HBAR - Creating and maintaining a bar business

Creating and Maintaining
a Bar Business
Hbar - M.Aldana

The Right Bar Environment
• The atmosphere
• The decor
• The efficient use of space
• The bar itself

The Bar Industry
• The F&B industry is famous for its volatility
and often for the magnitude of individual
failure.

The Bar Business
• Success and failure of the business can’t
always be blamed on the economy or the
location.
• Sometimes, success and failure is a
consequence of management and
planning.

TARGETING YOUR CLIENTELE

Targeting your clientele
• The starting point for designing a
successful bar is to identify its target
clientele:
– Whom do you want to attract and serve?
– Who will generate the profit to pay your bills?
– Whose enjoyment will be enough to keep you
working hard at this business?

• Customers are the focal point around
which everything else revolves:
– The atmosphere
– Decor
– Entertainment
– Sound
– Lighting
– and even the drinks you serve

• Customers also influence:
– Your location
– Your floor plan
– Your bar equipment
– And the kinds of staff members you hire

• People go to bars for various reasons,
bringing with them different needs and
expectations.
• Drink is not the primary motive; after all
they can buy any beverage they want at
any store for much less money.

Diners at restaurants where
drinks are served
• These diners come to enjoy a good meal
and a drink whether in a form of a cocktail,
wine an after-dinner drink, or all three.
• Although the food is the primary focus,
people often want to drink an alcoholic
beverage too.

Drop-in customers who are on
their way elsewhere
• Typically, they want refreshment, a quick
pick-me-up or a stress reliever after a
day’s work.
• In this case, the drink is the focus, the
customer has one or two at most, then is
on the move again.
• People who are waiting to board the train,
plane or are meeting someone belong
here

Meet-and-go customers
• These individuals are looking for a
relationship connection, whether a date for
the evening or a longer-term plan.
• They go to singles bars or “meet” bars that
are attractive to similar individuals.
• They stay long enough to meet someone
with whom they would like to spend the
evening

Entertainment seekers looking for
relaxation, stimulation or a change
of pace
• They frequent bars, lounges, clubs, and
restaurants where entertainment is
offered, whether it is live music, games,
and/or dancing.
• They may visit several places or spend a
whole evening in one place

Sports fans / Cigar fans
• Sports bars / Cigar bars
• People want to commune with individuals
who share their interests

Regular patrons of
neighborhood bars and taverns
• These folks are interested in enjoyment
and relaxation too, but their primary desire
is for companionship.

The clientele
• Most customers fall into one or more of the
said groups.
• The moods, tastes and interests of the
groups differ, and the people tend to differ
in background and lifestyle.

Women
• As purchasers and consumers of alcoholic
beverages, women exert a powerful
influence, which is destined to become
even greater in the years to come.

Baby-boomers
• People born between 1946-1964
• Many of these are on their 50s or 60s and
are in the prime of their careers.
• Unlike their parents, boomers refuse to
think themselves as old or even middle
aged.

Baby-boomers
• Spends 23 percent more than the average
person on restaurant dining
• They may work out to stay in shape, at
least partly so they can enjoy certain food
and beverages
• Boomers are relaxed and open about
drinking, and they do not hesitate to take
their children with them when they dine
out.

Baby-boomers
• Baby boomers also tend to be partial to
intense flavors in their foods and
beverages and are willing to pay higher
prices for specialty beer and premium
wines and liquors.
• They are both knowledgeable and critical
about their foods and beverages so
servers themselves need to know a lot
about wine, beer and cocktails.

Generations X and Y
• Constitute 21% of the workforce quickly
moving from college (many have at least
their bachelor’s degree) into jobs and
incomes that took their parents years to
achieve.
• Web-based marketing is a critical
component of any marketing plan for these
technologically savvy customers.

