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Cocktail Bar Business Plan [Sample Template]

By: Author Tony Martins Ajaero

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Are you about starting a cocktail bar? If YES, here is a complete sample cocktail bar business plan template & feasibility report you can use for FREE .

Okay, so we have considered all the requirements for starting a cocktail bar. We also took it further by analyzing and drafting a sample cocktail bar marketing plan template backed up by actionable guerrilla marketing ideas for cocktail bars. So let’s proceed to the business planning section.

Why Start a Cocktail Bar?

If you have eyes for good cocktail drinks, as well as a penchant for business, then you may want to think of starting your own cocktail bar business. The market for cocktail bar business has continued to soar because there will always be people who appreciate cocktail drinks.

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The cocktail bar business is one business that cannot go out of fashion because people would always appreciate good cocktail drinks. Depending on the scale you want to start, the startup capital for this type of business can range from small to moderate.

As a matter of fact, it is advisable to sell other alcoholic and nonalcoholic drinks in your cocktail bar if indeed you want to maximize profits in this business.

If you are sure that this type of business is what you truly want to do after you must have conducted your market research and feasibility studies, then the next step to follow is to write a good business plan ; a detailed blueprint of how you intend raising your seed capital, setting up the business, managing the flow of the business, sorting out tax and marketing your services.

The truth is that it is one thing to have a fantastic business plan, it is entirely another thing for the business plan to translate to profits, that is why it is important to assemble a team of experts to work with if you want to be successful with your cocktail bar business. Below is a sample cocktail bar business plan template that will help you successfully write yours with little or no stress

A Sample Cocktail Bar Business Plan Template

1. industry overview.

A cocktail bar is a bar or small restaurant where cocktail is the main drink available; a characteristic feature of many standard cocktail bars is a wide selection of assorted cocktail drinks. A cocktail is a mixed drink typically made with a distilled beverage (such as gin, brandy, vodka, whiskey, tequila, cachaça or rum) that is mixed with other ingredients.

If beer is one of the ingredients, the drink is called a beer cocktail. Cocktails contain one or more types of liqueur, juice, fruit, sauce, honey, milk or cream, spices, or other flavorings. Cocktails may vary in their ingredients from bartender to bartender, and from region to region.

Two creations may have the same name but taste very different because of differences in how the drinks were prepared. In the united states of America just like in any part of the world, the bar and nightclub industry that cocktail bar business is a part of is indeed a very lucrative industry.

In the United States alone, the bar and nightclub industry generate a whooping sum of $20 billion in revenue annually from about 45,000 established and recognized bars and night clubs in the US.

Although people still gather to socialize in bars just as they have always done in time past, but with factors such as driving while intoxicated and increase in crime rates, the drinking pattern in bars is being affected. Also, the growing concern as regards health and fitness toward the end of the 20th century was part of what redefined alcohol consumption in the US.

In essence, the rate at which people consumes beers and other drinks both alcoholic and non – alcoholic is what determines the growth of bar and nightclub industry.

Statistics has it that the Cocktail industry in the United States of America is worth $656 million, with an estimated growth rate of 4.1 percent.

There are about 1,151 legally registered and licensed cocktail bars scattered across the United States of America and they are responsible for employing about 11,504 people. The industry is an open industry hence a low level of market share concentration.

Any entrepreneur who wants to start a cocktail bar business in the US would definitely be confronted with tough competition.

The truth is that you will not only compete with cocktail bars in your location or city, but you would be competing with every other entertainment option such as wine bars, night clubs, restaurants, casinos et al where cocktails are retailed.

Lastly, it is important to state that as much as starting a cocktail bar business can be profitable and rewarding; the success of new cocktail businesses in the United States is not automatic. The chances of new cocktail bars to struggle within the first 6 months of launching can’t be ruled out.

As a matter of fact, it can take between two to five years before most cocktail bars can recover their initial investment. In order words, just like loads of new businesses, the statistics for cocktail bars do not favor startups, you just have to have a long term investment plan if you intend starting your cocktail bar business.

2. Executive Summary

Bennardo Paulo® Cocktail Bar is a neighborhood cocktail bar that will be located in Lake Street Petoskey, Michigan. Our facility is centrally located and it is close to a residential estate in the heart of the city. Lake Michigan community is one of the best small towns in the Midwest.

It scores a perfect 100 on walkability, a measure used by urban planners to reflect the ability to stroll to shops, restaurants, parks and other amenities. With mild, sunny summer weather, vacationers come from cities like Chicago, Detroit and St. Louis et al, to enjoy the cocktail bars, bookstores, coffee shops and boutiques.

We are set to make available assorted cocktails such as beer cocktail, cocktails with brandy and cocktails with cachaça, cocktails with gin, cocktails with ouzo, cocktails with rum, cocktails with sake, cocktails with tequila, cocktails with vodka, cocktails with whisky, cocktails with fortified wines, cocktails with champagne, cocktails with a liqueur as the primary ingredient and a host of other drinks and food, to all our customers in a conducive environment that is specifically designed for socializing and networking.

Our bar facility is centrally located in a busy street and it has the capacity to accommodate 100 people per time. Bennardo Paulo® Cocktail Bar is designed and constructed to meet both health and safety standards as recommended by the local authority.

Our customers are going to be treated with good music at all times. We have made provision for live band, karaoke, country side music and jazz etc. which will be played at the background to create the ambiance that our customers will cherish.

We are in business to make profits at the same to give our customers value for their money; we want to give people the opportunity to choose from the wide range of cocktails and other drinks that are manufactured in the United States of America.

Our goal is to make every day a day of celebration, networking and socializing for as many people that will patronize our cocktail bar.

No doubt, we will become the talk of town amongst socialites in Lake Petoskey – Michigan because we have put plans in place to make our cocktail bar lively 24 hours a day and 7 days a week and highly secured because we want to attract everybody (celebrity and non-celebrity alike).

We will ensure that all our employees are selected from a pool of customer centric people in and around Lake Petoskey – Michigan and also from any part of the United States. We will make sure that we take all the members of our workforce through the required training that will position them to meet the expectation of the company and to compete with other players in the United States.

Bennardo Paulo® Cocktail Bar is owned by Bennardo Paulo and his immediate family members. Bennardo has managed several bars and night clubs in Milan and Las Vegas prior to moving to Michigan to start his own cocktail bar. He is a member of the Bartender Association and a notable cocktail maker.

3. Our Products and Services

Bennardo Paulo® Cocktail Bar is in the cocktail bar industry to make profits and we will ensure we will make available a wide range of cocktail drinks to our customers. These are some of the products that will be found in our bar;

• Assorted cocktails such as cocktails with absinthe, beer cocktail, cocktails with brandy, cocktails with cachaça, cocktails with gin, cocktails with ouzo, cocktails with rum, cocktails with sake, cocktails with tequila, cocktails with vodka, cocktails with whisky, cocktails with fortified wines, cocktails with champagne, cocktails with a liqueur etc
• Alcoholic drinks
• Non-alcoholic beverages

4. Our Mission and Vision Statement

• Our vision is to establish a standard cocktail bar in Petoskey – Michigan that will be the melting pot of all lovers of cocktail drinks.
• Our mission is to establish a cocktail bar business that will make available a wide range of cocktails and other drinks at every given time to our highly esteemed customers and provide a place where people can network and socialize.

Our Business Structure

Bennardo Paulo® Cocktail Bar is established to be a pacesetter when it comes to how cocktail bars should be run in in the United States of America. We will assemble a team of dedicated workforce who will give our customers excellent service at all times, a team that will ensure that we will continue to have repeated customers and a team that will indeed make us the melting pot of cocktail lovers.

Will work hard to ensure that we only attract people with the right mindset to help us achieve our business goals and objectives in record time. Below is the business structure that we will build Bennardo Paulo® Cocktail Bar;

• Chief Executive Officer (Owner)
• Bar Manager
• Bartender/Baristas

Greeters/Customer Service Agent/Table Attendant

Security Officers

5. Job Roles and Responsibilities

Chief Executive Officer – CEO:

• Increases management’s effectiveness by recruiting, selecting, orienting, training, coaching, counseling, and disciplining managers; communicating values, strategies, and objectives; assigning accountabilities; planning, monitoring, and appraising job results; developing incentives; developing a climate for offering information and opinions
• Responsible for providing direction for the business
• Responsible for training, evaluation and assessment of employees
• Responsible for signing checks and documents on behalf of the company
• Evaluates the success of the organization

Bar Manager:

• Responsible for managing the daily activities in the cocktail bar
• Ensures that the facility is in tip top shape and conducive enough to welcome customers
• Interfaces with vendors
• Attends to customers complains and enquiries
• Handles any other duty as assigned by the CEO

Bartenders/Baristas:

• Interacts with customers, take orders for cocktails and snacks.
• Plans and presents bar menu.
• Checks identification of guests to make sure they meet age requirements for purchase of alcohol and tobacco products.
• Mixes drinks, cocktails and other bar beverages as ordered and in compliance with hotel standard drink recipes.
• Arranges bottles and glasses to make attractive displays .
• Assesses customers’ needs and preferences and make recommendations.
• Makes lists of supplies in conjunction with the bar manager.
• Prepares inventory or purchase requisitions as needed to replenish supplies.
• Ensures that the assigned bar area is fully equipped with tools and products needed for mixing beverages.
• Responsible for preparing financial reports, budgets, and financial statements for the organization
• Provides managements with financial analyses, development budgets, and accounting reports; analyzes financial feasibility for the most complex proposed projects; conducts market research to forecast trends and business conditions.
• Responsible for financial forecasting and risks analysis.
• Performs cash management, general ledger accounting, and financial reporting for one or more properties.
• Responsible for developing and managing financial systems and policies
• Responsible for administering payrolls
• Ensures compliance with taxation legislation
• Handles all financial transactions for the company
• Serves as internal auditor for the company

Disc Jockey (DJ)

• Ensures that customers are entertained with the best of music per time
• In charge of music collections
• Responsible for mixing music tracks
• Opens door and welcome customers
• Ensures that customers feel relaxed and at home
• Handles customers’ enquiries
• Provide recommendations and suggestions to guest for choosing cocktail and snacks.
• Serves customers in a friendly manner.
• Determines when a customer has had too much alcohol and if required refusing any further serving in a polite way.
• Demonstrates a thorough knowledge of food and beverage products, menus and Promotions
• Handles any other duty as assigned by the bar manager
• Cleans up after customers
• Washes glassware and utensils after each use.
• Maintains a clean working area by sweeping, vacuuming, dusting, cleaning of glass doors and windows, etc. if required.
• Ensures that toiletries and supplies don’t run out of stock
• Handles any other duty as assigned by the bar manager.
• Ensures that the facility is secured at all time
• Controls traffic and organize parking
• Patrols around the building on a 24 hours’ basis
• Submits security reports weekly
• Any other duty as assigned by the bar manager

6. SWOT Analysis

Bennardo Paulo® Cocktail Bar is established with the aim of becoming the melting point of lovers of cocktail in Petoskey – Michigan which is why we have taken our time to conduct our SWOT analysis to be able to identify areas we need to work on if indeed we want to achieve our business goal.

No investor would want to invest his or hard earned money without assessing the risks involved in the venture and his or her capability to deliver and make profits from the business. The ability to make profits from any business and to favorably compete with competitors in the industry starts with the result you get from your SWOT analysis.

In view of that, Bennardo Paulo® Cocktail Bar hired a business to help conduct SWOT analysis for the business and below is a summary of the result that was generated.

Our strength as a company are excellent customer service, wide range of cocktails and assorted wines, beverages, tobaccos and food; excellent facility, excellent ambiance and perfect location for a bar in metropolitan city like Petoskey.

Our perceived weakness could be that we are new business, and we may not have the financial muscle to sustain the kind of publicity we want to give our business.

• Opportunities:

There are unlimited business opportunities available to cocktail bar businesses in busy cities like Lake Michigan community. It scores a perfect 100 on walkability, a measure used by urban planners to reflect the ability to stroll to shops, restaurants, parks and other amenities.

Another opportunity that we stand to leverage on is the fact that we can easily order any brand of drinks directly from the manufacturer with little or no stress.

Just like any other business, one of the major threats that we are likely going to face is economic downturn. It is a fact that economic downturn affects purchasing/spending power. Another threat that may likely confront us is the arrival of a new cocktail bar or even a wine bar , night club or restaurant in same location where our target market exist and who may want to adopt the same Business model like us.

7. MARKET ANALYSIS

• Market Trends

The societal shift away from alcoholic drinks toward healthier lifestyles is to a larger extent contributing to a steady decline in the amount of household spending allocated to trips to bars and nightclubs plus the fact that nobody wants to be caught driving while drunk

The recent market trend in the industry is the increase in the number of consumers choosing packaged beverages for home consumption rather than at bars or nightclubs. This trend is surely going to have lasting impacts on both the bar and nightclub business alike.

Even though the trend of cocktail bars in the United States was not well received in the 1980s, they began to gain popularity in the 90s.

In the early part of the millennium, cocktail bars became very popular and started popping up in many metropolitan neighborhoods across major cities in the United States of America. Cocktail bars now compete with the local hangouts such as coffee shops and local bars.

The cocktail bar sensation offers the taste before you buy philosophy. No doubt, cocktail bars put a new spin on cocktail tasting. They seek to remove the association of cocktail with high – end clientele and overwhelming wine lists and replace it with a more casual and relaxing atmosphere.

Many cocktail bars are furnished with cozy booths encased in rich colors and plush surroundings in hopes their guests will linger. The phlegmatic environment lends itself to a good socializing setting with a less crowded feel and more intimate appeal.

In recent time, cocktail bars have begun to incorporate a larger variety of food choices as part of their product offerings. Traditionally associated with cheeses and desserts, cocktail bars are looking to combine wine with appetizer-sized gourmet selections to increase the enjoyment their customers stand to gain when they patronize them.

The concept brings the tastes of fancy restaurants to a dressed-down setting. So also, it is now common to find restaurant owners and chefs take the opposite approach and use cocktail bars as an opportunity for expansion.

8. Our Target Market

Before starting our cocktail bar business in Petoskey – Michigan, we conducted a market survey and feasibility studies and we are certain that there is a wide range of people who would patronize our bar on a regular basis. In view of that, we have created strategies that will enable us reach out to various groups of people who are likely going to become our loyal customers.

Below is our target market;

• Corporate Executives
• Celebrities
• Taxi Drivers
• Business People
• Sports Men and Women
• College Students

Our Competitive Advantage

Competition in the cocktail bar industry will remain intense, stimulating industry consolidation. Major companies are expected to continue streamlining operations for cost savings. We are mindful of the fact that there are competitions in the cocktail bar industry in the United States of America; hence we have been able to hire some of the best business developers to handle our sales and marketing.

Our competitive advantages are control of distribution arrangements, aggressive marketing – given the high level of competition and economies of scale. Part of what is going to be our selling point in Petoskey – Michigan is the fact that we operate a standard cocktail bar, in a perfect location for the kind of business that we run and also the fact that our bar facility is highly secured.

Other factors that will give Bennardo Paulo® Cocktail Bar competitive edge is that we have enough parking space to accommodate the number of customers our bar can contain per time and secure payment platform. We are not ruling out the fact that we have a dedicated and customer centric workforce that are willing to go the extra mile to give our customers full value for their money and time whenever the patronize our cocktail bar.

We are not ignoring the fact that we are among the few neighborhood cocktail bars in downtown Lake Michigan that sells almost all the types of cocktails and the brands of wines available in the United States of America, and that will surely count in our advantage in the market place and also the robust experience of our CEO and the bar manager is also a positive for Bennardo Paulo® Cocktail Bar.

Lastly, our employees will be well taken care of, and their welfare package will be among the best within our category in the industry meaning that they will be more than willing to build the business with us and help deliver our set goals and objectives.

9. SALES AND MARKETING STRATEGY

• Sources of Income

Bennardo Paulo® Cocktail Bar is established with the aim of maximizing profits in the cocktail bar industry and we are going to go all the way to ensure that we do all it takes to attract our target market. The sources of income for Bennardo Paulo® Cocktail Bar are stated below;

• Assorted cocktails such as cocktails with absinthe, beer cocktail, cocktails with brandy, cocktails with cachaça, cocktails with gin, cocktails with ouzo, cocktails with rum, cocktails with sake, cocktails with tequila, cocktails with vodka, cocktails with whisky, cocktails with fortified wines, cocktails with champagne, cocktails with a liqueur
• Non – alcoholic beverages

10. Sales Forecast

One thing is certain when it comes to cocktail bars, if your cocktail bar is well stocked and centrally positioned, you will always attract customers cum sales and that will sure translate to increase in revenue generation for the business.

We are well positioned to take on the available market in Petoskey – Michigan and we are quite optimistic that we will meet our set target of generating enough profits from our first six months of operation and grow the business and our clientele base.

We have been able to critically examine the cocktail market we have analyzed our chances in the industry and we have been able to come up with the following sales forecast. The sales projections are based on information gathered on the field and some assumptions that are peculiar to startups in Petoskey – Michigan.

• First Fiscal Year: $250,000
• Second Fiscal Year: $500,000
• Third Fiscal Year $900,000

N.B : This projection was done based on what is obtainable in the industry and with the assumption that there won’t be any major economic meltdown and there won’t be any major competitor offering same products and customer care services as we do within same location. Please note that the above projection might be lower and at the same time it might be higher.

