business plan example for a bar

Bar & Brewery Business Plans

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Bar and Tavern Business Plan

Foosball Hall is a start-up Foosball table game bar.

Brewery Business Plan

Sedibeng Breweries is a start-up malt beverage manufacturer in Botswana.

Hookah Bar Business Plan

Arz al-Lubnan Hookah Bar will offer a more adult alternative to hookah bars frequented by college-age customers.

Karaoke Bar - Bowling Alley Business Plan

Rockin' Roll is a classic bowling alley, karaoke lounge, gaming parlor and restaurant.

Microbrew Bar Business Plan

The Bottlecap is a university neighborhood bar specializing in microbrews.

Nightclub Business Plan

The spot will create a nightclub environment that satisfies the changing tastes and expectations of our core customers; i.e. college-age women.

Nightclub Saloon Business Plan

The Nightclub sample plan contains details that are largely a combination of several successfully funded plans for new nightclub/bar venues.

Nightclub, Dance Classes Business Plan

E3 Playhouse is a start-up combined entertainment venue offering live music, dancing, music and dance lessons in a nightclub restaurant format.

Singles Bar Business Plan

Colloquy Grog Shop will be an alcohol/coffee/tapas bar where people will meet in a structured conversation/discussion setting.

Sports Bar Business Plan

Take Five Sports Bar is a local sports themed bar that strives to have more televisions with more sporting events than anywhere else in the region.

Microbrewery Business Plan

Martin Cove Brewing is an established producer of hand-crafted lagers, ales, and pilsners. Martin Cove plans on expanding its distribution to larger metro areas, and to larger grocery store chains.

Interested in making the nightlife your life? Opening up a brewpub, night club, or exploring unique hoppy flavors with your own craft brewery may be right for you. No matter the style of drinking hub, these sample plans will give you the guidelines to get you started.

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• Bar Business Plan

Article Index:

2.0 Company Description

3.0 products, 4.0 market analysis, 5.0 marketing strategy and implementation, 6.0 organization and management, 7.0 financial plan, 1.0 executive summary.

The Neighborhood Bar and Grill will be a unique gathering place in the suburbs of Palm Beach County. By providing exemplary service (think of the character Norm from Cheers as he’s warmly greeted each day after work), a vast selection of beer and wines and award winning food in a relaxed comfortable setting, the NB&G will be the premier bar that ‘the locals’ go to in suburban Palm Beach County.

The success of the bar is in its owners – with collectively 30+ years experience in the restaurant and bar industry. They are committed to making this operation a successful one. Employees have been hand selected and share the same views as the owners, that is, keeping the customer happy assures repeat business.

The Neighborhood Bar and Grill has plans to initially capture 2% market share or $334,000 of the $16.7 million of the local market by fiscal Year One, and an additional 2.3% and 2.53% for Years Two and Three respectively. The Neighborhood Bar and Grill will accomplish this through a concerted advertising and marketing campaign, reliance on signage and primarily by word of mouth. Located at a major intersection in Palm Beach County, the site is located in a neighborhood retail centered anchored by a Winn Dixie grocery store. With average traffic counts of 42,000 daily, the site was primarily selected because of its location, the local demographics surrounding the site and reasonable rental rates.

The Neighborhood Bar and Grill is leasing 1,400 square feet retail space in the shopping center and paying $18.00 per square foot annually NNN lease.

The following business plan summarizes the history of the NB&G, where the business currently resides and its future plans for growth.

1.1 Mission Statement

The Neighborhood Bar and Grill will provide a comfortable place for locals to come and gather for relaxation, striving to be the bar of choice for the locals in the Cresthaven neighborhood and suburban West Palm Beach. The NB&G will be known as the “Cheers Bar” – where everybody knows your name and the business will do this by: providing a relaxed atmosphere encouraging patrons to unwind — specifically targeting professionals between the ages of 30 and 65 making $50,000 annually. The Neighborhood Bar and Grill is based on the guiding principles that life is to be enjoyed and this is reflected in its vast selection of beverages, its delicious food offerings and the professional team members. The Neighborhood Bar and Grill wants to be synonymous with country singer Toby Keith’s song “I Love This Bar”.

1.2 Guiding Principles

The Neighborhood Bar and Grill’s philosophy is simple: enjoy life and treat others as you’d want to be treated. These sound principles apply to all life’s situations, both personal and professional. At the Neighborhood Bar and Grill, these principles are applied to management, employees, customers and suppliers alike.

Life is to be enjoyed! Neighborhood Bar and Grill employees love their jobs and their customers! This is not only reflected in the outstanding service – it is because management personally culls and trains each employee putting them in the position that is ideally suited for them.

Integrity – In the spirit of all great bartenders, treat each customer with utmost respect and professionalism. The Neighborhood Bar and Grill bartenders and wait staff are trained to act professionally in all situations. If a regular patron happens to become disorderly say after a particularly stressful day, the Neighborhood Bar and Grill’s staff is trained to promptly and discreetly order a cab for these individuals. No one wants to work with drunken and disorderly individuals and the patrons do not want to be known as such either.

1.3 Keys to Success

The Neighborhood Bar and Grill’s key to success will be based on:

Outstanding customer services – the NB&G’s goal is be the place “where everyone knows your name”. All team members are hand selected and love what they what do. Customer Satisfaction – By providing a quiet and relaxed environment, where friends can meet and unwind and relax. Provide a vast offering of specialty beer and wine offerings – catering to the public’s increased requirement for variety and sophistication in alcoholic beverages.

The Neighborhood Bar and Grill will be a locally owned neighborhood bar equally owned and operated by Ben Davis, Roberta Gary and Danny Zinn. The Neighborhood Bar and Grill is a C-Corporation.

The NB&G will occupy a 1,400 square foot facility located in a neighborhood shopping center known as the Shoppes at Cresthaven. The property address is 2601 South Military Trail.

The Neighborhood Bar and Grill will provide a soft, quiet environment for its patrons. The furnishings are comprised of leather appointed chairs and small booths throughout the bar. These items were obtained at various local auctions and although not entirely matching, lend an eclectic look to the cocktail lounge area. The walls are adorned with a hodgepodge collection of memorabilia from the local area – many donated by Mr. Davis’ wine bar patrons including two cigar store Indians, an antique bear claw and 1950’s coca cola signs.

The bar will have a small central stage and provide the site for jazz musicians and open mic nights on the weekends.

2.1 Ownership

The NB&G is C-Corporation, owned equally by Ben Davis, Roberta Gary and Danny Zinn.

Mr. Davis has 20+ combined experience years in management and operations. A successful business owner, he currently owns two independent wine bars in West Palm Beach and Boca Raton.

Ms. Gary has 10+ years experience the restaurant and bar industry beginning her career as an Event Coordinator for the Radisson and most she recently managed two nightclubs in exclusive South Beach.

Chef Danny Zinn will oversee the kitchen. He brings to the table 15+ years experience as a formerly trained Culinary Chef. Mr. Zinn and Ms. Gary met while employed at the Radisson.

2.2 Legal Form

The Neighborhood Bar and Grill is a registered C-Corporation, owned equally by Ben Davis, Roberta Gary and Danny Zinn, doing business in the State of Florida.

2.3 Start-Up Summary

Following is a summary of required funds to establish the business:

Tenant improvement costs have been in the form of new heating/air conditioning, electrical, plumbing, painting, carpentry, flooring and smoke detectors.

The owners have spent $38,262 in furnishing and fixtures including leather chairs and small booths throughout the bar. These items were obtained at various local auctions.

The owners are currently remodeling and retrofitting the space to accommodate both a front and back bar along with stools for customers. The back bar was secured from a consignment shop and is ornately decorated English walnut, marble and glass. The front bar will be constructed by Mr. Davis’ brother-in-law who owns a cabinet company.

Additional out of pocket expenses were rent and security deposits.

The owners are seeking a $22,000 working capital loan to meet start-up inventory requirements, and licensing requirements. The loan will be secured by UCC filings on all inventories, and accounts receivables.

