How To Launch A Neighborhood Bar
by Arnab Dey Business Development 24 April 2023
The old song lyrics speak the truth about our favorite bars,
You want to go where everyone knows your name.
A neighborhood bar is special because the neighborhood customers take ownership of it, whether they legally own it or not. It becomes a place of solace, entertainment, arguments, and endless evenings of laughter.
Here Are Six Prime Steps To Launch A Neighborhood Bar
In this article, we’ll walk through the necessary steps for you to launch a neighborhood bar.
Step 1: Conduct Market Research
Conducting research involves surveying the neighborhood to gain insight into the likes and preferences of potential customers. What do they want in a neighborhood bar? What types of beverages are most appealing? Asking questions helps define your plan for the bar and it also signals the best place for you to create a unique concept that will drive traffic to your bar.
You’ll want to create signature drinks and compatible fare that will attract customers every night of the week. Researching current trends will help the bar stay ahead of the competition, as well. Conducting market research will allow you to make informed decisions about pricing, unique offers, differentiation, and creating a truly unique experience for your neighborhood friends.
Step 2: Create a Business Plan
A completed business plan is an essential and effective step in the process of launching a neighborhood bar. A well-crafted bar business plan template will outline your mission and objectives, create marketing strategies to support them, establish objectives for assessing progress and provide interested investors and lenders to view your pitch and review your business plan.
Step 3: Secure Funding
Launching a bar isn’t a low-risk proposition; it takes a considerable amount of money to launch a bar. Approaching lenders or investors may seem even riskier, considering that many entrepreneurs are rejected by both.
While building your business plan, you’ll approach both lenders and investors, although they have differing goals. The lender will want to offer funding, often with a down payment, along with interest and a set schedule for payback.
An investor will want to become part of your business, often requesting up to 15-20% of ownership, although the funding will not have to be repaid. Both offers are laden with positives and negatives; consider your pathway through these offers carefully and thoughtfully.
Step 4: Develop Solid Marketing Strategies
Developing and marketing a solid strategy is no easy task. A neighborhood bar needs only a certain level of influence and marketing throughout the neighborhood, so it might take a door-to-door stroll throughout the streets to offer discounts and invitations to the launch party, or a well-designed website can be developed with multiple offers and amenities listed there.
You’ll want to appeal to everyone with familiar fare and favorite beverages. Becoming the area’s best neighborhood bar isn’t always easy; but the more the bar conforms to life in the neighborhood, the better and more long-lasting the clientele will enjoy the way.
Step 5: Hire Experienced Staff Members
Hiring experienced staff is a vital part of running a successful bar. Professional bartenders and servers will understand the ambiance and customers within a neighborhood bar and conduct business accordingly.
Staff members can help with marketing efforts by creating relationships with bar patrons and engaging in conversations to ask what customers would like in the bar, special beverages that they’d like to see, or food fare they’d like to taste. The ease with which everyone acts at a neighborhood bar sets the stage for such transparent conversations.
Step 6: Final Steps to Launch Your Bar
Prior to launch, there are some final steps to take to make your bar an instant favorite. First, create an appealing atmosphere where “comfort” is the main theme. Install comfortable swivel bar chairs, low tables with chairs holding soft cushions, low lights, and other mood-setting options.
The neighborhood bar does not have to be high-end; it does, however, have to be inviting and comfortable for everyone, lest the evenings end early. Consider the seating arrangements and build into the floor plan some very creative touches to delight bar patrons. Ensure the interior of the bar is an overall inviting one and get ready to receive guests.
When everything is set in place, ask the bartender to craft beverages with distinctive and delicious flavors. Offer local names to make the beverage unique and offer tastings to new customers as a fun treat.
Launching a neighborhood bar can be exciting and challenging at the same time, but it will also be the favorite place for those in the neighborhood, knowing the bar is one step away from home.