How Much Does It Cost to Open a Sports Bar?
If you dream of a packed bar of cheering fans hoisting frosty beer mugs while shouting encouragement at big-screen TVs, opening a sports bar might be the right business move for you. Running a sports bar can be profitable, but restaurant and bar businesses can be expensive to open.
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Overall
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It may cost between $10,000 to $50,000 to open a sports bar in 2011, according to Entrepreneur.com. More lavish establishments may have costs ranging from $250,000 to $1,000,000, especially if extensive location remodeling will be required or liquor licenses highly competitive, according to attorney Eric C. Belanger of Endeavor Legal Attorneys at Law.
Permits
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You'll need a business license and liability insurance to open a sports bar. Establishments selling food, such as nachos, hamburgers, chicken sandwiches or other bar food options will need to file for a food permit. Apply for a beer-and-wine license to save money at the start and speed up application approval processes; or prepare to invest tens of thousands of dollars for a liquor license to include hard alcohol for preparing margaritas, Long Islands and celebratory shots for customers to take after touchdowns or field goals.
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Outfitting Location
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As with any restaurant or bar, sports bars require shelving for alcohol bottles, bar stools, tables and chairs. Bars require ice scoops, shaker tins, glassware, cash registers or point-of-sale computer systems. One of your biggest investments will be media technology, including flat-screen or high-definition TVs, quality sound systems and satellite TV. Because customers expect technology at least equal to what they have at home when paying for food and drink at a sports bar, you'll need to regularly update audio and visual systems. Sports bars have a high cash flow, so consider purchasing and installing a security camera system to deter theft or discourage brawls when a favored sports team loses.
Staff
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Payroll remains an important cost for sports bars. In addition to bartenders, bar backs help cut fruit for drinks and keep ice wells stocked. If your sports bar contains a kitchen, you'll need a cook, food prep assistant and dishwasher. Consider hiring security guards for high-profile sports events such as playoffs or end-of-season competitions to ensure that guests stay safe. Other employee expenses include an accountant and general manager for running the business end of the sports bar.
Marketing
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Sports bars rely on marketing to compete with others bars and establish a presence in the community. Marketing costs can include printing business cards and fliers, building a website and hiring a photographer to take professional-quality photos of menu items. Other sports bar marketing efforts might include placing ads in the newspaper sports section, sponsoring a local athletic team or hosting special deals (such as promotional sports jerseys, baseball caps or T-shirts) during big games.
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References
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