Further, the owners are seeking a commercial loan in the amount of $61,000 to purchase kitchen equipment, supplies and bar supplies. The space was formerly a restaurant and the layout is perfect for the proposed kitchen. The commercial loan proceeds will be used to purchase the majority of the kitchen equipment including two stoves and ovens, one walk in refrigerator, a freezer, two microwaves and a deep fryer. The commercial loan will be secured by UCC filings on all furniture fixtures and equipment.

Total starts up costs are $142,512. To date the owners have contributed $59,512 or 42% equity in the business. The source of repayment for both loans will primarily be cash flow from the bar and secondary source of repayment will be recourse to the owners. The tertiary form will be disposal of the assets.

2.4 Location and Facilities

The location was a key component for the NB&G. The owners specifically sought this location because the demographics aligned with their target customer.

The 1,400 square foot Neighborhood Bar and Grill will be located in the Shoppes at Cresthaven located at 2601 South Military Trail in West Palm Beach, Florida. Located on the northwest corner of Military Trail and Cresthaven Boulevard, approximately 42,000 cars pass the site daily. The shopping plaza is anchored by a Winn Dixie grocery store. The area surrounding the NB&G is the Cresthaven neighborhood. The NB&G residents live in this neighborhood and surrounding area.

The bar location specifically meets the needs of the owner’s patron profile – that is professionals between the ages of 30-65 with incomes greater than $50,000. The following table briefly summarizes the population in the 3 and 5 mile radius:

3.1 Products/Services Descriptions

The Neighborhood Bar and Grill will offer a broad and deep variety of specialty beers and wines which will appeal the public’s ever changing and increasingly more sophisticated demands for variety in beer and wine. The bar will also offer a full service liquor bar.

Patrons desiring food will not be disappointed by the bar’s food offerings either. One of the owners is an award winning chef formerly trained at the Florida Culinary Institute and most recently employed by the Fontainebleau in Miami. Chef Danny Zinn will prepare traditional bar foods such as nachos, potato skins, and calamari, along with the local favorites of fish dip and fried grouper sandwiches. Dining patrons will also enjoy his daily specials including freshly caught Atlantic Snapper and Mahi Mahi.

The kitchen will close at 8 pm, but patrons will still have the option of easily prepared foods, that the bartender can microwave or easily throw into the deep fryer.

On Friday and Saturday nights, the NB&G will provide live entertainment performed by local jazz musicians. A cover charge will be applied to patrons to cover the band expenses. The bands will be responsible for setup and tear down of all equipment.

3.2 Competitive Comparison

Within a five mile radius of the subject are six comparables:

Applebee’s Neighborhood Bar and Grill 6706 Forest Hill Blvd West Palm Beach

Cococabana Bar & Grill 2944 S Jog Rd, Lake Worth Florida

Flanigans Seafood Bar & Grill 2401 10th Ave N, Lake Worth, Florida

Franchie’s Bar 3476 2nd Ave N, Lake Worth Road Lake Worth, Florida

Pit Row 4064 Forest Hill Blvd Ste 8 West Palm Beach Florida

Plush Pony 2028 S Military Trail West Palm Beach Florida

3.3 Product/Service Sourcing

The key food suppliers for the business will be Sysco Foods and Treasure Coast Food Service. Having two suppliers assures the NB&G exceptional delivery times, and better overall prices.

Restaurant supplies (pots, pans, cutlery, and cooking utensils) will come from Grover Restaurant Supply.

Alcoholic beverages will be purchased from Gold Coast Beverage Distributors and Florida Distributing Company.

The Neighborhood Bar and Grill will utilize a P-O-S (Point of Sale) touch screen system throughout the bar and restaurant area. These monitors and hand held units will provide point of sale menus, inventory control analysis, credit card sales, and office management.

3.4 Inventory Management

The POS system will be instrumental in the Neighborhood Bar and Grill’s success. Bartender theft and employee theft can quickly be the financial demise of any business. The POS systems will alert the chef when inventory levels are low and the bar manager when to place his order.

3.5 Warehousing and Fulfillment

3.6 future products/services.

The owners of the NB&G realize the customer is the key to the success of the business and will work continually to improve/enhance the patron experience. Comment cards will be available throughout the bar and management will keenly review these comments, making adjustments as needed. For example, the owners might consider open mic nights, creating a Trivia Night or providing other options as deemed acceptable by the customers.

4.1 Industry Analysis

Although people still gather to socialize in bars, just as they have for hundreds of years, other factors have come into play for the industry as well. Problems with driving while intoxicated have changed the drinking patterns of people in United States. The growing concern with health and fitness toward the end of the 20th century took its toll on the bar industry. Keeping tabs on this industry requires a look at the alcoholic beverage industry as a whole–what people buy in the store doesn’t differ much from what they buy in a bar. The distilled spirits industry generates around $100 billion in U.S. economic activity annually. (Distilled Spirits Council)

The US bar and nightclub industry includes about 45,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $20 billion. No major companies dominate; varying state liquor laws complicate the ability to form large chains. The industry is highly fragmented: the 50 largest companies account for about 5 percent of revenue. (First Research)

Personal income and entertainment needs drive demand. The profitability of individual companies depends on the ability to drive traffic and develop a loyal clientele. Large companies can offer a wide variety of food, drinks, and entertainment, and have scale advantages in purchasing, financing, and marketing. Small companies can compete effectively by serving a local market, offering unique products or entertainment, or providing superior customer service. The industry is labor-intensive: average annual revenue per worker is about $60,000. (First Research)

Major sources of revenue include beer (about 35 % of sales), distilled spirits or hard liquor (30 %), food and non-alcoholic beverages (20 %), and wine (7 %). (First Research)

4.1.1 Market Size

The US bar and nightclub industry includes about 45,000 establishments (single-location companies and branches of multi-location companies) with combined annual revenue of about $20 billion. No major companies dominate; varying state liquor laws complicate the ability to form large chains. The industry is highly fragmented: the 50 largest companies account for about 5% of revenue. (First Research)

4.1.2 Industry Participants

There are few barriers to entry in the neighborhood bar industry, and the capital costs of starting a new neighborhood bar are low. However, competition among bars and taverns is intense due to the large number of bars in the target market. When combined with a small industry growth rate, market share gains by one bar will be at the expense of others.

Competing for the neighborhood bar are other small neighborhood bars and larger chain restaurants with full service bars. Additional competition for the NB&G are other types of bars, for example, sports bars, pubs, coffeehouses, and wine sellers. The slower economy resulted in some patrons purchasing from grocery stores, package stores and convenience stores.

4.1.3 Main Competitors

A recent analysis revealed six bars/restaurants with bars or a $16.7 million market as classified under the NAICS (North American Industry Classification System) code 722410 – bars and nightclubs – within a 5 mile radius of the subject. The following is summary of the comparables:

This 16,500 square foot corporate restaurant and bar was established in 1997. The neighborhood restaurant/bar generates approximately $5.5 million annually and has 55 employees. The Applebee’s target market is not the same as the subject, catering primarily to families and as a restaurant; it will not compete directly with the subject.

Privately owned, this is 3,300 square foot restaurant/bar with 11 employees and generates approximately $1.1 million annually in revenues. The restaurant specializes in Dominican food and drinks. With a focus on black beans and rice and mojitos, the theme is quite different from the subject. However, based on its size, its proximity to the subject and its uniqueness, the NB&G will have to work hard to attract these patrons. Word of mouth and its initial marketing campaign will have to convince these patrons that the NB&G’s food and beverage offerings are superior to this competitor.

Established in 1990, the iconic restaurant and bar is one of twenty-two facilities in the South Florida area. Flannigan’s is well known and has a loyal following. The 9,900 square foot bar and restaurant is privately owned and generates $3.3 million annually. The restaurant and bar has 33 employees. Because of its unique target focus as primarily a restaurant this business, like Applebee’s, this is an indirect competitor.

This freestanding 3,300 square foot bar is privately owned and operated. The bar has 11 employees and generates approximately $1.1 million annually. The bar has a “C” credit rating and does not provide food. The bar is old (its age unknown as it was not filed publicly) and is generally known in the area as a “dive bar”. This bar’s clientele do not typically meet the profile of the subject and will not compete directly with the subject.