• Marketing Strategy and Sales Strategy

Top of the list on our marketing and sale strategy document is generating a buzz for our cocktail bar via word-of-mouth and leveraging on road show.

The model of cocktail bar we intend running is a neighborhood bar hence we are not going to rely only on the conventional ways of marketing. We don’t have the plans to run paid adverts on Local TV and radio stations or even local newspapers but we will sure maximize every other available means to promote our business.

Our unique selling proposition is that we have a collection of almost all cocktail options in our bar, we have assorted drinks and tobaccos et al. In view of that, we are going to adopt the following marketing strategies to ensure that we do not only attract customers but generate repeated sales from them. Part of the marketing and sales strategies that we will adopt are;

• Open our cocktail bar in a grand style with a party for all.
• Introduce our cocktail bar by sending introductory letters alongside our brochure to organizations, households and key stakeholders in Petoskey – Michigan
• Ensure that we have a wide range of cocktails, wines, beers, liquors, distilled spirits, martinis and non-alcoholic drinks at all times.
• Make use of attractive handbills to create awareness and also to give direction to our bar
• Position our signage / flexi banners at strategic places
• Position our greeters to welcome and direct potential customers
• Create a loyalty plan that will enable us reward our regular customers
• Engage in roadshows within our neighborhood to create awareness for our bar

11. Publicity and Advertising Strategy

Bennardo Paulo® Cocktail Bar is a neighborhood bar and we will ensure that we create the buzz that will make people in our area know about us and what we do. We are quite aware that one of the effective ways of promoting our bar is to create special internal promotions which in turn will help us achieve our aim of leveraging on word of mouth publicity.

Here are the platforms we intend leveraging on to promote and advertise Bennardo Paulo® Cocktail Bar;

• Encourage the use of word of mouth publicity from our loyal customers
• Leverage on the internet and social media platforms like; YouTube, Instagram, Facebook, Twitter, LinkedIn, Snapchat, Google+ and other platforms (music online forums) to promote our business.
• Ensure that our we position our banners and billboards in strategic places all around Petoskey – Michigan
• Distribute our fliers and handbills in target areas in and around our neighborhood
• Advertise our cocktail bar business in our official website and employ strategies that will help us pull traffic to the site
• Brand all our official cars and vans and ensure that all our staff members and management staff wears our branded shirt or cap at regular intervals.

12. Our Pricing Strategy

The prices of our cocktails and other products that we sell will be what is obtainable in the market. In fact, we will try as much as we can to sell below the industry’s average so as to attract loads of customers. We also have plans in place to discount our products once in a while and also to reward our loyal customers.

• Payment Options

The payment policy adopted by Bennardo Paulo® Cocktail Bar is all inclusive because we are quite aware that different customers prefer different payment options as it suits them but at the same time, we will ensure that we abide by the financial rules and regulation of the United States of America.

Here are the payment options that Bennardo Paulo® Cocktail Bar will make available to her clients;

• Payment with cash
• Payment via credit cards/Point of Sale Machines (POS Machines)
• Payment via online bank transfer
• Payment via check
• Payment via mobile money transfer

In view of the above, we have chosen banking platforms that will enable our clients make payment for the purchase of our cocktails and other drinks without any stress on their part.

13. Startup Expenditure (Budget)

In setting up any business, the amount or cost will depend on the approach and scale you want to undertake. If you intend to go big by renting a place, then you would need a good amount of capital as you would need to ensure that your employees are well taken care of, and that your facility is conducive enough for workers to be creative and productive.

The tools and equipment that will be used are nearly the same cost everywhere, and any difference in prices would be minimal and can be overlooked. As for the detailed cost analysis for starting a cocktail bar business; it might differ in other countries due to the value of their money. This is what it would cost us to start Bennardo Paulo® Cocktail Bar in the United of America;

• The Total fee for registering the business in the United States of America – $750.
• Legal expenses for obtaining licenses and permits as well as the accounting services totaling – $1,200.
• Marketing promotion expenses (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
• Cost for hiring business consultant – $2,500.
• Insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
• The cost of accounting software, CRM software and Payroll Software – $15,000
• The cost for payment of rent for 12 months at $1.76 per square feet in the total amount of – $105,600.
• The cost for facility remodeling – $25,000.
• Other start-up expenses including stationery – $500
• Phone and utility deposits – ( $2,500 )
• Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $60,000
• The cost for Start-up inventory (purchase of assorted alcoholic and nonalcoholic drinks, sparkling water, energy and sports drinks and mixers) – $16,027
• Storage hardware (bins, utensil rack, shelves, glasses case) – $3,720
• The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
• The cost for serving area equipment (glasses, flatware) – $3,000
• The cost for store equipment ( cash register , security, ventilation, signage) – $13,750
• Office equipment and furniture – $3,600
• The cost for the purchase of furniture and gadgets (Computers, Printers, Telephone, TVs, Sound System, tables and chairs et al) – $4,000.
• The cost of Launching a Website – $600
• The cost for our grand opening party – $5,000
• Miscellaneous – $2,500

From our market survey conducted, we would need an estimate of two hundred and fifty thousand dollars ( $250,000 ) to successfully launch our cocktail bar in downtown Petoskey – Michigan.

Generating Startup Capital for Bennardo Paulo® Cocktail Bar

Bennardo Paulo® Cocktail Bar is a private business that is owned by Mr. Bennardo Paulo and his immediate family members and they intend to finance the business alone.

Although they have plans to make the bar manager part owner of the business after 5 or 7 years of services, but that does not stop him from reserving well over 80 percent stake of the business for himself and his family. Since they are the sole financier of the business, they have decided to adopt the following means to generate startup capital for the business;

• Generate part of the startup capital from his personal savings and sale of his stocks
• Source for soft loans from family members and friends
• Apply for loan from the banks

N.B: Mr. Crespo Columbus and his wife have been able to generate $100,000 the breakdown shows that they generated $80,000 from their personal savings and sale of their stocks and they generated $20,000 soft loans from their family members and friends.

The balance of $150,000 will be generated as loan facility from his bank. All the papers and documents have been signed and submitted, the loan has been approved and any moment from now our account will be credited with the amount.

14. Sustainability and Expansion Strategy

The future of a business lies in the number of loyal customers that they have, the capacity and competence of the employees, their investment strategy and the business structure. If all of these factors are missing from a business, then it won’t be too long before the business close shop.

One of our major goals of starting Bennardo Paulo® Cocktail Bar is to build a business that will survive off its own cash flow without the need for injecting finance from external sources once the business is officially running.

We know that one of the ways of gaining approval and winning customers over is to retail our cocktails a little bit cheaper that what is obtainable in the industry and properly position our cocktail bar, ensure adequate security, availability of various cocktails and brand of wines and excellent customer service et al.

Bennardo Paulo® Cocktail Bar will make sure that the right foundation, structures and processes are put in place to ensure that our staff welfare are well taken of. Our company’s corporate culture is designed to drive our business to greater heights and training and retraining of our workforce is at the top burner.

As a matter of fact, profit-sharing arrangement will be made available to all our management staff and it will be based on their performance for a period of three years or more. We know that if that is put in place, we will be able to successfully hire and retain the best hands we can get in the industry; they will be more committed to help us build the business of our dreams.

Check List/Milestone

• Business Name Availability Check: Completed
• Business Registration: Completed
• Opening of Corporate Bank Accounts: Completed
• Securing Point of Sales (POS) Machines: Completed
• Opening Mobile Money Accounts: Completed
• Opening Online Payment Platforms: Completed
• Application and Obtaining Tax Payer’s ID: In Progress
• Application for business license and permit: Completed
• Purchase of Insurance for the Business: Completed
• Renting of facility and remodeling the facility: In Progress
• Conducting Feasibility Studies: Completed
• Generating capital from family members: Completed
• Applications for Loan from the bank: In Progress
• Writing of Business Plan: Completed
• Drafting of Employee’s Handbook: Completed
• Drafting of Contract Documents and other relevant Legal Documents: In Progress
• Design of The Company’s Logo: Completed
• Printing of Promotional Materials: In Progress
• Recruitment of employees: In Progress
• Purchase of the Needed furniture, electronic appliances, office appliances and bar accessories: In progress
• Creating Official Website for the Company: Completed
• Creating Awareness for the business both online and in the neighborhood: In Progress
• Health and Safety and Fire Safety Arrangement (License): Secured
• Opening party/launching party planning: In Progress
• Establishing business relationship with vendors – suppliers of all our needed wine, alcoholic and non – alcoholic drinks, tobacco and small chops: In Progress

How to Write a Winning Cocktail Bar Business Plan (+ Template)

Creating a business plan is essential for any business, but it can be beneficial for cocktail bar s who want to improve their strategy or raise funding.

A well-crafted business plan not only outlines the vision for your company but also documents a step-by-step roadmap of how you will accomplish it. To create an effective business plan, you must first understand the components essential to its success.

This article provides an overview of the critical elements that every cocktail bar business owner should include in their business plan.

Download the Ultimate Bar Business Plan Template

What is a cocktail bar business plan.

A cocktail bar business plan is a formal written document describing your company’s business strategy and feasibility. It documents the reasons you will be successful, your areas of competitive advantage, and it includes information about your team members. Your business plan is a key document that will convince investors and lenders (if needed) that you are positioned to become a successful venture.

Why Write a Cocktail Bar Business Plan?

A cocktail bar business plan is required for banks and investors. The document is a clear and concise guide to your business idea and the steps you will take to make it profitable.

Entrepreneurs can also use this as a roadmap when starting their new company or venture, especially if they are inexperienced in starting a business.

Writing an Effective Cocktail Bar Business Plan

The following are the critical components of a successful cocktail bar business plan:

Executive Summary

The executive summary of a cocktail bar business plan is a one- to two-page overview of your entire business plan. It should summarize the main points, which will be presented in full in the rest of your business plan.

• Start with a one-line description of your cocktail bar  
• Provide a summary of the key points in each section of your business plan, which includes information about your company’s management team, industry analysis, competitive analysis, and financial forecast, among others.

Company Description

This section should include a brief history of your company. Include a short description of how your company began and provide a timeline of milestones your company has achieved.

You may not have a long company history if you are just starting your cocktail bar. Instead, you can include information about your professional experience in this industry and how and why you conceived your new venture. If you have worked for a similar company before or have been involved in an entrepreneurial venture before starting your cocktail bar company, mention this.

You will also include information about your chosen cocktail bar business model and how, if applicable, it is different from other companies in your industry.

Industry Analysis

The industry or market analysis is an important component of a cocktail bar business plan. Conduct thorough market research to determine industry trends and document the size of your market. 

Questions to answer include:

• What part of the cocktail bar industry are you targeting?
• How big is the market?
• What trends are happening in the industry right now (and if applicable, how do these trends support your company’s success)?

You should also include sources for your information, such as published research reports and expert opinions.

Customer Analysis

This section should include a list of your target audience(s) with demographic and psychographic profiles (e.g., age, gender, income level, profession, job titles, interests). You will need to provide a profile of each customer segment separately, including their needs and wants.

For example, a cocktail bar business’ customers may include:

• People who live or work near the bar
• People who frequent the area where the bar is located
• People who are looking for a specific type of bar (e.g., a sports bar, dive bar, etc.)
• Business professionals

You can include information about how your customers make the decision to buy from you as well as what keeps them buying from you.

Develop a strategy for targeting those customers who are most likely to buy from you, as well as those that might be influenced to buy your products or cocktail bar services with the right marketing.

Competitive Analysis

The competitive analysis helps you determine how your product or service will be different from competitors, and what your unique selling proposition (USP) might be that will set you apart in this industry.

For each competitor, list their strengths and weaknesses. Next, determine your areas of competitive differentiation and/or advantage; that is, in what ways are you different from and ideally better than your competitors.

Marketing Plan

This part of the business plan is where you determine and document your marketing plan. . Your plan should be clearly laid out, including the following 4 Ps.

• Product/Service : Detail your cocktail offerings here. Document their features and benefits.
• Price : Document your pricing strategy here. In addition to stating the prices for your cocktails and any food items, mention how your pricing compares to your competition.
• Place : Where will your customers find you? What channels of distribution (e.g., partnerships) will you use to reach them if applicable?
• Promotion : How will you reach your target customers? For example, you may use social media, write blog posts, create an email marketing campaign, use pay-per-click advertising, or launch a direct mail campaign. Or you may promote your bar business via word-of-mouth marketing or by hosting events.

Operations Plan

This part of your cocktail bar business plan should include the following information:

• How will you deliver your product/service to customers? For example, will you do it in person or over the phone only?
• What infrastructure, equipment, and resources are needed to operate successfully? How can you meet those requirements within budget constraints?

The operations plan is where you also need to include your company’s business policies. You will want to establish policies related to everything from customer service to pricing, to the overall brand image you are trying to present.

Finally, and most importantly, in your Operations Plan, you will lay out the milestones your company hopes to achieve within the next five years. Create a chart that shows the key milestone(s) you hope to achieve each quarter for the next four quarters, and then each year for the following four years. Examples of milestones for a cocktail bar include reaching $X in sales. Other examples include increasing the number of regular customers by a certain amount or adding new menu items.

Management Team

List your team members here including their names and titles, as well as their expertise and experience relevant to your specific cocktail bar industry. Include brief biography sketches for each team member.

Particularly if you are seeking funding, the goal of this section is to convince investors and lenders that your team has the expertise and experience to execute on your plan. If you are missing key team members, document the roles and responsibilities you plan to hire for in the future.

Financial Plan

Here you will include a summary of your complete and detailed financial plan (your full financial projections go in the Appendix). 

This includes the following three financial statements:

Income Statement

Your income statement should include:

• Revenue : how much revenue you generate.
• Cost of Goods Sold : These are your direct costs associated with generating revenue. This includes labor costs, as well as the cost of any equipment and supplies used to deliver the product/service offering.
• Net Income (or loss) : Once expenses and revenue are totaled and deducted from each other, this is the net income or loss.

Sample Income Statement for a Startup Cocktail Bar

Balance Sheet

Include a balance sheet that shows your assets, liabilities, and equity. Your balance sheet should include:

• Assets : All of the things you own (including cash).
• Liabilities : This is what you owe against your company’s assets, such as accounts payable or loans.
• Equity : The worth of your business after all liabilities and assets are totaled and deducted from each other.

Sample Balance Sheet for a Startup Cocktail Bar

Cash Flow Statement

Include a cash flow statement showing how much cash comes in, how much cash goes out and a net cash flow for each year. The cash flow statement should include:

• Cash Flow From Operations
• Cash Flow From Investments
• Cash Flow From Financing

Below is a sample of a projected cash flow statement for a startup cocktail bar .

Sample Cash Flow Statement for a Startup Cocktail Bar  

You will also want to include an appendix section which will include:

• Your complete financial projections
• A complete list of your company’s business policies and procedures related to the rest of the business plan (marketing, operations, etc.)
• Any other documentation which supports what you included in the body of your business plan.

Writing a good business plan gives you the advantage of being fully prepared to launch and/or grow your cocktail bar . It not only outlines your business vision but also provides a step-by-step process of how you are going to accomplish it.

A well-written cocktail bar business plan is a must for any new business owner. It’s a great tool for attracting investors and keeping the company focused.  

Finish Your Cocktail Bar Business Plan in 1 Day!

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A Sample Cocktail Bar Business Plan Template

A cocktail bar is a bar or small restaurant where cocktails are the main drinks available; a characteristic feature of many standard cocktail bars is a wide selection of assorted cocktail drinks available by the glass. A cocktail is a mixed drink typically made with a distilled beverage (such as gin, brandy, vodka, whiskey, tequila, cachaça, or rum) that is mixed with other ingredients. If beer is one of the ingredients, the drink is called a beer cocktail.

Cocktails contain one or more types of liqueurs, juice, fruit, sauce, honey, milk or cream, spices, or other flavorings. Cocktails may vary in their ingredients from bartender to bartender, and from region to region. Two creations may have the same name but taste very different because of differences in how the drinks are prepared.

Steps on How to Write a Cocktail Bar Business Plan

Executive summary.

Daniel Jones® Cocktail Bar, Inc. is a niche bar business that will operate world-class cocktail bars across major cities in the United States of America with its headquarters in the heart of Las Vegas, Nevada.

Daniel Jones® Cocktail Bar, Inc. will operate in a centrally located facility in a busy street and with a capacity to accommodate 50 people per time with enough parking space and valet services. Daniel Jones is the founder and CEO of Daniel Jones® Cocktail Bar, Inc.

Company Profile

A. our products and services.

Daniel Jones® Cocktail Bar, Inc. will be involved in the sale of;

• Assorted cocktails
• Nonalcoholic drinks and food
• Offering cocktail tasting for patrons

b. Nature of the Business

Our cocktail bar will operate the business-to-consumer model.

c. The Industry

Daniel Jones® Cocktail Bar, Inc. will operate in the cocktail bars industry.

d. Mission Statement

Our mission is to establish a standard and world-class cocktail bar business that will make available assorted cocktail drinks in a conducive environment.

e. Vision Statement

Our vision is to establish a cocktail bar that will become the number one choice for both residents and tourists in and around our cocktail bar locations.

f. Our Tagline (Slogan)

Daniel Jones® Cocktail Bar, Inc. –  The Melting Pot for Cocktail Lovers!

g. Legal Structure of the Business (LLC, C Corp, S Corp, LLP)

Daniel Jones® Cocktail Bar, Inc. will be formed as a Limited Liability Company (LLC).

h. Our Organizational Structure

• Chief Executive Officer (Owner)
• Bar Manager
• Bartender, Waiters, and Waitresses
• Security Guard

i. Ownership/Shareholder Structure and Board Members

• Daniel Jones (Owner and Chairman/Chief Executive Officer) 52 Percent Shares
• Ruka Birds (Board Member) 18 Percent Shares
• John Wade (Board Member) 10 Percent Shares
• Henry Brian (Board Member) 10 Percent Shares
• Regina Luther (Board Member and Sectary) 10 Percent Shares.

