How to Open a Bar or Tavern
Safety and health concerns have reduced the amount of alcohol that people drink. Tastes, however, have grown more sophisticated. Visiting a bar is increasingly becoming a social activity. As a result, being good at mixing drinks is no longer the sole skill required to run a bar or tavern. What you need is some aspect that sets you apart from the crowd. The procedure of obtaining a license is probably the most tedious part. Hence, it's important to start this well in advance, almost as soon as you have your business plan in place.
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Instructions
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Check out local needs. Survey the type of bars and taverns in your locality. Talk to locals and find out if they feel the lack of a particular quality in the existing bars. Perhaps the entertainment scene is not too great or they'd like to meet with friends to watch some sport while they drink. Find a niche to target your efforts.
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Select the type of bar or tavern. Use the feedback you get to decide your type of business. Talk to someone you know who's already running a bar. Find out the merits and risks involved in the various types. Talk to suppliers to find out about local tastes. Decide how you're going to arrange for the financing -- a nightclub with dancing and entertainment will cost more to establish. Determine what exactly you wish to serve and how you're going to do it. This information is necessary to decide the type of license you'll need.
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Apply for a license. Get in touch with the local office of the Alcohol and Tobacco Tax and Trade Bureau. Find out if you need a federal permit or an occupational tax stamp and then apply for it. Visit the website of your state's liquor licensing authority. Find out the class of license you need for the type of establishment you've decided to start. States differ in the manner and timeline of processing these licenses -- in some places, it may take up to a year.
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Pick your location. Contact a real estate agent and look around a few properties. Select a location and do the paperwork for leasing it. Make sure you choose a place that has enough parking space for your patrons.
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Check local regulations. Find out if your county or city requires you to have a business license. Check with local officials regarding the area zoning regulations. Get information about whether you require a conditional use permit, which states the requirements for operating the business.
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Tips & Warnings
Subscribe to industry magazines to learn of the latest trends in the bar business.
If you're planning to open a tavern, check with your state's liquor licensing authority about the requirements. Some, but not all, states specify that a tavern should sell food items along with alcohol.
