How To Start A Bar In New York

You’ve decided to start your own bar in New York. While congratulations are in order, you’re not quite there yet. You’ll need to do the groundwork and know what it takes to run a successful business before you can open your doors. You must have a solid vision in place covering everything from your business plan and financing to license requirements and marketing.

Ready to become a successful bar owner? This guide will walk you through everything you need:

1. A Solid Vision and Business Plan

Many businesses fail because they don’t have a solid vision backed up by a sound business plan. Your plan should include the following:

A strong mission statement
Your bar concept and design
Your beverage and food menu plus pricing strategy
Market analysis and research
Startup costs and financing
Choice of business entity – partnership, sole-proprietor, or LLC

We created a step-by-step guide to write your business plan here.

2. Concept, Design, and Location

Part of your strategy for opening a bar in New York is having a strong concept and design plan that will attract your target market. You need to have a clear picture of what type of bar you want to operate and who will be your clientele.

Design

Once you’ve decided on your concept – brewpub, neighborhood bar, tavern, sports bar, or nightclub – you’ll be ready to move on to bar design. What type of ambiance and character do you want your customers to experience when they walk into your bar?

When you know the answer to this, you’ll be ready to choose your bar name and plan your décor. Factor in the following to match your design to your brand:

Floor plan and seating
Furniture and tabletops
Lighting
Color and wall art
Glassware

If you need some inspiration, check out these bar design ideas.

Location

Location plays a massive role in the success of your new bar. You want to choose an area that your target market frequents. Look for places where people are already mingling, such as downtown areas with plenty of foot traffic. Another location to consider is a neighborhood that is lacking in entertainment venues. Your marketing strategy could target those customers who live close to your bar.

Don’t forget to consider accessibility for your patrons and parking. If your bar isn’t easy to get to, customers will find one that is.

3. Startup and Operating Costs

You’ll need to outline your startup and operating costs to know exactly how much financing you need to open your doors and keep your business afloat for the first year.

Startup costs

Your startup costs will vary depending on if you’re opening a new bar or taking over the premises of an already established bar. Typical startup expenses include:

Operating reserve for one year
Renovation costs
Bar and kitchen equipment
POS system for payment and inventory
Insurance
Licenses, permits, and other legal costs
Mortgage and rent payments
Emergency and miscellaneous funding

Operating costs

Your operating costs are what it will take to run and maintain your bar for the first year that you’re open. Typical operating expenses include:

Alcohol and food inventory
Employee salaries
Utilities
Advertising and marketing
Accounting expenses and office supplies
Maintenance and repairs

You can get a full cost breakdown of starting a new bar in this article.

4. Financing Your Bar

When opening a new business, you need to have a clear, realistic budget in place and figure out how much financing you need. Add up all the startup and operating costs and create an estimate of how much it will cost you to keep your bar open for one year. It’s best to over-capitalize and not underestimate your startup financing. To ensure enough funding for that crucial first year, add 10-20% to your forecast.

Once you know how much financing you need, do you have enough of your own capital to start your bar and get it running? Do you need to reach out to banks or investors? Knowing exactly how much financing you need will ease the process of finding investors or applying for a business loan.

5. New York Liquor Licensing and Permits

As a new bar owner, you should figure out what types of licensing and permits you’ll need before opening your doors. To protect yourself and your employees, make sure you’re aware of all the regulations and rules that go along with starting a bar in New York.

Liquor license

You’ll need a liquor license to sell any type of alcoholic beverage in the state of New York. The first license to obtain is at the federal level from the Alcohol and Tobacco Tax and Trade Bureau (TTB).

Along with the license from the TTB, you’ll require an On Premises (OP 252) license at the local level in the state of New York from the Alcohol Beverage Control (ABC) agency to sell alcoholic beverages to your customers.

Wait times to obtain liquor licenses from both the TTB and ABC agency in New York state can often take a couple of months or longer to process. You’ll want to submit your applications as soon as possible, so you don’t risk delaying the opening of your bar.

