HBAR - Creating and maintaining a bar business
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This document provides guidance on establishing and managing a successful bar business. It discusses identifying the target clientele and designing the bar concept, atmosphere, and decor to attract them. Specific customer types are outlined, including diners, drop-ins, and regular patrons. Location selection and market feasibility are also addressed. The document emphasizes that every element of the bar business, from drinks to staff to layout, should work together to create a coherent image and experience for the target clientele.
HBAR - Creating and maintaining a bar business
- 1. Page 1 Creating and Maintaining a Bar Business Hbar - M.Aldana
- 2. Page 2 The Right Bar Environment • The atmosphere • The decor • The efficient use of space • The bar itself
- 3. Page 3 The Bar Industry • The F&B industry is famous for its volatility and often for the magnitude of individual failure.
- 4. Page 4 The Bar Business • Success and failure of the business can’t always be blamed on the economy or the location. • Sometimes, success and failure is a consequence of management and planning.
- 5. Page 5 TARGETING YOUR CLIENTELE
- 6. Page 6 Targeting your clientele • The starting point for designing a successful bar is to identify its target clientele: – Whom do you want to attract and serve? – Who will generate the profit to pay your bills? – Whose enjoyment will be enough to keep you working hard at this business?
- 7. Page 7 Targeting your clientele • Customers are the focal point around which everything else revolves: – The atmosphere – Decor – Entertainment – Sound – Lighting – and even the drinks you serve
- 8. Page 8 Targeting your clientele • Customers also influence: – Your location – Your floor plan – Your bar equipment – And the kinds of staff members you hire
- 9. Page 9 Targeting your clientele • People go to bars for various reasons, bringing with them different needs and expectations. • Drink is not the primary motive; after all they can buy any beverage they want at any store for much less money.
- 10. Page 10 TYPES OF CUSTOMERS
- 11. Page 11 Diners at restaurants where drinks are served • These diners come to enjoy a good meal and a drink whether in a form of a cocktail, wine an after-dinner drink, or all three. • Although the food is the primary focus, people often want to drink an alcoholic beverage too.
- 12. Page 12 Drop-in customers who are on their way elsewhere • Typically, they want refreshment, a quick pick-me-up or a stress reliever after a day’s work. • In this case, the drink is the focus, the customer has one or two at most, then is on the move again. • People who are waiting to board the train, plane or are meeting someone belong here
- 13. Page 13 Meet-and-go customers • These individuals are looking for a relationship connection, whether a date for the evening or a longer-term plan. • They go to singles bars or “meet” bars that are attractive to similar individuals. • They stay long enough to meet someone with whom they would like to spend the evening
- 14. Page 14 Entertainment seekers looking for relaxation, stimulation or a change of pace • They frequent bars, lounges, clubs, and restaurants where entertainment is offered, whether it is live music, games, and/or dancing. • They may visit several places or spend a whole evening in one place
- 15. Page 15 Sports fans / Cigar fans • Sports bars / Cigar bars • People want to commune with individuals who share their interests
- 16. Page 16 Regular patrons of neighborhood bars and taverns • These folks are interested in enjoyment and relaxation too, but their primary desire is for companionship.
- 17. Page 17 The clientele • Most customers fall into one or more of the said groups. • The moods, tastes and interests of the groups differ, and the people tend to differ in background and lifestyle.
- 18. Page 18 Women • As purchasers and consumers of alcoholic beverages, women exert a powerful influence, which is destined to become even greater in the years to come.
- 19. Page 19 Baby-boomers • People born between 1946-1964 • Many of these are on their 50s or 60s and are in the prime of their careers. • Unlike their parents, boomers refuse to think themselves as old or even middle aged.
- 20. Page 20 Baby-boomers • Spends 23 percent more than the average person on restaurant dining • They may work out to stay in shape, at least partly so they can enjoy certain food and beverages • Boomers are relaxed and open about drinking, and they do not hesitate to take their children with them when they dine out.
- 21. Page 21 Baby-boomers • Baby boomers also tend to be partial to intense flavors in their foods and beverages and are willing to pay higher prices for specialty beer and premium wines and liquors. • They are both knowledgeable and critical about their foods and beverages so servers themselves need to know a lot about wine, beer and cocktails.
