Bar Management Part One.pdf

Perum Kebonsari Indah Blok Q No. 14
Kebonsari, Sumbersari, Jember 68122
Website: https://sphm-hospitality.wixsite.com/ebrochuresphm
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TABLE OF CONTENT
TABLE OF CONTENT 1 Beer and Food Pairing Guide 136 – 144
How to Open a Bar 2 - 13
Mainta Maintaining a Commercial Beer Tap System 145 – 150
How to Run a Successful Bar 14 – 20 Beer Dispenser Installation and Maintenance 151 – 155
How to Start a Brewery 21 – 31 Choosing the Best Kegerator 156 - 163
How to Obtain a Liquor License 32 – 45 Types of Beer Glasses 164 - 175
How Much Does it Cost to Open a Bar? 46 – 49 Types of Wine Glasses 176 – 191
Bar Open and Closing Checklist 50 – 58 How to Become a Sommelier 192 -197
How to Set Drink Prices In Your Bar or Restaurant 59 – 63 Hiring a Bartender 198 - 204
Types of Whiskey 64 – 74 How to Build a Restaurant Wine List 205 – 212
How to Taste Whiskey 75 – 80 Bar Marketing Ideas 213 - 221
How to Pour the Perfect Pint 81 – 88 A Guide to Corkscrew Wine Openers 222 - 235
Different Types of Beer 89 - 121 Wine Tasting Room Basics 236 - 242
Beer Glasses Every Bar Needs 122 – 129 How to Decant Wine 243 - 249
The Best Winter Beers for 2021 130 – 135 How to Run a Proper Wine Service 250 - 256

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How to Open a Bar
Have you been dreaming of opening your own bar but you’re not quite sure where to start? You’ve probably thought about your concept and your
name, but maybe you’re unsure about some of the finer details, like how to obtain funding and permits. Running a successful bar can be lucrative
and rewarding, as long as you perform some careful research and follow the correct steps. We outline the process of starting your own bar, from
the initial concept to your grand opening, so you can fulfill your dream of becoming a bar owner.

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How to Open a Bar
Opening a bar requires some initial research and planning. You can make sure that you're covering all the bases by following our bar opening
checklist below.
The step to read the section that most interests you:
1. Choose a Bar Concept and Brand
2. Choose a Name for Your Bar
3. Choose a Business Entity for Your Bar
4. Write a Bar Business Plan
5. Secure Funding for Your Bar
6. Find the Perfect Location
7. Obtain Permits and Licenses
8. Find a Liquor Supplier
9. Design a Bar Layout
10. Buy Your Equipment and Supplies
11. Hire the Right Staff
12. Advertise Your Bar
13. Host Your Soft Opening

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1. Choose a Bar Concept and Brand
The fun part of starting your own bar is creating your concept and brand. Your concept includes all the
general ideas you have about what kind of bar you want to open. Your brand is slightly more defined and
encompasses the identity and mission of your business. Every detail of your bar should support your brand,
from your service style to your decor and ambiance. A good question to ask yourself is how do you want
people to feel when they walk in your bar?
Here are some examples of bar concepts to get you thinking about your own bar:
 An unpretentious neighborhood bar with comfortable booths and a jukebox of classic hits, where
folks can unwind after work.
 A barcade with vintage pinball games that serves only a few types of beer, where guests can let loose
and have fun on a Friday night.
 A moody martini bar with neon lights and hypnotic music, where guests can feel like they’re part of an exclusive club.
 A sophisticated wine bar with modern furniture and art on the walls, where guests can sip flights of wine paired with appetizers.
The most important thing to note is that your concept and brand should be in line with the demographics of your chosen location. When you get to
the step of performing market research, you may have to adjust your brand to meet the needs of the neighborhood you are serving.
2. Choose a Name for Your Bar
Choosing the name for your bar can feel like the moment that your dream is becoming a reality, but how do you choose the right name? Make
sure that it’s catchy, make sure it reflects your brand, and make sure it’s unique. Remember that your name will be used on all of your marketing
materials and merchandise, including menus, staff uniforms, and advertisements. Stay away from names that are too long and complicated.

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After you’ve chosen a name that represents your bar perfectly, it’s time to consider trademarking it. This protects your name from being used by
any other businesses, which can be helpful if your location is in a high-density area. It’s especially important if you plan to expand your business to
multiple locations in the future.
3. Choose a Business Entity for Your Bar
Every business owner has to decide what type of entity or business structure to establish. This impacts
your legal liability, your ownership rights, how your business is taxed, and your funding options. These
are the common entity types for small business owners:
 Sole Proprietorship - This is the most common type of structure for small businesses and requires
no paperwork to set up. Once you start a business that operates for profit, you are automatically
running as a sole proprietorship. The downside of this entity is that as the bar owner, you are
liable for any lawsuits against your business.
 Partnership - A verbal agreement between two or more taxpayers is all that’s needed to start a
partnership, which makes it very appealing. However, you are liable for the mistakes of your
partner so it’s recommended that you go ahead and create a partnership agreement anyway.
Always have a lawyer review your partnership agreement before signing.
 Limited Liability Company - Also known as an LLC, this type of business entity is very popular due to its liability protection. Because an LLC
exists as its own separate legal entity, the business owner isn’t liable for any lawsuits against the business. The downside of an LLC is that it
does require the proper forms and a fee to be filed with the Secretary of State’s office.

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4. Write a Bar Business Plan
This is the point where you need to sit down and get your business plan on paper. Having a thorough business plan is going to help you when you
reach out to investors and apply for loans. It’s also a great way to work through any areas of uncertainty you may have about how your business is
going to operate. A bar business plan should include the following:
1. Executive Summary
2. Company Overview and Description
3. Market Analysis
4. Business Offerings
5. Management
6. Marketing and Public Relations Strategies
7. Financial Projection
5. Secure Funding for Your Bar
After doing your financial projection you’ll have a better idea of the funding you’re going to need to make your dream happen. Make a list of all
the startup costs required to get your bar running. Then add in the cost of daily operations, including the cost of alcohol, salaries, utilities, and
rent. From there you can create a budget and forecast how much money you’ll need to keep your bar running for the next year.
Next, determine how much money you have to put towards your startup costs and how much additional funding you’ll need. Now that you have a
definitive number, you can begin the process of applying for loans. The initial investment that you make could be paid back within a few years if
you run your bar successfully.

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6. Find the Perfect Location
Performing a location analysis is the best way to find the perfect location for your bar. There are many
factors to consider, but these are some of the most important:
 Target Demographics - You should either begin by targeting a location with demographics that
match up with your concept, or base your entire concept off of the demographics of a
predetermined location.
 Health Regulations and Zoning - Zoning regulations can vary greatly between cities and
counties. Make sure to become familiar with your location's zoning laws so you know what to
expect.
 Visibility and Access - It’s extremely important to choose a location that is visible to people driving or walking by. Accessible parking is
always optimal.
 Nearby Competition - If an area is already saturated with bars, you may want to either choose a different location, or make sure your bar
has a unique concept that stands out.
7. Obtain Permits and Licenses
Making sure you have the appropriate licenses may be the most tedious step along the way, but it’s vital to getting your bar open for business. It
never hurts to enlist the help of legal counsel to make sure you have all the bases covered. The number of permits you’ll need and the total cost of
fees will vary by state. These are some of the most important licenses required:

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 Employee Identification Number - You’ll need an Employer Identification Number, or EIN, to apply for many of the permits below. This
number identifies you as an employer and allows you to officially hire your staff. To obtain your EIN, visit the IRS website and fill out their
online application.
 Liquor License - Without a liquor license, you can’t legally sell alcohol. Not only does the license permit you to sell alcoholic beverages, it
also determines what type of alcohol you can sell and the times and days you can operate. The process for obtaining one can be lengthy, so
you should start on this one right away by contacting your state’s Alcoholic Beverage Control agency.
 Foodservice License - If you plan on serving food at your bar, you’ll need a foodservice license. This ensures that your business meets food
safety laws and regulations. To obtain a foodservice license, apply online at your state government’s website.
 Alcohol and Tobacco Tax and Trade Bureau - Referred to as the TTB, this federal agency regulates businesses that sell alcohol. Before you
open for business you’ll need to register with the TTB, which can be done on their website. The TTB also requires that you keep a record
book containing the date and quantity of all alcohol received from your suppliers. This step is very important because if you get inspected
by a federal officer and fail to produce the log book, you could be fined up to $10,000.
Here are a few examples of other permits you may need to open your bar:
 Sign Permit
 Music Permit
 Certificate of Occupancy
 Pool Table Permit
 Dumpster Placement Permit

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8. Find a Liquor Supplier
With most of the paperwork out of the way, it’s time to make a wish list of the spirits, beer, or wine that
you want to stock in your bar. You might already have a selection in mind or you could do some research
to see what’s popular in the area. The concept of your bar might weigh heavily in this decision, especially
if you’re going to specialize in one type of alcohol, like craft beer or small-batch wines and spirits.
You’ll want to find an alcohol distributor that offers the brand and products you have on your wish list.
Many wholesalers have websites with portfolios that showcase all their products and pricing. Here are
some things to keep in mind when you choose a distributor:
 Brand selection
 Minimum purchase requirements
 Payment terms and discounts
 Delivery dates
 Availability of brand ambassadors or promotional materials
Once you stock your bar with alcohol, you should begin to take liquor inventory so that you can maintain the appropriate quantities. Taking
consistent liquor inventory will give you an idea of how your bar is performing, what your par levels should be, and which products are selling.
9. Design a Bar Layout
If you’re designing your bar from scratch, the best thing to do is take measurements of the entire space. You can draft the layout on paper or take
advantage of design software to come up with a virtual blueprint. Having the blueprint is going to help you choose fixtures, equipment, stools, and
seating that will fit inside your space.