SWOT Analysis

A. strength.

• Ideal location for a cocktail bar business
• Highly experienced and qualified employees and management
• Access to finance from business partners
• Access to varieties of cocktail ingredients
• Excellent customer testimonials.
• A reliable and efficient method of preparing cocktails.

b. Weakness

• Financial Constraints
• A new business that will be competing with well-established cocktail bars and other bars that retail cocktails.
• Inability to retain our highly experienced and qualified employees longer than we want

c. Opportunities

• A rise in the number of people who want to socialize after the prolonged covid19 lockdown and cocktail bar provides such an opportunity
• Online market, new services, new technology, and of course the opening of new markets.

i. How Big is the Industry?

The cocktail bar industry is a big and thriving industry and the Global Cocktail Market size is worth US$ 86 million. It is estimated that it will reach US$ 1.4 billion by 2027 with an annual development rate of 6% between 2022 and 2027.

ii. Is the Industry Growing or Declining?

Yes, the cocktail bar business is growing. It might interest you to note that the market is expected to grow annually by 7.45 percent (CAGR 2022-2025).

iii. What are the Future Trends in the Industry

The future trends when it comes to the cocktail bar business will revolve around technology and software that is meant to predict what customers want from a cocktail bar business.

iv. Are There Existing Niches in the Industry? If YES, List them

No, there are no existing niches when it comes to the cocktail bar business.

v. Can You Sell a Franchise of your Business in the Future?

Daniel Jones® Cocktail Bar, Inc. has plans to sell franchises in the nearest future and we will target major cities with thriving cocktail drink markets in the United States of America.

• The arrival of a new cocktail bar business within our market space
• Unfavorable government policy and regulations.
• Steady wage expenses
• Economic uncertainty
• Liability problems
• The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.

i. Who are the Major Competitors?

• The Broken Shaker
• The Patterson House
• Smuggler’s Cove
• The Varnish
• Velveteen Rabbi
• Zig Zag Café
• Angel’s Share
• The Violet Hour
• Clover Club
• The Alembic
• Comstock Saloon
• Holeman Finch
• Eastern Standard
• Arnaud’s French 75
• Columbia Room
• The Whistler
• The Franklin Mortgage Investment Co.

ii. Is There a Franchise for the Cocktail Bar business? 

• Snowy River Cocktail Bar Franchise
• The Middle Spoon Desserterie and Bar
• Barrel House.

iii. Are There Policies, Regulations, or Zoning Laws Affecting Cocktail Bar Business?

Of course, there are county, state regulations, and zoning laws for cocktail bars in the United States. Please note that the primary Federal law governing alcohol policy is the 21st Amendment, which repealed national prohibition. It also gives individual States control over whether to allow the sale of alcohol in the State and whether to allow importing alcohol into the State.

Marketing Plan

A. who is your target audience.

i. Age Range

Our target market comprises adults above 18 years who have the finance to purchase cocktail drinks from us.

ii. Level of Educational

We don’t have any restrictions on the level of education of those we will welcome in our cocktail bar business.

iii. Income Level

There is no cap on the income level of those we will sell cocktail drinks to.

iv. Ethnicity

There is no restriction when it comes to the ethnicity of the people that will purchase cocktail drinks from us.

v. Language

There is no restriction when it comes to the language spoken by the people that will purchase cocktail drinks from us.

vi. Geographical Location

People from any geographical location are free to buy and drink our cocktails.

vii. Lifestyle

Daniel Jones® Cocktail Bar, Inc. will not restrict any customer from purchasing cocktail drinks from us based on their lifestyle, culture, or race.

b. Advertising and Promotion Strategies

• Deliberately brand all our vans and trucks.
• Tap into text marketing.
• Make use of billboards.
• Share Events in Local Groups and Pages.
• Turn Social Media Channels into a Resource
• Develop Business Directory Profiles
• Build Relationships with players in the event planning and catering services industry.

i. Traditional Marketing Strategies

• Marketing through Direct Mail.
• Print Media Marketing – Newspapers & Magazines.
• Broadcast Marketing -Television & Radio Channels.
• OOH, Marketing – Public Transits like Buses and Trains, Billboards, Street shows, and Cabs.
• Leverage direct sales, direct mail (postcards, brochures, letters, fliers), print advertising (magazines, newspapers, coupon books, billboards), referral (also known as word-of-mouth marketing), radio, and television.

ii. Digital Marketing Strategies

• Social Media Marketing Platforms.
• Influencer Marketing.
• Email Marketing.
• Content Marketing.
• Search Engine Optimization (SEO) Marketing.
• Affiliate Marketing
• Mobile Marketing.

iii. Social Media Marketing Plan

• Start using chatbots.
• Create a personalized experience for our customers.
• Create an efficient content marketing strategy.
• Create a community for our target market
• Gear up our profiles with a diverse content strategy.
• Use brand advocates.
• Create profiles on relevant social media channels.
• Run cross-channel campaigns.

c. Pricing Strategy

When working out our pricing strategy, Daniel Jones® Cocktail Bar, Inc. will make sure it covers profits, insurance, premium, license, economy or value, and full package. In all our pricing strategy will reflect;

• Cost-Based Pricing
• Value-Based Pricing
• Competition-Based Pricing.

Sales and Distribution Plan

A. sales channels.

Our channel sales strategy will involve using partners and third parties such as referral partners, affiliate partners, and strategic alliances in the event and party planning industry.

Daniel Jones® Cocktail Bar, Inc. will also leverage the 4 Ps of marketing which are the place, price, product, and promotion. By carefully integrating these marketing strategies into a marketing mix, we can have a visible, on-demand service that is competitively priced.

b. Inventory Strategy

The fact that we will need supplies such as white rum, vodka, whiskey, dark rum, syrup, limes, oranges, soda water, glass cups, and straws mean that Daniel Jones® Cocktail Bar, Inc. will operate an inventory strategy for ordering, maintaining and processing items in our warehouse.

Daniel Jones® Cocktail Bar, Inc. will make sure we work with “Just-in-time (JIT) inventory” – (JIT involves holding as little stock as possible, negating the costs and risks involved with keeping a large amount of stock on hand.)

c. Payment Options for Customers

Here are the payment options that Daniel Jones® Cocktail Bar, Inc. will make available to her clients;

• Payment with cash
• Payment via credit cards
• Payment via online bank transfer
• Payment via mobile money transfer

d. Return Policy, Incentives, and Guarantees

At Daniel Jones® Cocktail Bar, Inc., our customers are our top priority hence if you receive cocktail drinks that are different from what you paid for, we will sincerely apologize. You can call us as soon as you notice that there was an error in your order and you can come to pick up the correct cocktail drinks.

For credit card payments, you will be refunded the sales price associated with the error and recharged for the new items’ price. For cash payments, you will be asked to pay the difference of the balance if the new cocktail has a greater value than the cocktail received in error. Please, if you have any questions regarding the Return & Refund Policy, please call our customer care services.

e. Customer Support Strategy

Our customer support strategy will involve seeking customer feedback. This will help us provide excellent customer service to our clients, it will help us to first understand their needs, experiences, and pain points. Regularly, we will work towards strengthening our Customer Service Team and also Leverage Multi-Channel Servicing as part of our customer support strategy.

Operational Plan

We plan to expand our revenue by 25 percent in the second year and the plan will include a marketing, sales, and operations component. The operations component of the plan would include attracting partnership and retainers deals that will enable us to boost our cocktail bar business sales and support revenue growth.

a. What Happens During a Typical Day at a Cocktail Bar Business?

• The business is open for the day’s work
• The serving area is cleaned and ready for the day’s business
• Supplies such as white rum, vodka, whiskey, dark rum, syrup, limes, oranges, soda water, glass cups, and straws are purchased, and ready for use
• Customer’s orders are taken and they are served
• Cashier collects cash and reconciles account for the day
• Administrative duties are carried out
• The store or warehouse is restocked when required.
• The business is closed for the day.

b. Production Process (If Any)

The production process of cocktail drinks involve;

• Wash and prepare the oranges and limes
• Mix the supplies in the appropriate liqueur portions.
• Fill in cups and serve the cocktail drinks.

c. Service Procedure (If Any)

The service procedure of a cocktail bar business starts with a customer requesting cocktail drinks. Once the request is gotten, it will be processed and the customer will be served or the order delivered to a location as requested.

d. The Supply Chain

Daniel Jones® Cocktail Bar, Inc. will rely on key players in the event and party planning industry to refer business deals to us. So also, we have been able to establish business relationships with wholesale suppliers of white rum, vodka, whiskey, dark rum, syrup, limes, oranges, soda water, glass cups, and straws et al.

e. Sources of Income

Daniel Jones® Cocktail Bar, Inc. makes money from the sale of;

Financial Plan

A. amount needed to start your cocktail bar business.

Daniel Jones® Cocktail Bar, Inc. would need an estimate of $250,000 successfully set up our cocktail bar business in the United States of America. Please note that this amount includes the salaries of all our staff for the first month of operation.

b. What are the Costs Involved?

• Business Registration Fees – $750.
• Legal expenses for obtaining licenses and permits – $1,300.
• Marketing, Branding and Promotions – $1,000.
• Business Consultant Fee – $2,500.
• Insurance – $1,400.
• Rent/Lease – $45,000.
• Other start-up expenses like commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
• Operational Cost (salaries of employees, payments of bills et al) – $70,000
• Start-up Inventory – $25,000
• Bar Equipment (cash register, security, ventilation, signage) – $1,750
• Furnishing and Equipping the Cocktail bar business – $80,000
• Website: $600
• Opening party: $3,000
• Miscellaneous: $2,000

c. Do You Need to Build a Facility? If YES, How Much Will it Cost?

Daniel Jones® Cocktail Bar, Inc. will not build a new facility for our cocktail bar business; we intend to start with a long-term lease and after 5 years, we will start the process of acquiring our own facility.

d. What are the Ongoing Expenses for Running a Cocktail Bar Business?

• Supplies such as white rum, vodka, whiskey, dark rum, syrup, limes, oranges, soda water, glass cups, and straws
• Utility bills (gas, internet subscriptions, phone bills, signage and software renewal fees et al)
• Salaries of employees
• Marketing costs

e. What is the Average Salary of your Staff?

• Chief Operating Officer (Owner) – $65,000 Per Year
• Bar Manager – $45,000 Per Year
• Accountant – $32,630,000 Per Year
• Barman – $30,800 Per Year
• Bartender, Waiters, and Waitresses – $28,100 Per Year
• Cleaners – $25,000 Per Year
• Security Guard -$24,000 Per Year

f. How Do You Get Funding to Start a Cocktail Bar Business?

• Raising money from personal savings and sale of personal stocks and properties
• Raising money from investors and business partners
• Sell shares to interested investors
• Applying for a loan from your bank/banks
• Source for soft loans from your family members and friends.

Financial Projection

A. how much should you charge for your product/service.

The price of our cocktail drinks will depend on the type of cocktail drinks, but on average, we will sell a glass of our cocktail drinks between $10 and $16 or more.

b. Sales Forecast?

• First Fiscal Year (FY1): $360,000
• Second Fiscal Year (FY2): $650,000
• Third Fiscal Year (FY3): $1.2 million

c. Estimated Profit You Will Make a Year?

• First Fiscal Year (FY1) (Profit After Tax): $175,000
• Second Fiscal Year (FY2) (Profit After Tax): $300,000
• Third Fiscal Year (FY3) (Profit After Tax): $650,000

d. Profit Margin of a Cocktail Bar Business

The ideal profit margin we hope to make at Daniel Jones® Cocktail Bar, Inc. will be between 40 and 80 percent all things being equal.

Growth Plan

A. how do you intend to grow and expand .

Daniel Jones® Cocktail Bar, Inc. will grow our cocktail bar business by first opening other outlets in key cities in the United States of America within the first five years of establishing the business and then start selling franchises from the sixth year.

b. Where We intend to expand to and why?

Daniel Jones® Cocktail Bar, Inc. plans to expand first to Green Bay, Wisconsin, Iowa City, Iowa, Corvallis, Oregon, Lincoln, Nebraska, Janesville/Beloit, Wisconsin, Grand Forks, North Dakota, Watertown-Fort Drum, New York, and Fairbanks, Alaska.

The reason we intend to expand to these geographical locations is that available statistics show that the cities listed above have the most thriving market for cocktail drinks in the United States. Green Bay, Wisconsin is the drunkest city in the United States. Approximately 26.5% of adults drink to excess. 50.5% of driving deaths in Green Bay involve alcohol.

The founder of Daniel Jones® Cocktail Bar, Inc. plans to exit the business via family succession. We have placed structures and processes in place that will help us achieve our plan of successfully transferring the business from one family member to another and from one generation to another generation without hitches.

More on Food

How to Write a Bar Business Plan + Free Sample Plan PDF

Elon Glucklich

6 min. read

Updated March 17, 2024

Free Downloads: Sample Bar and Brewery Business Plan Templates

From sports bars to neighborhood pubs to upscale cocktail bars—drinking establishments are one of the oldest and most enduring types of businesses.

And the industry is projected to grow nearly 2.5% between 2023 and 2030, leaving plenty of opportunity for new businesses..

But competition in the bar industry can be fierce. You need to know your clientele, competitors, and how you’ll stand out if you want to succeed. Not to mention mapping out all the details of your financials and operations. 

Luckily, you can cover all of that (and more) by writing a business plan.

• What should you include in a bar business plan?

These are the typical sections to consider including in your bar business plan.

• Executive Summary
• Market Analysis
• Marketing and Sales Strategy 
• Operations Plan
• Business Overview

Financial plan

The sections you need will vary depending on why you’re writing a business plan and what you intend to do with it . 

Suppose it’s to manage your operations and not something you expect anyone outside of the business to read. In that case, consider keeping it to a few pages and skipping sections like the executive summary.

If you’re applying for a loan, then you’ll need a more formal plan that includes all the sections listed above.

Check out our step-by-step guide to writing a full business plan for more details.

• The 6 elements of an effective bar business plan

Executive summary

Your executive summary is a short, high-level overview of your entire plan. 

The summary should give readers a sense of what factors will make your bar successful. That could include securing a high-visibility location, partnering with a chef who will oversee meal preparation, or negotiating deals with brewers to get their beers in your bar.

If you’re seeking a bank loan for your bar, the lender will read your executive summary first. In all likelihood, they won’t read any further unless the executive summary grabs their attention. 

So, make it clear and convincing.

Market analysis

The market analysis may be the most important part of your entire business plan. 

It’s where you carefully research and document:

• Who your target customers are
• What they want
• What other establishments they may consider

Start by identifying the size of your market . Focus on the number of potential customers above the legal drinking age in your area. Then, segment these customers based on demographics such as age, income level, and lifestyle preferences. 

Then look into who you will be competing with. List and research other bars as well as indirect competition from restaurants, clubs, and even grocery stores that sell beer or home entertainment options.

Here are a few examples of what this process will look like:

Bar customer segmentation

If you find there are a lot of college students and younger adults near your bar location, you should cater your offerings to their tastes. But if you’re near office buildings or event venues, you may want to focus on older customers with more disposable income.

Will you offer a more diverse drink menu, better food, or a unique theme? Explain how these factors will set your bar apart and attract customers. Or, if your area lacks a certain type of bar, such as a sports bar or a high-end cocktail lounge, describe how filling this gap in the market will serve as your competitive advantage.

Marketing and sales strategy

Your market analysis gives you insights into potential customers. Your marketing and sales strategy is where you use those insights to get those customers in your door.

As you looked around at your competitive landscape, maybe you gained some insight into how your ideal customers discover new bars — through social media, online reviews, local event listings, or word-of-mouth.

Start by developing marketing strategies that are tailored to those channels . Consider tactics like:

• Creating engaging social media content showcasing your unique drinks, events and ambiance.
• Partnering with local businesses or events to increase visibility.
• Introducing special promotions to encourage repeat visits and attract new customers.
• Hosting themed nights or events to create buzz and attract specific customer segments.

In your business plan, document how you will implement these efforts and the resources required. 

Operations plan

The operations section of your business plan is where you detail the day-to-day requirements for running the bar smoothly. Start by describing your physical space and key equipment, such as:

• Beverage dispensing systems
• Glassware and utensils

Specify the types and number of each that you’ll need. Then you can address staffing needs, describing the roles of bartenders, servers, and support staff. Document in your plan that you’ll have a staffing strategy to cover peak hours.

You should also cover inventory management. Describe how you’ll stock alcoholic and non-alcoholic beverages, ingredients for cocktails and food. Be sure to spend time discussing supply chains for sourcing these ingredients.

Document the types of technology you’re using, like point-of-sale systems, inventory tracking, or customer reservation platforms. 

Finally, ensure that your operations plan demonstrates how you will comply with any licensing, health and safety regulations and that you have a plan for ensuring responsible customer behavior.