With a race ‘pit’ themed bar and menu, Pit Row offers drink specials on NASCAR race days. The neighborhood bar has a sports bar theme. The bar has a pool league and a Texas Hold ‘Em game night. More of a sports bar, the subject will compete indirectly with this competitor. The 1,800 facility is located in a strip center and generates $600,000 annually. The bar has 6 employees. This neighborhood bar is one of three in Palm Beach County that are privately held by the same owner.

This 15,300 square foot bar started in 1995 has a tremendous following. Known as a “dive bar”, the Plush Pony has line dancing and country music. With 51 employees and $5.1 million in annual revenues, this country music bar is an indirect competitor.

4.1.4 Market Segments

Middle class, ‘white collar’ office workers on their way home from work. These are the patrons that will become the bar’s ‘regulars’, patronizing the bar on their way home from work and stopping for a glass of wine paired with some light appetizers and unwinding prior to heading home. Tourists and workers on their lunch hour – the bar is centrally located in Palm Beach County making it an ideal location for both tourists and workers alike. Late night and bar crowd seeking “lighter” late night venues – the NB&G will have live jazz music and acoustic guitar on weekends and some weeknights. The owners of the NB&G are targeting the following individuals for their target market:

Household income of $50,000 Between the ages of 30 and 65 Gender Demographic (75% Male, 25% Female) Lives within a 5 miles radius of the subject location

4.2 Market Tests

The owners specifically targeted this location because of the lack of finer ‘neighborhood bars’ in the suburbs – a bar that is quaint and cozy – but also provides a great option to take out of town guests with finer food and beverage offerings.

While patrons can find similar bars in the trendier downtown and midtown locations, the quieter, smaller bars offering finer foods and jazz venues, are all but overlooked in the suburbs. Experienced in the business, the owners listened to their patrons and created NB&G based on these requested needs.

The local distributors support this business venture as well and based on the area demographics and are anxious tap into this lucrative market.

4.3 Target Market Segment Strategy

The NB&G specifically targets individuals in the local market with incomes greater than $50,000 desiring a quiet neighborhood bar and grille to relax and unwind. The marketing strategy is designed to target this group.

This target group was selected primarily because of

the location of the bar and grille, the setting is designed to appeal to this target market and the current target market does not have any venues comparable to the subject. In fact the closest direct comparables are located eight miles away in downtown – the majority of locals would prefer a spot closer to home.

4.3.1 Market Needs

As the owner of two South Florida wine bars, Mr. Davis was constantly told by his patrons, that while they loved the local taverns, they’d be more interested in trying some finer quality food offerings along with some finer beverage choices, especially when they had guests visiting from out of town.

While still maintaining its image as “the place the locals go”, the owners have added some “class” to this little bar and grille by:

Offering both traditional bar fare, but also offering selections of daily prepared specials from a chef formally employed by the Fontainebleau and trained at the Florida Culinary Institute The bar will provide “light” jazz music and acoustic guitar, filling the vast void in such venues in the ‘burbs’ location.

4.3.2 Market Trends

Recent market trends focus increasingly on healthier lifestyles. Studies have shown that although consumers are drinking less alcohol, their tastes are becoming more discriminating. A greater emphasis on technology (POS) and training (“Star Servers and Bartenders”) resulting in increased productivity and earnings. Upgrades in improvements and interior décor – the days of the dimly lit and dark smoky bar rooms are quickly becoming a thing of the past. The NB&G is designed to embrace these trends. The NB&G will feature a vast assortment of locally crafted and imported beer offerings. The wine selection will be somewhat smaller but just as impressive. Food offerings will consist of standard bar fare along with, finely prepared daily gourmet specials. The owners will rely on POS system for orders, inventory control, accounting functions, time management and other functions. All bartenders will be hand selected and trained to cross sell appetizers or higher margin items. The NB&G’s ‘shabby chic’ interior is designed be a comfortable, sociable and enjoyable environment.

4.3.3 Market Growth

Liquor sales and the bar industry overall is demonstrating improving trends. The following is a summary from the February 2012 U.S. Distilled Spirits Council Report:

Volume / revenue growth at pre-recession levels. Revenue up 6.3% to $20.3 billion Volumes up 2.9% to 196 million 9-liter cases Growth driven by improving economy/consumer confidence, increase in restaurant sales, stable pricing environment and product innovation Improved economy = return of premiumization Sales growth has pushed market share to 34.1% of revenue, 33.8% of volume Future growth dependent upon state of economy (Industry Review Distilled Spirits Council 02/2012)

4.4 Positioning

The NB&G will position itself as the bar and grille of choice for patrons desiring a comfortable and relaxed bar and grille experience. Designed like its competitor’s downtown and midtown, the central location will appeal to suburbanites living in the area who don’t care to travel more than a few minutes from home.

The NB&G will position itself as the bar and grille of choice by providing top notch service, offering a vast selection of beverages, and providing both traditional bar fare as well as daily market specials prepared by its culinary chef. The ambience and décor will be comfortable and relaxing and with the benefit of light jazz in the background, the bar and grille will be a one of a kind experience in the suburbs. The owners and staff are constantly aware of patrons changing likes and dislikes and the bar and grille will act quickly to make changes to meet these needs.

5.1 SWOT Analysis

The following information summarizes the SWOT analysis. SWOT stands for strengths, weaknesses, opportunities and threats. A SWOT analysis is a method for strategic planning that evaluates these four elements as they relate to the business objectives.

5.1.1 Strengths

Relatively easy entry and low capital outlay. Committed owners with combined 35 years industry experience. The NB&G will be a unique one of a kind experience in its suburban location. Targeted, specific focus on its customers creates a memorable experience for its patrons resulting in repeat business.

5.1.2 Weaknesses

Disorderly patrons can potentially harm both business reputations or cause collateral damage. Employee theft can make or break a bar business. Management’s exclusive use of the POS system mitigates this risk. Very specific target market – if the target market was broader the owners could increase market share in the segment that was the strongest. High turnover in bar industry – many bars are here today and gone tomorrow.

5.1.3 Opportunities

Opportunity to obtain a share of a $16.7 million market

5.1.4 Threats

Another new entrant could potentially hurt market share; competition is fierce

5.2 Strategy Pyramid

Strategy: Be the neighborhood bar and grille of choice

Tactics: Provide exceptional customer service in a relaxed and inviting environment encouraging patrons to return again

Programs: Extensive and ongoing employee training. Employees will be rewarded financially for providing impeccable service with opportunities to benefit in profit sharing.

All staff are hand selected and share the same core beliefs of the owners; everyone will be trained to be keenly aware of patrons and anticipate their needs before the customer does, for example always offering to promptly show them to their table, graciously asking to hang their coats, and bring them their drinks expediently.

5.3 Unique Selling Proposition (USP)

The NB&G will be a small, casual local bar. The bar features a vast selection of hand crafted beers – both local and imported, as well as an impressive wine selection. The bar features traditional pub fare as well as daily specials prepared by a formally trained culinary chef. With its ‘lighter’ music including live jazz and acoustic guitar performances on weekends and some evenings, the NB&G will be the alternative to its louder more raucous competitors. Although similar bars are located in downtown West Palm Beach, the NB&G is specifically designed to fill the void in the suburbs.

5.4 Competitive Edge

The NB&G specifically caters to its target market and is truly a unique local bar experience. The bar differs in its décor, its extensive beer and wine offerings, culinary choices and music style; the NB&G patrons cannot get this experience in any other bar within a 5 mile radius.

5.5 Marketing Strategy and Positioning

The NB&G is centrally located on the northwest corner of Cresthaven Boulevard and Military Trail. Traffic counts approximate 42,000 daily. In addition to its prime location, the NB&G will rely on:

Advertising – Outdoor Signage – Grand Opening Word of Mouth According to the Bob Johnson with Beverage Management Institute in Clearwater, South Carolina, the only cost-effective way to advertise a bar is word-of-mouth. “When you don’t have word-of-mouth working for you, you are in serious trouble. It’s not necessarily terminal. There are still ways to get some advertising and marketing out there without spending a ton of money. But anytime you reach into your own pocket to buy advertising for a bar, it’s not good.

