Buying a bar/pub/club

[Shadowferal]

If that's true, I can assure you it isn't true everywhere. 500k lol.

And if there is no food in the place that is better because food adds so much shit to your plate (pun intended) and the profit margin from it isn't really worth all the extra work, fees, inspections, licenses, etc that it adds.

I had to look more into that; Availability in NJ

The number of Class C retail licenses for bars, restaurants, and liquor stores is limited by population and often by municipal ordinances. Licenses are typically obtained from existing licensees who choose to sell, or when a new license is offered as a town's population grows. As a result, the price for a retail license is often prohibitively expensive. The sale of a new license is usually conducted by public auction. The intense competition can benefit a town by generating several hundred thousand dollars of revenue from the highest bidder. A 2006 license auction in Cherry Hill, New Jersey set the state record at $1.5 million.

[lockedout]

I had to look more into that; Availability in NJ

The number of Class C retail licenses for bars, restaurants, and liquor stores is limited by population and often by municipal ordinances. Licenses are typically obtained from existing licensees who choose to sell, or when a new license is offered as a town's population grows. As a result, the price for a retail license is often prohibitively expensive. The sale of a new license is usually conducted by public auction. The intense competition can benefit a town by generating several hundred thousand dollars of revenue from the highest bidder. A 2006 license auction in Cherry Hill, New Jersey set the state record at $1.5 million.

Yeah it's ridiculous the regular joe can't even open a liquor store anymore. You need a few hundred k. I live in NJ.

[Alvito]

Woulnd't lose it all pretty easy to separate the business funds from personal funds.

You are right it isn't, yet so many go belly up with their business when things go bad. If your place of income doesn't make enough you as the owner are one of the first people to feel it since you have to keep paying your employees. So sure creditors won't come and take things from your house if your bar goes down the drain. You will however have a hard time paying for things without income.

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I had to look more into that; Availability in NJ

The number of Class C retail licenses for bars, restaurants, and liquor stores is limited by population and often by municipal ordinances. Licenses are typically obtained from existing licensees who choose to sell, or when a new license is offered as a town's population grows. As a result, the price for a retail license is often prohibitively expensive. The sale of a new license is usually conducted by public auction. The intense competition can benefit a town by generating several hundred thousand dollars of revenue from the highest bidder. A 2006 license auction in Cherry Hill, New Jersey set the state record at $1.5 million.

The bar will already have one, but they will be selling that to somebody they are worth far too much to just walk away from. They are the golden parachute for bar owners at this point. Sadly due to how much they can cost they are what put you in the hole you might never dig out of.

[Deleted]

Only if you have the money for it.
And a good concept.
A crowd longing for something new
And a long (financial) breath.

[Dread Pirate Phayde]

I'd just find a new favorite bar.

[Gamdwelf]

I'd just find a new favorite bar.

All these other bars have no dance floor or dance floor in a bad spot.

[Rehija]

@ Khaza-R

Pretty accurate, but you forgot Number 4: Dont even think about normal work hours or even halfway normal work hours. If the Buiseness runs you keep open, no matter how early in the morning it is and how many hours you havent slept.

[Celista]

And then... and then he said "oh man this is gonna be the best I'm gonna let me bros drink for free and we'll all hang out and have a good time!"



If that's seriously what you think a bar is going to be, do yourself a favor and don't buy it.

If you like working up to 18 hours a day for $0.00 - $250 in actual pay per week, then go for it.

I don't even know where else to start with you.

Oh I missed this. LOL the OP thinks he's going to be able to hang out with his buddies all day and let them drink for free if he owns his own bar? Hahaha!

OP you are definitely not cut out for owning a bar/club/whatever until you get some financial knowledge under your belt. Liquor isn't free, you know...you can give it away to your buddies for free if you want, but that money's going to come from somewhere. I don't think you have any idea what bar overhead is like, particularly with labor costs...and if you are looking to keep those low, then that means you'll be doing a lot of work yourself. AKA no time to hang out with your bros giving them free drinks.

I suggest you look into the day in the life of a bar owner and what owning a bar seriously entails before you even contemplate going further. Based on your posts, buying a bar would be a very, very bad idea for you at this point.

[belfpala]

Late into this thread, but DO NOT DO IT, unless you're experienced in running one, experienced in human resources, experienced in managing, experienced in customer service experienced in health code, experienced in licensing regulations, experienced in tax law, experienced .... asdfhjkl;jkl;; , and are willing to work endless hours. And have a business partner that can back you up on most or some of that.

Stay away. There are better investments. "It's my local bar" isn't a good reason.

[Tojara]

Bars are a volatile business to begin with, and the prospect of entering such a market with zero experience in that particular field is a really bad idea.

[belfpala]

Biggest tip for anyone thinking of going into the Bar/restauran business?

Don't.

Unless you know the industry, are willing to work long hours, can accept MAJOR criticism and deal with some of the worst examples humanity has to offer in rude customers and drunk customers, and are also willing to sink a lot of money and time into something that might well die within the first three years, stay the hell away.



Edit:
Also, you already made a stupid mistake in why I know you won;t last more than a few months in saying "You would let most of your fro drink for free". It is a business, not a charity, every drink you give away is a dollar you are losing, but still had to pay tax on. No offence, but you would be bankrupt within the year.

Hell, there are people who won the lottery who opened a bar then went bankrupt doing that exact same thing. Bars and restaurants are very tricky, and unless you have been in the industry in a relatively high-end position such as management (not shift management, but seeing figures and such outside of till takings), then you are just asking for trouble.

Just expanding on my comment above yours.

You have to be a very specific kind of crazy to be in this business for the long haul.

[Bigbazz]

Do it and then come back in a few months and let us know how it went, also can I be one of your fro that gets to drink for free? I don't drink that much anyway!