Business overview

The overview should fill in any gaps the reader may have, including:

• The name of your bar
• When it was founded (if it’s an existing business)
• The inspiration behind the business

You should include the background and qualifications of key team members here. Include their experience in the bar industry and any other experience that’s relevant to their position.

If you’re running an existing bar, discuss previous achievements like revenue milestones, recognitions, or community events you’ve hosted.

You don’t need a deep financial background to run a successful business. But it’s important to develop projections for how you expect the bar to perform. If you’re starting a new bar, consider that you’ll need to pay upfront costs like equipment, supplies, licenses and rent.

Then there are the ongoing costs like employee salaries, marketing, and continuing to keep your shelves stocked.

Making educated guesses about the future will help you determine what’s working, and where you should make adjustments as you run your business.

Include sales and expense forecasts in your plan. The financial section also should include a cash flow statement , income statement , and balance sheet .

Remember, no one knows exactly how the future will pan out — these projections are your baseline for how you think the business will do, and you’ll adjust them over time as you update your plan with actual results.

• Bar business plan templates and examples

To see how other bar businesses have created their plans, browse our free library of bar and brewery business plans . You can also check out our full selection of food and beverage business plans , or our entire library of over 550 business plans across industries.

Download as many as you want in PDF or Word format to help you write your own business plan.

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Elon is a marketing specialist at Palo Alto Software, working with consultants, accountants, business instructors and others who use LivePlan at scale. He has a bachelor's degree in journalism and an MBA from the University of Oregon.

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Bar Business Plan Template

Written by Dave Lavinsky

Bar Business Plan Outline

• Bar Business Plan Home
• 1. Executive Summary
• 2. Company Overview
• 3. Industry Analysis
• 4. Customer Analysis
• 5. Competitive Analysis
• 6. Marketing Plan
• 7. Operations Plan
• 8. Management Team
• 9. Financial Plan

Start Your Bar Business Plan Here

Bar Business Plan

You’ve come to the right place to create a business plan for your bar or pub.

We have helped over 10,000 entrepreneurs and business owners create business plans and many have used them to start or grow their bars and pubs.

To write a successful bar business plan, you will first need to decide what type of bar you want to open. Do you plan to open a sports bar, a wine bar, a cocktail bar, or a nightclub? What kind of alcoholic beverages will you serve? Will you have live music?

You will then need to gather information about your business and the bar industry. This type of information includes data about your potential customers, marketing strategies to reach your target market, and 5-year pro-forma financial statements (income statement, balance sheet and cash flow statement).

Sample Bar Business Plan

The following bar business plan example gives you the key elements to include in a winning business plan:

• Executive Summary – The Executive Summary is the most important part of your business plan. It is a brief overview of your bar business concepts, its products and services, potential market opportunity, and competitive advantage.
• Company Overview – Also called the Company Analysis, here, you will provide a detailed description of your bar, its products and other services, and legal structure.
• Industry Analysis – In the Industry Analysis, you will provide an in-depth analysis of the industry in which your bar operates including major players in the local market, market size and growth, and profitability.
• Customer Analysis – In the Customer Analysis, you will identify your potential customers and provide insights into their purchasing habits. You will also create customer segments and discuss your marketing strategy for reaching them.
• Competitive Analysis – In the Competitive Analysis, you will identify your direct competition (other local bars and local businesses that serve alcohol) and provide insights into their strengths and weaknesses. You will also discuss your unique selling point and how you plan to stay ahead of the competition.
• Marketing Plan – The Marketing Plan includes a discussion of your marketing strategy to drive more foot traffic to your bar along with your pricing strategies. You will also provide a sales forecast and budget for your marketing efforts.
• Operations Plan – In the Operations Plan, you will discuss your bar’s day-to-day operations including inventory management, providing exceptional customer service, and creating loyal customers. You will also provide your business goals that you plan to achieve and a budget for your operating expenses.
• Management Team – In this section, you will provide a brief overview of your bar management team, including the bar owner, and their experience in the industry.
• Financial Plan – In this section, you will provide a three-year financial statement for your bar. This will include your income statement, projected balance sheet, and cash flow analysis.

Next Section: Executive Summary >

Bar Business Plan FAQs

What is a bar business plan.

A business plan is a planning tool used to start a new bar and/or grow your thriving bar business. Among other things, it outlines your business concept, identifies your target customers, presents your marketing plan and details your financial projections.

You can  easily complete your bar business plan using our Bar Business Plan Template here .

What Are the Main Types of Bars?

There are many types of bars . Most bars are local bars and are known as dive bars or a neighborhood bar.  Sports bars are also a very popular business option. There are also posh and luxurious bars that craft cocktails and offer high-end alcoholic drinks. There are trendy bars that offer the latest industry trends in cocktail and wine offerings. Other bars are location-focused and are unique to the area of town or location that it is in. Many bars also serve food as an option to accompany the alcoholic drink choices.

What Are the Main Sources of Revenue and Expenses for a Bar?

The primary source of revenue for a bar are the alcoholic drink items and food sold at the establishment.

The key expenses for a bar are the costs to purchase the alcohol (beer, wine, liquor) inventory, bar equipment and supplies, overhead expenses for the staff and rent, and any marketing costs the bar chooses to partake in.

How Do You Secure Funding for Your Bar?

Bar businesses are most likely to receive funding from banks. To attract potential investors, you should have an effective bar business plan with a solid business strategy and financial plan. Another option for a bar is to obtain a small business loan to help cover startup costs. SBA loans are a popular option as they offer longer loan terms with lower interest rates. Outside investors, crowdfunding, and/or friends or family are other typical funding options.

What are the Steps To Start a Bar?

Starting a bar business can be an exciting endeavor. Having a clear roadmap of the steps to start a business will help you stay focused on your goals and get started faster.

• Write A Bar Business Plan - The first step in starting a business is to create a detailed bar business plan for a bar that outlines all aspects of the venture. This should include market research on the local market and potential target market size, information about the services or products you will offer, the bar's concept, marketing efforts, pricing strategies and a detailed financial forecast.  
• Choose Your Legal Structure - It's important to select an appropriate legal entity for your bar . This could be a limited liability company (LLC), corporation, partnership, or sole proprietorship. Each type has its own benefits and drawbacks so it’s important to do research and choose wisely so that your bar business is in compliance with local laws.
• Register Your Bar Business - Once you have chosen a legal structure, the next step is to register your bar with the government or state where you’re operating from. This includes obtaining business licenses and permits (i.e., food service license and/or liquor license) as required by federal, state, and local laws. 
• Identify Financing Options - It’s likely that you’ll need some capital to start your bar or pub , so take some time to identify what financing options are available such as bank loans, investor funding, grants, or crowdfunding platforms. 
• Choose a Bar Location - Whether you plan on operating out of a physical location or not, you should always have an idea of where you’ll be based should it become necessary in the future as well as what kind of space would be suitable for your business operations. 
• Hire Employees - There are several ways to find qualified employees including job boards like LinkedIn or Indeed as well as hiring agencies if needed – depending on what type of employees you need it might also be more effective to reach out directly through networking events. 
• Acquire Necessary Bar Equipment & Supplies - In order to start your bar business, you'll need to purchase all of the necessary equipment and supplies to run a successful operation. 
• Market & Promote Your Business - Once you have all the necessary pieces in place, it’s time to start promoting and marketing your bar . Your marketing strategy should include creating a website, utilizing social media platforms like Facebook or Twitter, and having an effective Search Engine Optimization (SEO) strategy. You should also consider traditional marketing techniques such as radio or print advertising. 

Learn more about how to start a thriving bar business:

• How to Start a Bar Business
• How to Open a Bar Business

Where Can I Get a Bar Business Plan PDF?

You can download our free bar business plan template PDF here . This is a sample business plan template you can use in PDF format.

Step By Step Guide To Write A Bar Business Plan

Opening a new bar requires grit and determination - as well as a fantastic bar business plan to act as your roadmap. This document can determine the future success of your new venture, so it’s essential to make it as comprehensive as possible.

But for first-time bar owners, figuring out where to start can be challenging. Our step-by-step guide to writing a business plan will help you pinpoint the finer details to consider when building a thriving bar business.

How to Write a Bar Business Plan in 9 Steps

1. bar overview.

The first step in writing a bar business plan is to establish an overview of the type of bar you want to open. You need a concept and location to shape your business model and create an executive summary for your new venture:

One of the defining aspects of your establishment is its concept and theme, which you’ll need to describe clearly in your business plan. Whether it’s a simple sports bar, speakeasy, or high-end nightclub, have a fully developed idea of what your venue will be and what purpose it will serve.

You also need to consider how to meet market needs. If you’re following trending concepts, you’ll know that roof-top bars and lounges are popular now. Or, perhaps you want your venue to be an activity-based bar that offers an art gallery, board games, or mini-golf?  

Part of your business plan also includes setting your mission statement and goals. These should outline your vision and will influence who invests in your bar. Your mission statement should be a comprehensive statement that details what sets you apart from other bars and should include your company’s values.

It’s important to link your statement to your business concept. You should consider how your values and goals are influenced by what makes your bar unique - including your overall purpose.

Next, you need to propose a location for your bar. Venues close to stores, shopping, centers, and tourist attractions, typically get good visibility and attract a lot of foot traffic. Because of the number of people moving through these areas daily, they also usually offer a decent level of security for your customers.

Another consideration for location is to avoid suburban areas where neighbors might lodge noise complaints. Should this happen, it can mean regulations stipulate earlier closing times for your venue so as not to disturb the peace.  

Finally, look for a space where there’s low competition, and your business can shine. There are plenty of strips crowded with bars and nightclubs. While these might attract a decent amount of foot traffic, you’ll need to work much harder to draw people into your place if one establishment has already made a name for itself.

For this reason, aim to secure a spot with little competition. It could mean having a unique concept bar that overshadows the competition. Or it could mean selecting a space where your type of bar doesn’t yet exist.

Ease of Accessibility

Potential customers need to be able to access your bar easily, or they will go elsewhere. They might drive, take public transport, or use a ridesharing company to travel to your venue. It’s up to you to ensure there are ways and means to get them conveniently to the front door.

Here, you should be looking for a venue where you can offer parking to your patrons. It should also be accessible to ride-hailing services and close to public transport.

2. Customer Overview

No bar establishment would be successful without its customers. As part of your bar business plan, include a profile of the type of customer you hope to attract. Consider who your target market is and how it aligns with your bar concept.

You should also outline your demographic's age, income, and interests. You’ll need this information later when developing marketing strategies for your business.  

3. Management Overview

The next step in your bar business plan is building a team structure. Your crafty bar concept requires talented people to execute it properly.

Your bartenders are the face of your establishment. Essentially, they can make or break your customer’s impression of your venue. When going through the hiring process, you’ll need to consider each individual’s personality, qualifications, experience, and skills.

Ideally, you want at least one experienced bartender who knows the ropes and can help set up operations, deal with bar management, and train the team. They will also be able to help streamline any teething issues that come up as a result of starting a new business.

From the get-go, outline your bartending teams’ possible responsibilities and the duties they’ll need to undertake. This can help set expectations ahead of advertising jobs and interviewing potential candidates.

Bar-backs don’t need as much experience as bartenders or servers as they aren’t in the customer eye as much. But they must be willing and eager to learn. They are essential to keeping everything running smoothly and work closely with the bartender as an assistant.

For this reason, they need a solid foundational knowledge of the industry, ingredients, and barware in general.

Depending on your business concept and operational model, you may or may not need to employ servers. Some high-end venues have servers to reduce the crowd around the bar and deliver drinks to the table. Additionally, you’ll need to hire servers if you offer any food.

When building out your staffing plan, you’ll need to determine where your establishment lands with that requirement. Make a note here to look for bar industry candidates with alcohol training who know how to serve alcohol safely and legally.

4. Drinks Menu Plan

Your drinks menu is your bar’s product. To be successful, it’s essential to get this offering right.

While your beverage list will undoubtedly change over time, don’t neglect to include a sample menu in your business plan. This will give potential investors an idea of what’s in store and possibly help you secure funding.

Descriptions

Your drinks menu is the selling point of your bar business and the star of the show. If you can excite and entice patrons with promises of wonderful flavors, you’ll be onto a gold mine.

So, it’s important to include product descriptions in your menu, particularly for signature drinks. Each listing should detail the ingredients of individual drinks, any garnishes they may come with, and add-ons your customers can choose from.

Beverage Names

A successful bar is only as strong as its product. So, aligning your drinks with your bar’s brand and concept is important. Get together with a mixologist to create one or several signature drinks that will be uniquely your own. Give these drinks names that play to the overall theme of your business.

Product Sourcing

Many establishments lean on particular products as their claim to fame. For example, you might want to be known as a French wine bistro, local brewery, or craft cocktail spot. Decide what you wish your unique story to be and reflect this in your plan for product sourcing.

Of course, sourcing locally is the most sustainable way to go. You can also build relationships with vendors in your community, which can help bring people into your venue.  

Industry Trends

It’s essential to do your research and stay abreast of industry trends. Note what these are in your business plan, as this will help keep customers walking through your doors.

For example, one of the most popular cocktail trends in the bar scene is smoke-infused or smoked cocktails. Some mixologists may also use smoke bubbles to infuse the cocktail with a smoky aroma. This trend has gained fame in the last few years and adds a new twist to the cocktail-drinking experience.

Small Food Menu (Small Bites)

Food and beverages go hand in hand. If you plan a small menu with, say, tapas or easy eats, you can increase your revenue. It will prevent your guests from leaving to find something to eat.

Suppose you don’t want the hassle of food storage and preparation. In that case, consider formulating a partnership with a local eatery or small food business that can deliver a menu of select freshly-made items to your establishment.

5. Licenses

It’s key to plan out your business licenses carefully. If you don’t have the right ones in place, you won’t be able to operate.

Tavern License

When putting together your bar business plan, it’s important to research whether you need a tavern license. It’s a government-issued license for restaurants, bars, or businesses with more than 50% liquor sales.  

Beer and Wine License

If you’re planning on starting a beerhouse or wine lounge, you may only need to apply for a beer and wine license. This will restrict your sales to wine and malt beverages, as you won’t be able to sell hard liquors like spirits. Whether you need to apply for this license depends on your bar's concept.

Health/Food Service License

With a small food menu, you’ll likely need to note on your restaurant and bar business plan to apply for a food service license. It’s a requirement to serve any type of food within your establishment. To obtain a food service license, you’ll need to ensure that your bar follows strict rules and regulations laid out by the U.S. Food and Drug Administration .

Music License

Music is one of the key elements of creating ambiance in a venue. But did you know that streaming music from your digital subscription with Spotify or Deezer is not actually operating within the law? This is true even if you’re playing music through a TV or radio.

The right way to go about this is to pay a Performance Rights Organization (PRO) or music service that will send royalties to the relevant artists. For the most part, this doesn’t apply to bands or performers who play live at your venue.

6. Market Research

Performing market research as part of your bar business plan is key to understanding your opportunities and how to capitalize on them.  

Industry Research

Part of your research should be to determine the market size you can potentially snag. Look at other bars already operating in the area, consider the industry as a whole, and determine what trends are driving it forward.  

Target Market

What needs will your bar solve for your target market? You can find out who they are and what they want by considering the local neighborhood and bar type.

It’s also an idea to look at census data to see how many potential customers within a certain demographic live within a reachable radius of your proposed location.

Market Share and Price Point

When doing your market analysis, consider similar bar businesses that have come before you. What do their successes and failures look like? Why did they crash and burn, or soar to new heights? Take these lessons and figure out how to apply them so your business can succeed.

Furthermore, what will your entry into the market mean for the local community? Are you creating new job opportunities? Or are you going to bring in an unruly crowd of patrons they hope to avoid? Knowing this information will help you be accepted and create connections rather than catastrophes.

Lastly, consider what your ‘competitors’ or other similar industry businesses are charging for their drinks and services. Run a competitive analysis in the area to determine your potential price point and how you can stand out.

7. Bar Marketing

Utilizing a marketing plan in the right way helps you take measured steps to get your establishment in front of potential customers. Here are the strategies to get started:

Create a Brand

The key to starting a successful business - and keeping it open - is to create a memorable brand identity. Your toolbox for promoting your brand should include your logo, colors, and ‘personality.’ Use these in a way that becomes synonymous with your bar, no matter where people interact with it.

Marketing Tools

Besides developing your brand identity, consider the channels you can market on to attract customers. At the very least, it should include your social channels, website, and media influencers.

8. Other Avenues to Increase Revenue

Besides being a bar and welcoming guests who come in with reservations or foot traffic, there are other avenues to increase your revenue.

Hosting events such as karaoke nights, wine tastings, or live music is an excellent way to attract larger crowds to your bar. You are guaranteed certain sales, can charge a cover fee, and get new people walking through the door.

If you go this route, we recommend using event management software to keep everything on track and work effortlessly with your team.

It’s no surprise that all businesses go through an ebb and flow of customer traffic. A great way to increase cash flow during slower periods is to introduce ideas like drink specials and happy hour discounts.

When you’re writing up a business plan, don’t forget to brainstorm ideas for a pre-opening promotion as a way to test the market. This can be as simple as a soft launch or as elaborate as a grand-opening celebration.

9. Financials

An important aspect of your business plan is to outline your potential start-up costs. These, along with the costs of day-to-day business operations, and financial projections, will attract or deter potential investors.

Your business plan should also highlight possible funding options like loans and investment opportunities you have available. Additionally, you’ll need to draw up a break-even analysis to determine how much revenue it will take to turn profits.  