“Word-of-mouth advertising is priceless,” he continues. “It means everything is right. Everything is happening. The bar is alive. Your employees love working there. They are talking and saying great things about the place, and that is passed on to your customers. The customers love being there, and they tell other customers. If you can get to that point, it’s just priceless.”

5.5.1 Positioning Statement

The owners have a combined 35 years industry experience in restaurant and bar management and fully support the operation. The NB&G will provide a vast collection of handcrafted beers and wine, provide jazz music and gourmet food, and will strive to be the premier bar ‘where the locals go’ in suburban Palm Beach County. The NB&G will go above and beyond the call of duty making patrons come back and tell everyone they know.

5.5.2 Pricing Strategy

The NB&G’s pricing will be similar to the competitor’s (competition based pricing) initially and management may consider lowering drink prices initially to attract initial patrons. However, near term, when the NB&G captures at least 2% of the local market, management plans to price alcohol and food to be more reflective of acquisition costs.

The menu items are moderately priced. Appetizer range from $8-$12, burger plates and wraps range from $9-$12 and the daily gourmet plates average $17.00.

5.5.3 Promotion and Advertising Strategy

The NB&G’s primary promotion and advertising strategy will be outdoor street signage and word of mouth. Additionally the bar is planning a grand opening in September, 20XX.

The NB&G will open mid August 20XX with a grand opening scheduled for September 20XX. The early opening date will allow the staff to familiarize themselves with operations and customer interfacing.

In addition, the NB&G will participate in select promotions annually. Once the bar is up and running, management will determine which nights need a boost. Historically, bars are busiest Friday and Saturday nights, with Thursdays coming in third place. The NB&G might decide to create an open mic night say on Tuesdays or Wednesday evenings. In addition, the bar will have promotional events on holidays such as Cinco de Mayo and the 4th of July. Management anticipates profit to equate to 3X the cost of advertising the promotion. In order to maintain the high energy levels during the promotions, all prizes will be awarded at the end of the evening. That way, patrons will have to stay all night to see whether or not they’ve won the grand prize.

5.5.4 Website

The NB&G will have website featuring the menu items, phone number, hours of operation, events calendar and map. The website will also have links to its Facebook Page.

5.5.5 Marketing Programs

The owners of the NB&G will rely on a combination of customer feedback / sales reports captured from the POS to determine how well the bar is performing. Customer comment cards will be available tableside and guests will have the option to receive discounts on appetizers when the card is submitted. Additionally, the neighborhood market will utilize a local ‘mystery shopper’ company. All employees will be made aware of the NB&G’s commitment to customer service and this additional tool to be used to evaluate employee performance.

5.6 Sales Strategy

The patrons will be warmly greeted immediately upon entering the bar. The objective at the NB&G is to make everyone feel at home and be the place ‘where everyone knows your name’. Upon finding a comfortable location either at the bar, a cozy booth, or high top table, patrons will be asked for their drink and food order. Employees will be trained to cross sell high margin items. The NB&G truly values its employees and provides them with the very best training – and therefore the best service. Management believes that this investment in its employees ensures satisfied customers and in turn repeat business, leading to increased revenues.

The NB&G will be one of the few places that will truly make people happy. The NB&G staff will make sure patrons are comfortable, offer coffee, and hang coats for them. The owner will come to the table or booth and not just ask is everything okay, but is going to look to see what’s wrong before he/she even comes to the table. Employees will offer samples from the menu at no charge, and make fresh coffee because they know it’s been sitting out for a while.

At the NB&G, the staff goes above and beyond the call of duty which makes patrons come back and tell everyone they know.

5.6.1 Sales Forecast

The following table demonstrates the annual sales forecast:

Table 5.6.1 Annual Sales Forecast

5.6.2 Sales Programs

The NB&G employees will be the primary salespeople and will participate daily in the tip pool. Employees will participate in ongoing training and be compensated for their accomplishments as well. The NB&G has a strong belief that the bar only performs as well its employees.

The NB&G will be a C Corporation recognized in the State of Florida. The bar is currently in the process of obtaining the following licenses: liquor liability license, food service license, sales tax license, and entertainment permit.

5.8 Milestones

The following milestones will guide the NB&G to meet its goals:

Table 5.8 Milestones

Milestone Date Secure space and negotiate lease terms July 20XX Complete Retrofit and Build-Out July 20XX Furnish restaurant and bar area July 20XX Obtain and meet necessary licensing requirements Aug 20XX Purchase inventory, kitchen equipment and POS system Aug 20XX Interview and hire employees Aug 20XX Grand Opening Sep 20XX Hire accountant when revenues exceed $500,000 Year Four

5.9 Exit Strategy

In the event that sales drop more than 5% for more than four consecutive quarters, the bar will have to liquidate. After employee’s compensation, furniture, and equipment will be sold at auction to repay lenders.

The following information provides the organizational components germane to the NB&G.

6.1 Organizational Structure

The NB&G will be owned equally by Ben Davis, Roberta Gary and Danny Zinn each with 33.3% ownership interest.

General duties will include review of daily operations, inventory control, employee training, employee hiring and firing, ordering supplies, and routine maintenance and upkeep of the bar, equipment and facilities management.

Danny Zinn will be head chef and oversee the day kitchen staff personnel, including 1 line and 1 prep cook.

The owners will also hire wait staff and bartenders.

All full time employees will be compensated with benefits including health insurance and education and training. They will have an opportunity to participate in profit sharing.

6.2 Management Team

Mr. Davis, a graduate of Florida Atlantic University left the corporate world of Pratt and Whitney behind over ten years ago to establish two neighborhood-based, independently owned wine bars. These gathering places showcase fine wines with exemplary food offerings. Mr. Davis has over a decade of experience in management, project development, and marketing providing the foundation for his business operations, including site selection, rehabilitation and construction and investor financing. In addition to overseeing the day to day operations (“back end”), Mr. Davis fully enjoys the “front end” of the business as well, by interacting with customers to ensure their experience is constantly improving.

Ms. Roberta Gary brings over ten years business and nightclub experience. A Florida native with a Masters of Business Administration from the University of Florida, Ms. Gary began her career as an Event Coordinator for the Radisson, and then moved to Miami to act as nightclub manager for two South Beach bars. Ms. Gray is a keen talent scout and will screen local acts for live performances.

Chef Danny Zinn was formally trained at the Florida Culinary Institute and has over fifteen years’ experience in the restaurant industry. Most recently he was employed at Miami’s famous Fontainebleau. Mr. Zinn will prepare traditional both traditional bar fare along with local specialties such as fresh Atlantic Grouper and Mahi Mahi. Mr. Zinn, a colleague of Ms. Gary, met her while they were both employed at the Radisson.

6.3 Management Team Gaps

Until the NB&G reaches $500,000 in annual revenues, they will utilize a part time bookkeeper to assist in payroll and income tax preparation (Reference legal and accounting line item on income statement).

6.4 Personnel Plan

The following chart shows employee salaries over the next three year period:

Table 6.4 Personnel Plan

*While the salaries appear low, these employees all benefit from the daily tip pool. Average take home pay is $60,000 and compares favorably with industry peers.

6.5 Board of Directors

The financial plan will cover the following:

Required Cost of Start-Up Profit and Loss Cash Flow Balance Sheet Financial Ratios

7.1 Important Assumptions

All 6 employees will be hired from day one of operations (the analysis does not assume employee growth during the initial three years of operations) Zero growth in employees’ salaries over the first three years, then after initial three years, employees will have opportunity for profit sharing. Management salaries remain constant as well – $7,500 monthly over the initial three years of operations Average drink sales price: $5.45 Average appetizer sales price: $10.00 Average meal sales price: $12.00 Annual sales allow economic cyclicality.