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Keep in mind that the space should remain functional. Your staff should be able to move freely around any tables or booths. The area behind your
bar should have enough space for liquor displays, speed rails, and bottle coolers. You should also allow enough room for the maximum number of
bartenders on your busiest shifts.
When it comes to choosing your decor, make sure it supports your brand and concept. Artwork, lighting fixtures, and furniture can all be used to
create an experience for your guests. Check out current design trends to come up with ideas.
10. Buy Your Equipment and Supplies
You’ll need to outfit your bar with some basic equipment in order to serve drinks. It’s important to factor in the space and electrical requirements
you’ll need for these items:
 Bottle Coolers - These back bar coolers provide space for all the bottles and cans that you’ll need to keep chilled. Ideally, the bottle cooler
will sit under your bar so that bartenders can access it quickly.
 Ice Machines - It’s going to take a lot of ice to keep the beverages flowing at your bar. You’ll need a reliable ice machine to produce large
volumes of ice throughout the shift.
 Ice Bins - Once your ice machine makes the ice, you’ll need to store it in a place that’s convenient for your bartenders. Under bar ice bins fit
beneath the bar so your staff can easily access ice for cocktails and blended drinks.
 Glass Washer - Having a glass washer under the bar is extremely convenient. Some models are designed to fit inside an underbar sink and
require no electricity.
 Bar Blender - You’ll need a reliable, commercial-grade bar blender for making popular blended drinks like daiquiris and margaritas. Look for
a model with a cover to reduce noise while blending.
 Beer Dispensers - Your bar isn’t complete without a beer dispenser. These units feature a refrigerated cabinet that holds your beer kegs,
while the beer is dispensed through a tap tower on top of the dispenser.

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In addition to your bar equipment, you'll also need to stock up on other bar essentials. Make sure you have the appropriate glassware to serve
your beverages. Depending on your menu, you might need garnishes, drink ingredients, and cocktail mixes. For your bar top, you'll need cocktail
napkins, coasters, and stirrers.
11. Hire the Right Staff
Different types of bars may have different staffing needs. For instance, a large nightclub will require some additional employees that a small
neighborhood bar won’t need, like bottle service staff or a house DJ. If you own a wine bar, you might want a sommelier on staff. Here are some of
the key positions that you’ll need to get most bars up and running:
 Bar Manager
 Bartenders
 Barbacks
 Servers

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 Host / Hostess
 Security / ID Checker
Many potential employees are enthusiastic to start a new venture and get in on the ground floor of a new bar. With such a high turnover rate, the
best way you can keep your stellar bartending staff is by defining your workplace culture from the very beginning. In addition to interviewing and
hiring new employees, make sure that you create a thoughtful training program that outlines clear expectations.
A critical part of bar ownership is ensuring that your staff is well-trained to look for signs of visible intoxication. Your training program should
emphasize these signs and provide guidance on how to deal with intoxicated patrons. It's your responsibility to make sure that your guests are safe
at all times, while they enjoy drinks at your bar and when they leave your bar.
12. Advertise Your Bar
You’ve done your due diligence and now you’re ready to let the community know about your new bar. This is where the critical step of advertising
and marketing your bar comes into play. Here are some tips you can use to inform your potential customers about your business and build
excitement about your opening day:
 Create a website – Building a website for your bar is essential. Many customers will be researching your business online before making a
visit, so you should provide key information on your site. Your site should also be representative of your brand.
 Use social media – Another way to reach potential customers is by creating accounts on social media platforms like Facebook, Twitter, and
Instagram. You can share high-quality photos of your signature cocktails and advertise promotions.
 Make a Yelp account – Create a business profile on Yelp so that you have more online visibility and customers can submit reviews for your
bar. You can personally ask your guests to leave reviews by putting a request on your bar receipts.

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 Sign up for Google My Business – Google My Business is a free service that ensures your bar information will show up in Google searches
and on Google Maps. Make sure to provide as much information as possible, including your website, hours, photos, and price ranges.
 Use your store front – As you’re doing construction on your new bar, passersby will be naturally curious about your new business. Make
sure to utilize posters and sidewalk signs to provide information about your bar and the opening date.
 Place an ad in the local paper – Purchase advertising space in the local newspaper to share information about your new bar. You could even
include a coupon for half-off drinks.
 Create a loyalty program – Sign up for a mobile app loyalty program and reward your guests for their continued business. If you specialize
in craft beers, provide a way for guests to track and rank the beers they’ve enjoyed at your bar.
 Promote a Happy Hour – Happy hours are a great way to attract customers through value-priced drink specials. You can also offer
complimentary samples and free snacks.
 Host an event – There are a variety of events you could host in your bar to create some buzz. If you own a wine bar, consider hosting a wine
tasting. If you own a tap house, trivia nights can be very successful at bringing in more customers. Don’t forget the most important event of
all, your grand opening!
13. Host Your Soft Opening
A soft opening is a practice run that allows your bar staff to test out their operation on a limited number of guests before the actual grand opening.
The benefit of a soft opening is that it gives you an idea of what you are doing right and what areas of your service may need more attention. Your
staff gets the opportunity to practice without the pressure that comes with a busy opening day. An easy way to host a soft opening is to invite the
friends and family of your employees for a sneak peek event.
Now that you’ve become familiar with all the steps necessary to opening a bar, you can begin to make your dream a reality. By planning every
aspect of your bar operation ahead of time, you can start your business off on the right foot.

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How to Run a Successful Bar
Whether you manage a brewery or nightclub, the challenges of running a successful bar go far beyond just keeping customers' glasses full. You
need to ensure that you're well-stocked, serving tasty drinks, creating events to excite potential customers, and protecting yourself from any
potential liabilities. While managing a bar may be difficult, we broke it down into 8 simple steps to help you make a profit from your bar business.

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8 Steps to Run a Bar Successfully
Whether you own a bar and want to improve your profits or you're considering starting a new bar, following these 8 steps to learn how to run a
bar.
1. Keep Your Bar Stocked
Keeping your bar stocked goes far beyond just filling your back bar cooler or refrigerator with beer,
liquor, and wine. You will want to track what drinks your customers are drinking and which types of
alcohol you're using more often than others. This will allow you to adjust your orders, so you spend less
money on alcohol that's less popular while keeping your bar filled with popular items.
Essential Items Every Bar Needs
Stocking your bar or nightclub is also more than just the liquor and beer itself. Here's a list of things that
you should always have on hand in your bar:
 Bar napkins
 Straws and stirrers
 Glassware
 Mixing glasses
 Cocktail shakers and strainers
 Liquor pourers
 Cocktail mixes
 Garnishes

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2. Measure Your Liquor to Reduce Overpouring
While an extra-strong drink may not seem like an issue, consistently overpouring drinks can end up
costing your bar thousands of dollars in the long run.
Fortunately, there are ways that you can measure your pouring and prevent waste in your bar. Here are a
few examples of how your bar can prevent overpouring and waste:
 Use measured pourers. Measured liquor pourers make it easy to approximate portions and help
prevent spillage to eliminate the risk of wasted product.
 Teach bartenders to use jiggers when crafting cocktails. Using jiggers when crafting cocktails not
only prevents overpouring, it also ensures that your customers get a consistent drink each time.
 Choose the right glassware. Using the right glassware can also help reduce your liquor costs. Heavy-base glasses have a thicker bottom, so
you don't have to use as much liquid to fill them as standard glassware, which will result in savings over time.
These bar managing tips can not only help you reduce waste in your bar, but they can also ensure consistency, which is key for keeping your
customers happy and coming back to your bar.