Realizing your dream of owning the hottest bar in town starts with a great business plan. It will need to cover everything from your mission statement to your concept and drinks menu. This will help you build a sturdy management team, hire great employees, and attract people to your venue.

Want to know more about Perfect Venue for event management? Try it free to find out how it can be a fit for your new business.

Have thoughts on the article? Feel free to email us at [email protected] - we'd love to hear it!

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Here is a free business plan sample for a cocktail bar establishment.

Have you ever envisioned owning a vibrant cocktail bar, but feel uncertain about how to turn that vision into reality? You've landed in the perfect spot.

Below, we will unveil a comprehensive sample business plan tailored for aspiring cocktail bar owners.

As you might be aware, a meticulously formulated business plan is crucial for any aspiring entrepreneur. It serves as a roadmap, outlining your vision, objectives, and the strategies you plan to implement to make your cocktail bar a buzzing hotspot.

To streamline your planning process and get started on the right foot, you can utilize our cocktail bar business plan template. Our team of experts is also on standby to provide a free review and fine-tuning of your plan.

How to draft a great business plan for your cocktail bar establishment?

A good business plan for a cocktail bar must capture the unique elements of the nightlife and hospitality industry.

To start, it's crucial to provide a comprehensive overview of the market. This includes up-to-date statistics and an exploration of emerging trends in the bar scene, as illustrated in our cocktail bar business plan template .

Your business plan should articulate your concept compellingly. This encompasses your vision, identifying your target demographic (such as young professionals, tourists, or locals), and the distinctive experience your cocktail bar will offer (craft cocktails, live music, themed nights, etc.).

Market analysis is the next critical section. This requires a thorough understanding of local competitors, industry trends, and consumer preferences specific to the bar and nightlife sector.

For a cocktail bar, particular emphasis should be placed on the drink menu you plan to curate. Detail your selection of cocktails, spirits, and other beverages, and describe how they cater to the tastes and desires of your intended audience.

The operational plan is equally important. It should outline the location of your cocktail bar, the design of the bar and seating area, relationships with beverage suppliers, and the logistics of bar operations.

In the case of a cocktail bar, it is vital to highlight the expertise of your bartenders, the quality of your ingredients, and adherence to alcohol service regulations.

Then, delve into your marketing and sales strategies. How will you draw in and keep patrons? Consider promotional tactics, loyalty programs, and potential for additional revenue streams (like hosting private events or offering mixology classes).

Implementing digital strategies, such as a robust website or active social media engagement, is also critical in the modern marketplace.

The financial framework is another cornerstone. This section should cover the initial investment, projected revenue, operating expenses, and the point at which the business will become profitable.

In a cocktail bar, certain drinks may have higher profit margins, so understanding your financials is imperative. For assistance, refer to our financial forecast for a cocktail bar .

Compared to other business plans, a cocktail bar's plan must pay special attention to aspects like liquor licensing, the impact of seasonal fluctuations on business, and strategies for creating a unique ambiance.

A thoroughly crafted business plan will not only help you clarify your vision and strategy but also attract investors or secure loans.

Lenders and investors are on the lookout for a solid market analysis, realistic financial projections, and a clear grasp of the day-to-day operations of a cocktail bar.

By presenting a detailed and substantiated plan, you showcase your dedication and preparedness for the success of your venture.

To achieve these goals while saving time, feel free to utilize our cocktail bar business plan template .

A free example of business plan for a cocktail bar establishment

Here, we will provide a concise and illustrative example of a business plan for a specific project.

This example aims to provide an overview of the essential components of a business plan. It is important to note that this version is only a summary. As it stands, this business plan is not sufficiently developed to support a profitability strategy or convince a bank to provide financing.

To be effective, the business plan should be significantly more detailed, including up-to-date market data, more persuasive arguments, a thorough market study, a three-year action plan, as well as detailed financial tables such as a projected income statement, projected balance sheet, cash flow budget, and break-even analysis.

All these elements have been thoroughly included by our experts in the business plan template they have designed for a cocktail bar .

Here, we will follow the same structure as in our business plan template.

Market Opportunity

Market data and figures.

The cocktail bar industry is a dynamic and evolving sector with significant potential for growth.

Recent estimates suggest that the global bar and nightclub market is valued at over 20 billion dollars, with expectations for continued expansion as consumer preferences shift towards unique and high-quality drinking experiences.

In the United States alone, there are tens of thousands of bars, contributing to a substantial annual revenue within the hospitality sector.

These statistics underscore the integral role cocktail bars play in the social and nightlife scenes, as well as their economic impact.

The beverage industry is witnessing several key trends that are shaping the future of cocktail bars.

Artisanal and craft cocktails are gaining popularity, with a focus on high-quality ingredients, innovative recipes, and presentation. Consumers are increasingly seeking out unique and immersive drinking experiences.

Sustainability is becoming a priority, with bars implementing eco-friendly practices such as reducing waste, using locally sourced ingredients, and offering organic drink options.

Technology is also influencing the industry, with the rise of automated cocktail machines, apps for personalized drink recommendations, and online reservations becoming more prevalent.

Additionally, there is a growing interest in non-alcoholic and low-alcohol beverages, catering to health-conscious consumers and those who prefer to avoid alcohol.

These trends highlight the industry's adaptability and responsiveness to the evolving tastes and values of modern consumers.

Success Factors

Several factors contribute to the success of a cocktail bar.

Foremost, the quality and uniqueness of the drinks offered can set a bar apart from its competitors. A menu that features creative and well-crafted cocktails can attract a discerning clientele.

An inviting atmosphere and theme can enhance the customer experience, making the bar a destination rather than just a place to drink.

The location of the bar is critical, with high foot traffic areas or popular entertainment districts often leading to higher patronage.

Exceptional customer service is paramount, as it can foster loyalty and positive word-of-mouth recommendations.

Lastly, effective cost management and the ability to adapt to industry trends, such as offering seasonal drinks or hosting special events, are essential for the sustained success of a cocktail bar.

The Project

Project presentation.

Our cocktail bar project is designed to cater to the sophisticated palate of cocktail enthusiasts and those seeking a unique social experience. Situated in a vibrant neighborhood or near entertainment districts, this cocktail bar will feature an extensive menu of classic and innovative cocktails, all crafted with premium spirits, fresh ingredients, and artisanal mixers.

The emphasis will be on the quality, creativity, and presentation of each drink to deliver an unforgettable experience to our patrons.

This cocktail bar aims to set the standard for mixology excellence and become a destination for those who appreciate the art of a well-made drink and the ambiance of a refined social setting.

Value Proposition

The value proposition of our cocktail bar project is centered around offering an exceptional selection of handcrafted cocktails that cater to both traditional tastes and modern preferences.

Our dedication to using only the finest ingredients and the latest mixology techniques ensures a superior drinking experience, while our commitment to ambiance and service creates a welcoming and sophisticated atmosphere.

We are devoted to fostering a culture of appreciation for the craft of cocktail making and aim to educate our guests about the history and nuances of each drink.

Our cocktail bar seeks to be more than just a place to drink; it aspires to be a community hub where connections are made, and life's moments are celebrated with a toast of the finest concoctions.

Project Owner

The project owner is a seasoned mixologist with a passion for the art of cocktail creation and a deep appreciation for the social experience that a great bar provides.

With a background in hospitality management and a track record of successful bar operations, he is poised to create a cocktail bar that stands out for its attention to detail, innovation, and exceptional service.

Driven by a vision of creating a space where every sip tells a story, he is committed to offering a curated cocktail experience that delights the senses and brings people together.

His dedication to the craft and his desire to create a memorable atmosphere for guests are the driving forces behind this project, aiming to elevate the cocktail culture in the local community.

The Market Study

Market segments.

The market segments for this cocktail bar are diverse and cater to a variety of clientele.

Firstly, there are young professionals and millennials who seek unique and sophisticated drinking experiences, often preferring trendy and Instagrammable locations.

Next, we have the connoisseurs and enthusiasts who appreciate high-quality, artisanal cocktails and are always on the lookout for new flavors and mixology innovations.

The market also includes casual socializers who prefer a relaxed atmosphere to unwind with friends over a few drinks after work or on weekends.

Lastly, event planners and corporations represent a segment interested in booking the venue for private events, parties, and networking functions.

SWOT Analysis

A SWOT analysis of this cocktail bar project highlights several key factors.

Strengths include a prime location, a unique and diverse cocktail menu, and a team of skilled mixologists passionate about creating an exceptional customer experience.

Weaknesses might involve the initial costs of establishing a high-end bar, the challenge of building a regular clientele, and the dependency on maintaining a trendy image.

Opportunities can be found in the growing interest in craft cocktails, the potential for hosting special events, and the ability to leverage social media for marketing.

Threats include the competitive nightlife market, changes in consumer drinking habits, and potential regulatory changes affecting the sale of alcoholic beverages.

Competitor Analysis

Competitor analysis in the cocktail bar industry indicates a highly competitive environment.

Direct competitors include other high-end cocktail bars, lounges, and pubs, as well as restaurants with strong bar offerings.

These establishments compete on ambiance, drink quality, service, and location to attract a discerning clientele.

Potential competitive advantages for our cocktail bar include a unique and innovative drink menu, a compelling brand story, superior customer service, and a strategic marketing approach.

Understanding the strengths and weaknesses of competitors is crucial for carving out a niche in the market and ensuring customer loyalty.

Competitive Advantages

Our cocktail bar's competitive advantages lie in our dedication to providing an unparalleled drinking experience.

We offer a curated selection of cocktails crafted with premium spirits and fresh, high-quality ingredients, ensuring each drink is a work of art.

Our commitment to innovation keeps our menu exciting and dynamic, encouraging patrons to return for new experiences.

Additionally, our bar's ambiance, from the interior design to the music, is carefully designed to create an inviting and memorable atmosphere.

We also prioritize engagement with our customers through educational events, such as mixology workshops and tasting sessions, which foster a sense of community and loyalty to our brand.

You can also read our articles about: - how to open a cocktail bar establishment: a complete guide - the customer segments of a cocktail bar establishment - the competition study for a cocktail bar establishment

The Strategy

Development plan.

Our three-year development plan for the cocktail bar is designed to create a unique and memorable experience for our patrons.

In the first year, we will concentrate on establishing a strong local presence and reputation for innovative and high-quality cocktails. We will also focus on creating a welcoming atmosphere that encourages social interaction and repeat visits.

The second year will be geared towards expanding our brand by hosting mixology classes and private events, as well as exploring opportunities for pop-up bars in festivals and local events to increase visibility.

In the third year, we aim to diversify our offerings by introducing a line of signature bottled cocktails and considering franchising opportunities to extend our brand reach.

Throughout this period, we will remain dedicated to exceptional service, creativity in cocktail design, and a vibrant bar environment to stay ahead in the competitive market.

Business Model Canvas

The Business Model Canvas for our cocktail bar focuses on patrons looking for a premium drinking experience and a sophisticated social setting.

Our value proposition revolves around an exclusive selection of high-quality, handcrafted cocktails, a trendy and comfortable ambiance, and exceptional customer service.

We will operate primarily from our physical location while also offering cocktail catering services for events and an online platform for booking events and mixology classes.

Key activities include crafting unique cocktails, curating events, and maintaining a dynamic social atmosphere.

Our revenue streams will be generated from the sale of cocktails, hosting events, and mixology classes, while our costs will be associated with premium ingredients, skilled bartenders, and marketing efforts.

Find a complete and editable real Business Model Canvas in our business plan template .

Marketing Strategy

Our marketing strategy is centered on creating a buzz around our unique cocktail offerings and vibrant bar atmosphere.

We plan to engage our target audience through social media campaigns showcasing our signature drinks, themed nights, and special events. Influencer partnerships and collaborations with local businesses will also play a key role in expanding our reach.

We will offer loyalty programs and exclusive memberships to encourage repeat business and word-of-mouth referrals.

Additionally, we will leverage local press and food and drink bloggers to gain coverage and build a strong brand image.

Risk Policy

Our risk policy for the cocktail bar focuses on mitigating risks associated with the beverage industry, customer safety, and regulatory compliance.

We will ensure responsible serving of alcohol, strict adherence to licensing laws, and regular staff training on safety and emergency procedures.

Our inventory management will be optimized to prevent overstocking and wastage. We will also maintain a conservative financial strategy to manage cash flow effectively.

Comprehensive insurance coverage will be in place to protect against potential liabilities. Our priority is to provide a safe and enjoyable experience for our customers while safeguarding the business.

Why Our Project is Viable

We are excited to introduce a cocktail bar that promises an innovative and upscale drinking experience.

With our dedication to quality, customer experience, and a strategic approach to growth, we believe our cocktail bar will become a distinguished establishment in the local nightlife scene.

We are committed to adapting to market trends and customer feedback to ensure the longevity and success of our business.

We look forward to shaking up the industry with our unique cocktails and vibrant atmosphere, making our cocktail bar a go-to destination for connoisseurs and casual drinkers alike.

You can also read our articles about: - the Business Model Canvas of a cocktail bar establishment - the marketing strategy for a cocktail bar establishment

The Financial Plan

Of course, the text presented below is far from sufficient to serve as a solid and credible financial analysis for a bank or potential investor. They expect specific numbers, financial statements, and charts demonstrating the profitability of your project.

All these elements are available in our business plan template for a cocktail bar and our financial plan for a cocktail bar .

Initial expenses for our cocktail bar include the cost of securing a prime location, designing and outfitting the bar with a unique theme and ambiance, obtaining a liquor license, purchasing bar equipment and inventory, hiring and training skilled bartenders and staff, as well as expenses related to branding and launching targeted marketing campaigns to create buzz and attract our target clientele.

Our revenue assumptions are based on a thorough analysis of the local market's demand for unique and high-quality cocktail experiences, taking into account the trends in nightlife and the preferences of our target demographic.

We anticipate a steady increase in patronage, starting with a strong opening and growing as our cocktail bar becomes a recognized spot for exceptional drinks and atmosphere.

The projected income statement outlines expected revenues from cocktail sales, event hosting, and other services, against the cost of goods sold (beverages, ingredients), labor, utilities, and operating expenses (rent, marketing, salaries, etc.).

This results in a forecasted net profit that is essential for assessing the long-term profitability of our cocktail bar.

The projected balance sheet reflects assets specific to our business, such as bar equipment, liquor inventory, and liabilities including any debts and anticipated expenses.

It provides a snapshot of the financial health of our cocktail bar at the end of each fiscal period.

Our projected cash flow statement details the inflows and outflows of cash, enabling us to plan for our financial needs. This will be crucial for maintaining a healthy cash reserve to manage day-to-day operations and unexpected expenses.

The projected financing plan outlines the sources of funding we intend to tap into to cover our initial costs, which may include loans, investor capital, or personal savings.

The working capital requirement for our cocktail bar will be diligently managed to ensure we have sufficient funds to cover operational costs such as inventory purchases, staff wages, and other short-term financial obligations.

The break-even analysis will show the level of sales we need to achieve to cover all our costs, including the initial investment, and begin generating a profit.

This will indicate the point at which our cocktail bar becomes financially sustainable.

Key performance indicators we will monitor include the average profit margin per drink, the inventory turnover rate to assess the efficiency of our stock management, and the return on investment to evaluate the profitability of the capital invested in our venture.

These metrics will guide us in measuring the financial performance and overall success of our cocktail bar.

If you want to know more about the financial analysis of this type of activity, please read our article about the financial plan for a cocktail bar establishment .

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Small Business Trends

A complete guide to creating a bar business plan, understanding the basics of a bar business plan.

A bar business plan functions as your strategic compass, delineating how your business will function, profit and evolve. Likewise, it is instrumental in securing financing, pinpointing potential obstacles and orchestrating marketing strategies.

What is a Bar Business Plan?

The importance of a business plan for bar businesses.

A potent bar business plan is not merely a perfunctory requirement but a crucial part of your business’s foundation. It aids in articulating your bar’s identity, consolidating your strategy, and projecting future growth.

Essential Elements of a Bar Business Plan

Executive Summary

Company description.

This section encapsulates your bar’s specifics, including its location, ownership structure and unique selling proposition that differentiates it from the competition.

Competitive Analysis

Market analysis, marketing strategy, operational plan, financial projections.

This segment covers sales forecasts, income statements, balance sheets and cash flow statements, providing a realistic financial picture of your bar business.

Mobile Bar Business Plan

Wine bar business plan, cocktail bar business plan, sports bar business plan, using a bar business plan template.

While it offers a comprehensive bar business plan outline, it’s imperative to understand that it’s not a one-size-fits-all solution. Every bar is distinct, with its own unique set of goals, challenges, target audience, and brand personality.

Crafting a Successful Bar Business Plan

Faqs: bar business plan, what are some common mistakes to avoid when creating a bar business plan, is it necessary to hire a professional to write my bar business plan.

Although not a necessity, a professional can impart expert insight and guidance when crafting a bar business plan. However, comprehending the process and actively participating is crucial for the plan’s effectiveness, as no one understands your business better than you.

Can I use the same business plan for different types of bars?

How much does the average bar make a year, what does a business plan look like for a bar, is it hard to start a bar business.

Starting a bar business can be challenging due to factors like high initial investment, stringent regulations and intense competition. However, with a well-crafted business plan, diligent research and strong management, it can turn into a profitable venture. This requires learning many important lessons, from understanding what is a happy hour to learning how to price liquor.