7.2 Start-Up Costs

Tenant (leasehold) improvement costs consist of new heating/air conditioning, electrical, plumbing, and painting, carpentry, flooring and smoke detectors.

Equipment consists of two stoves and ovens, one walk in refrigerator, a freezer, two microwaves and a deep fryer.

Furniture and fixtures consist of leather chairs, stools and small booths along with a front and back bar. The back bar was secured from a consignment shop. The front bar will be constructed by Mr. Davis’ brother-in-law who owns a cabinet company.

To date, the owners have invested almost $60,000 out of pocket (42% equity) to meet these startup costs including payment of rent and security deposit.

The owners are seeking a $22,000 working capital loan to meet start-up inventory requirements and, licensing requirements. The loan will be secured by UCC filings on all inventories and receivables.

They are seeking a commercial loan in the amount of $61,000 to purchase kitchen equipment, supplies and bar supplies.

Total start up costs a$142,512.

Table 7.2 Start-Up Costs

7.3 Source and Use of Funds

The following table demonstrates the proposed sources and uses of funds: To date the owners have contributed approximately $60,000 or 40% of the total cost to start the business.

Table 7.3 Source and Use of Funds

7.4 Break-Even Analysis

Total fixed costs are estimated to be $174,026. The variable cost (overhead) is estimated to be $4.60 per unit. Units are assumed to be: the combined average of: the average drink, the average appetizer, and the average meal. Based on the assumption of $9.15 as the average sales price per unit, the breakeven revenue then is $350,214 or 38,275 units. This is further depicted in the Table Below and the Graph that follow:

Table 7.4 Break-Even Analysis

7.4.1 Projected Profit and Loss

The NB&G’s estimated profit and loss for the initial three years of operations is reflected below:

Table 7.5.1 Pro Forma Profit and Loss

7.4.2 Projected Cash Flow

The statement of cash flow shows the incoming and outgoing cash of the business.

Table 7.4.2 Pro Forma Cash Flow

7.4.3 Projected Balance Sheet

The following chart depicts the proforma balance sheet:

Table 7.4.3 Pro Forma Balance Sheet

7.5 business ratios.

The following ratios are based on the Standard Industrial Classification (SIC) code 5183 and the North American Industry Classification System (NAICS) code 722410 – bars and nightclubs. The ratio analysis compares the subject to industry peers based on similar asset size and revenues.

Table 7.5 Ratio Analysis

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Bar Business Plan

How many times have you discussed a bar idea with your friends, and this is the time it is happening for real? So, this dream come true moment is exciting enough.

However, are you worried about funding? Relax, we have got you covered for the bar business plan , which will definitely help you in getting funding.

From the guide on how to write a bar business plan to certain tips on how to present your business plan in front of your investors, you will get everything here. Thus, let’s get started without any further ado.

Key Takeaways

• A business plan offers strategic direction for your bar business, helping you set and achieve your goals.
• The executive summary is an important part, so keep it briefly engaging.
• Conducting a thorough industry analysis is crucial to understanding the bar market, including its size, trends, key players, and local demographics.
• With high competition in the bar industry, you need a robust marketing plan.
• Keep your financial projections practical and do not have extravagant expectations.

Why Do You Need a Bar Business Plan for Your Business?

If you are wondering why there is a lot more voice for a business plan, then consider this:

• A business plan offers strategic direction to your business goals and helps you fulfill them.
• A bar business plan will help you understand the financial aspect of the business and with funding.
• It will clarify the vision for your bar business, so you have to focus on that only.
• Also, it allows you to know specific risks you might face in the future, as a result, you will be prepared.
• Your plan highlights the day-to-day activities that help you run your bar smoothly, which ultimately helps you keep a check on your expenses.

Now you have plenty of reasons convincing enough to have a business plan. So let’s move forward with our guide.

How to Write a Bar Business Plan: A Complete Guide

1. executive summary.

An executive summary covers the whole overview of the bar business plan. From mission-vision statements to financial projections, mention the brief of the whole business plan.

It is the part that entrepreneurs prefer to write at the end, as by the time they write; they will know their own bar business.

Begin your summary with a brief introduction to your bar business

and then mention the details of

• Business goals
• Bar objectives
• Mission statement
• Market Opportunity
• Target market
• Bar business concept
• Financial summary
• Financial projections

Here is an example of bar objectives of a bar with the help of Upmetrics:

Note: Executive summary is the portion to which your readers will pay attention the most, so keep it simple and engaging.

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2. Company Overview

Provide a detailed bar business description in this section. It includes the name of your bar, the location of your bar, the legal structure of your bar business, and other such information. For example, here is a company description of The PBG bar using Upmetrics:

Remember to choose your location very wisely, as it will affect your sales, the crowd that enters your bar, and the reputation of your bar business.

Also, do not forget to mention the type of your bar business, for example, your bar can be one from the below:

• Cocktail bar
• Karaoke bar

After that, describe the business history of your bar (if any), the bar’s capacity of service, and the vision & mission statement of your bar business. Also, add the future goals of your bar business along with the names of owners and their qualifications.

In short, this section is about the detailed description of each aspect of your bar business.

3. Industry Analysis

Diving into the business without properly knowing the bar industry is like diving into a pool with no water. So, industry analysis is all about understanding the market to better know your own bar business.

Some questions to ask while conducting the industry analysis are:

• What is the current size of the bar industry in your location?
• What are the projected bar industry trends you need to take care of?
• Who are the main players or franchises in the bar industry, and what is their market share?
• What kind of bars are there in your area?
• What are the key demographics of the local population?
• What is the level of competition in the area where you are thinking of starting your bar?

Conducting the industry analysis will help you understand the key elements of the market, the preferences of your potential customers, and your competitors. This, in turn, will help you form a perfect marketing strategy for your bar.

For example, go through the below industry analysis to gain knowledge of how to write the industry analysis section.

4. Competitive Analysis

With the help of competitive analysis, you will get the unique selling proposition of your bar business. You will also get to know about your brand positioning and your direct & indirect competitors.

Begin your competitive analysis by listing all other local bars and other competitors with their strengths, weaknesses, opportunities, and threats.

Certain questions to ask while conducting competitive analysis are:

• Who are the main competitors in the local market?
• What are their strengths and weaknesses?
• What is their market share?
• What is the thing that customers like and dislike about them?
• What is their target audience?
• What is their marketing and pricing strategy?

After conducting competitor analysis, understand your strengths, weaknesses, opportunities, and threats to better get your USPs.

5. Market Analysis

Start your market analysis section by mentioning the market size in which your bar will be. For example here is the market size of The PBG bar using Upmetrics:

Describe your target market and customers. Your target market will depend on the type of bar you own, the location you are placed in, and other such factors.

Once you know who your target customers are, mention what your customers will prefer and what new they want. Also, add the current market trends of the industry for example:

• People prefer health-conscious drinks
• Local alcoholic beverages are preferred more
• Signature cocktails
• Drinks with live music or other entertainment
• Healthy snacks
• Diverse menu

At the end of the market analysis, mention all the legal requirements like the need for an alcohol or food service license and permit, zoning laws, and other requirements to run your bar legally.

6. Sample Menu

One of the most vital steps to launch your bar business is the sample menu. Yes, we know it is the same: beer, wines, and other mocktails, yet it is important.

You can bring the variation in the menu by pairing specific snacks with drinks or by providing the calorie count of the drink.

The menu will also help your readers to know what different things you are serving from your competitors. Not just the varieties of drinks and snacks but also the pricing will be evident with the help of the menu.

Plus your menu should be in coordination with your target customers; for example, if you have ladies as your target audience then a wine bar is a better choice, if you are serving university students then you might go for serving beer.

The menu is also a part of your branding, so keep the color and design of the menu the same as your bar.

7. Sales and Marketing Plan

There were around 69,000+ bars & nightclub businesses in the USA as of 2022, which means the competition is high. So, to be noticed you will need constant efforts.

Developing a marketing plan means writing down strategies to acquire potential customers and retain them.

Some of the sales and marketing strategies for bar businesses are:

Create a unique identity for your brand. It includes having a unique name, ambiance, menu, website, and logo that set you apart from any neighborhood bar.

