Profitability of Bars
Bars can make a lot of money. That’s because they can mark up alcohol costs by 500%. Gross profit margins at bars reach 80%. The average bar owner earns $330,000 in annual revenue. Expenses average $24,200 monthly. That leaves about $39,600 in net profit per year.
Do bar owners make good money?
The bar and nightclub industry is a huge, growing market. Opening a bar can look attractive. But how much do bars make? And does that profitability trickle down into bar manager salary and bar owner earnings?
Costs and Revenue of Bars
On average, it costs $24,000 per month to run a bar. The average bar owner salary is $70,000. As a bar owner, you’ll make $36 per hour, $6,247 per month, or $74,791 per year.
A bar makes between $25,000 and $30,000 per month. The gross and net profit depend on how well the bar is managed. If your revenue is $20,000 to $30,000 per month, a bar owner can make $5,000 to $10,000 per month.
Factors Affecting Bar Profitability
What makes a bar successful? Service, décor, drinks selection, and food contribute to make a great bar.
The most profitable type of bar typically depends on the region it is located in, the target demographic, the available resources, and the specific type of bar and drinks being served. Upscale bars in urban areas can also be quite profitable due to their higher prices and more exclusive atmosphere.