There are many bars that go out of business each year. This is because the market for new bars is a challenging one. If you are in an area that has new bars opening all the time and a clientele who is always seeking the latest thrill, you need to work extra hard to ensure that your establishment stays exciting enough. There are many small details that can mean the difference between a bar that is merely surviving and one that is prospering beautifully. In this chapter, you will learn the small details that can push your success higher than ever. Not all of these tips are expensive. Many take only ingenuity and some effort, but the results can be spectacular!
Distinguishing Your Bar from Others
One of the first steps to ensuring that your bar is a success for a long time to come is to look around and make sure that you are offering value in the local area. Most of your business will be from people who can easily drive, walk, take a cab, or ride a bus to your bar. These same patrons will have the choice of many other bars in the area. There are a few ways to make sure that they select your bar:
Research the competition. Take the time to sit in every competing bar. After you order your drink, take notes: Who frequents these bars? Older patrons? Younger patrons? Yuppies? Tradespeople? What sort of bar is it? How much do they charge? What does the bar look like? What are the drinks and food offered? What are the promotions? What kind of entertainment is offered? How busy are they and on which night are they busiest? What are they doing wrong? What are they doing right?
Consider lower prices. If your competitors' prices are high, consider lowering yours. It will often get people to try your establishment for the first time. Your service and the quality of your bar will decide whether
they return.
Service. If your bar is known as the friendliest bar in town while your competitors tend to slack on service, you will make a profit. If your competition is already offering great service, you have to make your service stellar in order to compete.
Focus on what the competition is doing wrong. If you notice something that the competition is doing wrong, make sure that your bar is doing that same thing right. It will encourage patrons to see your bar as the local establishment that offers more.
Set your hours to take advantage of times when your competition is not available. If the competition stops food service early, think about extending your food service hours. Being able to provide something that the competition cannot or is not willing to provide is a great way to make sure that you lure in new regulars.
Do you know what the local patrons want? If you do not ask them and conduct regular market research, you have little hope of knowing the very things that will draw patrons to your bar.
Look at the bars that are succeeding elsewhere. What works in other cities and towns may work in yours. Pay special attention to the types of bars that are doing well in areas similar to your own (in towns or cities with the same demographics). These bars may have hit on an idea that may work well in your area as well.
Special promotions. Avoid using your best ideas and resources trying to compete on someone else's strongest night. Offer special promotions and discounts on nights when other bars are not offering anything. It will help lure in customers looking for something great on a slower night.
Remember, if you can offer something special, you are more likely to get more customers. It pays to make the extra effort to find out what is needed in your area—and then supply that need. Customers will flock to you.
This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:
Industry studies have consistently shown that a full 25% to 30% of a bar's liquor inventory never converts into registered sales. That is the equivalent of about six to eight 1.25 oz portions per bottle (which should yield at least 25 portions.) This loss of liquor volume--due to unauthorized comps, over-pouring, spillage or theft--should be of great concern to any bar manager. 
A typical beverage operation generates a constant stream of data and information, endless columns of figures and daily records. But you'd be surprised how few managers actually do anything with these figures, let alone fully grasp their implications. So how can you tell if you're operating profitably? The answer is you can't, unless, of course, you get to grips with some basic mathematics. For a start, you'll need to know how to perform a few simple calculations, such as working out an item's cost percentage. You don't need to be a mathematician to figure the following straightforward formulas:
Sensitive pricing can make or break your operation. Pricing decisions should never, ever, be made arbitrarily. It is crucial to achieve that fine balance between pricing for optimum profits and making customers feel that they're getting value for money. Of course, you want to sell the drinks at their optimum sales volume, but if you tip the balance by raising the sales price too high, the sales volume will actually drop. So will the profits.
The service bar is an area of the bar dedicated to the servers only. If designed well it can greatly improve the flow of drinks from the bar to the customers. Alternately, if your service bar is not designed well, it can add yet another delay in an already-crowded process. When setting up a service bar, the things that should be considering are:
Simplicity over pretention. While bars that employ top-notch mixologists offering creative drinks will continue to attract more and more customers, you can also expect a trend towards simplicity. As David Wondrich put it in Nation’s Restaurant News, “The biggest trend I see is bringing mixology down to the fun/dive-bar level.” Expect to find well-made, “sophisticated” drinks in friendlier, “less sophisticated” surroundings.
Making a good mixed drink isn't always a matter of A + B = C. In fact, there are numerous small details that can contribute to turning your creation into something just that little bit better than the norm and, more still, that can help you keep your ingredients at peak freshness and productivity. Consider the following:
The difference between a good and great martini is very small, but very important. The quality of your cocktail menu should be of paramount importance to you. The methods by which those cocktails are prepared should be a point of pride for all concerned.
Going mobile. Google projects that mobile devices will overtake PCs as the most common Web-access device by 2013.The ubiquity of smartphones and tablets makes it imperative that Websites be mobile-friendly. As many of these devices either do not support or have trouble playing Flash content (which has become a staple of restaurant, nightclub and bar sites), you would be well-served to optimize your site to take advantage of the rapidly growing number of mobile users who rely on their iPhones and iPads to find where to go for a drink or a bite.
Electronic cigarettes. Electronic cigarettes are becoming more and more ubiquitous. These electrical devices, which produce a flavored aerosol mist that simulates tobacco smoke, have become popular both as a way of quitting tobacco and as a way for smokers to kinda feed their habit in places where actual smoking is prohibited. Expect e-cigarettes to become a more common sight in bars and nightclubs in 2012. Also expect them to be sold more widely in drinking establishments. Not only do these devices provide an added revenue stream, they may actually have the added benefit of keeping smokers inside and drinking.
Herb-infused spirits. Whether they be whiskies, vodkas or gins are gaining herb-infused drinks are gaining in popularity. Expect gin, especially, to continue to make a splash as both large producers such as Bombay and a slew of new micro distilleries continue infuse this old stalwart with fresh and interesting botanicals.
Seasonal and flavored beers. While nothing new, seasonal and/or flavored beers are starting to gain traction.
Value. After several years of economic recession, consumers have acquired a taste for value wines. They are seeking bang for the buck—not cheap inferior wines, but good, well-balanced, flavorful wines at an affordable price. With many of these wines coming from Spain and South America, expect Spanish, Chilean and Argentinian wines to continue to grow in popularity.