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3. Create Signature Cocktails
While many customers may order popular drinks like rum and coke or a Tom Collins, creating drinks that
are unique to your establishment gives you a competitive edge over other bars. Additionally, if you create
your own craft cocktails, you can price them higher than traditional beverages, helping to increase your
profit margin.
When creating new recipes and cocktails, you want to consider your target demographic and their tastes.
For example, if you're near a college campus and have a customer base in their mid-twenties, you'll want to
design strong cocktails that use liquors like rum, vodka, or tequila. On the other hand, bars with older
customers may want to use top-shelf liquors like fine whiskey or bourbon in their recipes.
When managing a bar, it's also important to keep on top of current drink trends and offer customers
something new, like spiced or fruity vodka infusions. You can also up your cocktail game by adding unique
garnishes to your drinks, like fruit kabobs in daiquiris.
4. Host Happy Hour and Events
Hosting a happy hour is a great way to draw customers in with low prices. You can then let your delicious cocktails and excellent service convince
the customers to stay past happy hour and pay full price for your items. Your happy hour menu should feature discounts on items with a high-profit
margin, group specials, snacks, and designated driver discounts to maximize your profits.
Another option to bring customers into your business is to host events. Events can be a one-time thing or they can become a regular occurrence,
which is a great way to build a regular customer base that can help your bar succeed. There are many different types of events that you can put on
depending on your clientele and establishment's theme. Here are some popular options:
 Trivia
 Speed dating
 Karaoke
 Arcade or game nights
 Tailgating or sports parties
 Open mic nights
 Participating in a bar crawl

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Schedule your weekly events to target specific times and demographics, such as the post-work business crowd, weekend brunch-goers, or sports
fans before, during, or after a big game. Additionally, be sure to advertise your happy hour specials on social media, outdoor signs, and posters in
your front-of-house space.
5. Hire the Right Bartenders
The bar industry has a very high turnover rate, which results in lots of money
wasted on training new employees. Your bar can prevent this by implementing
strict standards when hiring and creating a rigorous training regimen that weeds
out any poor fits early in the process.
One of the best ways that bar managers can retain good employees is with
incentives, such as bonuses, favorable shifts, or pay raises. But, not all incentives
have to be monetary. Some employees are instead motivated by the potential for
promotions or learning new skills. For example, if you have a dishwasher who is
dedicated to working hard but who also wants to learn bartending skills, reward
them by offering some training and allowing them to bartend during slow periods
of business at first.
Another essential aspect of keeping your employees happy is ensuring that you're
promoting a comfortable atmosphere where your staff feels welcome to share
their ideas and concerns. If employees don't feel like their concerns are being
heard by the general manager or the owner, they'll leave. Additionally, if you
engage in dialogue with your staff, you can learn more about them and how you
can keep them happy and working hard.

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6. Train Your Bartenders and Wait Staff to Upsell
A great way to boost profits in your bar is to train your staff to upsell customers. Upselling involves
your bartenders or wait staff suggesting that customers try a specific high-value item or add it onto
their order. Upselling is beneficial for both your business and your staff because bigger checks mean
bigger tips.
The key to upselling is to frame it as a personal suggestion. For example, instead of offering your
customers an expensive alternative to their order, have your bartender tell them that the alternative
is their favorite drink or it's a new special that's delicious. Framing the sale as a suggestion will make
your customers more likely to try the more expensive option.
Also, be sure to keep your food menu in clear sight of patrons. Patrons might approach your bar
doors with just drinks in mind, but after a round or two, that appetizer menu strategically placed in
front of them might start to look tempting. You can also boost sales by offering food and drink
pairings based on common flavors or contrasts.
Educate your staff on the best food and drink pairings. What beers go well with your appetizers? What wines pair best with your desserts? Offering
knowledgeable suggestions will be viewed as helpful rather than a sales pitch. Lastly, train staff to detect undecided customers. If someone has
glanced at their menu for an extended period of time, a simple "Can I suggest one of our specials?" can help sway them.
7. Invest in a POS System
An essential for any successful bar, an electronic Point Of Sale (POS) system organizes orders and keeps track of transactions. These order and
receipt systems ensure smooth communication between the waitress, bartender, and kitchen to help keep track of customer tabs on even the
busiest of nights. It also allows bar managers and owners to see the breakdown of sales by employee. POS stations run from $2,000 to $5,000,
so research the best POS system for your business before purchasing one.

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8. Take Liability Seriously
Alcohol service is a risky business. When managing a bar, you should train staff to handle
alcohol-related safety issues, not just for the safety of customers who have consumed too
much alcohol, but to protect your bar from fines, imprisonment, loss of liquor license,
increased insurance costs, and even losing your business.
If your establishment serves alcohol to a minor or visibly intoxicated patron, not only will you
face criminal fines, but you can be sued in civil court for damages that person causes after
leaving your bar. Many new and smaller establishments skip liquor liability coverage to cut
down on premiums or are simply unaware of coverage, so know the specifications of your
insurance.
Look to trusted, established alcohol training resources to effectively teach your staff. The
National Restaurant Association offers ServSafe Alcohol training to prepare bartenders,
servers, hosts, bussers, valets, bouncers, and all front-of-house staff in the event of safety
and liability issues. State Liquor Control Boards also offer initiatives that teach bar staff how
to recognize signs of intoxication and detect fake IDs.
The bar industry is very competitive, and it can be difficult to run a bar successfully due to the razor-thin profit margins. But, by taking a more
active role in your business, ensuring that your bar is stocked with everything it needs, and training your employees for success, you can help your
bar become profitable and succeed.

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How to Start a Brewery
Breweries are popular with a variety of customers, whether they're a casual beer drinker, a craft beer enthusiast, or just looking for a place to
spend Friday night. As the demand and popularity of beer continues to rise, so does the interest in new breweries. If you’re considering opening a
brewery of your own, we’ve compiled a list of steps and tips to help guide you through the process and successfully open your own business.

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Click any of the tips below to read the section that interests you:
1. Write a Brewery Business Plan
2. Choose a Brewery Concept
3. Determine the Cost of Starting a Brewery
4. Secure Brewery Funding
5. Apply for Permits and Licenses
6. Choose a Brewery Location
7. Buy Brewery Equipment
8. Create a Draft List and Menu
9. Advertise Your Brewery
10. Host a Soft Opening
1. Write a Brewery Business Plan
A business plan is one of the most important steps for starting any business. Not only does it act as a roadmap that guides you through the process
of opening your business, but it is essential for securing funding from investors. A good business plan includes detailed information on your
concept, market, business structure, and financial situation.

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2. Choose a Brewery Concept
Your concept is what defines your brewery. It influences everything from how customers will identify you
as a company, to the messaging you target in advertisements, to the type of employees you’ll hire. To
identify your brewery concept, you’ll have to choose a name, identify your brand, and determine what
type of brewery you want to operate.
Naming Your Brewery
Choosing a name for your brewery can be a daunting task, not just because there are so many options to
choose from, but because your choice will define your company for years to come. As you go through the
process of choosing a name for your brewery, keep in mind that a good name will share the following
traits:
 Original: The first and most obvious step in choosing a name for your brewery is making sure that it isn’t already taken. Additionally, be
careful not to choose a name that is too similar to an existing name. Not only will this help you to protect yourself and secure a trademark,
but it can help to avoid lawsuits from other brands who might think you’ve infringed on their intellectual property.
 Memorable: Choose a name that your customers will remember. A good starting point is to aim for a name that’s easy to spell and
pronounce. Furthermore, choosing a name that rolls off the tongue and is fun to say can help to make your name memorable.
 Reflective: The name you choose should reflect your company. Try to create a list of what distinguishes your brand from others, or what
defines you as a company. For example, if your brewery is located in Boston, you might choose something that reflects the culture of New
England
 Broad: Your brewery’s name should be able to have broad appeal and lend itself to a variety of branding opportunities, themes, and
products. Choosing a name that is too specific can limit the number of opportunities you have, and by extension prohibit growth.

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Identify Your Brand
Identifying a brand is an essential part of establishing yourself as a brewery. Your brand can help you to connect with potential customers, identify
target markets, hire employees, and strategize the direction of your business.
To identify your brand, start by determining your company values. Understanding what matters to your company and employees is a key part of
your branding. Once you’ve done this, you can discover your target audience and the emotion behind your products.
It’s not enough just to identify a brand and move on. Once you’ve determined your values, key demographics, and emotional impact, you have to
make an effort to create continuity. This means following through on your promises and acting in accordance with the values of your company.
Doing so will allow you to truly establish yourself in the industry, within the community, and with your employees.
Choose a Type of Brewery
The increased demand for beer has lead to innovation in the industry, and by extension, a variety of brewery types. Though they differ in size,
scale, and impact, each brewery serves a specific function and can be effective given your goals.
1. Nano Brewery: As its name suggests, a nano brewery is the smallest type of brewery. There isn't a set amount of beer that a nano brewery
is allowed to produce until they officially scale up to micro-sized.
2. Microbrewery: A microbrewery is defined as a brewery that produces less than 15,000 barrels of beer annually. These types of breweries
are typically independently owned, and sell the majority of their products onsite rather than through beer distributors.
3. Brewpub: A brewpub is a hybrid between a restaurant and a brewery. Most of their beer is brewed for the purpose of being sold to
customers at their bar.
4. Taproom Brewery: Taproom breweries are professional breweries which sell beer onsite and through distributors, yet don't offer
restaurant services to guests. Often times, the taproom will be attached to the brewery itself.
5. Regional Brewery: A regional brewery is defined as a brewery that produces between 15,000 and 6,00,000 barrels of beer per year.
Breweries which exceed this level of output are recognized worldwide.