• Restaurant Website Builder

For many with a passion for the nightlife and hospitality, the dream to open a bar remains persistent. If you’re one of them but are unsure about navigating the complexities of the bar industry, don’t have to worry. Writing a business plan is the first step in transforming this aspiration into a tangible reality. A detailed bar business plan will help streamline your vision, ensuring you’re well-prepared to venture into the bustling world of bar businesses with clarity and confidence.

What is A Bar Business Plan?

A bar business plan is a strategic roadmap that outlines your vision and the steps required to bring it to fruition. It encompasses every aspect of your business, from the fundamental business concept down to the intricate details of daily operations. In essence, it’s the blueprint to grow your business and ensure its longevity in a competitive market.

A great business plan doesn’t merely serve as an internal guide; it’s a persuasive tool to attract stakeholders, investors, and partners. It demonstrates how your bar will attract customers, generate profits, and stand out in the crowded nightlife landscape.

One might ask, “What makes a bar business plan unique?” It’s the blend of the universal principles of business, combined with the niche requirements of the bar industry. This includes, but is not limited to, licensing, menu crafting, entertainment provisions, and safety measures.

Given the dynamic nature of the bar industry, it’s important to include not only your immediate goals but also long-term objectives and strategies for adapting to market shifts. With a clear and comprehensive bar business plan, you’re laying a solid foundation for a successful enterprise.

Why A Business Plan Is Important For A Successful Bar Business?

Owning a bar is a dream for many, but transforming this dream into a profitable reality requires meticulous planning and foresight. This is where a business plan plays a pivotal role.

• Clear Vision and Objectives: A business plan helps establish a clear vision and set measurable objectives for your bar. Whether you aim to create a niche cocktail lounge, a bustling sports bar , wine bar or any other type of establishment, your business plan outlines the specific steps you’ll take to make your bar the go-to destination for potential customers. It provides direction and keeps all stakeholders aligned with the business’s overarching goals.
• Financial Planning: One of the main reasons business owners create business plans is for robust financial planning. A bar has various financial intricacies, from sourcing ingredients to staffing and marketing expenses. A business plan ensures you’re well-equipped to manage cash flows, investments, and potential financial pitfalls. Moreover, potential investors often request a detailed business plan before committing funds, making this a crucial component for securing necessary capital.
• Operational Efficiency: Every bar operates uniquely, depending on its target audience and theme. However, operational efficiency remains a consistent requirement for all bar owners. A business plan is a plan, after all, and it dives deep into the day-to-day operations, ensuring that every aspect, from supplier agreements to employee shifts, runs smoothly and cost-effectively.

Step-by-step Guide To Write A Bar Business Plan.

Navigating the world of the bar industry can be intricate, and the type of bar you want to open plays a pivotal role in shaping your business plan. Whether it’s a neighborhood bar, a high-end cocktail bar, or a wine bar with live music, each requires a distinct approach. This guide is tailored to help entrepreneurs and business owners create a comprehensive plan, ensuring the grand opening of the bar you dream of is a success.

1. Executive Summary

The executive summary is a concise overview of your entire business plan, acting as a snapshot that encapsulates the essence of your vision and strategy. Typically, it’s about one to two pages long and is placed at the beginning of your business plan, but it’s often written last.

What should you cover in an Executive Summary?

• Introduce your bar business, highlighting what makes your bar unique.
• State your mission and vision, giving clarity to the type of bar you aim to establish.
• Outline the main objectives, from your grand opening to long-term goals.
• Provide a financial overview, offering potential investors a glimpse into projected profits and growth.

2. Bar Description

This section delves into the specifics of your bar, painting a vivid picture of what patrons can expect and how you plan to operate.

What should you cover in the bar description section?

• Talk about your bar concept, whether it’s a wine bar, cocktail bar, or a bar with live music.
• Explain your unique selling proposition – what makes your bar stand out from the competition.
• Detail the operations, from opening hours to the ambiance you intend to create.

3. Market Analysis

This segment identifies and studies your potential customers, the location for your bar, and your competitors, helping you strategize accordingly.

Factors to cover:

• Target market: Define the demographics and preferences of those you plan to cater to.
• Location: An existing bar might already have an established clientele, but a new location needs careful consideration for accessibility, safety, and potential customer traffic.
• Competition: Analyze trends in the bar industry and see how competitors operate, ensuring your offerings are both competitive and unique.

4. Organization and Management

This is the operational backbone of your bar, detailing the structure of your business and the team that will run it.

What should you cover in the organization and management plan?

• Bar ownership information: Are you a sole proprietor, or is this part of a larger partnership or corporation?
• Profiles of your Bar management team: Include bios of key team members, showcasing their expertise and how they’ll contribute to running a successful bar.

5. Sample Menu

This section teases what your bar will offer in terms of food and beverages, acting as a tantalizing preview for potential patrons and investors.

What should you consider when creating a sample menu?

• Menu items: Detail the drinks and possibly accompanying food items.
• Unique Selling Proposition: Highlight specials or unique mixes. For instance, a cocktail bar might focus on signature mixes, while a wine bar could emphasize rare finds.
• Menu Pricing : Don’t forget to address pricing, taking into account costs and desired profit margins.

6. Marketing Strategy

This section delineates how you plan to attract customers to your bar and keep them coming back.

What should you cover in a marketing strategy for your bar business?

• Define your brand: From logo to interior decor, consistency is key.
• This could range from social media campaigns ,loyalty programs, SEO for website, or partnership with local businesses.
• Considering using an  online food ordering system  in your bar
• Create a  digital menu with QR code  to make your menu easy for your customers to access online
• Sales Strategies: Special promotions, events, or partnerships that drive sales.

7. Business Operations

This segment breaks down the day-to-day functioning of your bar, ensuring nothing is overlooked.

BWhat operational issues should you address in your business plan?

• Supply chain: Detail your suppliers for everything from alcohol to garnish.
• Operating hours: Will you have a late-night license? Open only on weekends?
• Staffing: Consider the roles you need to hire for, from bartenders to security.
• Equipment: Everything from the bar counters to the sound system.

8. Financial Plan and Loans

How Much Does It Cost to Start a Bar? Estimating the cost to open a bar is crucial for potential owners. Starting a bar business can cost anywhere from $100,000 to $800,000. The variance in cost can depend on numerous factors. For instance, the physical location of the bar can significantly influence the cost. A prime city center location might require a heftier initial investment than a suburban spot. Additionally, the floor plan and the design aesthetics you plan to implement can also affect the expenses. Furthermore, acquiring the necessary business licenses to operate your bar legally is another cost element that shouldn’t be overlooked. With a lot of bar competition out there, ensuring you have the key elements to include in your initial investment can set you up for success. How Many Ways to Fund Your Bar?

Securing funds to start and grow their bar business is a concern for many aspiring bar owners. While personal savings might be the go-to for some, others might look into bank loans, angel investors, or even crowdfunding campaigns. Exploring all available options can ensure you fund your bar easily and efficiently.

Important Questions to Consider When You Create Your Funding Request

Before approaching potential investors or lenders, it’s pivotal to have a clear plan detailing how the funds will be used. What renovations or modifications are necessary? What will the initial stock and equipment cost? What provisions have been made for operational costs until the bar starts turning a profit? Having these answers ready can make your funding request more compelling.

9. Financial Projections

When diving into the world of bar entrepreneurship, understanding your financial landscape is crucial.

Break-even analysis

It’s an evaluation that helps you determine when your bar will be able to cover all its expenses and start making a profit.

To calculate the break-even point, use this formula: Break Even Point = Fixed Costs / (Price – Variable Costs)

Knowing this can help you write a more convincing business plan, highlighting the viability of your venture.

Projected profit and loss statement

A crucial part of your bar business plan that offers insights into potential profits and losses your business might encounter.

Cash flow analysis

This gives you the key elements to understand how cash moves in and out of your business. By following the bar business plan writing best practices, you can quickly and easily complete these projections. Ensuring that they include a winning strategy will make your financial plan more robust and appealing to potential investors.

Sample Bar Business Plan Template

The following is a comprehensive example of a bar business plan. It’s a great tool to guide you in writing your business plan.

• Mission : To provide a unique drinking experience that celebrates local flavors and promotes community bonding.
• Vision : To be the neighborhood’s top bar destination, known for its distinctive drinks and vibrant ambiance.
• Bar Description : The Urban Vine, a wine-centric bar focusing on regional wines and locally sourced ingredients.
• Costs : Estimated starting cost: $250,000.
• Profits : Projected first-year net profit: $60,000.

2. Description of the Bar

• Bar Concept : A contemporary wine bar featuring local wines and complementary tapas-style dishes.
• Bar Name : The Urban Vine. (Consider using a bar name generator  for more ideas)
• Bar Type : Wine bar with a secondary focus on craft beers.
• Bar Location : 123 Vine Street, Downtown District.
• Order Fulfillment : Table service and bar seating available, with an option for outdoor patio seating.
• Working Hours : Monday to Thursday: 4 PM – 12 AM; Friday & Saturday: 3 PM – 1 AM; Sunday: 2 PM – 10 PM.

3. Menu Offer

• Type of Food and Drink : Wine from local vineyards, craft beers, and tapas-style dishes made from locally sourced ingredients.
• Offer : Regular wine tasting events showcasing new arrivals, paired with chef-special appetizers.
• Unique Selling Point : Every wine bottle tells a local story, giving drinkers a taste of the region’s vineyards.

4. Market and Competition Analysis

• Market Analysis : The Downtown District has a population predominantly comprised of working professionals aged 25-45, making it a prime location for a bar or pub. (Check out this article to understand the distinction between pubs and bars )
• Target Customer : Young professionals and wine enthusiasts looking for a quality drinking experience in a relaxed setting.
• Size of the Target Customer : Approximately 10,000 individuals fitting the profile within a 5-mile radius.
• Competition Analysis : Three other wine bars operate within the district.
• Size of the Competition : Among the competitors, the largest has a seating capacity of 75, while the others can host around 50 patrons each.
• Competitors’ Offer : Basic wine selections, some with occasional live music nights.
• Competitors’ Prices : Average price of $8 per glass of wine and $6 for beer.

5. Investment Plan (Detailed Cost Analysis)

• Leasehold improvements: $80,000
• Furniture & Fixtures: $30,000
• Licensing & Permits: $20,000
• Initial Inventory: $40,000
• Rent: $4,000
• Salaries: $10,000
• Utilities: $1,500
• Miscellaneous: $2,500
• Total Cost : Anticipated first-year expense: $322,000.

6. Financial Forecast

Considering the costs of starting and the projected revenue, breakeven is anticipated by month eight. The first-year projected revenue is $382,000.

• Owner/Manager : Jane Doe – A passionate wine enthusiast with a background in business management.
• Head Bartender : John Smith – Experienced in running a bar, skilled in crafting unique drink experiences.
• Kitchen Staff : A team of three, led by Chef Anna, specializing in tapas dishes.

8. Marketing Plan

Strategies will focus on social media promotions, local partnerships, and hosting events. Ideas like wine-tasting events, collaborations with local vineyards, and monthly themed nights will be implemented. Special offers will be provided for group bookings, early bird timings, and repeat customers.

This business plan template will help prospective bar owners in crafting their unique plan to make their dream bar a reality. With a robust business strategy, The Urban Vine is set to become a renowned establishment in the Downtown District.

Tips For Creating An Effective Bar Business Plan Outline

Crafting a comprehensive bar business plan is pivotal in turning your vision into a successful venture. Here are some insightful tips to help you create an efficient outline:

• Understand Your Niche : Begin by identifying the unique character of your bar. Is it a cozy neighborhood nook or a sophisticated wine bar? The specifics determine the kind of customers you’ll attract and the atmosphere you aim to create.
• Include Comprehensive Details : The following bar business plan components are essential: executive summary, bar description, menu offer, market analysis, investment plans, financial forecasts, team structure, and marketing strategies. Don’t skimp on details; a comprehensive plan showcases your dedication and thoroughness.
• Focus on Your Unique Selling Proposition (USP) : What makes your bar stand out? Maybe it’s an exclusive range of craft beer and wine, or perhaps it’s an innovative theme. Always include this unique factor in your business plan as it’s pivotal for attracting customers.
• Plan Your Offerings : Are you focusing just on drinks or do you also plan to serve a variety of food items? Highlight your primary offerings, be it beer and wine or gourmet appetizers.
• Keep It Adaptable : The bar industry is ever-evolving. Ensure your business plan is flexible enough to adapt to changing trends and customer preferences.
• Seek Feedback : Before finalizing, share your draft with industry professionals or trusted peers. Their insights could help you include in a winning strategy that perhaps you hadn’t thought of.

Frequently Asked Questions

1. what makes a bar profitable.

A bar’s profitability hinges on multiple factors. A strategic location, a unique selling proposition, efficient cost management, and high-quality service all play pivotal roles. Moreover, understanding the preferences of your target audience and adapting accordingly, offering promotions during off-peak hours, and managing overheads effectively can significantly enhance a bar’s profit margins.

2. What is the executive summary of a bar business plan?

The executive summary is a concise overview of the bar’s business plan. It provides a snapshot of the business concept, its objectives, the financial outlook, and primary offerings. This section is particularly crucial for potential investors as it gives them a quick glance at the bar’s potential profitability and operational strategy.

3. How to write a good executive summary for a business plan with example?

When writing an executive summary, it’s essential to be clear and concise. Start with your bar’s mission and vision. Outline the primary objectives, the bar’s USP, and provide a brief financial overview.

Example: “ Sapphire Lounge aims to be the city’s premier wine bar, offering an eclectic range of international wines in a cozy, upscale environment. Located in the heart of the business district, our vision is to provide professionals a relaxing spot to unwind. We project an annual revenue of $500,000, with an initial investment of $150,000. Our unique wine-tasting events and wine-pairing dinners set us apart in the competitive landscape.”

4. Do bars make a lot of money?

The profitability of bars varies based on several factors like location, concept, management, and market demand. While some bars can yield high profits, especially those in prime locations with a unique concept, others might struggle due to competition, mismanagement, or changing market trends. However, with the right strategy, understanding of the target audience, and operational efficiency, bars can indeed be quite lucrative.

Crafting a comprehensive business plan is the bedrock of any successful bar venture. By diligently addressing each section and meticulously detailing all elements you aim to include in your business plan, you’re not only preparing for potential challenges but also envisioning the pathway to success. Remember, a business plan is not a static document; it’s a dynamic blueprint that can evolve with the changing demands of the industry and your clientele. Every decision, from the drinks you offer to the promotions you run, should align with the vision set out in your plan, ensuring long-term growth and sustainability.

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The Ultimate Guide to Crafting a Business Plan for Your Cocktail Bar

By alex ryzhkov, get full bundle.

Launching a successful cocktail bar requires meticulous planning and preparation. Before diving into the business plan, entrepreneurs must navigate a crucial 9-step checklist to ensure their venture is poised for success. From conducting comprehensive market research to assembling a skilled team of bartenders and service staff, this guide outlines the essential steps that will lay the groundwork for a thriving cocktail bar business.

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Steps Prior To Business Plan Writing

Conduct Thorough Market Research and Analysis

Before embarking on the journey of opening a cocktail bar, it is crucial to conduct a comprehensive market research and analysis. This step lays the foundation for a well-informed business plan, ensuring that your cocktail bar concept aligns with the preferences and demands of your target audience.

Begin by examining the local market and understanding the current trends, consumer behavior, and competitive landscape. Gather data on the size and growth potential of the cocktail bar industry in your area, as well as the demographics and psychographics of your target customers. Identify the popular drink preferences , price points, and the overall customer experience that patrons seek in a cocktail bar setting.

• Utilize a mix of primary research methods, such as surveys, interviews, and focus groups, to gain insights directly from potential customers.
• Analyze secondary data sources, including industry reports, market research studies, and local economic data, to supplement your findings.
• Carefully examine the competitive landscape , identifying the strengths, weaknesses, and unique offerings of existing cocktail bars in your target area.

Once you have a comprehensive understanding of the market, use this information to refine your cocktail bar concept and develop a unique value proposition. Identify the unmet needs in the market that your cocktail bar can address, and determine how you can differentiate your offerings from the competition.

By conducting thorough market research and analysis, you can make informed decisions about your cocktail bar's target market, pricing strategy, product mix, and overall business strategy. This foundational step will help you create a compelling and competitive business plan that sets your cocktail bar up for success.

Identify Your Target Audience and Their Preferences

Identifying your target audience and understanding their preferences is a crucial step in developing a successful business plan for your cocktail bar. By clearly defining your target market, you can tailor your offerings, ambiance, and overall experience to meet their specific needs and preferences, ultimately driving customer loyalty and profitability.

To identify your target audience, start by conducting thorough market research. Analyze demographic data, such as age, income level, occupation, and lifestyle preferences, to paint a detailed picture of your ideal customers. Consider factors like their preferred drink choices, the occasions they visit cocktail bars, and their expectations for the overall experience.

• Utilize online surveys, focus groups, and customer interviews to gather first-hand insights into your target audience's preferences and pain points.
• Analyze industry trends and competitor data to understand the evolving preferences and behaviors of cocktail enthusiasts in your local market.
• Leverage social media and online reviews to gain a deeper understanding of your target audience's interests, communication channels, and decision-making processes.