Online presence

Develop a professional website and maintain active social media profiles. Use platforms like Facebook, Instagram, TikTok, and Twitter to engage with potential customers and promote your bar. You can even do influencer marketing and post it on all the social media profiles.

Optimize your website and online profiles for local search, so when people search for bars in your area or “bars near me”, your business appears in the search result.

Loyalty programs

Offer a loyalty program to reward existing customers. Offer discounts, free drinks, or exclusive access to special events for members.

Here is an example of the sales strategy of a bar:

8. Team and Management

Letting your readers know about the backbone (management team) of your bar business will help them have a clear picture of how your business operates.

The management team section tells about the people in charge of the bar business and it can be bifurcated into these sections:

Executive team

It includes owners of the bar business and general managers. The general manager takes care of the entire operations including managing staff and the overall customer experience.

Front-of-the-house

Front-desk staff includes a bar manager, head bartender, event manager, marketing manager, security manager, sommelier, or beverage expert. In short, every manager or head who serves customers or is directly linked with them is front-of-the-house.

Back-of-the-house

The managers or team leaders who manage the Kitchen and all the other back-of-the-bar staff are included in this group. For example: a chef or kitchen manager, HR or staffing manager, financial manager or accountant.

Below is the example of the management team’s description of The PBG bar by using Upmertics:

9. Business Operations

In the whole above plan, we have discussed mentioning your goals, now it is time to write the strategies for daily activities on how to achieve the above-mentioned goals. You can divide these goals into two parts:

Everyday goals

These goals are the heart and soul of your bar business’s daily work. It includes inventory management, financial management, staffing, customer services, menu management, legal compliance, marketing, cleaning, and maintenance.

Long-term goals

It’s all about milestones: the moments that make you pop the champagne. Picture celebrating your 10,000th order, hitting the sales number you dreamt of, opening another franchise, or anything else.

10. Financial Plan

For a successful bar business, it’s crucial to establish a financial plan that incorporates realistic financial forecasts. You should include the income statement, cash flow statement, and balance sheet for 3-5 years in this plan.

• Income statement

An income statement also known as a profit and loss statement, describes the gross profitability of your business by deducting costs of goods sold from revenue.

For this, you need to make practical assumptions, so that you can know the actual future profitability range of your bar business. Here is a projected profit and loss statement example for 5 years made using Upmetrics:

• Cash flow statement

Your cash flow statement helps you see how much money you need to start or grow your business and avoid running out of money. The flow of the cash should be maintained even for certain months after launch that is before you start making profits.

Surprisingly, you can make a profit but still face financial problems that could lead to bankruptcy. Therefore, you will need proper planning of the cash to avoid such circumstances.

• Balance sheet

Balance sheets display your assets and liabilities. Although they can contain a lot of details, like equity, goodwill, other intangible assets, etc.

How to Present Your Business Plan to Investors

Presenting your bar business plan to investors is like waiting for your high school results all over again, right? Don’t worry, here are some tips:

• Create a well-designed pitch deck that complements your business plan. Keep it concise and visually appealing.
• Practice your pitch thoroughly to ensure you can deliver it confidently and clearly. Rehearse in front of friends, family, or partners for feedback.
• Understand your audience first; know their interests, investing patterns, and expectations.
• Begin your presentation with a compelling hook that grabs the investors’ attention.
• Present market data to support the size and growth potential of your business. Investors need to see that there is a substantial opportunity.
• Thank the investors for their time and express your interest in further discussions.

Download a Bar business plan template

Ready to kick-start your business plan writing process? And not sure where to start? Here you go, download our free bar business plan pdf , and start writing.

This intuitive, modern, and investment-ready template is designed specifically for bar businesses. It includes step-by-step instructions & examples to help in creating your own bar business plan.

The Quickest Way to turn a Business Idea into a Business Plan

Fill-in-the-blanks and automatic financials make it easy.

Write Your Business Plan with AI

Finally! Now you know how to write a business plan for your bar business with the help of our bar business plan example. Thus, you are a step closer to beginning or growing your business.

No doubt, writing a business plan is a daunting task, but you know what? Now you can write your business plan with AI Assitance , in which you just have to enter the prompt of your thoughts and AI will help you bring it in words.

Thus, take a deep breath, calm down, and get started with writing your bar business plan with AI.

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Frequently asked questions, where can i find a bar business plan template or sample.

You can find bar business plan samples and templates at various places:

• Business plan library of Upmetrics
• SBA’s official website
• Local small business centers
• Other local bar entrepreneurs

What market research should you do before writing a bar business plan?

Before starting to write a bar business plan, you should do a thorough market research. Here are the types of market research you should consider:

• Industry research
• Target market research
• Competitive analysis
• Location analysis
• Market trends and preferences of customers
• Pricing and menu research
• Licensing & legal requirements

What mistakes should be avoided in a bar business plan?

There are certain things you need to avoid while creating your bar business plan:

• Lack of market research
• Projecting too many profits
• Ignoring the competition
• Not defining a unique selling proposition
• Failing to address risk management
• Poor presentation

What financial projections need to be included in a bar business plan?

In a bar business plan, you will need various estimated financial statements like:

• Break-even analysis
• Sales forecast
• Uses of Funds
• Financial ratios

About the Author

Vinay Kevadiya

Vinay Kevadiya is the founder and CEO of Upmetrics, the #1 business planning software. His ultimate goal with Upmetrics is to revolutionize how entrepreneurs create, manage, and execute their business plans. He enjoys sharing his insights on business planning and other relevant topics through his articles and blog posts. Read more

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Bar Business Plan Template

Bar Business Plan Outline

Bar Business Plan Home

• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Bar Business Plan Here

You’ve come to the right place to create your bar business plan.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bar businesses.

To write a successful bar business plan, you will first need to decide what type of bar you want to open. Do you plan to open a sports bar, a wine bar or a nightclub? What kind of alcoholic beverages will you serve? Will you have live music?

You will then need to gather information about your business and the bar industry. This type of information includes data about your potential customers, marketing strategies to reach your target market, and 5-year pro-forma financial statements (income statement, balance sheet and cash flow statement).

Sample Bar Business Plan Template

The following bar business plan example gives you the key elements to include in a winning business plan:

Next Section: Executive Summary >

Bar Business Plan FAQs

What is a bar business plan.

A bar business plan is a plan to start and/or grow your bar business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your bar business plan using our Bar Business Plan Template here .

What Are the Main Types of Bars?

There are many types of bar businesses. Many bars are on the more affordable side and are known as dive bars.  Sports bars are also a very popular business option. There are also posh and luxurious bars that offer high-end alcoholic drinks. There are trendy bars that offer the latest trends in cocktail and beer offerings. Other bars are location-focused and are unique to the area of town or location that it is in. Many bars also serve food as an option to accompany the alcoholic drink choices.

What Are the Main Sources of Revenue and Expenses for a Bar?

The primary source of revenue for a bar are the alcoholic drink items and food sold at the establishment.

The key expenses for a bar are the costs to purchase the alcohol (beer, wine, liquor) inventory, bar equipment and supplies, overhead expenses for the staff and rent, and any marketing costs the bar chooses to partake in.

How Do You get Funding for Your Bar Business Plan?

Bar businesses are most likely to receive funding from banks. Typically you will find a local bank and present your business plan to them. Another option for a bar business is to obtain a small business loan. SBA loans are a popular option as they offer longer loan terms with lower interest rates. Outside investors, crowdfunding, and/or friends or family are other typical funding options.

What are the Steps To Start a Bar Business?

Starting a bar business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

1. Develop A Bar Business Plan - The first step in starting a business is to create a detailed business plan for a bar  that outlines all aspects of the venture. This should include potential market size and target customers, the services or products you will offer, pricing strategies and a detailed financial forecast.  

2. Choose Your Legal Structure - It's important to select an appropriate legal entity for your bar business. This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bar business is in compliance with local laws.

3. Register Your Bar Business - Once you have chosen a legal structure, the next step is to register your bar business with the government or state where you’re operating from. This includes obtaining licenses and permits as required by federal, state, and local laws. 