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6. Contract Brewing Company: A contract brewing company hires other breweries to produce their beer. The hiring company retains the
responsibility of marketing and distributing the beer while the company they've hired is responsible for production and packaging.
3. Determine the Cost of Starting a Brewery
Because there are so many different types of breweries, the cost of opening your own can vary quite a bit. Several factors including how much beer
you plan on producing, the possibility of serving food and maintaining a dining room, and the size of the property you’ll be operating in can
influence the price of your brewery. Below, we've listed the estimated costs of a brewery's various expenses.
 Brewery Equipment Cost: The amount you pay for brewing equipment ultimately depends on the size of your brewery and whether you
buy it new or used. You can purchase brewing equipment with the smallest capacity for $100,000 or less if you buy it used, or pay up to $1
million or more for a brand-new, 30-barrel system.
 Furniture Cost: Depending on the style and level of quality you're looking for in your brewery, the price of. restaurant furniture in your
restaurant can range from as low as $4,000 to as high as $15,000.
 Rent or Mortgage Payments: When you decide on retail space to operate your brewery out of, take into account how much space you’ll
need. It’s essential to have enough space for your utilities and brewing equipment. Additionally, if you plan on operating a taproom, make
sure there is enough space for guests to comfortably dine. Regardless, the cost of retail rent is determined by square foot and can range
from anywhere from $10/square foot to as high as $30/square foot.
What Is the Average Cost of Starting a Brewery?
In total, the cost of opening a brewery can range from as low as $250,000 to upwards of $2 million. However, for a standard brewery, it's
reasonable to expect that value to fall between the range of $500,000 and $1.5 million. The average cost of opening a brewery is dependant on a
number of factors which vary based on your concept, location, needs, and preferences.

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4. Secure Brewery Funding
A key step in opening your brewery is to secure funding. While you may have money saved up, chances
are you’ll still have to seek additional funding. Consider the following options as ways to acquire extra
capital and continue the process of opening your brewery:
 Self-Funding: As was mentioned above, it’s possible to fund your brewery, at least in part, with
your own money. However, due to the high cost associated with acquiring equipment, permits, and
other expenses, you'll likely have to look for additional funding from outside sources.
 Investors: One possible source of funding can come through investors. With a good business plan
and a strong meeting in which you pitch your plan to an investor or group of investors, they may
consider giving you money to fund your brewery. Keep in mind that once they’ve invested, they’ll
have a vested interest in your business and will likely want to stay informed.
 Loans: A variety of loan opportunities exist for people interested in opening a business. Among them are traditional bank loans, small
business loans, and equipment loans.
 Crowdfunding: Crowdfunding is a relatively new yet effective method of securing funding. Websites such as GoFundMe let supporters
donate money towards your brewery, allowing you to set funding goals and provide updates on business development.
5. Apply for Permits and Licenses
To legally own and operate a brewery, or any business that produces or sells alcohol, you’ll have to apply for a liquor license. Depending on your
production and serving needs, you have the option of applying for a limited license, which allows you to sell specific types or quantities of alcohol,
or a full license.

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Cost of Liquor Licenses
The cost and availability of liquor licenses can vary depending on what state you live in. In some instances, acquiring a license can cost you as low
as $3,000, yet in others, it can cost upwards of $400,000. Additionally, many states require an application fee to be considered for a liquor license.
In some states, such as Pennsylvania, there are only a set number of licenses in circulation, meaning that you may have to apply for a transfer or
pay higher costs to acquire one.
Cost of Restaurant Licenses
Since many breweries choose to serve food as well as beer, you may want to investigate the cost of restaurant licenses and permits. A food service
license certifies that your business meets all regulations and standards and has been deemed fit to serve food to customers. As with all fees, the
amount you have to pay can vary depending on a number of factors. Nevertheless, it's safe to assume the cost will fall somewhere between the
range of $100 and $1,000.
6. Choose a Brewery Location
Choosing a location for your brewery represents a significant investment. Therefore, you must consider a variety of factors to make the best
decision for you and your brewery’s future. Consider the following details as you search for a location to start your brewery:
 Zoning: Your brewery location will be determined by local government zoning regulations. In most cases, breweries can only be located in
zones designated for industry. Nevertheless, these regulations can vary depending on where you are, so check in with your local
government before making a decision.
 Brewery Requirements: You won't be able to run a successful brewery if you choose a building that doesn't fit your needs. For example, if
you plan on producing a large amount of beer, be sure to find a building where you’ll be able to efficiently carry out production.

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 Building Space: Be sure to find a building that has enough space for you and your staff to comfortably work. Key factors to consider include
storage space, space for equipment and machines, and possible dining areas for guests. Additionally, find a building that has adequate
parking spots for your employees, guests, and yourself.
 Safety Precautions: As with any business, the most important thing to consider is safety. Make sure the building you choose will pass safety
inspections and allow you to safely carry out day-to-day operations.
7. Buy Brewery Equipment
A key step in starting a new brewery is investing in the right equipment and supplies to start brewing beers and serving customers. While the
quality and amount of equipment you need will vary depending on the size of your business, there are a few essential categories of equipment and
supplies that you'll have to buy before you can get to work.
 Beer Brewing Equipment: You can't start brewing beer if you don't have the right equipment. Be sure to invest in fermenters, boiling
equipment, and brew kettles to make sure you’re ready to start making your own brews!
 Beer Bottling and Packaging Supplies: Bottling and packaging supplies can help to simplify the packaging process and make sure that every
customer is satisfied with their order. Commonly used bottling and packaging supplies can range from equipment such as growler fillers to
simple packaging products such as labels and beverage shippers.
 Keg Tapping, Dispensing, and Serving Equipment: If you plan on serving beer on-site, make sure you invest in your own keg tapping,
dispensing, and serving equipment. This can include beer dispensers, tap towers, nitro infuser boxes, and pump keg taps.
 Refrigeration Equipment: It’s essential to invest in refrigeration equipment to keep your brews cool and refreshing. Depending on the size
of your brewery, your refrigeration equipment can range from countertop bottle coolers to walk-in refrigerators.
 Keg Storage: Keep your brewery organized by shopping for keg storage products. Consider investing resources into keg racks to improve
your storage capacity and stay organized. Additionally, purchase hand trucks and drum handling equipment to safely and efficiently
transport kegs throughout your brewery.

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 Beer Making Accessories: While they may not be required for the brewing process, beer making accessories can make your brewing
experience easier and help you to further customize your brews. Consider buying your own test strips and meters, stock pots, and portion
scales to upgrade your brewing experience.
 Beer Glasses: Keep your brewery stocked with a variety of beer glasses to accommodate any new brews you might plan on introducing.
Examples of the different types of beer glasses include Belgian beer glasses, pilsner beer glasses, and IPA beer glasses.
 Beer Ingredients and Flavorings: Stock your kitchen with a variety of beer ingredients and flavorings to make sure you have everything you
need to customize your brews. This includes honey, cocktail bitters, wood chips and chunks, liquid malt extract, and a variety of other
products.
8. Create a Draft List and Menu
Once you’ve acquired equipment and established what kind of brewery you want to open, you’ll have
to create a draft list and menu. A balanced draft list allows your guests to choose from a variety of
beers and helps you to showcase your products. Consider keeping at least one of each of these types of
beer characteristics on tap:
 Light: The definition of a light beer varies depending on where you are in the world. In general,
it’s described as a pale beer that features has a reduced alcohol content or amount of calories.
Additionally, light beers typically feature a lower amount of carbohydrates.
 Malt: Malt beers often feature a rich combination of flavors, often with a hint of sweetness or
nuttiness. Despite what their rich flavors may suggest, malt beers come in a variety of colors and
alcohol percentages.
 Roast: Roasted brews are often dark in color, are made from highly roasted malt grains, and are distinguishable by their rich flavors and
deep colors. Common flavors of roasted brews include coffee and cocoa.

