By Karin Jakovljevic | December 28, 2016 1:18 pmCategories:
Running a bar can be a very exciting and profitable venture. However, running a bar can also be challenging at times. In fact, about 60 percent of new restaurants close within the first year. This means that if you are going to be opening a new bar, it is very wise to make sure that you know what you are doing, and to avoid some of the most common mistakes in the bar industry. Here are some of the top mistakes to avoid when running a bar.
1. Bad Location
No matter how great your bar is on the inside, or how amazing your menu is, if your bar is difficult to get to, and if it is in a bad location, then it is most likely going to cause problems for you. Your bar needs foot traffic. The more inconvenient it is for people to get to it, the less people that you will likely get to come to your bar.
It can also be a problem if your bar is in a very high-end area with high rent prices, and you are not making enough money. So, for your location, look for a balance of reasonable rent, and high traffic.
2. Not Enough Promotion
If your bar is very new, then it is going to need a lot of promotion. People need to know that it exists! So make sure you know how to promote a bar, and that you are well versed in bar advertising before you open.
Effective marketing for your bar will involve using many different channels and promotions. You can use social media, make a website, place ads on radio stations, offer loyalty programs, create exciting events, have signature spirits, etc. Anything that creates a buzz in a positive way can help to promote your bar. Great service and a great menu can also help you to generate positive Yelp reviews. These can be very helpful as well.
3. Employee Theft
Employee theft can be a major problem at bars. The reason is because it is often very easy for employees to steal expensive bottles of liquor, or to give away free drinks or food. If your employees do this on a regular basis, then this can add up to quite a lot of money. This can create substantial financial problems for your bars. To discourage employee theft, you can put video cameras up in your restaurant, and inform your employees of their presence.
You can also get a POS system which can keep track of all of your sales and inventory. Both of these things can be incredibly helpful for preventing employee theft.
Opening a new bar can be difficult, but if you avoid these major mistakes and pitfalls, then your bar will have a much higher chance of success. So, remember to choose a great location, promote your bar effectively, and avoid employee theft, and you could be well on your way to bar operation success!