4. Identify Financing Options - It’s likely that you’ll need some capital to start your bar business, so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 

5. Choose a Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your operations. 

6. Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 

7. Acquire Necessary Bar Equipment & Supplies - In order to start your bar business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 

8. Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bar business. Your marketing strategy should include creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a successful bar business:

• How to Start a Bar Business
• How to Open a Bar Business

Where Can I Get a Bar Business Plan PDF?

You can download our free bar business plan template PDF here . This is a sample bar business plan template you can use in PDF format.

Step By Step Guide To Write A Bar Business Plan

Opening a new bar requires grit and determination - as well as a fantastic bar business plan to act as your roadmap. This document can determine the future success of your new venture, so it’s essential to make it as comprehensive as possible.

But for first-time bar owners, figuring out where to start can be challenging. Our step-by-step guide to writing a business plan will help you pinpoint the finer details to consider when building a thriving bar business.

How to Write a Bar Business Plan in 9 Steps

1. bar overview.

The first step in writing a bar business plan is to establish an overview of the type of bar you want to open. You need a concept and location to shape your business model and create an executive summary for your new venture:

One of the defining aspects of your establishment is its concept and theme, which you’ll need to describe clearly in your business plan. Whether it’s a simple sports bar, speakeasy, or high-end nightclub, have a fully developed idea of what your venue will be and what purpose it will serve.

You also need to consider how to meet market needs. If you’re following trending concepts, you’ll know that roof-top bars and lounges are popular now. Or, perhaps you want your venue to be an activity-based bar that offers an art gallery, board games, or mini-golf?  

Part of your business plan also includes setting your mission statement and goals. These should outline your vision and will influence who invests in your bar. Your mission statement should be a comprehensive statement that details what sets you apart from other bars and should include your company’s values.

It’s important to link your statement to your business concept. You should consider how your values and goals are influenced by what makes your bar unique - including your overall purpose.

Next, you need to propose a location for your bar. Venues close to stores, shopping, centers, and tourist attractions, typically get good visibility and attract a lot of foot traffic. Because of the number of people moving through these areas daily, they also usually offer a decent level of security for your customers.

Another consideration for location is to avoid suburban areas where neighbors might lodge noise complaints. Should this happen, it can mean regulations stipulate earlier closing times for your venue so as not to disturb the peace.  

Finally, look for a space where there’s low competition, and your business can shine. There are plenty of strips crowded with bars and nightclubs. While these might attract a decent amount of foot traffic, you’ll need to work much harder to draw people into your place if one establishment has already made a name for itself.

For this reason, aim to secure a spot with little competition. It could mean having a unique concept bar that overshadows the competition. Or it could mean selecting a space where your type of bar doesn’t yet exist.

Ease of Accessibility

Potential customers need to be able to access your bar easily, or they will go elsewhere. They might drive, take public transport, or use a ridesharing company to travel to your venue. It’s up to you to ensure there are ways and means to get them conveniently to the front door.

Here, you should be looking for a venue where you can offer parking to your patrons. It should also be accessible to ride-hailing services and close to public transport.

2. Customer Overview

No bar establishment would be successful without its customers. As part of your bar business plan, include a profile of the type of customer you hope to attract. Consider who your target market is and how it aligns with your bar concept.

You should also outline your demographic's age, income, and interests. You’ll need this information later when developing marketing strategies for your business.  

3. Management Overview

The next step in your bar business plan is building a team structure. Your crafty bar concept requires talented people to execute it properly.

Your bartenders are the face of your establishment. Essentially, they can make or break your customer’s impression of your venue. When going through the hiring process, you’ll need to consider each individual’s personality, qualifications, experience, and skills.

Ideally, you want at least one experienced bartender who knows the ropes and can help set up operations, deal with bar management, and train the team. They will also be able to help streamline any teething issues that come up as a result of starting a new business.

From the get-go, outline your bartending teams’ possible responsibilities and the duties they’ll need to undertake. This can help set expectations ahead of advertising jobs and interviewing potential candidates.

Bar-backs don’t need as much experience as bartenders or servers as they aren’t in the customer eye as much. But they must be willing and eager to learn. They are essential to keeping everything running smoothly and work closely with the bartender as an assistant.

For this reason, they need a solid foundational knowledge of the industry, ingredients, and barware in general.

Depending on your business concept and operational model, you may or may not need to employ servers. Some high-end venues have servers to reduce the crowd around the bar and deliver drinks to the table. Additionally, you’ll need to hire servers if you offer any food.

When building out your staffing plan, you’ll need to determine where your establishment lands with that requirement. Make a note here to look for bar industry candidates with alcohol training who know how to serve alcohol safely and legally.

4. Drinks Menu Plan

Your drinks menu is your bar’s product. To be successful, it’s essential to get this offering right.

While your beverage list will undoubtedly change over time, don’t neglect to include a sample menu in your business plan. This will give potential investors an idea of what’s in store and possibly help you secure funding.

Descriptions

Your drinks menu is the selling point of your bar business and the star of the show. If you can excite and entice patrons with promises of wonderful flavors, you’ll be onto a gold mine.

So, it’s important to include product descriptions in your menu, particularly for signature drinks. Each listing should detail the ingredients of individual drinks, any garnishes they may come with, and add-ons your customers can choose from.

Beverage Names

A successful bar is only as strong as its product. So, aligning your drinks with your bar’s brand and concept is important. Get together with a mixologist to create one or several signature drinks that will be uniquely your own. Give these drinks names that play to the overall theme of your business.

Product Sourcing

Many establishments lean on particular products as their claim to fame. For example, you might want to be known as a French wine bistro, local brewery, or craft cocktail spot. Decide what you wish your unique story to be and reflect this in your plan for product sourcing.

Of course, sourcing locally is the most sustainable way to go. You can also build relationships with vendors in your community, which can help bring people into your venue.  

Industry Trends

It’s essential to do your research and stay abreast of industry trends. Note what these are in your business plan, as this will help keep customers walking through your doors.

For example, one of the most popular cocktail trends in the bar scene is smoke-infused or smoked cocktails. Some mixologists may also use smoke bubbles to infuse the cocktail with a smoky aroma. This trend has gained fame in the last few years and adds a new twist to the cocktail-drinking experience.

Small Food Menu (Small Bites)

Food and beverages go hand in hand. If you plan a small menu with, say, tapas or easy eats, you can increase your revenue. It will prevent your guests from leaving to find something to eat.

Suppose you don’t want the hassle of food storage and preparation. In that case, consider formulating a partnership with a local eatery or small food business that can deliver a menu of select freshly-made items to your establishment.

5. Licenses

It’s key to plan out your business licenses carefully. If you don’t have the right ones in place, you won’t be able to operate.

Tavern License

When putting together your bar business plan, it’s important to research whether you need a tavern license. It’s a government-issued license for restaurants, bars, or businesses with more than 50% liquor sales.  

Beer and Wine License

If you’re planning on starting a beerhouse or wine lounge, you may only need to apply for a beer and wine license. This will restrict your sales to wine and malt beverages, as you won’t be able to sell hard liquors like spirits. Whether you need to apply for this license depends on your bar's concept.

Health/Food Service License

With a small food menu, you’ll likely need to note on your restaurant and bar business plan to apply for a food service license. It’s a requirement to serve any type of food within your establishment. To obtain a food service license, you’ll need to ensure that your bar follows strict rules and regulations laid out by the U.S. Food and Drug Administration .

Music License

Music is one of the key elements of creating ambiance in a venue. But did you know that streaming music from your digital subscription with Spotify or Deezer is not actually operating within the law? This is true even if you’re playing music through a TV or radio.

The right way to go about this is to pay a Performance Rights Organization (PRO) or music service that will send royalties to the relevant artists. For the most part, this doesn’t apply to bands or performers who play live at your venue.

6. Market Research

Performing market research as part of your bar business plan is key to understanding your opportunities and how to capitalize on them.  

Industry Research

Part of your research should be to determine the market size you can potentially snag. Look at other bars already operating in the area, consider the industry as a whole, and determine what trends are driving it forward.  