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 Tart: Tart brews, as their names suggest, feature a sour, almost acidic taste. While many tart beers are lighter in color, it's possible for them
to have medium or even darker shades. Their earthy and sometimes fruity taste differentiate them from other brews.
 Hoppy: A hoppy beer is defined by it’s prominent sweetness, bitterness, flavor, and aroma. You're likely to get the most intense flavors in
hoppy beers, with the most common being pine, herbal, and fruity.
 High IBU: IBU stands for International Bitterness Units scale, and exists to measure a beer’s bitterness. A beer with a high IBU will be more
bitter than one with a lower IBU.
 High ABV: ABV stands for Alcohol by Volume, and is a standard measurement to assess the strength of a beer. A higher ABV means that
your beer is more alcoholic.
Brewery Menu
When creating your menu, it’s important to choose foods that pair well with beer. Consider adding the following foods to your menu if you plan
on serving food in your brewery:
 French Fries
 Onion Rings
 Nachos
 Wings
 Mozzarella Sticks
 Sliders
 Chips and Dip

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9. Advertise Your Brewery
Before you open your new brewery, it’s essential to start advertising your new business to increase public awareness and drum up excitement for
your grand opening. The cost of marketing can vary depending on which forms you use, but in general, the average small business spends 1-2% of
their annual revenue on advertising.
Consider using the following forms of advertising as you establish a marketing campaign for your new brewery:
 Print Advertising
 Billboards and Signage
 Radio Commercials
 Television Commercials
 Online Advertising
Additionally, depending on your location, you may have the opportunity to enter into a beer festival. Events like these allow a variety of breweries
to showcase their brews for a large number of people, and often feature music, entertainment, and food.
10. Host a Soft Opening
Once everything is in place, it’s time to prepare for your grand opening. Before you officially open your doors to the public, consider hosting a soft
opening. Not only does this allow you to continue generating excitement for your new brewery, but it allows you and your staff to prepare for what
a normal work day will be like.
Though it may seem like an intimidating task, the process of developing and opening your own brewery is possible to complete as long as you have
a strong plan, stay prepared, and are ready to work hard. Follow the steps and tips outlined above to guide yourself through the process and
successfully open your new brewery!

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How to Obtain a Liquor License
Are you interested in learning how to apply for a liquor license for your new bar, restaurant, or nightclub? Liquor laws vary by state and are
determined by local agencies, so it's important to be well-informed before beginning the process of applying for a license. If you're interested in
learning more about how to get a liquor license for your establishment, keep reading!

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How to Apply for A Liquor License
We've compiled a step-by-step list to guide you through the process of applying for a liquor license. If you're planning on opening your own bar,
you'll need to be familiar with these requirements. Click on any of the steps below to choose the section that most interests you:
1. Determine Your State's Alcohol Laws
2. Do You Live in a Liquor License Quota State?
3. Do You Need a Specific Class of Liquor License?
4. Preparing to File a Liquor License Application
5. How Much Does a Liquor License Cost?
6. Filing Your Application for a Liquor License
7. Alcoholic Beverage Control Agencies by State
1. Determine Your State's Alcohol Laws
Because each state has their own specific rules regarding the distribution, sale, and consumption of alcohol, the first step in getting a liquor license
is determining your state's alcohol laws. Every state has their own Alcoholic Beverage Control (ABC) agency, which is the governing body that
makes any and all rules pertaining to alcohol. Additionally, many counties and towns have their own standards and requirements that accompany
more general state laws.

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What Do Liquor License Laws Usually Regulate?
 To whom alcohol can be sold
 When businesses are permitted to sell alcohol
 Types of alcohol that can be sold
 Which containers alcohol can be served in and how much can be sold at one time
 Where and when alcohol can be served or sold to go
 Whether businesses are permitted to manufacture, distribute, and sell alcohol (or any
combination of the three)
 How much alcohol costs
 Liquor license fees and quotas
Liquor license laws may also stipulate that:
 Wholesale beer, wine, and liquor vendors may not sell to establishments without a valid liquor license
 No discounts on liquor are permitted (such as happy hours or 2-for-1 specials)
 Unfinished bottles of wine may not be taken home
 Customers be limited to 1 drink only
 Insurance companies will not cover claims related to alcohol if a business doesn't have a valid liquor license

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Is Your Area Zoned to Sell Alcohol?
While the majority of states and counties in the United States are zoned to sell alcohol, there are also plenty that aren't. In states like Kansas,
Oklahoma, Texas, Arkansas, Mississippi, Tennessee, and Kentucky, there are dry counties, which are areas that prohibit the sale of alcohol. On the
other hand, states like North Carolina, Ohio, Michigan, and Pennsylvania have "mixed" counties that moderate the sale of alcohol but not its on-
premise consumption. So, you'll want to ensure your local township or county is zoned for the sale of alcohol in the first place.
2. Figure Out if You Live in a Liquor License Quota State
While some states offer an unlimited number of liquor licenses, others have specific quotas set for the number of licenses they'll issue. As of 2014,
the following states are considered "quota" states:
 Alaska
 Arizona
 California
 Florida
 Idaho
 Kentucky
 Massachusetts
 Michigan
 Minnesota
 Montana
 New Jersey

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 New Mexico
 Ohio
 Pennsylvania
 South Dakota
 Utah
 Washington
 Some neighborhoods in Washington, D.C.
Why Do Liquor License Quotas Exist?
In the majority of states with quotas, the specific locality's population determines the number of licenses available. So, as an area gains more
residents, the amount of new licenses that can be issued increases. These quota figures vary across states. It's important to check with your state's
ABC agency to determine how strict the quota actually is, as this will weigh heavily into the cost and availability of a license.
In the other 33 non-quota states, liquor licenses cost only a few hundred dollars. In quota states, however, restaurants and bars can pay up to
$300,000 for a new license. Quota laws were created in the aftermath of the 21st Amendment, which repealed Prohibition. Politicians were
concerned about the consumption of alcohol and felt drinking and the perceived ills that accompanied it would run rampant if liquor went
unregulated.
Interestingly, establishments in quota states that already have licenses often resist efforts to raise the number of licenses permitted or the
elimination of quotas because it would increase the number of bars and restaurants they'd be in competition with.
3. Find Out if Your State Requires a Specific Class of Liquor License
There is no one-size-fits-all liquor license, and some states may require more specific licenses than others. To start, you'll want to figure out
whether you need an on-license or off-license. If you'll be selling alcohol to be consumed on the premises (i.e. bars, nightclubs, and restaurants),
you'll need an on-license. On the other hand, bottle shops, liquor stores, and other retail locations where alcohol is sold but will be consumed off
the premises need an off-license.

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What Are the Different Classes of Liquor Licenses?
Not all states require specific classes of licenses, but some do. Here are the main ones:
 Arts licenses are designed for places like theaters and art galleries and usually stipulate
that these establishments can only sell alcohol 15 days out of the year.
 Beer and wine licenses are sometimes given to smaller businesses that only sell beer and
wine.
 Brewpub licenses may be necessary for establishments that plan to make their own beer
or wine. Depending on your state, you may be issued an alternating premises license,
which requires you to make alcohol at certain times and serve it at other times.
 Club licenses allow private social clubs to serve alcohol to their members. While some
states only permit the service of beer and wine, others allow clubs to also serve liquor.
 Delivery licenses allow companies to deliver sealed containers of alcohol to customers.
 Eating place licenses are given to carryout businesses like delis that serve food, but also
sell small amounts of take-out beer. These licenses usually restrict the amount of alcohol
that may be sold to one customer.
 Hotel licenses are issued to hotels with bars and restaurants that serve alcohol.
 Restaurant licenses are also referred to as "all-liquor licenses" and allow a business to serve any kind of alcohol. However, some states do
require that only around 40% of the establishment's total earnings may come from the sale of alcohol.
 Retail licenses are issued to grocery stores, convenience stores, liquor stores, and any other retail establishments that sell alcohol.
 Tavern licenses are required if a business serves food but makes at least 50% of their total sales from alcohol.

