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 Post subject: The Bar Business
PostPosted: Fri Oct 19, 2007 12:03 pm 
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Typically with this economy in any town America the percentage of bars in the black is dismal in comparison to the bars in the red. In this post I will try to explain why and challenge some unexperienced and outlandish statements made in other threads.  
My experience consists of many years as various officer positions in the VFW and trying to maintain a balance between the bar (club) and still retaining the dignity and rules of the post. These balances were constantly changing as more and more old vets were passing and the crowd was more civilian and younger.Trying to keep a small bar afloat takes a lot of advantages before opening. Also we had a small liquor business for a few years and I still know some of the distributors A few years ago the Bud delivery guy confided in me there were only two bars in Greeley in the red One was where my best buddy had KJ"D there for five years FRI SAT SUN. So I am not writing this post out of guesses but by years of hard experience. I have also serviced many bars professionally as vendor tech or league organizer. I am very familiar with all types of bars and clubs and know what works.
Here are some of the disadvantages of a small bar. Quantity discount.. If I remember right our first beer discount was 25 cases Many cannot buy that quantity with one shot. Believe it or not the discount liquor stores were selling 12 packs cheaper than we were paying the distributor for. Co law states that a bar cannot buy more than 1/5 of booze from a local liquor store Dont even think about buying beer They will close you down in a minute. Any bar has to comply with federal state and local laws or face the proposition of losing their license.
Any businees depends upon volume Years and years ago on the dairy farm one had to have a herd of 50 cows. Now it is in the hundreds. Any business is the same way A bar with 150 cap has a daily struggle with profit. I sure dont see a 45 cap bar surviving.
Typical rent here for an average bar in good location (strip mall, shopping center) is $1500-2500. Utilities running big coolers and such is not cheap. Certified bartenders and mngrs do not work for minimum wage. Price of drinks and whether or not you are charging for coffee or cokes is insignificent.  What is important is the average size of crowd from opening until close. Any bar has their daytime regulars which I observed while servcing bars They were selling food stamps and were sippers although most were there daily. Next you had the happy hour big crowd however less profit due to twofers. Good bars after the happy hour crowd leaves are approaching the black It is easy to tell for the daytime bartender x'es out and the evening shift puts their drawer in the cash register.
Then the evening crowd starts drifting in.
Now as  KJ I have made statements in other threads If I dont x a Grand then I am not doing my job. Here is the arithmetic. Our poorest times are lets say 25 people buying 2 beers an hour  ($125) Another 25 buying mixed drinks at $7/hr ($175) Thats $300/hr. Even if the late crowd doesnt come in for 4 hrs thats $1200 dollars. I dont feel ashamed of charging $150 Now the small bar I'm in now serves good food until 10p Also Sat we have ladies night 1/2 price beer and well drinks. Here I expect $2500+ x my time I'm alreadty working on a pay raise. The owner is not a typical bar owner and he gives us full rein on entertainment. When the x is a constant $2500 I will want $250/night and he knows it.
For those not totally familiar with the bar business or any other business for that matter I hope this puts some light on the subject.

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 Post subject: Re: The Bar Business
PostPosted: Fri Oct 19, 2007 12:30 pm 
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That's pretty much what I'm hearing from a friend here who owns a bar with karaoke 7 nights a week. They don't sell much food in this club but that's about average in this area.

So I'm allowed into the VFW? I should start going.


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 Post subject: Re: The Bar Business
PostPosted: Fri Oct 19, 2007 1:51 pm 
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All VFW clubs now are public Go in and support your vets. We charge $2 a beer most clubs are  cheaper I dont know about Grand Priarieie or Arlingtin BTW I was over at the farm and I have a brother-in law in Greenville TX My sis wants to come down That is only20 miles  LOL

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 Post subject: Re: The Bar Business
PostPosted: Wed Oct 24, 2007 12:56 am 
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great info!!   My guideline has always ben that even on the bad nights I want the bar to have more in the till after im paid than they averaged when they did not have entertainment on that night of the week. my guideline is that on average they shuld have increased the till by what they paid me IE if they pay me 200 they should be able to have 200 more than if I was not there after im paid.  in our area bar managers seem to agree. in the smaller bars in this area 2g in the till even on a fri or sat is an amazing night. but if they make 200-300 (after paying me) more with entertainment than without, then I have done my job.  bars are not the "eazy money" that everyone thinks they are. that might have ben the case in the 60s or 70s but these days its tough.

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 Post subject: Re: The Bar Business
PostPosted: Sat Nov 17, 2007 1:59 am 
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Great info and I appreciate it. I'm not interested in finding out the numbers of the bar I work at. Cause I know the fri and sat nights I work are now packed to the gills... so I know i'm getting people in there.. i'm just curious if they are also bringing in more money.


I know my bar managers are starting to gripe about some few folks that come in for karaoke that just suck down water (with lemons of course) and soda all night. Those guys are starting to slip in my rotation.

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