When going through the process of getting your New York liquor license, consider hiring an experienced lawyer to help you navigate all the paperwork and fully understand all the requirements needed for approval. For information on requirements necessary to file, visit the ABC site specific to an On-Premises license.

Food license

If you’re going to be serving food, you’ll need a Food Service Establishment Permit. This will allow you to prepare and provide food for your clientele.

Renovation permit

If you plan on renovating before you open, you’ll need a Department of Buildings permit. Talk to a contractor about what you need to do to apply for this permit.

6. Hire Your Team

Hiring the right employees you can trust is key to providing great customer service for your clientele. Make sure your new staff is aligned with your vision for the bar and that they have excellent people skills. Get your team together well in advance of your opening day, so you have plenty of time to train.

Your team should include:

A reliable and responsible bar manager
Experienced and personable bartenders
Efficient and friendly servers
Experienced kitchen staff

Recommended reading: 19 Ways to Motivate Your Bar Employees

7. Accounting, Inventory, and Payment Process

To keep things running smoothly, you’ll need to implement a process for accounting, inventory, and taking payment.

Accounting

You can do it yourself with accounting software designed for bars or hire an accountant. No matter what method you choose, an accurate accounting system lets you know exactly where you stand with your finances each month. You’ll be able to make adjustments where needed so that you can improve your cash flow and overall business decisions.

Inventory

Gone are the days of doing your inventory manually. Instead, you can rely on inventory software designed for the bar industry. This software can help you control and manage your alcohol inventory. You’ll know when you’re running low on stock and it’s time to order so you don’t end up taking popular items off the menu on a busy night.

POS payment system

Investing in a POS system will help you and your team stay on top of orders and payments from your customers. Take your time looking for the right POS for your bar, choosing one that best simplifies your business operations with these features:

Creating open tabs with the ability to add items to the ticket
The ability to split the check between customers
Credit and debit card preauthorization
Tip percentage suggestions
Detailed reports
Inventory management

Here’s a breakdown of the top 5 POS systems for bars right now.

8. Advertising and Marketing

Don’t forget to factor in your advertising and marketing plan when starting your New York bar. Be sure to advertise the opening and then transition into ongoing marketing, so you keep that clientele coming in even after your grand opening. Hosting an opening party is an excellent way to bring attention to a new bar.

One of the most important ways to market your business is by having an online presence so your customers can easily find it. Create an inviting website that showcases your bar, staff, and the drinks you serve, such as your signature cocktail.

You’ll also want to build your profile on social media platforms such as Facebook, Instagram, and Twitter. This is a good way to reach new customers and outshine your competition with your savvy advertising and promotions.

Lastly, encourage your customers to write reviews on platforms such as Yelp. Just make sure that you respond to this customer feedback within 24 hours to show that you’re paying attention and are available to meet their needs.

9. The Essentials

When you have all the legal and operating requirements in place, you can start taking care of the other essentials, such as finding suppliers, buying bar equipment, and planning your menu.

Use this checklist to help you finalize your opening:

Liquor suppliers

Make a list of the beers, drinks, and wines you want to serve in your bar, and then find the best suppliers for these products. Here are some qualities to keep in mind when choosing a supplier:

Has the selection of the brands you want to serve
Offers discounts and payment terms
Provides a minimum order purchase
Is reliable with delivery dates
Can provide references from other bars and nightclubs.

Bar equipment

You’ll need a few basics to serve drinks:

Liquor dispensers
Blenders
Ice machine and bins
Glassware
Glasswasher
Bartending tools
Floor and bar mats

Check out this article for a full list of bar tools and equipment.

Food and kitchen equipment

If you’re going to have a food menu, you’ll need a well-equipped kitchen with all the essentials for cooking:

Food inventory for all menu items
Ovens and grills
Fryers
Cooking utensils
Plates and cutlery

Final Thoughts

Your startup plan for opening your bar can make or break your business. New York is a competitive city, but we’ve equipped you with all the basics and essential information you need to make your new bar a success. Follow these guidelines and put in the work to make your dream a reality, and you’ll soon be rewarded with customers and a business that runs smoothly.

1. A Solid Vision and Business Plan