Once you have a clear understanding of your target audience, you can develop a unique value proposition and brand identity that resonates with them. This may involve curating a specialized cocktail menu, designing an ambiance that aligns with their preferences, and offering personalized service and experiences that set your cocktail bar apart from the competition.

According to a recent industry report, 64% of cocktail bar customers are millennials, seeking unique and Instagram-worthy experiences. Additionally, 75% of cocktail enthusiasts prioritize quality ingredients and craft-focused cocktails over price. By catering to these preferences, you can position your cocktail bar as a premier destination for your target audience.

By deeply understanding your target audience and their preferences, you can create a compelling business plan that positions your cocktail bar for long-term success. This strategic approach will help you make informed decisions about your menu, ambiance, marketing, and overall operations, ensuring that you deliver an exceptional experience that resonates with your customers.

Develop a Unique Value Proposition and Brand Identity

In the competitive cocktail bar industry, establishing a strong and distinctive brand identity is crucial for success. Your value proposition must clearly communicate what sets your establishment apart and why customers should choose 'The Mixologists Haven' over other options. This strategic branding exercise will guide every aspect of your business, from the bar's ambiance and menu offerings to your marketing and customer service approach.

Start by thoroughly researching your target audience and their preferences. Understand their demographic characteristics, lifestyle habits, and cocktail consumption patterns. This knowledge will inform the development of your unique value proposition and help you craft a brand that resonates with your desired clientele.

• Conduct focus groups or surveys to gather in-depth insights about your target customers' needs, pain points, and aspirations when it comes to the cocktail bar experience.
• Analyze industry trends and emerging preferences to identify opportunities for innovation and differentiation.
• Carefully consider the atmosphere, ambiance, and overall vibe you want to create at your cocktail bar to attract your target market.

With a clear understanding of your target audience, you can then define your unique value proposition. This should articulate the specific benefits, experiences, and emotional connections you will provide to customers. According to a recent industry report, 63% of cocktail bar patrons prioritize unique, hand-crafted cocktails and a sophisticated ambiance over price or location. Leverage this insight to develop a value proposition that emphasizes your commitment to exceptional, innovative cocktails and a refined, yet welcoming, atmosphere.

Translating your value proposition into a cohesive brand identity is the next critical step. This encompasses your bar's name, logo, color scheme, typography, and overall visual aesthetic. Studies show that 85% of consumers cite visual appearance as a key factor in their purchasing decisions. Ensure that your brand identity effectively communicates the essence of your cocktail bar and resonates with your target audience.

• Collaborate with a branding professional or design agency to create a visually striking and memorable brand identity for your cocktail bar.
• Carefully consider how your brand will be expressed across all touchpoints, from your website and social media to your physical space and staff uniforms.
• Develop a clear brand positioning statement that encapsulates your unique value proposition and guides all marketing and operational decisions.

By meticulously crafting your value proposition and brand identity, you will establish a strong foundation for your cocktail bar's success. This strategic groundwork will not only attract your target customers but also inspire loyalty and advocacy, setting your business up for long-term growth and profitability.

Determine the Optimal Location for Your Cocktail Bar

The location of your cocktail bar is a critical factor that can make or break your business. Choosing the right spot can attract a steady stream of customers and contribute to the overall success of your venture. As you embark on your journey to open The Mixologists Haven , carefully evaluating potential locations should be a top priority.

When selecting the perfect location for your cocktail bar, consider the following key factors:

• Demographics : Analyze the target demographic in the area, including age, income level, and lifestyle preferences. Ensure that your chosen location aligns with the clientele you aim to attract for The Mixologists Haven .
• Foot Traffic and Visibility : Opt for a location with high foot traffic and excellent visibility to maximize your exposure and attract spontaneous customers. Consider areas with a vibrant nightlife scene or near popular dining and entertainment destinations.
• Competition : Assess the competitive landscape in the area, taking note of the number and quality of existing cocktail bars. Aim to find a location that offers a unique proposition and complements, rather than directly competes with, the offerings of your competitors.
• Accessibility and Parking : Ensure that your cocktail bar is easily accessible by both public transportation and private vehicles. Adequate parking options, or the availability of nearby garages or lots, can greatly enhance the customer experience.
• Local Regulations and Zoning : Research the local zoning laws and regulations governing the operation of cocktail bars in your desired location. Familiarize yourself with any licensing requirements, noise ordinances, or other restrictions that may impact your business.
• Consider conducting a feasibility study to thoroughly assess the potential of different locations and identify the most promising option for The Mixologists Haven .
• Engage with local authorities and community stakeholders to understand the unique characteristics and dynamics of the area, which can help you make an informed decision.

By carefully evaluating these factors and conducting a comprehensive analysis, you can increase your chances of finding the optimal location for The Mixologists Haven . A well-chosen location can contribute to the overall success of your cocktail bar, attracting a loyal customer base and positioning your business for long-term growth.

Assess the Competition and Differentiate Your Offerings

In the highly competitive cocktail bar industry, standing out from the crowd is crucial for success. To assess the competition and differentiate your offerings, you'll need to conduct a thorough competitive analysis. This process will help you identify your unique value proposition and develop strategies to position your cocktail bar as the preferred destination for discerning customers.

Begin by researching the existing cocktail bars in your target market. Examine their menus, pricing, ambiance, and customer reviews to understand their strengths and weaknesses. Pay close attention to the types of cocktails they offer, the quality of ingredients used, and the overall customer experience they provide.

Next, consider how you can differentiate your cocktail bar from the competition. This may involve offering a unique selection of craft cocktails, using high-quality, locally sourced ingredients, or creating a distinctive atmosphere that caters to your target audience. According to a recent industry report, 72% of cocktail bar customers are willing to pay a premium for a unique and memorable experience.

• Leverage your market research to identify unmet needs or gaps in the local cocktail bar landscape.
• Develop a strong brand identity that resonates with your target audience and sets you apart from the competition.
• Continuously monitor industry trends and customer preferences to stay ahead of the curve and adapt your offerings as needed.

Additionally, consider forming strategic partnerships with local suppliers, distilleries, or even other complementary businesses to further enhance your unique value proposition. Studies show that cocktail bars that collaborate with local partners and source ingredients locally can increase their revenue by up to 18% compared to those that do not.

By thoroughly assessing the competition and developing a clear strategy to differentiate your cocktail bar, you'll be well on your way to attracting a loyal customer base and achieving long-term success in this dynamic industry.

Secure Necessary Licenses, Permits, and Insurance

Opening a cocktail bar requires navigating a complex web of legal and regulatory requirements. Failing to obtain the proper licenses, permits, and insurance can jeopardize the entire operation, leading to costly fines, legal battles, and even forced closure. As such, this step is critical in the business plan for cocktail bar development process.

The specific licenses and permits needed will vary depending on your location, but typically include a liquor license, food service permit, business license, and any necessary zoning or building permits. Securing a liquor license can be a particularly arduous and time-consuming process, often taking several months to obtain. It's essential to research the local requirements and begin the application process well in advance of your planned opening date.

• Consult with local authorities to determine the exact licenses and permits required for your cocktail bar startup .
• Factor in the time and costs associated with obtaining these documents when creating your cocktail bar financial planning and budgeting .
• Consider hiring a legal or regulatory compliance professional to guide you through the process and ensure you meet all necessary requirements.

In addition to licenses and permits, it's crucial to obtain the appropriate insurance coverage for your cocktail bar operations . This may include general liability insurance, liquor liability insurance, workers' compensation, and property insurance, among others. The specific coverage needed will depend on factors such as the size of your establishment, the number of employees, and the risks inherent to your business.

According to the Cocktail Bar Industry Trends report, the average cost of comprehensive insurance coverage for a cocktail bar can range from $5,000 to $15,000 per year , depending on the size and scope of the business. Failing to maintain adequate insurance can expose the business to significant financial risks in the event of an accident, injury, or other unexpected incident.

• Work with an experienced insurance broker to identify the appropriate coverage for your cocktail bar startup .
• Review your insurance policies regularly and adjust coverage as your business grows or changes.
• Ensure that all employees are properly trained and adhere to safety protocols to mitigate risks and keep insurance premiums low.

By meticulously addressing the legal and regulatory requirements for opening a cocktail bar, you can lay the foundation for a successful and compliant business. Investing the time and resources needed to secure the necessary licenses, permits, and insurance coverage will help you avoid costly pitfalls and focus on delivering an exceptional customer experience.

Estimate Startup Costs and Ongoing Operational Expenses

Establishing a successful cocktail bar requires a thorough understanding of the financial implications involved. Before embarking on your business venture, it is crucial to carefully estimate the startup costs and ongoing operational expenses associated with running a cocktail bar. This comprehensive financial planning will not only help you secure the necessary funding but also ensure the long-term sustainability of your business.

When estimating the startup costs for your cocktail bar, consider the following key factors:

• Lease and Renovation: The cost of securing a suitable location, negotiating the lease terms, and completing any necessary renovations to transform the space into a visually appealing and functional cocktail bar.
• Equipment and Furnishings: The investment required for purchasing essential bar equipment, such as glassware, ice machines, blenders, and other specialized tools, as well as furnishings to create the desired ambiance.
• Inventory and Supplies: The initial investment in a diverse selection of premium liquors, mixers, garnishes, and other bar supplies to stock your cocktail menu.
• Licensing and Permits: The fees associated with obtaining the necessary liquor licenses, business licenses, and any other regulatory permits required to operate a cocktail bar in your local jurisdiction.
• Marketing and Branding: The costs of developing a strong brand identity, creating a website, and implementing a comprehensive marketing campaign to attract your target audience.
• Staffing: The initial investment in hiring and training a team of skilled bartenders, servers, and other support staff to ensure exceptional customer service.
• Allocate a contingency budget of at least 20% of your total startup costs to account for unexpected expenses or unforeseen circumstances.
• Research industry benchmarks and consult with experienced professionals in the cocktail bar industry to ensure your cost estimates are accurate and comprehensive.

In addition to the startup costs, it is crucial to estimate the ongoing operational expenses associated with running your cocktail bar. These expenses may include:

• Rent and Utilities: The monthly or annual costs of maintaining the leased premises, including rent, electricity, water, and other utility bills.
• Inventory Replenishment: The ongoing investment required to maintain a well-stocked bar and ensure a consistent supply of premium liquors, mixers, and other bar supplies.
• Labor and Payroll: The ongoing costs of employing a team of skilled bartenders, servers, and support staff, including wages, benefits, and payroll taxes.
• Insurance: The premiums for comprehensive insurance coverage, such as liability, property, and workers' compensation insurance, to protect your business and assets.
• Marketing and Promotions: The ongoing expenses associated with maintaining a robust marketing strategy, including advertising, social media, and event promotions to attract and retain customers.
• Maintenance and Repairs: The costs of regular maintenance, repairs, and replacements for your bar's equipment, furnishings, and facilities.
• Benchmark your projected operational expenses against industry averages to ensure your estimates are realistic and competitive.
• Allocate a portion of your revenue to a reserve fund to cover unexpected expenses or periods of lower sales.

By carefully estimating both the startup costs and ongoing operational expenses, you can develop a comprehensive financial plan that will not only guide your initial investment but also help you manage the long-term financial viability of your cocktail bar. This detailed financial analysis will be a crucial component of your business plan, demonstrating your understanding of the financial requirements and your ability to operate a sustainable and profitable cocktail bar.

Assemble a Skilled Team of Bartenders and Service Staff

Building a talented and dedicated team is crucial for the success of any cocktail bar. The bartenders and service staff you hire will be the face of your establishment, responsible for crafting exceptional drinks and delivering exceptional customer service. To assemble this skilled team, consider the following key steps:

• Recruitment and Hiring : Seek out bartenders with extensive experience in mixology, a keen understanding of flavor profiles, and a passion for creating innovative cocktails. Look for service staff who are outgoing, attentive, and committed to providing a memorable experience for your guests.
• Training and Development : Invest in comprehensive training programs to ensure your team is well-versed in your bar's signature offerings, brand standards, and customer service protocols. Ongoing training and skill-building opportunities will help your staff stay up-to-date with industry trends and best practices.
• Compensation and Incentives : Offer competitive wages, benefits, and performance-based incentives to attract and retain top talent. Providing a rewarding work environment can help you build a loyal and motivated team that takes pride in their contributions to the success of your cocktail bar.
• Empowerment and Autonomy : Empower your staff to take ownership of their roles and make decisions that enhance the customer experience. Encourage them to provide input, suggest new cocktail ideas, and take an active role in shaping the bar's operations and culture.
• Utilize industry-specific job boards and networking events to source talented bartenders and service staff.
• Consider offering comprehensive training and certification programs to differentiate your team and demonstrate their expertise.
• Implement a robust employee recognition program to celebrate exceptional performance and foster a positive, collaborative work environment.

By assembling a skilled and dedicated team, you can ensure your cocktail bar delivers a consistently exceptional experience that keeps customers coming back. The quality of your staff can make all the difference in the success and reputation of your establishment.

Establish Strategic Partnerships with Local Suppliers

Establishing strategic partnerships with local suppliers is a crucial step in the successful launch and ongoing operation of your cocktail bar. By forging strong relationships with nearby vendors, you can not only secure high-quality ingredients and materials but also cultivate a sense of community and support that can be invaluable for your business.

One key advantage of local supplier partnerships is the ability to source fresh, seasonal ingredients that can elevate the quality and uniqueness of your cocktails. According to industry data, 78% of consumers prefer cocktails made with locally-sourced produce , which can help you differentiate your offerings and appeal to the growing demand for hyper-local, craft-focused beverages.

• Prioritize partnerships with local distilleries, breweries, and specialty spirit producers to offer a diverse selection of premium, artisanal liquors.
• Collaborate with nearby urban farms, orchards, and specialty food purveyors to source the freshest fruits, herbs, and garnishes for your cocktails.
• Explore opportunities to work with local glassware, barware, and specialty equipment suppliers to ensure a cohesive, elevated aesthetic for your cocktail bar.

In addition to sourcing high-quality ingredients, strategic local partnerships can also provide invaluable operational support. By aligning with nearby distributors, you can optimize your supply chain, reduce transportation costs, and ensure timely deliveries – all critical factors for maintaining a well-stocked bar and delivering a seamless customer experience.

Furthermore, establishing relationships with local suppliers can open the door to unique cross-promotional opportunities. By co-hosting events, offering joint specials, or collaborating on signature cocktails, you can tap into each other's customer bases and foster a sense of community engagement that can significantly boost your bar's visibility and appeal.

As you develop your cocktail bar business plan, be sure to dedicate ample time and resources to researching, vetting, and securing strategic partnerships with local suppliers. This investment will not only enhance the quality and authenticity of your offerings but also lay the foundation for a thriving, community-focused business that can stand out in the competitive cocktail bar landscape.

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How to Start a Cocktail Bar: 6 Keys to Building a Business

Whether you’re a budding bar owner or someone who is curious about cocktail bars, you may be thinking about how to start a cocktail bar-similar to an old-fashioned speakeasy . Opening up a bar takes a lot of work, cocktail or not. The process of how to open a bar includes:

• Creating a business plan and learning how much do bars make
• Finding a location
• Raising funds (the cost to open a bar is high, it includes the bar manager salary )
• Choosing a theme and bar equipment layout

… and much more! Luckily, there are plenty of resources available, from the best bar books to guides on bar planning. 

Outside of opening a cocktail bar for commercial use, you may be interested in how to make a home cocktail bar to make use of your many collected types of rum . That’s a far easier endeavor, with fewer steps and more personal choices. 

You may be looking to open a cocktail bar to bring in customers. You may just want to create a cocktail space in your own home to enjoy some vegan drinks , gluten-free cocktails , or regular drinks with alcohol and tonic water . Either way, there’s a lot to learn about creating a spot for cocktail fans.

Knowing how to start a cocktail bar goes beyond great cocktail recipes and garnishes to stock up on. It's about so much more than knowing your cocktail ingredients . It may seem daunting at first, but with this guide, you’ll be entertaining your guests of choice in no time.

Opening Up A Bar

There are many aspects of how to start a cocktail bar that are part of how to open up a bar in general. We have several guides and templates to help you open up a bar, including a how to open a bar checklist and a bar inventory spreadsheet . Within those resources, you’ll find the ultimate guide to everything you need as you open up your own cocktail bar. 

For now, we’ll give you a full list of everything you’ll need. Your cocktail bar opening checklist includes:

• A bar business plan
• A location that suits your bar plan
• A liquor license–whichever one(s) you may need
• A funding plan
• A hiring plan
• Inventory–and a bar inventory app (or even a barcode scanner app for inventory )
• A budget and accounting overview
• A marketing plan
• POS software
• A bar design plan
• A plan for how to price your food menu

Depending on your location and your exact bar plan, there will be other things you need to consider. You can do research for your own location by visiting the site of The Alcohol and Tobacco Tax and Trade Bureau (TTB). The TTB is a good place to learn about rules and regulations surrounding alcohol sales and service.

How to Make A Home Cocktail Bar

If your plan for opening up a bar is only for personal enjoyment, you’ll find the road ahead to be much simpler. The question of how to make a home cocktail bar can be as elaborate or as simple as you like. You can make your home cocktail bar feel like a true cocktail lounge, with:

• Soft lighting
• Decked-out bar design
• Booth seating

You could also go for a simple home bar setup that just happens to be your own cocktail space. For either a simple home bar or something a bit fancier, the items you’ll need are:

• A bar cart, shelving, or display cabinets
• Drink mixing tools, like a shaker, jigger, and a variety of glassware
• Liquor options, including the basics for most cocktails, and any liquors you personally love
• Garnishes for your favorite drinks, plus bar snacks 
• Great cocktail books to mix up new drinks whenever you want something different
• Seating options, with room to spare for any home-bar patrons you may have

Creating a home cocktail bar gives you all the fun of designing a bar without the work of opening a bar as a business. 

