

Clean all bar utensils & supplies

Re-stock beer cooler

Re-stock liquor empties

Wipe down service well liquor bottles

Clean & soak soda gun nozzles

Wipe down bar top

Wipe down & put up bar stools

Empty & clean bar sink

46
Turn off and clean coffee maker

47
Daily Closing Checklist - continued MON TUE WED THU FRI SAT SUN

Break down and clean espresso machine

Sweep & clean bar floor

Turn off music, bar TV, etc.

Turn off neon lights and signs

Give bar bank to manager

Turn in comp & waste log to manager

48
 2. Reports
i) Daily Reports
In your bar, business levels and sales will change from day to day and shift to shift. Getting the
most-current information available is essential to help you adjust your purchasing plans,
preparation schedules, and even staffing schedules.

For example, if you have an extremely busy lunch that lasts well beyond the typical lunch time
period (usually 11:45 to 1:30 or so), you might consider calling in an extra staff member or two
to help you restock your depleted supplies, such as garnishes, bottled beer, and mixers. Because
this business is extremely fast paced, you need reports that keep up with you.

We strongly recommend doing as much of this reporting as possible using a computer. It saves a
ton of time and tends to be more accurate than old-school arithmetic by hand.

Your daily business review is a report that you create by recording relevant details (like your
sales figures, labor costs, and customer counts) every day. By recording this info in one place,
every day, you build a history of your business that allows you to compare figures across
previous days, months, and years to establish patterns and determine whether you’ve gained or
lost ground in individual categories.

You can find a sample daily business review, but you should develop your own review that
tracks data in the categories important to your particular establishment. In this sample, a line
item (like “Sales”) was included and then a row was added just below it [Sales (L/Y)] so you can
quickly compare your current sales to those from the previous year.

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Among other things, a daily business review can help you

 Determine whether a current promotional event is affecting your sales.

 Confirm whether your overall volume is increasing over time.
 Identify whether you have a problem somewhere in your business. For example, if your
sales numbers continue to rise, but your profits aren’t keeping pace, you have a starting
place to begin an investigation.

Because this document, in and of itself, is simply a summary of what happened on a

given day, you’ll likely need to delve into other documents and operational practices to
find the root of any problems.

 Clue into trends in your business levels. The trends, in turn, can help you make more-
accurate buying decisions and set your par levels (or how much stock you should keep on
hand).
 Keep your cash flow in check. Many people track their cash deposits and credit card
receipt totals on this form so they know how much is coming in and when.

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Summary of Daily Sales Report
Sound financial tracking begins with the accurate recording of sales. The Daily Sales Report
(DSR) is the core tracking element for controlling cash, measuring cost vs. sales performance,
and forecasting future sales.

Sample of Quick Entry Form

Daily Sales Date............

Revenue
Item Amount Payment Mode
Food Sales Ksh 200,000 Cash
Beer Sales Ksh 600,000 VISA
Spirits Sales Ksh 800,000 Mastercard
Sodas & Juices Ksh 100,000 Amex
Wine Sales Ksh 120,000 Cheque
Total Total
Gift Cards Sales Paid In
Merchandise Sales Paid Out
Charge Tips withheld Complimentary
Total Total

Gaining the maximum effectiveness from your DSR entails a two-step process wherein the
revenue (sales) side of the equation is generated at the cash register or POS level, and the
settlement (receipts) side is based on actual receipts. The difference between the two is
commonly referred to as Cash Over and Short (Cash O/S).

The DSR data entry feature in the Prime Cost Wizard can be configured to match the reporting
order from your cash register or POS report, thus minimizing the chance of errors and making it
easy to enter data. Future releases of the Prime Cost Wizard will facilitate the import of some
POS data directly into the DSR.

Two Ways to Use it

#1: Quick-track Option - If you are using the Prime Cost Wizard solely for the purpose of
calculating weekly prime cost, then you may not need the built-in cash-auditing features. You
can simply record daily sales information for food and beverage sales. The level of detail you
want to report is up to you. In this example we show the basic sales information collected for a
full service restaurant. It takes less than one minute per day to record sales using the Quick-
track option.

#2: Cash-audit Option - The Prime Cost Wizard not only gives operators a tool to easily track
weekly prime cost, but the onscreen DSR has a built-in cash auditing feature that tracks cash
over and short as well. With this option you can can record virtually every conceivable sales

51
and settlement transaction needed to properly account for your hard-earned cash. Each
data entry form is customized to fit your specific needs, resulting in a cash balancing formula
that let's you know when things are out of balance.

In your accountant's world, everything is a matter of debits and credits. At the end of the day,
debits must equal the credits in order to properly record income and expenses to the general
ledger. In the PCW, revenue items are credits and settlement items are debits. If the two don't
match, the difference is expensed to cash over/short. Here's a quick overview of typical revenue
and settlement items:

Revenue Settlement
 Food sales  Cash deposits
 Beverage sales  Credit card deposits
 Merchandise sales  Discounts (these are a reduction to
 Sales tax collected sales)
 Charge tips withheld  Coupons (these are a reduction to
 Gift certificates sold sales)
 Cash drawer loan used to pay tips (tip  Cash purchases (paid outs) from sales
float)  Gift certificates redeemed
 Credit card fees collected (from servers)  Repay the cash drawer
 Customer deposits (on  Barter/trade
banquets/catering/etc.)  Accounts receivable

The basic formula for calculating cash over/short is to add all the settlement items and then
deduct all the revenue items. If the balance is negative then you have a cash shortage.
Ultimately, operators would like to see cash o/s to equal zero.

