There is no single right answer to your question, as the costs will vary tremendously depending on the size of the bar, the lease you are able to sign, and how you go about acquiring the liquor license.

Purchasing an existing bar will save you a lot of dough, which is usually needed for renovation, rebranding and improvements.

The cost depends on the location and the size of the bar. Since attendees aren’t paying for drinks, they aren’t as concerned about abandoning them, forgetting them or having a few more than they would if they were paying themselves.

How much does it cost to open a bar?

A bar owner who purchases the property and pays a monthly mortgage can look at upfront costs between $175,000 and $850,000. Application fee 10k in the form of chachallen 2. One way to save money is to buy a pre-established bar. Yet the investment can pay off fast if you start producing a popular beer and re-sell it later on.

Another good move is to buy all the equipment you need on auction. Not surprisingly, this means people tend to order more drinks. To give your bar the best chance of success, here is your checklist for opening a bar.

Another bar owner spent over R2 million starting his club (and he didn’t even build the building). This can cost you around $25,000. For a bar that leases or rents its property, startup costs can range from $110,000 to $550,000 depending on the amount of work that must be done.

Summary of Cash Needed to Open & Operate a Restaurant, Bar or Club If You’re Changing the Name & Doing Remodeling, etc. A minimum of $80,000 to start a food and beverage business seems like a lot of money, and you might not be comfortable applying for loans of this size (or a larger amount), and that’s okay. The cost to open a bar for this type usually runs around $20 thousand up to $100 thousand. You love talking to new people, you’re a pro at mixing drinks, and you just don’t feel cut out for the 9-to-5 life. According to a survey released by Restaurant Owner, the median cost to open a bar or tavern is $425,500, with the lowest being $275,500 and the highest being $650,500.

So you want to open a bar. Once the bar is open for business, an owner must spend $13,000 on staff, $6,000 on rent and a small amount on utilities and miscellaneous monthly purchases, bringing total monthly costs to $20,000. However, you need to consider why the person is selling the establishment.

The numbers vary across the board. The costs of opening a brewpub can be quite high (estimated around $450.000-$800.000) as you’ll have to invest into equipment.

The survey also found that it takes the average bar six months to become profitable , so if you’re looking to open one, you’ll need roughly six months of runway funding to give yourself a fighting chance. The costs to open a coffee shop may seem extensive and daunting at first. You’ll need to make sure you have enough money in reserve to sustain yourself during this period. It’s common to operate at a loss when you first start a business. A cash flow forecast will help predict whether you’ll need to borrow money, and if you are financially prepared to start up.