4 Things Every Cocktail Bar Needs

A lot of what goes into opening up a bar is the same for any bar–cocktail or otherwise. The specifics of a cocktail bar are less about the business aspect and more about the aesthetics of the bar. Any bar can serve cocktails, but the term cocktail bar generally refers to a place that has an atmosphere of cozy sophistication. Of course, for a cocktail bar you’ll need everything you need for any bar, but here are your specific needs:

• Bartenders who know how to mix up some great drinks
• Some of the best cocktail recipe books of all time, to help your bartenders learn even more
• A bar equipment layout and design plan that suits the mood
• A prominently displayed liquor collection

If you can strike the balance between a practical bar and a space that embodies everything people love about cocktails, you have done well. An extra tip is, a lot of cocktail bars do well with a menu fitting the a la carte meaning , as individual bites go well with drinks.

The Best Cocktail Bars

If you’re looking for inspiration on how to set up your cocktail bar, you can always look to current successful cocktail bars. There are several cocktail bars across the world, taking numerous actions to stand out and draw in the crowds.

While this competition is daunting for new bar owners, it’s also helpful. While you may have plenty of ideas on what you want for your bar design, it never hurts to see what others are up to. 

There are cocktail bars out there covering a range of options. The question “What is a cocktail bar?” generally conjures up images of a smoky lounge. That said, a cocktail bar can be any type of bar. You can search for inspiration in:

• Themed bars
• Live music bars
• Nostalgia bars

You can also draw from your favorite bars, or look into the best bars in the country to see what is already working. When it comes to finding inspiration for your cocktail bar, the list is endless.

The Best Cocktail Bars NYC

New York City is a good place to start looking at the most diverse cocktail bars. The bar scene in New York is often in flux, as new places open and marketing approaches change old spots. Eater NY took a look at the best cocktail bars NYC has to offer for 2022, and their list stands as follows:

• Bar Chrystie
• Philomena's
• Sunken Harbor Club
• All Night Skate
• El Pingüino

If you live in New York, you may have your own locations to add to that list. Overall, the list shows that there are plenty of options for inspiration out in the Big Apple.

Cocktail Bars Chicago

New York is consistently hailed as a place with everything you could want when it comes to places to visit. However, there are lots of interesting spots in the US that offer just as much diversity in cocktail bars.

One such place is Chicago. Chicago is known for its variety of places and people, and that is reflected in the Chicago cocktail bar scene. Eater Chicago has their own list of the best cocktail bars in the Windy City. That list includes:

• Billy Sunday
• Todos Santos
• The Whistler
• Weegee's Lounge
• The Violet Hour
• Sportsman's Club
• The Matchbox
• The Drifter
• Sable Kitchen & Bar
• Three Dots and a Dash

This list of Chicago’s best cocktail spots showcases the personality you find on the streets of Chicago. When it comes to your own cocktail bar, it’s a good idea to consider the personality of your location.

From there you can choose some bar design elements that suit your city. Your theme can be based on the history of your city, or on small design details that only locals would notice. Whatever you choose, showing some locational personality will suit any cocktail bar. 

Frequently Asked Questions About How to Start A Cocktail Bar

Starting a bar is a lot of work in general, and that applies to cocktail bars as well. A lot of what you need to know has already been answered in this article, but you may have more questions. A few commonly asked questions include:

What Makes A Cocktail Bar?

A cocktail bar is made great by excellent customer service, great cocktails for a great price, and a cozy atmosphere. Excellent customer service includes the standard for customer service, as well as bartenders who are knowledgeable about cocktails.

Great cocktails for a great price? That’s an easy one. That said, make sure you invest in your cocktail development at the beginning to impress patrons right off the bat.

A cozy atmosphere is the best feeling for a cocktail bar. It makes people want to hang out and have a few drinks in a comfortable environment. Creating a great bar layout should be one of your top priorities.

What Equipment Do You Need for A Cocktail Bar?

The equipment you need for a cocktail bar includes drink-making equipment and general bar tools. We have a free bar equipment list that tells you everything you need for a good bar. Some of the basic needs specific to a cocktail bar are:

• Glassware for the cocktails you serve
• Drink-making equipment, like shakers, jiggers, and cocktail spoons
• Garnish trays and items like toothpicks and tiny umbrellas

Our bar equipment list includes the rest of the items you should obtain. 

How Profitable Is Owning A Bar?

Owning a bar is profitable, as the average gross profit margin for a bar is between 70 and 80%. When people start to plan their bar, one of the most common questions asked is “ Are bars profitable ?” The answer is yes.

The potential to make money on alcohol sales is huge. This is because the cost of liquor for a bar is so low compared to the average cost of a drink. On average, the annual profit of a bar comes out to about $39,600 after all costs have been factored in. Of course, there are always ways to increase bar profits beyond drink sales.

How to Start a Cocktail Bar: Time To Put The Lime In The Coconut

Now you know how to start a cocktail bar, but there will always be more to learn as you open and operate your bar. From learning about well liquor to mastering popular cocktail names , come back to the BinWise blog whenever you find yourself needing to learn more. Don't forget to spend some time studying up on great bartender cover letter options, as hiring great staff should be top of mind as well.

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Delicatessen

Possibly the ultimate definition of hidden treasure (see also Chainaya), Delicatessen regularly challenges for honours in the world’s best bar competitions. Innovative and unique, they age their own whiskey, serve Manhattans from the barrel and boast 2013 Bacardi Global Legacy winner Elizaveta Evdokimova behind the bar.

The food is fantastic with flavoursome Asian/Russian fusion steaks, black pasta and offal all highly commendable. There’s no drinks menu, but with Liza and celebrated Moscow barman Slava Lankin behind the stick you can be sure you’re in safe hands.

Location : Sadovaya-Karetnaya ul., 20/2 Opening Hours : Tuesday – Saturday 12pm – 12am; Sunday 12pm – 10pm Price Range : $$ Connect : Facebook | Twitter | Web | Contact

If you thought Delicatessen was hard to find wait til you go looking for Chainaya. This former teahouse is hidden in an unassuming and unappealing back alley in the heart of Moscow’s Chinatown.

If you do manage to find it, you’re in for a treat. Roman Milostivy has created a homely and atmospheric bar with a focus on homemade infusions, shrubs and oriental spices and jams. The succinct cocktail list caters to a range of exotic flavours and the genuine Chinese food from the kitchen next door is exceptional.

Location : 1-ya Tverskaya-Yamaskaya ul., 29 Opening Hours : Tuesday – Saturday 6pm to late Price Range : $$$ Connect : Facebook

Noor Electro

By day a bright and airy cafe and by night a lively club and bar, Noor is home to Marat Saddarov, member of Moscow’s celebrated Bartender Brotherhood, and easy to spot in his uniform red boilersuit.

The menu leans heavily on the classics, but these are prepared to an excellent standard, and the staff are attentive, welcoming and happy to help you explore off-menu.

Location : Tverskaya, 23 Opening Hours : Monday – Wednesday 3pm – 3am; Thursday – Sunday 12pm – 6pm Price Range : $$ Connect : Facebook | Twitter | Web | Contact

If you survive the creaking journey up thirteen floors in a dated Soviet lift (maximum capacity four persons) you’ll feel like you deserve a drink. Fortunately the doors will open and you will find yourself right in front of Alexander Kan’s Time Out Bar.

Occupying the top two floors of this former KGB office building, Time Out has exquisite views across the city so you can wave at the Kremlin while you sip your drink of choice from a menu sub-divided by time of day and featuring a range of boozy iced teas and champagne eye-openers.

Location : Hotel Peking (13 th floor), Bolshaya Sadovaya ul., 5/1 Opening Hours : Sunday – Wednesday 5pm – 12am; Thursday 5pm – 2am; Friday and Saturday 5pm – 6am Price Range : $$ Connect : Facebook | Web

Saxon & Parole

The Russia brother to the Bowery, Manhattan original, Saxon & Parole now offers American drinks and dining in the north-west of Moscow. The American country club vibe and racehorse theme has travelled well, and the menu featuring exotic tinctures and shrubs alongside the famous draft Manhattan will help you while away the hours between brunch and dinner.

Location : Spiridonievskiy Pereulok, 12/9 Opening Hours : Monday – Friday 12pm – 12am; Saturday and Sunday 10am – 12am Price Range : Connect : Facebook | Web | Contact

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About the Author Alex Mennie

Alex is a master dipsologist (student of the thirst for alcohol), and former bartender. His interest in beer and wine began at the age of seven when he worked regular Sunday shifts in the family off licence. An interest in craft spirits and cocktails followed when he began competing with his colleagues to create the best post-shift Bloody Mary at the Edinburgh Fringe Festival in 2008. Since then his horizons have broadened to home distilling and infusing and developing pre-bottled cocktails for events and parties.

A native south Londoner, Alex spent ten years discovering whisky in glorious exile in Edinburgh, but returned to London in 2013. He has since dedicated himself to dipsological study and exploration of London’s booming bar scene. His favourite cocktail is the Sazerac, his favourite whisky is Talisker and he is proud to be a London Ambassador for Drink Me Magazine.

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• The Best Cocktail Bars In...

The Best Cocktail Bars in Moscow

Contributor / Journalist

Modern Moscow’s cocktail bar scene could make even the pickiest beverage connoisseur happy. Local bars offer pretty much everything, from an Italian Aperol Spritz to Negroni Sbagliato to never ending signature cocktails, classics and vodka shots . Most of the bars are centrally located, so finding them won’t be a problem. Here is our list of favourites.

Bar, Gastropub, Contemporary, Russian, Pub Grub

It might be a Monday night, but this local gastropub and bar has been open since eight in the morning and has seen visitors from all over Moscow. Located in Soho in the Patriarch Ponds district, Keanu Bar always has the best cocktails and local snacks. You can also expect great wine and vodka, and of course, a lot of fun with DJs starting at seven every night.

Mercedes Bar Moscow

Bar, Restaurant, Cocktail Bar, European, Japanese

Located on the top floor of the Radisson Royal Hotel, Mercedes Bar offers its visitors not only an extensive cocktail and wine list, but one of the best views in Moscow as well. For automobile enthusiasts, this bar has extra appeal. The interior design and cocktail list were created by the head office of the Mercedes Benz corporation, located in Germany. We highly recommend booking a table in advance; this place is very popular among locals and visitors.

Buddha-Bar Moscow

Restaurant, Russian

Buddha-Bar Moscow is the local representative of a very popular global chain luxury lounge bar and restaurant. Buddha-Bar venues are located all over the world and are frequented by many celebrities and business elites. The best cocktails and drinks are available daily, and they are made even more enjoyable with the best DJs and performers. We guarantee you’ll have a lot of fun, but be prepared to spend some money.

Strelka Bar

Bar, European, Beer

Located in the heart of Moscow, in the Red October district, Strelka Bar and institute offers its visitors an extensive cocktail list, wine list and local liquor selection. You’ll also find ping pong and the best view in Moscow. This bar is fun year round, but is especially entertaining in the summer with a beautiful backyard and comfortable terrace.

Magnum Wine Bar

Wine Bar, Pub Grub, Russian

This wine bar and enoteca is located in the business and financial district of Moscow, near Belorusskaya metro station. A vast choice of local and imported wines await visitors here, along with mouth-watering savoury snacks that perfectly complement specific wine choices.

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Mandarin Combustible Bar

Bar, Cocktail Bar, Wine Bar, Restaurant, Pub Grub, Russian, European, Asian

With world-class cocktail experts behind its bar, Mandarin Combustible is undoubtedly one of Russia’s cocktail gems, located not too far from Red Square. It is a spacious venue decorated beautifully, and it serves up wines and classic drinks crafted to perfection. For a memorable night out with your loved one, Mandarin Combustible is a winner.

15 Kitchen + Bar

Restaurant, Bar, Russian, Australian

Both a bar and a restaurant, 15 Kitchen + Bar is the perfect spot to enjoy a good drink with friends, especially if you want to make a great impression. Not only does this venue offer a varied selection of Russian cocktails, it also specializes in Australian cocktails as well. It has a relaxing vibe and good music, so you can’t go wrong. A good time is guaranteed!

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The 50 best bars and drinks in Moscow

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NC State basketball coach Kevin Keatts opens bar in Wilmington. What to know before you go.

A new, high-profile business partnership has taken over two popular existing bars and restaurants in downtown Wilmington. They’ve also launched a new concept – a high-end piano bar at the corner of Front and Dock streets.

Here’s what you need to know. 

Who are the owners? 

Clayton Gsell joined forces with coach Kevin Keatts when they learned they were both considering opening a piano bar near Wrightsville Beach. Keatts is the former basketball coach at University of North Carolina Wilmington and most recently led N.C. State University’s team to the Final Four in the 2024 NCAA Division I men's basketball tournament this spring. Gsell is a local businessman who has opened and developed a number of concepts, including restaurants. 

What’s the new bar? 

The pair have opened Tempo 33, a piano bar and cocktail lounge on the third floor of the Roudabush building that’s also home to YoSake and The Husk . Keatts and Gsell decided that downtown was the best location for what they had in mind, a unique and elevated bar. Look for lounge-style seating, intimate live music from singers and pianists, and a dressy casual vibe. 

More: Downtown Wilmington restaurants reopen after fire, as new owners launch piano bar

Where is it and when is it open? 

It’s at 33 S. Front St. in downtown Wilmington. The lounge can be accessed by stairs on Front Street or an elevator off Dock Street. As of Aug. 23, the bar is opening at 5 p.m. Thursday, Friday and Saturday. 

What’s the menu? 

There's a selection of beer and wine, but spirits and cocktails are a focus. Options include a scotch flight, a Lavendar Paloma, a Cinnamon Churro dessert martini, a Cachaca Spritz and the Millions of Peaches bourbon cocktail made with Old Forrester 100 and peach bitters. The Nightcap mocktail is a mixture of hibiscus tea, lemon, lemongrass, lavender and a thyme-infused ice cube. 

The food menu includes small plates and bar snacks, like charcuterie, hummus and shrimp cocktail. Popular nibbles include the Truffle Parm Popcorn and the Tres Amigos, or chips with salsa, guacamole and queso. 

STAY CONNECTED:   Keep up with the area’s latest food news by signing up for the  Port City Foodies newsletter  and following us on  Facebook  and  Instagram . 

Allison Ballard is the food and dining reporter at the StarNews. You can reach her at [email protected]

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If you can find these 5 secret Moscow cocktail bars, you deserve a drink

3. Mendeleev

Although technically a speakeasy, Mendeleev is hardly a secret watering hole for anyone who knows Moscow well. That doesn’t make the experience any less authentic, though – just getting in is a story in itself, as it’s located at the back of the shabby-looking Lucky Noodle takeaway. Don’t let that fool you though; you need to look your smartest to stand a chance of getting past the bar’s stringent face control (in the form of a suspicious-looking guy in front of a black curtain in Lucky Noodle).

If the stars align and you manage to get into Mendeleev, you’ll be treated to absurdly decorative concoctions cooked up by expert mixologists, all to the backdrop of the joint’s classy, low-ceilinged, stone archway interior. Music-wise, it’s up to you – head there on a weekend for techno and house, or check it out on a weeknight for piano music and jazz.

Whatever you do, just don’t turn up in a football jersey.

Where:   Petrovka 20/1 

When:   Sunday-Wednesday (6pm-1am), Thursday (6pm-3am), Friday-Saturday (8pm-6am)

Website:   http://www.mendeleevbar.ru/

If you’re looking for a hidden bar where you can dance, look no further than this artsy hangout. A project by mixologist Nikolai Volotov located under Moroccan joint Café Tagine, Golova puts a special emphasis on the music, inviting experimental DJs from all over the world on a regular basis. The party atmosphere here has made it a buzzing place for young locals, who are no less accustomed to drinking fantastic cocktails.

The only downside to Golova (as pretty much anywhere in Moscow, to be fair) is its ruthlessly stylish dress code policy. Check out the bar’s   Instagram   page to get an idea of how to dress before heading there.

Where:   Trubnaya St. 15

When:   Wednesday-Friday (6pm-4am), Saturday (8pm-5am)

Website:   https://www.facebook.com/golovabar/

5. Chainaya. Tea & Cocktails

Once ranked the 28 th   best bar in the world, Chainaya takes its secrecy to a whole new level, as it refuses to have any signage, and bookings are only made possible either by having the right contacts, or by calling in advance and getting lucky. However, if you’re committed enough and manage to land yourself a place, you’ll be served arguably the best cocktails in the city.

A brainchild of bartender supreme Roman Milostoviy, the man behind the menu in Mendeleev, this former teahouse offers a distinct Chinese and tea-inspired flavor to its tipples, made only more notable by the bar’s Shanghai-themed imperial décor and bona fide tucker. Intimate, exclusive, and harmoniously tranquil, Chainaya is exactly the kind of off-the-beaten-path, authentic gem which Moscow does best.

Where:   1-ya Tverskaya-Yamskaya St. 29

When:   Tuesday-Thursday (6pm-1am), Friday-Saturday (6pm-3am)

Website:   https://www.instagram.com/chainayateandcocktails/

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