How much money do I need to open a bar?

You were searching on Craigslist, Loopnet, or BizBuySell, and came across a bar and grill for sale for $50k. Or even better, you found a space that's already built out for lease for only $7k per month. You think, "I've got some money saved up. So do my friends. We should totally own a bar!" But how do you know exactly how much you're going to need? Brokers and owners know how to price a sale to make it look enticing. In fact, there are some that make good money off scamming first time buyers. Being knowledgeable on all the costs associated with opening and operating a bar or restaurant will give you the best chance at success.

The reality is that, conceptually, it's not hard to run a bar. You sell food and drinks at a markup, pay your bills, take care of your customers, and manage employees. But what do you budget for a build out, re-concept, replacing old equipment, updating the sound system, upfront insurance payments, security deposits, float cash, marketing blitz, staff training, point of sale system, or any other litany of costs that don't jump out at you?

If you're taking over an existing bar, you can ask the current operators for their profit and loss (P&L) statements for an idea of what to expect. For a new concept, you'll have to put in some time researching by calling vendors, utility companies, agents, and other local operators. Even if you have to spend money during this process, it's absolutely worth it.

Building a team of professionals who can help you make sound and wise business decisions is the best first step to opening any successful enterprise. For bars and restaurants, find brokers, attorneys, accountants, GMs, consultants (like us!) and marketers who you can run ideas by. People will usually tell you you're crazy for wanting to open a bar/restaurant (especially during the post-pandemic era), but it can be one of the most rewarding and fulfilling journeys you'll ever take. "If it was easy, everyone would do it."

The answer is that there's no solid number that exactly states what you're going to need before you start kicking the proverbial tires. (And it's usually a bit more than you think.) A dive bar in the burbs will have quite a different startup budget than a nightclub in downtown. As always, feel free to message us with any questions you might have. We're here to help guide you to success!