How much $$ is needed to start a bar/cafe?

[mainebrokerman]

gnubler,,,here's an idea,,thats out of the box,,in left field,,think of a non direct competing business,,that may share lease space,,,can compliment each other
for example, in a town next to me,,there is a small cafe with tables/boothes,,,but also sells fresh baked bagels/breads cookoes,,,yet as part of the same area,,(but somebody else leases this space) there is a deli case for sliced meats, and he makes up salads to go.
so if im in your shoes,,id do market studies(competition, traffic flow/count) on what areas you are leaning towards,,and then place an ad in the paper,,for a deli/bakery,,that you are looking to open a cafe and would sublease space to someone who always wanted to open thier own deli, or deli/bakery,,this would be a huge advantage to them also..
now, even before you target a location,,,you can put an ad in the paper,,see if anyone is out there,,

[LiptonGuy]

I'd say, your best bet is to buy an existing bar or Bar & Grill. Resaturant business is tough, unless you have the right concept.

Some guy here in Toledo, Ohio runs a string of diners he calls Star Diner. They're only open for breafast & lunch...that's it.

It's kind of like a HOOTERS, except all the girls wear skimpy black tops and tight shorts. Who knows, maybe some of them work at Hooters in the evening.

These places are PACKED every day. The guy has opened several, in the past 2 or 3 years. These are little GOLD-MINES.

[mainebrokerman]

i guess if i were going to open a cafe,,id also target the business crowd, perhaps have a computer monitor in the table itself,,with a pull out keyboard ,,just underneath the table-top...
this concept would invite, a "working" breakfast or lunch,,of course you'd have to place a time limit on the table,,with a minimum cost per plate...

[morticyr]

It really depends on the goals you want to achieve such as how big it is, where you want it and local regulations surrounding the industry where you are.

I opened a bar on Long Island in New York and it ran close to $200,000 to furnish and set up before opening, with all rent and costs associated with operating the bar it comes to $5,000 a month plus payments back on the loan used to open it. Local fire code regulations cost me $10,000, I was required to have a security system installed which included cameras and I had to also keep in mind all department of health regulations which weren't that cheap to enforce at the begining. If you make it past any loans and the opening costs it is a good industry with a large profit margin if done the right way. One other thing was that I had to lease the building before I could obtain a liquor liscence (which was an additional $4,000 plus the 2 months of waiting period rent) but that may be different depending on where you open.

The most important thing is to develop a sound business plan, it will be the tool to make it work. Also don't over extend your finances at the begining and save some money within the company in case of slow periods and extra events to help pay the bills, bars can slow down for no reason and pick up shortly after.

One last thing is just scout locations, areas and regulations, you can get estimates and prices for just about everything you need before you even pick a location.


Hope that helps a little bit.

[Gurndog 3]

wow lots of great info. I was thinking of opening up a bar myself and you have all given me great insight. thank you