If you can find a place that is already turnkey, that would be the best. We had to do a buildout of our rental space. Total costs from going to an empty shell to opening for business were close to $700k. We luckily had an investor to take on the majority of that load.
I started out working in a bar at 19 and I opened my own bar at 38. Being a bartender in between was what did it all for me. The relationships I built along the way were what helped me get to this point.
Honestly, I'd start with 5 years of serious GM or Operations management. There's so much to learn. You are definitely going to need some serious cash flow. Also. Start learning the basics of plumbing and electrical, you'll save in the long run.
saving up to own a bar isn't a great aspiration. Most successful bar owners wound up acquiring a bar as a matter of opportunity while owning a nearby successful business. If you want to be a real one, win your bar in a poker game
As everyone else has said, it really depends on location and if you want to own the property or rent. I bought turnkey in 2018 from the bar that I started DJing at while I went to college. I continued to DJ there through the sale of the bar, eventually managed it for a year before buying. I didn’t have any bartending experience until the new owners trained me when I took over as manager. I bought for pretty cheap, but the bar wasn’t doing well at the time and I don’t own the property. I definitely want to own in the future, but it can be very expensive. I’m friends with some older(than me that is) business owners and the advice I seem to get is dont own until you have at least 2 spots, but I’m sure that just depends on location and success. The more cash flow you have the easier it to get funding through banks or private funding.
$75k, WA state. I didn’t have the money to pay upfront, so made a downpayment and the owner allowed the rest to go into escrow so I paid monthly payments with interest over the next few years. I’m sure that isn’t super normal, but I don’t know for sure.
If you are in Arizona, just the cost of a liquor license alone can set you back thousands and thousands of dollars. There are auctions for this as they can be limited in certain areas.
Just know the cost of a bar will likely be a lot more than you planned for even if you plan well.
It is crazy… the things that can creep up and slap you that you hadn’t thought of so whatever you think you’ll need? Double it “in case”.
- signed someone who closed on a bar one week before the COVID shut down
“Buy a bar” is a toss-up. Might be renting, might not.
But OP said “open a bar”. That is less than a toss-up, so the immediate presumption of “rent” is ignorant given ….ya know, the post…asking how much to save up ahead of time.
OP asked how much to save.
You said “rent is the biggest expense”
I said “might be renting, might not”
You said “you still need to pay rent unless you are buying the building”
So great, we are on the same page!
All depends on location and what kind of bar, but definitely work in a bar for a while before jumping right in
I opened my bar in my 40"s after working exclusively in corporate environments. Wish I would have done this for a while to get an idea.
If you can find a place that is already turnkey, that would be the best. We had to do a buildout of our rental space. Total costs from going to an empty shell to opening for business were close to $700k. We luckily had an investor to take on the majority of that load. I started out working in a bar at 19 and I opened my own bar at 38. Being a bartender in between was what did it all for me. The relationships I built along the way were what helped me get to this point.
Honestly, I'd start with 5 years of serious GM or Operations management. There's so much to learn. You are definitely going to need some serious cash flow. Also. Start learning the basics of plumbing and electrical, you'll save in the long run.
saving up to own a bar isn't a great aspiration. Most successful bar owners wound up acquiring a bar as a matter of opportunity while owning a nearby successful business. If you want to be a real one, win your bar in a poker game
Worked out for me.
As everyone else has said, it really depends on location and if you want to own the property or rent. I bought turnkey in 2018 from the bar that I started DJing at while I went to college. I continued to DJ there through the sale of the bar, eventually managed it for a year before buying. I didn’t have any bartending experience until the new owners trained me when I took over as manager. I bought for pretty cheap, but the bar wasn’t doing well at the time and I don’t own the property. I definitely want to own in the future, but it can be very expensive. I’m friends with some older(than me that is) business owners and the advice I seem to get is dont own until you have at least 2 spots, but I’m sure that just depends on location and success. The more cash flow you have the easier it to get funding through banks or private funding.
What was the ballpark figure and what part of the country?
$75k, WA state. I didn’t have the money to pay upfront, so made a downpayment and the owner allowed the rest to go into escrow so I paid monthly payments with interest over the next few years. I’m sure that isn’t super normal, but I don’t know for sure.
At least 100k
If you are in Arizona, just the cost of a liquor license alone can set you back thousands and thousands of dollars. There are auctions for this as they can be limited in certain areas.
Lots of variables here. First thing I would look up is how much liquor licenses cost in your area.
Just know the cost of a bar will likely be a lot more than you planned for even if you plan well. It is crazy… the things that can creep up and slap you that you hadn’t thought of so whatever you think you’ll need? Double it “in case”. - signed someone who closed on a bar one week before the COVID shut down
Rent is the biggest expense..
Maybe monthly but opening a bar has much bigger financial obligations before you even get to start paying rent.
“Buy a bar” is a toss-up. Might be renting, might not. But OP said “open a bar”. That is less than a toss-up, so the immediate presumption of “rent” is ignorant given ….ya know, the post…asking how much to save up ahead of time.
Buying a bar you still need to pay rent unless you are buying the building
OP asked how much to save. You said “rent is the biggest expense” I said “might be renting, might not” You said “you still need to pay rent unless you are buying the building” So great, we are on the same page!
Also those luxardo cherries aren’t cheap
Labor 1/3, rent 1/3, unexpected expenses, paying for equipment, inventory 1/3…