Generations X and Y
• About 68% drinks alcohol
– 50% of which prefer beer
– 36% distilled spirits
– 10% wine
– The rest all three

Generations X and Y
• This group also represents the most
frequent imbibers:
– 13% drinks once a week
– 26% once a month

Generations X and Y
• However, this group also grew up with the “just
say no” mentality, which includes a message to
drink responsibly
• They also grew up knowing about
microbreweries and gourmet coffees, so
they are adventurous and not especially
brand-loyal

Connoisseurs and Sophisticates
• Customers who are truly well informed,
enjoy food and wine as a serious hobby or
vocation, and often know more than most
bartenders or servers.
• Offering these customers a wide selection
of wines and spirits is simply not enough.
• Some are now hiring a sommelier, building
a wine cellar, and stock an impressive
selection.

Connoisseurs and Sophisticates
• The sophisticated customer is willing to
pay for style, cleanliness, and a well-
trained service staff.

Market Segment
• A single definable group, whose members
will have similar reasons for visiting a bar,
and shapes the entire enterprise to attract
and please this group.

Image
• Sets you apart from competitors
• A special character that your bar exudes
that will entice people to visit instead of
your competitors.

Image
What kind of energy will your bar exude?
What springs to customer’s minds when your
bar is mentioned?
What they anticipate when they arrive?
What lingers in their memory afterward?
What will keep them coming back and bringing
their friends?

Concept
• In today’s most successful bars and
restaurants, uniqueness may begin with a
signature drink, but it is carried through as
a carefully planned concept.

Concept
• To ensure success, you need an overall
concept that can tie all of the elements of
your bar together.
• A concept should begin with an idea that
can be stated simply.
• Decor, lighting, menu, and service will all
be developed in keeping with the concept.

The Bartender or Mixologist
• An integral part of any bar’s image is the
bartender or mixologist.
• Someone at the pinnacle of creative
salesmanship, a friendly face with an
impressive repertoire.
• Knows how to mix dozens of different
drinks quickly and well, yet has time for a
joke or a chat and will remember your
name.

Food
• Another factor in creating an image for a
bar is the type of food you will serve.
• Guests will linger longer where there is
good food.
• Offering food is also part of responsible
alcohol service.

LOCATION AND MARKET
FEASIBILITY

Choosing an Area
• A crowded area has its advantages.
• On the other hand, such areas can
become saturated when too many new
ventures try to imitate the success of their
predecessors.

Estimating Customer Potential
• Determine whether enough of your target
market customers live in or frequent the
area to support your concept.
• Compile population demographics:
population density, age, gender,
occupation, size of household, income,
ethnic makeup, money spent dining out,
etc.

Sizing Up the Competition
• Examine closely potential customers.
• How well are the customer’s needs and
desires already being met and even more
important, how could you serve the
chosen clientele better?

Selecting a Site
• Does it have good visibility?
• Is there adequate public transportation
nearby?
• Is there plenty of parking?
• Is it easy to reach?

Consider the Structure?
• Freestanding building or part of a
complex?
• Check out licensing, zoning and other
restrictions of the area

Determine Financial Feasibility
• Analyze the financial feasibility of your
projected business for the chosen site and
market area.
• Estimate the capital needed for land and
building, furnishings and equipment,
opening expenses, as well as reserve for
operating at a loss in the beginning
• Make a detailed projection of sales and
receipts against fixed and variable
expenses

Atmosphere
• The atmosphere will determine who
comes to buy drinks from you, how long
they stay, and whether they come back
and bring their friends.

Atmosphere
• Why do people go to bars?
– They don’t go just to drink, they go to relax, to
socialize, to rendezvous with old friends or
meet new ones, or perhaps to be alone with a
special person.
– They go to escape their everyday mood and
scene.
– transport them from a world of problems,
deadlines, and frustrations to a world of
pleasure

Decor
• The physical surroundings are important.
• They create the first impression, set the
stage, and strike the keynote.
• The kind of decor you choose will be the
visual expression of its mood.