Cash Balancing Entry Form

Flexible Sales Reporting

Unlike standard spreadsheets, the Prime Cost Wizard was designed as an online database with a
built-in reporting tool, enabling operators to report on a range of dates rather than the limited
reports found in spreadsheets. The W-T-D Sales Report provides a snapshot of the cash
balancing totals for a given week. Your accountant will love this report because it shows
virtually everything needed for recording sales into the accounting system. Other sales reports
include a 6-week sales trend, prior period comparison and more.

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W-T-D Sales Report
Built-in QuickBooks Interface

Now here's the really cool part - the Prime Cost wizard has been designed with QuickBooks in
mind. Over 60% of our members reported using QuickBooks as their primary accounting
software. Using QuickBooks' built-in Web Connector™, simply click and go to seamlessly
import all approved transactions - saving several hours a week of data input and eliminating
duplicate data entry

ii) Weekly Reports

iii) Monthly Reports

3. Licensing, Health & Safety

The following are the most vital licenses in a bar business:

a) Trading License
b) Food Handlers
c) Health & Hygiene
d) Fire & Safety
e) MCSK
f) VAT/ETR
g) Liquor License
h) NEMA
i) Outdoor Advertising

Mountains of paperwork and lists of laws and regulations go along with opening a bar, including
those concerning licenses, taxes, worker safety, liability, sexual harassment, and insurance.

As a business owner, you'll need some standard business licenses and permits. You should also
find out from your accountant which tax forms you need to fill out.

Before you do anything else, obtain an Employer Identification Number (EIN) from the IRS.
This number will be required for many of your licenses and permits, and all your tax documents.

As a bar owner, the two most important agencies you'll be dealing with are the Alcohol and
Tobacco Tax and Trade Bureau (TTB) and your local Department of Alcoholic Beverage
Control (ABC agency). Let's start at the local level.

53
Bars face different requirements depending on where they're located. Some states, counties and
cities have very complex laws and regulations, while others are fairly simple. However, all states
require a liquor license to sell any kind of alcoholic beverage.

Your license won't only determine the type of alcohol you can sell (beer, wine, distilled spirits)
but will also tell you the times and days you can be open for business. Many licenses also
regulate renovations, entertainment, advertising and personnel. Your lawyer can help you fully
understand all the liquor laws in your state well before you're ready to open for business.

The first place to start at the state level is your Alcoholic Beverage Control (ABC) agency. Some
states issue liquor licenses at the state level, while others issue them at the county or city level.
Either way, the state ABC agency must approve the issuance of the liquor licenses and can send
you information to get you on the right path from the beginning. Once you've filed your
application for a new liquor license or for a transfer, you can expect an ABC investigation to take
45 to 60 days. If you're approved, you may have to wait an additional 30 days or longer to
actually receive the license.

If you plan to serve food in your bar, you'll need a license to do so. Generally, these licenses are
issued for a year and must be renewed. Depending on the size of your bar, the type of equipment
you have and how extensive your menu is, the cost of this license starts at about $50 and goes up
from there. The state public health department oversees the licenses and permits, but some allow
local or county departments to issue them and conduct inspections.

A week or two before you open your doors, you should schedule an inspection with the health
department to make sure you're in compliance with all applicable laws and regulations. You can
also expect to have periodic inspections by the health department throughout the operation of
your business.

While most of the licenses and permits for your bar are issued on the state or local level, you'll
also need to deal with the federal government, specifically the TTB, with whom you need to
register before you begin selling any alcohol, and again if you make any change to your business
(such as a change of address or name).

Bar owners must keep detailed records of all liquor, wine and beer received from suppliers that
include the date and quantity of everything you receive and the name of your supplier. You can
either use a record book or keep all the invoices and bills for the distilled spirits, wine and beer
you receive. If you're inspected by a federal officer and don't have these records, you may be
subject to fines of up to $10,000 and imprisonment for up to five years.

Some state and local laws also require a permit from the fire department before you can open.
Some of the other things the fire department will verify are:

 Fire extinguishers. You need to have a certain type and number, based on the size of
your bar, with proper placement.
 Exits. You must have an adequate number of exits that aren't obstructed by equipment or
furnishings. They must also have lighted exit signs above the doors.

54
  Smoke detectors and fire suppression devices. You must have smoke detectors to warn
of a fire. Some states also require other equipment to put out the fire, such as sprinklers
or dry chemical dispensers. If you have a sprinkler system, you're not allowed to block or
cover it in any way.

It's the fire department that tells you how many patrons you can have in your bar without causing
a safety hazard. It bases the number on state and local fire codes and the square footage of your
establishment.

Depending on what kind of bar you'll have, where it's located, and whether or not you're doing
any construction, you may also need the following permits:

 Sign permit. Some communities have a specific agency that regulates signage and
requires sign permits. Other areas have restrictions on size, lighting and placement.
 Building permit. If you're building a bar from the ground up, check with your local
zoning board and city planning board before you put any money into it. Any kind of
remodeling or construction generally requires a building permit.
 Seller's permit. If you'll be collecting sales tax on any goods or services you sell, you
may be required to obtain a permit. Check with state and local authorities.
 Health permit. Some locations require a permit from the Board of Health if you're
selling food or beverages.
 Historical commission permit. If your location is in a designated historical building,
you may not be able to make certain renovations. Check with the historical commission
before you start drawing up plans.

55