How to Run a Bar: 8 Running a Bar Tips
You will never get bored owning a pub. For the foreseeable, you’ll have to work weekends and evenings. You and your team will have to do a lot more challenging and tedious tasks than in other hospitality businesses.
Don’t let this discourage you owning a pub can be fun if you enjoy your staff and clients. Many bar owners are committed to the business because of the relationships they build in the community, the benefits of maintaining and training a good team, and the profits.
You’ll learn everything you need about running a pub, from how to manage costs and increase revenue to how to promote your business. Bar owners who are brand new to the business will learn how to run a bar. Long-time bar owners will get some fresh ideas on improving their bottom line.
8 Tips to Manage and Optimize Key Bar Operation Costs
Rent and Overhead Management
It is important to review and negotiate the lease as soon as possible in order to own a bar. You should balance your excitement at finding the ideal space and location with doing your due diligence in order to keep recurring costs low.
The overhead costs are all the basic operating expenses that do not have anything to do with producing a product or offering a service. Rent, electricity, water, gas, insurance, administrative/legal costs, and internet are all included in these costs. These costs, particularly the variable ones such as utilities, should be monitored regularly.
Keep up with Licenses and Find a Trusted lawyer
A bar needs a liquor permit and other permits. Check the local guidelines to make sure you apply for permits as soon as possible.
A good lawyer is always a plus, particularly in the early stages when opens a bar. You can use them as a resource to help you through the permitting process. It’s worth investing in legal help whenever you have a problem.
Find, Train, and Retain the best Bar staff and Pay them well
Without a great bar team, your bar will not be able function. You’ll need bartenders first, but also managers, dishwashers and bussers. If you serve food, you may even require cooks. In today’s highly competitive job market, it can be difficult to find a team that is both talented and motivated. Offering a good salary and benefits that are meaningful is important.
It’s important to include a good salary for your staff in your business plan right from the start. For bar owners who are struggling to meet their financial obligations while providing better benefits and increasing employee pay, they can look to other successful bars like Thamee and Thai Fresh. These bars and restaurants have been able to make it work by raising menu prices, experimenting different models and implementing service charges.
It’s also important to provide a safe working environment for your employees, since they will be around drunk people and alcohol every day. Happy employees are those who feel supported and comfortable at work. Take care of your employees, they are the biggest investment in your business.
Pour cost Often and Track the Cost of goods Sold
Maintaining healthy margins is all about monitoring food and beverage costs. Negotiating with vendors is more important than ever, as inflation has driven up the cost of almost everything from napkins to liquor. Do not be afraid to rethink items on the menu or drinks that don’t perform well enough, or cost too much for them to pass menu engineering.
We says that the ideal pouring cost is 20%. Here’s their method of calculating the cost of making a simple cocktail with ingredients worth $2:
Drink Price ($) = Ingredient Cost ($) / Ideal Pour Cost (%)
Drink Price ($) = 2.20 / 0.20
Drink Price = $10
You should increase the price if you see that ingredient costs are increasing.
Bar Promotions and Marketing Your Bar
Bar Marketing is crucial to the success for almost any type of bar. Even cash-only dives bars now have social media accounts. Get the word out there about your bar, and any events or promotional offers you are running! To find out what marketing methods work best, try social media, email, paid ads and flyers.
Interior Design: Create the Perfect Atmosphere
The design of your bar should reflect the feel of your business. Does it have great prices and tasty snacks or is it grungy? Elegant, modern and innovative cocktails? Local pub? A dance bar? Decorate your bar according to the brand you have chosen. Decorate your bar with lighting, art, paintings, furniture and other decor items that reflect your vision.
It is important that your online presence matches the interior design of your business. Most customers will engage with your company online before ever setting foot inside. Your online presence is your ticket to a great first impression.
Invest in Professional Services
You cannot do everything by yourself. You may need assistance with a number of tasks at your bar, including repairing a dishwasher, preparing complex business tax returns, draining the grease trap and dealing with legal issues. You can ask your peers to recommend professionals who have helped them resolve problems.
The Best Bar Equipment and Technology
You can only go so far with pen and paper. You can improve operational efficiency, control costs, monitor inventory and manage your staff by embracing technology.