- 22. Page 22 Generations X and Y • Constitute 21% of the workforce quickly moving from college (many have at least their bachelor’s degree) into jobs and incomes that took their parents years to achieve. • Web-based marketing is a critical component of any marketing plan for these technologically savvy customers.
- 23. Page 23 Generations X and Y • About 68% drinks alcohol – 50% of which prefer beer – 36% distilled spirits – 10% wine – The rest all three
- 24. Page 24 Generations X and Y • This group also represents the most frequent imbibers: – 13% drinks once a week – 26% once a month
- 25. Page 25 Generations X and Y • However, this group also grew up with the “just say no” mentality, which includes a message to drink responsibly • They also grew up knowing about microbreweries and gourmet coffees, so they are adventurous and not especially brand-loyal
- 26. Page 26 Connoisseurs and Sophisticates • Customers who are truly well informed, enjoy food and wine as a serious hobby or vocation, and often know more than most bartenders or servers. • Offering these customers a wide selection of wines and spirits is simply not enough. • Some are now hiring a sommelier, building a wine cellar, and stock an impressive selection.
- 27. Page 27 Connoisseurs and Sophisticates • The sophisticated customer is willing to pay for style, cleanliness, and a well- trained service staff.
- 28. Page 28 Market Segment • A single definable group, whose members will have similar reasons for visiting a bar, and shapes the entire enterprise to attract and please this group.
- 29. Page 29 THE BAR’S IMAGE
- 30. Page 30 Image • Sets you apart from competitors • A special character that your bar exudes that will entice people to visit instead of your competitors.
- 31. Page 31 Image What kind of energy will your bar exude? What springs to customer’s minds when your bar is mentioned? What they anticipate when they arrive? What lingers in their memory afterward? What will keep them coming back and bringing their friends?
- 32. Page 32 Concept • In today’s most successful bars and restaurants, uniqueness may begin with a signature drink, but it is carried through as a carefully planned concept.
- 33. Page 33 Concept • To ensure success, you need an overall concept that can tie all of the elements of your bar together. • A concept should begin with an idea that can be stated simply. • Decor, lighting, menu, and service will all be developed in keeping with the concept.
- 34. Page 34 The Bartender or Mixologist • An integral part of any bar’s image is the bartender or mixologist. • Someone at the pinnacle of creative salesmanship, a friendly face with an impressive repertoire. • Knows how to mix dozens of different drinks quickly and well, yet has time for a joke or a chat and will remember your name.
- 35. Page 35 Food • Another factor in creating an image for a bar is the type of food you will serve. • Guests will linger longer where there is good food. • Offering food is also part of responsible alcohol service.
- 36. Page 36 LOCATION AND MARKET FEASIBILITY
- 37. Page 37 Choosing an Area • A crowded area has its advantages. • On the other hand, such areas can become saturated when too many new ventures try to imitate the success of their predecessors.
- 38. Page 38 Estimating Customer Potential • Determine whether enough of your target market customers live in or frequent the area to support your concept. • Compile population demographics: population density, age, gender, occupation, size of household, income, ethnic makeup, money spent dining out, etc.
- 39. Page 39 Sizing Up the Competition • Examine closely potential customers. • How well are the customer’s needs and desires already being met and even more important, how could you serve the chosen clientele better?
- 40. Page 40 Selecting a Site • Does it have good visibility? • Is there adequate public transportation nearby? • Is there plenty of parking? • Is it easy to reach?
- 41. Page 41 Consider the Structure? • Freestanding building or part of a complex? • Check out licensing, zoning and other restrictions of the area
- 42. Page 42 Determine Financial Feasibility • Analyze the financial feasibility of your projected business for the chosen site and market area. • Estimate the capital needed for land and building, furnishings and equipment, opening expenses, as well as reserve for operating at a loss in the beginning • Make a detailed projection of sales and receipts against fixed and variable expenses
- 43. Page 43 ATMOSPHERE AND DECOR
- 44. Page 44 Atmosphere • The atmosphere will determine who comes to buy drinks from you, how long they stay, and whether they come back and bring their friends.
- 45. Page 45 Atmosphere • Why do people go to bars? – They don’t go just to drink, they go to relax, to socialize, to rendezvous with old friends or meet new ones, or perhaps to be alone with a special person. – They go to escape their everyday mood and scene. – transport them from a world of problems, deadlines, and frustrations to a world of pleasure
- 46. Page 46 Decor • The physical surroundings are important. • They create the first impression, set the stage, and strike the keynote. • The kind of decor you choose will be the visual expression of its mood.