Target Market

What needs will your bar solve for your target market? You can find out who they are and what they want by considering the local neighborhood and bar type.

It’s also an idea to look at census data to see how many potential customers within a certain demographic live within a reachable radius of your proposed location.

Market Share and Price Point

When doing your market analysis, consider similar bar businesses that have come before you. What do their successes and failures look like? Why did they crash and burn, or soar to new heights? Take these lessons and figure out how to apply them so your business can succeed.

Furthermore, what will your entry into the market mean for the local community? Are you creating new job opportunities? Or are you going to bring in an unruly crowd of patrons they hope to avoid? Knowing this information will help you be accepted and create connections rather than catastrophes.

Lastly, consider what your ‘competitors’ or other similar industry businesses are charging for their drinks and services. Run a competitive analysis in the area to determine your potential price point and how you can stand out.

7. Bar Marketing

Utilizing a marketing plan in the right way helps you take measured steps to get your establishment in front of potential customers. Here are the strategies to get started:

Create a Brand

The key to starting a successful business - and keeping it open - is to create a memorable brand identity. Your toolbox for promoting your brand should include your logo, colors, and ‘personality.’ Use these in a way that becomes synonymous with your bar, no matter where people interact with it.

Marketing Tools

Besides developing your brand identity, consider the channels you can market on to attract customers. At the very least, it should include your social channels, website, and media influencers.

8. Other Avenues to Increase Revenue

Besides being a bar and welcoming guests who come in with reservations or foot traffic, there are other avenues to increase your revenue.

Hosting events such as karaoke nights, wine tastings, or live music is an excellent way to attract larger crowds to your bar. You are guaranteed certain sales, can charge a cover fee, and get new people walking through the door.

If you go this route, we recommend using event management software to keep everything on track and work effortlessly with your team.

It’s no surprise that all businesses go through an ebb and flow of customer traffic. A great way to increase cash flow during slower periods is to introduce ideas like drink specials and happy hour discounts.

When you’re writing up a business plan, don’t forget to brainstorm ideas for a pre-opening promotion as a way to test the market. This can be as simple as a soft launch or as elaborate as a grand-opening celebration.

9. Financials

An important aspect of your business plan is to outline your potential start-up costs. These, along with the costs of day-to-day business operations, and financial projections, will attract or deter potential investors.

Your business plan should also highlight possible funding options like loans and investment opportunities you have available. Additionally, you’ll need to draw up a break-even analysis to determine how much revenue it will take to turn profits.  

Realizing your dream of owning the hottest bar in town starts with a great business plan. It will need to cover everything from your mission statement to your concept and drinks menu. This will help you build a sturdy management team, hire great employees, and attract people to your venue.

Want to know more about Perfect Venue for event management? Try it free to find out how it can be a fit for your new business.

Have thoughts on the article? Feel free to email us at [email protected] - we'd love to hear from you!

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Blaze - Sample Bar & Restaurant Business Plan

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Bar business plan template

Download this bar business plan template in PDF or Word format, or tailor it to your project directly in our business plan software.

Discover our bar business plan template

Not accustomed to writing business plans? Our bar business template will turn a typically challenging process into a total breeze.

Modelled on a complete business plan of a bar in Normandy, our template features both the financial forecast and the written part that presents the project, its team, the local market and the business strategy implemented by the management.

Cast your eyes on this template to achieve a better understanding of what your bank and investors would like to see, so that you can create a business plan that meets their expectations.

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Edit the bar business plan template online, or download it

Available in pdf.

Just after a little inspiration? Download the business plan template in PDF to print and have a read over it.

Download in Word format

Want to edit your plan on Word? Simply export the bar business plan template to MS Word (.dox) format.

Tailor it to your own project

Adapt this template to your personal project by changing the written part or the financial forecast in our online business plan software .

Bar business plan template content

This template includes a complete business plan, with a financial forecast and the following sections:

• Executive summary: The executive summary gives the reader a clear and concise overview of your business idea
• Company: This section lays out the structure of your business, including its location, management team and legal status
• Products and services: Here, you'll give an overview of the services or products offered by the company
• Market analysis: The market analysis is where you’ll demonstrate that there is a strong demand for your products and services through a thorough assessment of the industry (customer profile, hot trends, regulation, competition, etc.)
• Strategy: This section highlights the company's game plan when it comes to pricing, marketing and mitigating risks along the way
• Operations: This step lays out the company's operational organisation, including the recruitment plan
• Financial plan: The financial plan includes a table of sources & uses (initial funding plan), and complete financial statements (P&L, balance sheet and cash flow statements).
• Appendices: This part provides the opportunity to include multiple financial appendices generated by our software (debt maturity profile, monthly financial statements, financial analysis, etc.).

Template only available to paying subscribers of our online software. Get a 7-day trial for free

Bar business plan template extract

Executive summary, business overview.

Gina Cocktail Bar will be a cocktail bar located on rue Ecuyère in Caen.

The bar will have a menu of 150 cocktails with and without alcohol, as well as bar snacks to accompany the drinks. Such snacks will include cocktail sausages, olives, crisps and peanuts.

Once renovated, the bar will have a seating capacity of 16 and a heated outdoor terrace with a seating capacity of 25.

One of the liveliest streets in Caen, Rue Ecuyère is famous for its wide range of bars, therefore benefiting from an extensive catchment area.

Gina Cocktail Bar will be a limited company. It will be managed by Ms. Gina T, a cocktail enthusiast who acquired an in-depth knowledge of the industry during her 10-year career as a bartender.

Market Overview

French Market

According to a 2013 report by INSEE, sales in the French bar market reached €6.6bn in 2013, a 4.4% decrease compared to 2012.

The sector, which includes 42,232 companies, has faced challenges for several years.

At the opposite end of the spectrum, cocktail bars are on the upswing. While other types of pubs are closing down, cocktail bars are increasingly popping up within France.

Benefiting from an aspirational and trendy image, cocktail bars attract a wide target market. Young people, notably young professionals, are the number one consumers of cocktails within France.

The average price of an alcoholic cocktail is €8.40, whilst non-alcoholic cocktails tend to cost around €6.20.

Local Market

In 2012, the city of Caen had a population of 111,342, with the urban area of Caen la Mer including 242,182, enabling the bar to benefit from a large pool of potential customers nearby.

With over fifty bars in the city centre, Caen has an established nightlife culture. Most of the bars are situated around rue Ecuyère, the port, rue Saint Pierre, and place Saint Sauveur.

Target Market

We have identified two types of potential customers:

• 66% of direct reservations (at the front desk of a hotel or over the phone)
• 10% of online reservations via the hotel's website

Competition

There are already 10 bars, as well as 2 brasserie bars, on Ecuyère street.

Although they're in direct competition, the close concentration of bars brings an attractive and lively atmosphere that makes rue Ecuyère the epicentre of Caennaise nightlife.

Although some already offer a limited number of cocktails, most of the nearby places are traditional bars. As a result, the radically different atmosphere and menu (of over 150 cocktails) that Gina Cocktail Bar offers should allow us to set ourselves apart from the street's existing bars, consequently enabling us to develop loyal and regular customers.

Financial highlights

We expect to achieve a turnover of €324,094 in the first year, and €360,893 in years 2 and 3.

We anticipate the business will be profitable at the operational level from year 1, however due to the high level of D&A we will record a loss of €-3,397in year 1.

Based on the current plan, EBITDA should represent €6,437 (or 1.99% of sales) in year 1, and we believe that better bar occupancy in subsequent years will allow us to achieve an EBITDA of €28,172 (margin of 7.81% of sales) in years 2 and 3.

The business should be sufficiently capitalized to allow us to honor our loan repayments while maintaining sufficient liquidity to meet any unforeseen events, whilst investing regularly to maintain the bar's standing.

The objective of this business plan is to obtain a bank loan of €52,750 to finance part of the renovation work and the purchase of equipment needed to open the bar.

Template only available to paying subscribers of our online software. Get a 7-day trial for free.

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