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BYOB (bring your own bottle) restaurants, wholesalers, and bed and breakfasts may also have to be licensed, although this process varies by state.
4. Preparing to File a Liquor License Application
Once you've researched the liquor laws and regulations in your area, you're ready to apply for your liquor
license. To apply, you'll need to contact your state's ABC agency and find the necessary paperwork.
Because the regulations vary greatly by location, you may also want to ask your local agency these
questions:
 What kind of license(s) do you need?
 How much should you expect to pay for your license(s)?
 Are there any available licenses in your county or town (if you live in a quota state)?
 Are there any establishments in your area looking to sell their license (if you live in a quota state)?
Over-preparing for your liquor license application is practically impossible, so it's wise to have everything you'll need ready to go before you apply
to get your liquor license.
What Documents Do You Need to Apply for a Liquor License?
While the information and documentation you'll need before you file your application varies by state and locale, here are the most important
documents to have and where to obtain them:
 Employer ID number from the IRS
 Zoning permit from your local zoning commission
 Business license from your local government

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 Sales tax permit from your state's website
 Alcohol tax permit from your state's business taxation department
 Food handler's permit (if applicable) from your state health commission
 Building permit from your local zoning commission
 Signage permit from your local zoning commission
 Health permit from your state health commission
 Music license (if you'll be playing copyrighted music) from online licensing companies
Make sure you've paid any delinquent taxes or outstanding fees before applying for your liquor license. Failure to do so can negatively impact your
chances of obtaining a license.
What Other Documents Should You Have Ready When You Apply for a Liquor License?
In addition to the documents mentioned above, you may need to provide:
 Photos of your building's exterior
 A floor plan of your building's interior
 Your proposed food menu
 A copy of your building title
 Your code compliance certificate
 Your certificate of incorporation
 Your company constitution

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 Your partnership agreement (if applicable)
 Details regarding your age and business experience
Of course, you'll also need to determine whether you'll be selling alcohol on or off the premises, the percentage of total income you expect to earn
from the sale of alcohol, and information on the type(s) of alcohol you'll be serving. Additionally, your state may dictate that servers and
bartenders must take training courses before your license will be issued.
5. How Much Does a Liquor License Cost?
Because costs and fees vary from state to state, there's really no way to accurately determine what it will cost to obtain a liquor license until you
talk to your ABC agency. Keep in mind that in some areas, you might need a liquor license for all four levels of government - federal, state, county,
and local, which will obviously incur extra costs.
Do You Live in an Alcohol Control State?
In control states, state governments have a monopoly on the sale of alcohol. Accordingly, liquor (and sometimes wine) can only be sold at state-run
stores, rather than at independently owned and operated businesses. Liquor privatization, on the other hand, puts the control of liquor sales and
distribution into the private sector. By preventing privatization and keeping the control of liquor sales in the public sector, revenue is increased for
state governments.
For example, Utah's state government collects around $140 million in profits and taxes annually from their state-run wine and spirits stores.
The following states prohibit the sale of liquor in private stores:
 Alabama
 Idaho
 New Hampshire
 North Carolina

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 Pennsylvania
 Utah
 Virginia
Additionally, these states permit the sale of liquor in privately owned stores but still set minimum prices and determine product selection for
distributors and wholesalers:
 Iowa
 Maine
 Michigan
 Mississippi
 Montana
 Montgomery County, Maryland
 Ohio
 Oregon
 Vermont
 Wyoming
 West Virginia

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6. Filing Your Application for a Liquor License
Once you've gathered all of the necessary materials, you're ready to file your application for a liquor license. In most areas, you simply visit your
state government's website, print the application form(s), fill them out, and then mail them in. Typically, you'll also have to pay a non-refundable
$50-$100 processing fee. Depending upon the state you live in, you may even be subject to a background check and/or fingerprinting.
Will You Need to Defend Your Liquor License Application?
Once you've submitted your application for a liquor license, a notice will be posted at your business that
lists your name, the kind of license you're applying for, and what you'll be selling. During the time period
when this notice is posted, anyone from your local community may contest your application. If this occurs,
you may be required to defend your proposal at a public hearing before the decision on whether you'll
receive a liquor license is made. If no objections are presented, your local government will review your
application and (hopefully) grant you your liquor license.
How Do You Avoid Losing Your Liquor License?
Once you've obtained a liquor license for your business, you'll need to maintain it. Most states require you
to renew your license every 1-3 years (depending on local laws), which also involves paying a renewal fee.
If you're in good standing with your local ABC agency, you may be entitled to a reduced fee.
However, your liquor license can be revoked at any time if you violate the terms established by your state's
ABC agency. Common violations include:
 Selling alcohol to a minor
 Over-serving patrons
 Allowing employees to drink to excess on the premises after their shift

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7. Alcoholic Beverage Control Agencies by State
The following list includes all 50 states, plus the District of Columbia, and the website for each state's ABC agency:
1. Alabama ABC Licensing Information
2. Alaska Alcohol & Marijuana Control Office
3. Arizona Department of Liquor
4. Arkansas Alcoholic Beverage Control
5. California Alcoholic Beverage Control
6. Colorado Liquor Licenses
7. Connecticut Liquor Control Division
8. Delaware Office of ABC
9. Florida Division of Alcohol & Tobacco
10. Georgia Alcohol Licensing
11. Honolulu Liquor Commission
12. Idaho State Liquor Division
13. Illinois Liquor Control Commission
14. Indiana Alcohol & Tobacco Commission
15. Iowa Alcoholic Beverages Division

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16. Kansas ABC Licensing
17. Kentucky Alcoholic Beverage Control
18. Louisiana Alcohol & Tobacco Control
19. Maine Alcohol & Lottery Operations
20. Maryland Liquor License Renewals & Transfers
21. Massachusetts Alcoholic Beverages Control Commission
22. Michigan Department of Licensing & Regulatory Affairs
23. Minnesota Alcohol & Gambling Enforcement
24. Mississippi Alcoholic Beverage Control
25. Missouri Alcohol & Tobacco Control
26. Montana Liquor Control
27. Nebraska Liquor Control Commission
28. Nevada Alcoholic Beverage Control
29. New Hampshire Liquor Commission
30. New Jersey ABC Licensing Bureau
31. New Mexico Alcohol & Gaming
32. New York State Liquor Authority
33. North Carolina ABC Commission
34. North Dakota Alcoholic Beverage License

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35. Ohio Department of Commerce
36. Oklahoma ABLE Commission
37. Oregon Liquor Licensing
38. Pennsylvania Liquor Control Board
39. South Carolina Alcoholic Beverage Licensing
40. South Dakota Alcohol Licenses
41. Tennessee Alcoholic Beverage Commission
42. Texas Liquor License
43. Utah Department of Alcoholic Beverage Control
44. Virginia Department of Alcoholic Beverage Control
45. Vermont Department of Liquor Control
46. Washington State Liquor & Cannabis Board
47. Washington, D.C. Alcoholic Beverage Regulation
48. West Virginia Alcohol Beverage Control Administration
49. Wisconsin Alcohol Beverage Laws for Retailers
50. Wyoming Liquor Division
While obtaining a liquor license may seem complicated, thorough preparation and knowledge will put you well on your way to selling alcohol at
your business. Offering beer, wine, and liquor will help you increase your establishment's profits with very little extra effort and can also help turn
your restaurant into a neighborhood hangout. Whether you own a restaurant, bottle shop, or grocery store, obtaining a liquor license is a smart
choice.

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How Much Does it Cost to Open a Bar?
The cost of starting a bar varies greatly depending on your location and the type of bar you’re opening, but averages show that bar startup costs
are between $125,000 on the low end and $850,000 on the high end. We’ll explain the reasons for this wide range and break down the individual
costs to help you begin planning. If opening a bar is your dream, examining the financial aspect is the first place you should start.

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Cost to Open a Bar
Your total startup costs will depend heavily on whether you choose to lease or buy your space. Purchasing an existing bar is the most affordable
option. These are the average startup costs for all three:
 Renting or leasing - $125,000 - $550,000
 Mortgage - $175,000 - $850,000
 Purchase an existing bar - $25,000
Bar Startup Costs
Leasing is the most common route taken with new bar ownership. Below we break down all
bar startup costs if you lease your commercial space for a small to average size bar:
1. Initial rent payment and building prep - $110,000
2. Liquor license - $4,500
3. Permits and insurance - $5,000
4. Inventory - $6,000
1. Renting Your Space
For an average sized bar, the cost of renting your space is is generally around $110,000. This includes the initial rent payments and any remodeling
required. A lease agreement requires much less capital than buying a location outright and provides more freedom to play with your concept than
buying an existing bar. In the unfortunate case that your business doesn't thrive, renting provides an easier exit strategy.
2. Liquor Licenses
In order to legally sell alcohol, you'll need to acquire a liquor license. The average cost of a liquor license is $4,500, but this will vary from state to
state and even from county to county. For the most up to date information on the cost of a liquor license in your area, visit the website for your
state's Alcoholic Beverage Control agency.

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3. Permits and Insurance
Just as with opening a restaurant, you'll be required to obtain the correct licenses and permits when you open a bar. The average cost for permits
is $5,000 but this will vary depending on what types of permits you need. Some permits are location specific and others are considered a standard
requirement. These are examples of typical permits you'll need to open your bar:
 Business License
 Certificate of Occupancy
 Building Health Permit
 Entertainment and Music License
4. Inventory
The startup inventory for your bar will cost an average of $6,000. In addition to purchasing beer, wine, and liquor, you'll also need other bar
essentials like mixers and blending equipment. This number could be much higher depending on the type of bar you choose to operate:
 Brewpub - If you choose to brew your own beer, make sure to include the cost of brewing equipment in your calculations.
 Sports Bar - An important component of a sports bar is the audio and visual equipment you'll need to broadcast sports games for your
guests.
 Nightclub/Lounge - You'll need to budget for promotions, DJ equipment, as well as a dance floor and and any special lighting.
 Bar and Grill - If you plan to serve bar food, you'll also need to account for food cost in your initial inventory expenses.