- 47. Page 47 Decor • Soft colors and rounded shapes are restful; bright colors and bold patterns are stimulating. • Mind the soundscape: carpets, drapes, upholstered chairs, and fabric covered walls can mute noise of all sorts.
- 48. Page 48 Decor • High ceilings give a sense of space; low ceilings make a room smaller and more intimate. • Soft lights and candlelight send messages of intimacy, romance and intrigue. • Bright and/or flashing lights are appropriate to noise, crowds, action and excitement.
- 49. Page 49 LAYOUT AND DESIGN
- 50. Page 50 Layout and Design • Layout should jibe with the critical factors: customers, services, atmosphere and efficiency. • Providing employees with a functional space in which to work quickly and accurately.
- 51. Page 51 Trends in Bar Design • Bar tops are widened to accommodate table settings. • An advantage of offering lunch or dinner at the bar is: money, tips are better for bartenders and servers and the average check is higher.
- 52. Page 52 Trends in Bar Design • Gastro Pub – a bar that also offers world- class lunches and dinners. • Concept Bar – the goal of the decor is to whisk patrons away to a new or exotic locales. • Participatory Bars – where customers are part of the action, whether they play pool, video games or sing karaoke.
- 53. Page 53 BASIC ELEMENTS OF LAYOUT
- 54. Page 54 Available Space • The amount of space available includes the square footage, shape of the area, position of entry and exit(s) and whether it will be shared with dining, dancing or live entertainment.
- 55. Page 55 Activities and Traffic Patterns • Consider the movement of people in the room, as well as their reasons for their motion. – Entry and exit, visit to restrooms, telephones, coatroom, or just going around
- 56. Page 56 Activities and Traffic Patterns • A good layout will establish efficient traffic patterns to and from the bar for table service, and from the kitchen and service areas for dining services as well as customer entry and exit. • The goal is to achieve an orderly flow, minimizing potential collisions and general chaos.
- 57. Page 57 Activities and Traffic Patterns • A good layout will also consider clientele, mood and ambience. • The position of the bar itself can boost liquor service or intentionally understate it.
- 58. Page 58 Furniture • Furniture should be chosen in relation to the total bar concept. • Bar stools and lounge chairs should look inviting and be comfortable. • You can control the rate of customer turnover simply by the degree of comfort of the seat cushion.
- 59. Page 59 Utilities, Codes and Licensing Restrictions • Consider: – Plumbing – Electrical – Heating and air conditioning – Disabled persons
- 60. Page 60 THE BAR: SIZE, SHAPE, PLACEMENT
- 61. Page 61 Parts of the Bar • The Front Bar – the customer area, where drinks are ordered and served. • The Backbar – has a dual function: as a decorative display and a hard-working storage space • The Underbar – where most of the equipment and supplies are arranged
- 62. Page 62 The Bar Floor • Should consider the bartender’s comfort and safety. • Nonporous surface, such as tile or sealed concrete to meet sanitary requirements. • Rubber or plastic mats minimize slippage.
- 63. Page 63 Materials and Upkeep • Aluminum and nickel can be damaged by salt • Slate countertops absorb juices and wines and require periodic sealing • Plastics discolor or turn foggy when exposed to sunlight • Stainless steel surfaces scratch easily and show fingerprints
- 64. Page 64 Bar Size, Shape and Position in the Room • Size your bar to accommodate space and equipment needs. • Bars can be many different shapes: straight, curved, angled, horseshoe, round, square or freeform. It involves factors such as: room size, shape, mood, decor and function.
- 65. Page 65 Bar as Control Center • The bar serves as your control center – it is where you keep records of the stock on hand, the types, and quantities of drinks poured and their sales value. • The most important piece of equipment in the bar: the cash register or Point-of- sale (POS) is at the core of the control system.
- 66. Page 66 Smaller Specialty Bars • Service Bars – a bar that pours for table service only, usually in conjunction with foodservice. • Portable Bar – an extension of a hotel’s beverage service in banquets, meetings, receptions, conferences, and conventions.
- 67. Page 67 Assignment • Using the internet, look for interesting bar concepts. • Include a picture of the bar, what makes it interesting, its clientele, etc. • To be submitted on December 16, 2015 • On a short-bond paper.