Decor
• Soft colors and rounded shapes are
restful; bright colors and bold patterns are
stimulating.
• Mind the soundscape: carpets, drapes,
upholstered chairs, and fabric covered
walls can mute noise of all sorts.

Decor
• High ceilings give a sense of space; low
ceilings make a room smaller and more
intimate.
• Soft lights and candlelight send messages
of intimacy, romance and intrigue.
• Bright and/or flashing lights are
appropriate to noise, crowds, action and
excitement.

Layout and Design
• Layout should jibe with the critical factors:
customers, services, atmosphere and
efficiency.
• Providing employees with a functional
space in which to work quickly and
accurately.

Trends in Bar Design
• Bar tops are widened to accommodate
table settings.
• An advantage of offering lunch or dinner at
the bar is: money, tips are better for
bartenders and servers and the average
check is higher.

Trends in Bar Design
• Gastro Pub – a bar that also offers world-
class lunches and dinners.
• Concept Bar – the goal of the decor is to
whisk patrons away to a new or exotic
locales.
• Participatory Bars – where customers
are part of the action, whether they play
pool, video games or sing karaoke.

BASIC ELEMENTS OF LAYOUT

Available Space
• The amount of space available includes
the square footage, shape of the area,
position of entry and exit(s) and whether it
will be shared with dining, dancing or live
entertainment.

Activities and Traffic Patterns
• Consider the movement of people in the
room, as well as their reasons for their
motion.
– Entry and exit, visit to restrooms, telephones,
coatroom, or just going around

• A good layout will establish efficient traffic
patterns to and from the bar for table
service, and from the kitchen and service
areas for dining services as well as
customer entry and exit.
• The goal is to achieve an orderly flow,
minimizing potential collisions and general
chaos.

• A good layout will also consider clientele,
mood and ambience.
• The position of the bar itself can boost
liquor service or intentionally understate it.

Furniture
• Furniture should be chosen in relation to
the total bar concept.
• Bar stools and lounge chairs should look
inviting and be comfortable.
• You can control the rate of customer
turnover simply by the degree of comfort
of the seat cushion.

Utilities, Codes and Licensing
Restrictions
• Consider:
– Plumbing
– Electrical
– Heating and air conditioning
– Disabled persons

THE BAR: SIZE, SHAPE,
PLACEMENT

Parts of the Bar
• The Front Bar – the customer area,
where drinks are ordered and served.
• The Backbar – has a dual function: as a
decorative display and a hard-working
storage space
• The Underbar – where most of the
equipment and supplies are arranged

The Bar Floor
• Should consider the bartender’s comfort
and safety.
• Nonporous surface, such as tile or sealed
concrete to meet sanitary requirements.
• Rubber or plastic mats minimize slippage.

Materials and Upkeep
• Aluminum and nickel can be damaged by
salt
• Slate countertops absorb juices and wines
and require periodic sealing
• Plastics discolor or turn foggy when
exposed to sunlight
• Stainless steel surfaces scratch easily and
show fingerprints

Bar Size, Shape and Position in
the Room
• Size your bar to accommodate space and
equipment needs.
• Bars can be many different shapes:
straight, curved, angled, horseshoe,
round, square or freeform. It involves
factors such as: room size, shape, mood,
decor and function.

Bar as Control Center
• The bar serves as your control center – it
is where you keep records of the stock on
hand, the types, and quantities of drinks
poured and their sales value.
• The most important piece of equipment in
the bar: the cash register or Point-of-
sale (POS) is at the core of the control
system.

Smaller Specialty Bars
• Service Bars – a bar that pours for table
service only, usually in conjunction with
foodservice.
• Portable Bar – an extension of a hotel’s
beverage service in banquets, meetings,
receptions, conferences, and conventions.

Assignment
• Using the internet, look for interesting bar
concepts.
• Include a picture of the bar, what makes it
interesting, its clientele, etc.
• To be submitted on December 16, 2015
• On a short-bond paper.

HBAR - Creating and maintaining a bar business

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