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Operating Costs and Overhead
An important component of opening a bar is considering the operating costs and overhead that will be
needed in addition to the startup costs. A major reason that bars fail is because they use up all their capital
on startup costs and don't account for the expenses that come later. You won't start making a profit right
away, so you have to make sure you have enough money tucked away to carry you through the time
period when you're in the red. During every month, the average bar will incur about $20,000 in operating
costs:
 Staff - $13,000
 Rent - $6,000
 Inventory replenishment - $1,000
 Total Average Monthly Costs - $20,000
How to Make a Profit
With all these expenses, how do bars make a profit? The average monthly earnings for a bar are $25,000. If you remove operating costs of $20,000
from your earnings, you're left with a monthly profit of $5,000. Take your total startup cost and divide it by your monthly earnings to see how many
months it will take to get out of the red and start making a profit:
Start Up Cost ($125,000) / Monthly Profit ($5,000) = 25 Months
Just remember that you will have bad months and good months. Some months you might not make enough to cover your monthly expenses, which
is why it's so important to account for your future operating costs. Exploring the financials of opening your bar is going to provide you with some
key information to include in your business plan. Not only will it help you to prepare for every possible expense, it will help you to reach out to
possible investors.

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Bar Open and Closing Checklist
Whether you already run a successful bar or you're opening a new business, a bar opening and closing checklist is one of the best ways to make
sure your bar, nightclub, or pub is clean, organized, and ready for the next day. These bar checklists include the bar opening procedures and
bartender closing duties that your staff needs to complete at the beginning of the day and before leaving each night, such as cleaning, restocking,
storing, organizing, and locking up.
We created a comprehensive bar opening checklist, along with a bar closing checklist that you can use to keep your bar organized and secure. Use
the following buttons to download our printable PDFs:

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Learn more about each bar checklist step by clicking the links below:
1. Do a Preliminary Building Check
2. Polish and Sanitize Surfaces
3. Take Inventory of Beverages
4. Set Up the Room
5. Prep and Refill the Condiment Bar
6. Refill the Ice Bin
7. Empty Out and Lock Up
8. Count the Money
9. Store Perishables
10. Organize and Date
11. Clean Everything
12. Refill Disposables
Bar Opening Checklist
Before you can open your doors each day, there are a few bar opening procedures your staff should follow before turning on the open sign. To
ensure that you're ready for customers, follow these six steps for opening a bar for the day:

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1. Do a Preliminary Building Check
When your staff first arrives, they should do a quick scan of the property inside and out to make sure
everything looks in order.
 Clear any debris the might have collected overnight outside your building, on the sidewalks, in the
doorways, or on the windows
 Once inside, check for odors, trash, spills, or items out of place
 Decide if the floors need to be vacuumed
 Empty and reset pest traps
2. Polish and Sanitize Surfaces
To make a good impression on your customers, you'll want to make sure your bar is sparkling clean, from the counters to the glasses.
 Wipe down countertops with a sanitizing solution
 Wipe down stool seats and tabletops to clear away any dust that may have collected overnight
 Polish the glassware that was air drying from the previous night
 Polish any silverware you plan to use during the day, including barware
 Dust any alcohol bottles on display
 Clean faucets and taps with sanitizer

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3. Take Inventory of Beverages
Once you make sure everything in your bar looks in order and presentable, it's time to ensure that your beverage stock is ready for day's service.
 Count your bottle inventory to ensure nothing was stolen overnight
 Check the levels of your wine, liquor, and mixer bottles; take note of what stock needs to be ordered
 Stock your back bar cooler
 Check your keg levels; take note of which ones may 'kick' next and prepare a backup to replace during the shift
 Test the taps and clear the drain lines by pouring out a little beer from each keg
4. Set Up the Room
After you've completed your inventory check, set up your space so it is ready to host customers.
 Set up the tables and chairs
 Set up your service bartending supplies you'll need for your shift
 Set out clean bar towels
 Prepare the cash drawer for service
 Roll the flatware into clean napkins

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5. Prep and Refill the Condiment Bar
With your station set up, it's time to prep your condiments and garnishes for the drinks on your menu.
 Wash and cut the fruit for the day
 Refill bar garnishes, including rimming salt and sugar, olives, and cherries
 Squeeze fresh citrus juice to pair with drinks
6. Refill the Ice Bin
Ice is considered food in the foodservice industry, so your ice must be as fresh as your other drink ingredients.
 Empty out the underbar ice bin
 Melt any ice build-up with hot water
 Wipe out the bin
 Stock the bin with fresh ice
Bar Closing Checklist
There are six bar closing procedures your bar employees need to complete to close your bar at the end of the day. These steps can be carried out in
different orders, depending on your flow, but we'd suggest leaving cleaning and mopping the floors for the end to prevent your employees from
making any potential additional messes while closing.

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1. Empty Out and Lock Up
For the first step of your bar closing checklist, check your restaurant for any remaining customers. Locking up should be the first step because you
want to make sure everyone is out before you start cleaning and counting the money. Ensuring every one of your customers is out of the bar at the
end of the night is critical not only from a courtesy standpoint but also in terms of safety.
 Ensure the dining area is clear of customers
 Check the restrooms for any lingering guests
 Check that the kitchen is empty
 Check accessible closets to ensure no one is hidden in them
 Lock up patio furniture
 Lock the entrances; set any alarms before leaving for the night
 Turn off televisions, radios, LED signs, and additional lights
2. Count the Money
Once you've locked up, you can begin counting the money and cleaning up for the night. Along with counting the money, you'll also need to
distribute the night's tips. You should have an established tipping system, such as working on an individual basis, daily pools, or other ideas that
distribute the money fairly.
 Distributing tip pool
 Balancing cash registers
 Securing money in safes

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3. Store Perishables
Storing and refrigerating perishables is an important way to save money at your bar. Every drink or ingredient that you save overnight is money
going toward profits.
 Store fruits and garnishes in plastic bags or containers to prolong their freshness
 Refrigerate any pre-made mixed drinks such as sangria or punch
 Refrigerate cocktail ingredients such as soda and juice
 Lock up expensive beers and liquor bottles
 Put bar snacks back in the pantry
4. Organize and Date
Organizing your bar and kitchen is an important task, and it ensures that opening will run smoothly on the
following day. Additionally, dating your food and alcohol lets you know when it was opened and if it's still
good to use. Practicing proper dating and organization is essential for passing health inspections.
.
 Date newly opened bottles of wine and liquor
 Clean menus and recycle old ones
 Label all of the fresh ingredient containers

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5. Clean Everything
Cleanliness is one of the prime indicators of a professional and well-managed bar space, and whether it's dust on the shelf, rings on the countertop,
or a napkin that didn't make it to the trash, unclean appearances can speak volumes about your business, particularly to health inspectors. Cleaning
is probably the most labor-intensive part of the closing checklist, but if your staff all works together, it can go quickly.
Here is a short list of important cleaning tasks that need to be completed every night:
 Wipe down countertops
 Wipe down the soda gun
 Clean out soda gun holsters
 Remove clogs from floor drains
 Wipe down your speed rails
 Clean the outside of liquor bottles if any product has spilled
 Load the dishwasher and clean glassware with bar glass cleaners
 Drain off dirty dishwater and scrub down your sink
 Wash other smallwares like muddlers, jiggers, and stirrers
 Wipe down beer taps and thoroughly clean them once a month
 Sweep the floors in the front- and back-of-house, then mop
 Clean out blenders
 Clean the bathrooms thoroughly
 Leave all of your glassware, smallwares, and equipment out to air dry, ensuring they're clean for the following day

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6. Refill Disposables
Refilling disposables behind the bar can help save time when opening the following day and keep your bartenders quick on the draw during service.
Any single-use product should be stocked for the next day, no matter how inconsequential it may seem. Here is a list of a few bar disposables that
need to be refilled every day:
 Toothpicks
 Drink Umbrellas
 Stirrers
 Straws
 Napkins
A bar opening and closing checklist is imperative to maintaining the sanitation, organization, and streamlined operation of your business. Having
written bar opening duties ensures your staff has constant access to the established protocol while a bar closing duties list can make closing up go
smoothly every time. Whether you're training new hires or providing a refresher for seasoned veterans, bar checklists are great tools for making
your bar more efficient.

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How to Set Drink Prices In Your Bar or Restaurant
Choosing bar drink prices can be a tricky aspect of running a bar. Too expensive, and you drive away customers. Too cheap, and you won't be in
business for much longer. One of the most important aspects of a restaurant, and especially a bar, is to create a profitable and manageable list of
cocktails. There are many variables that each business needs to take into consideration when figuring out how to price drinks, like rent and
overhead, but there are also a few industry standards that we'll highlight to help you properly price drinks for your bar or restaurant.
Establish Drink and Cocktail Prices
When taking into consideration how many different types and brands of liquors are used, it can seem quite overwhelming to begin setting a
standard for your pricing. Fortunately, it's just simple math that will be applied across your entire drinks menu.

