Initial Investment
To open a bar, start with a budget of at least £20,000. Rent costs range from £3,250 to £6,500 depending on location. Pub start-up costs are £20,000-£50,000. This covers fixtures, fittings and a deposit if you cannot pay your drinks bill. On average, opening a bar costs $110,000-$850,000 depending on whether you are renting or buying. Buying an established bar is less expensive.
Profitability and Costs
Clubs have average monthly and annual incomes. Profit levels vary considerably between pubs:
- A community pub with a £8,000 weekly turnover may have a £4,000 gross profit and £3,000 in operating costs.
- A town centre bar/pub with a £10,000 weekly turnover may have £5,000 in gross profits and £3,000 in operating costs.
Running a bar is expensive, and unforeseen expenses can occur. Salaries are a significant cost, so ensure you have at least 6 months of payroll available.
Legal Requirements
You need licensing and insurance to open a bar/pub in the UK. Bars need alcohol licenses from local councils. Consider obtaining food-handling, music, health, safety and building permits if renovating.
Recommended Foods by Profitability
Top bar foods by profitability:
- Bars without kitchens – pizza
- Bars with limited table space – burgers
- Bars with kitchens – pasta
- Bars open early/late – breakfast
Strategy and Savings
Consider hiring yourself at first to save money. Invest to afford the over £100k likely needed to open an eatery. For instance, open an investment account and learn to invest. Setting up a stocks and shares ISA helps save.