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How to Price Bar Drinks
You can follow these steps to help you estimate the price of the drinks at your establishment.
1. Calculate the liquor cost. You can use the following formula to help get to this number: Bottle
Price / Ounces in Bottle = Liquor Cost per Ounce
2. Calculate the pour cost or beverage cost. You can use the following formula to help get to this
number: Cost to Make the Drink / Price You Sell It for = Pour Cost
o Most locations will set the pour cost at 20% to 25%, while others will use 22% for wine, 20% for
beer, and 14% for liquor. You can adjust the percentage to what works best for your establishment.
3. Calculate the drink price. You can use the following formula to help get to this number: Liquor Cost
/ Pour Cost in Decimals = Drink Price
4. Factor in the garnish prices. You can do this similarly to how you calculate the liquor cost and price
out each individual ingredient, or set a flat rate that is added on to the drink price.
5. Factor in the shrinkage variance. Most bars will add in an additional fee of approximately 20% to
cover the cost of lost product due to expiration or damage.
6. Round to the nearest quarter. The number you get after you complete your calculations may not
be a well-rounded number. To make the price more visually appealing, round to the nearest quarter to create a cleaner drink menu.
7. Evaluate and adjust. The prices you come to may not always be the most cost-effective price for your demographic. You can use a profit
and loss statement to make adjustments and track the impact it has on your clientele to find the best menu pricing for your establishment
to be profitable.

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Drink Cost Breakdown in Practice
We’ll walk through the pricing breakdown of a basic drink to provide a visual of the calculation above. To start, we’ll say that a 25-ounce bottle of
liquor costs $22.
 Liquor cost: $22 purchase cost / 25 oz. per bottle = $0.88 per ounce
 Pour Cost: We’ll use 20% as a standard.
 Drink Cost: $0.88 liquor cost / .2 pour cost = $4.40
 Garnish Cost: We’ll use a flat rate of $0.50. The drink total is currently $4.90 with the drink cost and garnish cost combined.
 Shrinkage Cost: Using the shrinkage rate of 20%, you’ll want to multiply the drink total by .2 and add that amount to the price.
o $4.90 drink total x .2 shrinkage = $0.98 shrinkage cost
o $4.90 drink total + $0.98 shrinkage cost = $5.88 new drink total
 Round to the Quarter: The final drink price is $6.00.
Understanding that most drinks do not consist of just one type of liquor or ingredient, you’ll want to price out your ingredients the same way you
calculated the liquor cost and add them all together. Multiply the liquor cost accordingly to how many ounces of that particular liquor you used in
the cocktail. You would then use that recipe total in place of the liquor cost during the drink cost step.
Four-Tier Liquor Pricing
Liquor pricing will usually fall into a four-tier organizational system that can help you adjust your pour cost according to the liquor quality.
 Well: These brands will usually sit in the well behind the bar. Well drinks are made with the cheapest liquors in your establishment and
usually mixed with multiple liquors and drink mixes. They will have the highest pour cost, set at approximately 30%.
 Call: These brands are the most popular brands in your establishment and are usually located directly behind the bartender. Customer can
usually call them by name when asking for a drink. They will have a pour cost set at approximately 25%.

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 Premium: These brands will usually be located on the lowest shelf behind the bar and will be the highest quality certain brands have to
offer. They will have a pour cost set at approximately 20%.
 Super-Premium: These brands are considered to be top-shelf bottles and will be the highest quality liquors in your establishment. They are
generally liquors that have been aged and distilled. They will have the lowest pour cost, set at approximately 15%.
Organizing your bottle brands into these four categories can provide a quick reference system when setting drink prices.
Creating Standard Recipes
Establishing standard recipes for each drink is important to ensure consistency and quality. If each bartender makes cocktails a different way, your
customers aren't only receiving different types of margaritas, but your effort to price the beverage is essentially useless.
When standardizing recipes it's also important to stress the necessity of avoiding over-pouring to your bartenders. Over-pouring costs bars
thousands of dollars per year, but you can help prevent that by adding measured pourers behind the bar.
Factors That Impact Drink Prices
Drink prices can be impacted by a variety of factors apart from their ingredients, such as your location and competition.

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Demographic
Setting drink prices goes beyond calculations. It is important to consider your location’s demographic to set
prices that your customers will accept. Consider the age, gender, occupation, and income of the people in
your surrounding neighborhood.
If your bar is located in a bustling city with higher rent rates, customers may accept and expect higher
priced drinks. However, if you’re in a rural town or near a college community where the population is
pressed for money, higher priced drinks won’t sell very well. It’s important to evaluate how your customers
are responding to your drink prices by tracking your bar sales and adjusting your prices accordingly.
Checking Out the Competition
With any business, it is necessary to know what your competition is up to. If you're priced significantly
higher than the bar around the corner, chances are that you'll slowly lose business and see the effects
financially. And vice versa, bar drink prices that are too low won't cover costs of staff, rent, and electricity.
Many bars choose the “meet or beat” technique where they try to meet the prices of their competition or
beat them if possible.
However, not all bars are made the same. If your bar or restaurant features an upscale ambience, it would
not be expected for your drinks to be the same price as the casual dining bar around the corner. Your
atmosphere will also impact the discount of your happy hour drinks, if you choose to have a happy hour at
all. A sports bar serving a happy hour may see a 30 % pour cost, while an upper-class martini bar keeps its beverage cost at 18%.
Ultimately, your pricing depends on how much you paid for alcohol, the competition or the type of clientele you wish to attract, and the overall
profit you plan to bring in. Find that happy medium, price your food menu reasonably with your drink menu, and you'll have a continuous flow of
satisfied customers.

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Types of Whiskey
Identifying the different types of whiskey isn’t just the realm of the bartender. Some customers will simply tell their server, “Bring me an Old
Fashioned.” To provide a high level of service, you must know enough about whiskey to respond with, “Do you prefer bourbon or rye in your Old
Fashioned cocktail?” This is especially important in fine dining etiquette, but it applies to any bar or restaurant that stocks whiskey.
With an understanding of the kinds of whiskey, you can make recommendations for your guests based on their preferences or even plan a whiskey
tasting event. In our whiskey guide, we’ll explain the key differences between types of whiskey so you can identify them correctly.

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To learn more about the different whiskey types:
1. Whiskey 101
2. Bourbon Whiskey
3. Tennessee Whiskey
4. Irish Whiskey
5. Rye Whiskey
6. Canadian Whisky
7. Scotch Whisky
8. Japanese Whisky
9. White Whiskey
10. Printable Whiskey Chart
Whiskey Basics: A Beginner's Guide
There are some basic concepts regarding whiskey distillation and bottling that will help you gain a better understanding of this complex spirit.
Before diving into the whiskey varieties, familiarize yourself with these whiskey basics:
Whiskey vs Whisky
The two spelling variations for this spirit are whiskey and whisky. Whiskey spelled with an “e” is used for Irish whiskey and many American
whiskeys. Whisky spelled without an “e” is used for Scotch whisky and any whisky made in the Scottish tradition, like Canadian and Japanese
whiskies.

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The reason for the spelling difference comes down to marketing. Irish whiskey distillers during the late 19th century chose to add an “e” to whiskey
to differentiate their product from Scottish distilleries. Irish whiskey was very popular in America around this time, so American distillers copied the
Irish spelling. This is why many bourbon, Tennessee, and rye whiskeys are spelled with the Irish “e”.
What Does Single Malt Mean?
Single malt is a term used to describe Scotch whisky made in a single Scottish distillery from 100% malted
barley. A common misconception is that single malt Scotch comes from one batch and is never blended.
Single malts can be blended from single malts of varying maturation, as long as they are produced in the
same distillery.
Single malt scotch has the reputation for being superior to blended whiskies, and this perception has
developed for a few different reasons. In the world of whisky, a single malt scotch represents the
distillery and location where it was made. Its flavor profile is specific to the natural elements of the
region, which includes the peat used for smoking the barley and the wood used to make the whisky
barrels. This adds to the mystique and artisan-like feel of single malts.
Single Malt vs Blended
Blended Scotch whisky is different from single malt because it’s a combination of single malt and grain whiskies. Grain whisky is simply whisky
made from other grains besides barley, like corn or wheat. The purpose of making blended scotch is to create a more consistent product with a
controlled flavor profile. Master blenders use a variety of single malts and/or grain malts to create the perfect ratio.
Because blended whiskies are often made with cheaper grains that don’t require the same maturation time as malted barley, they can be produced
more quickly for less money. This adds to the perception that blended whisky is inferior to single malts, but it’s not true in all cases. Today, there
are blended whiskies that have been carefully produced with very high standards.

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