Complete Guide to Setting Up a Profitable Bar: Essential Equipment and Tips

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🍺Opening a bar is very good business as we see a bright future in this Industry. Everyone likes to enjoy time in a bar, drinking, chilling, and venting out their stress, which makes the bar business grow exponentially.

However, there is tough competition in the market as we see new bars and restaurants opening every single day everywhere. But, we all are aware of how profitable this business is, and at the back of our minds, if you are thinking of opening a bar and have no idea how to set up a bar or how to choose the right equipment for the bar, Then, here are detailed steps you need to follow for a fully functional bar with the right equipment.

Tips To Create a Business Plan For Setting Up A Bar

Every business requires to have a business plan written on paper so as to give the right direction. Moreover, having a plan enables one to progress systematically without chaos or mistakes. The business plan does not just show what you are planning to do but also gives you time to process your thoughts about the business. Your business plan should include:-

  • What is your business purpose?
  • Who will be your target customer?
  • What will you serve?
  • How will you process your bar business setup?
  • What is your marketing strategy?
  • How will you fund your bar? Whether you will have a loan or savings to start your business.

Moreover, creating a business plan for a bar business, along with giving direction to progress, also helps to attract investors and banks. In addition, having a good and clear plan will help you make your business partner understand your concept and goal of the bar business.

11 Most Important Tips To Develop A Bar Business Concept

Before investing in the bar business, you need to develop a concept of how you want your bar to be. There are a few things you need to decide prior to setting up a bar.

1. Decide The Type Of Bar Business You Want To Have

The first and foremost thing about setting up a bar is to decide which type of bar you want to open. There are many options you can choose from, like neighbourhood bars, sports bars, beer bars, speciality bars, clubbing bars, and others.

2. Decide The Business Structure You Want To Have For Your Bar

After deciding the type of bar, it’s important to determine the best structure option for your bar to grow and make a profit. In addition, you may choose to buy an existing bar or create your own bar. You may also choose to remodel the existing bar or buy a franchise of any famous bar.

3. Study Your Target Customer And Analyse The Market

Customers are very specific about their interests, so it’s smart to study your target customers and build your business according to their interests. Moreover, you need to analyse the market competition and know what your competitors are doing so that you can create a unique concept. In addition, it’s important to make market strategies to overcome your competitors and make a profitable business.

4. Decide The Right Location

After getting to know your target customer, find the location in the area accessible to your customers. Moreover, location plays a crucial role in the success of business and with the right approach, you can grow your bar and rise exponentially. In addition, there are a few points to consider before finalizing your location:-

  • Choose the location based on the bar concept and design. The location should have sufficient space to execute your ideas.
  • Choose the location according to the customer you want to attract.
  • Your location should be accessible to the customers.
  • The location should fit into your budget as it is not the only expenditure you have to make to set up your bar business. Thus, act according to plan.

5. Registration And License For Your Bar Business

Every business needs proper registration to run smoothly. Moreover, the registration process varies on the location, which means the state or country where you are opening your bar. However, before registering your business, you need to decide which type of business you want for your bar. It includes:-

  • Sole proprietorship
  • Corporation
  • General partnership
  • Limited liability corporation

In addition, there are a series of processes you need to carry out to register your bar business and get a license.

  • Business name: Choose a business name which is unique and catchy. In addition, it should be something that reflects the concept of your bar and attracts customers to see what’s inside.
  • Obtain Employer identification number: You can complete this step online via the IRS portal.
  • Liquor license: Visit the Alcoholic beverage control of your area and fill out the application form for a license. It would take 45-60 days to process, and you will get a license within 30 days.
  • Food service license: You will have a food service license if you want to serve food along with drinks.
  • Register with TTB for special occupational tax.
  • Fire license and others

6. Partner With The Right Supplier

Finding the right supplier is crucial, as having the appropriate drinks to satisfy customer demand is critical for your business’s success. In addition, having good suppliers and distributors gives your business an extra edge. However, there are a few things you should keep in mind before finalizing the supplier:-

  • References in the market
  • Look for their experience in the bar industry
  • Their payment and minimum order system

7. Design Your Bar

Design the bar in such a way that the place is fun and aesthetically unique, as these qualities make you different from others and attract a large customer base.

In addition, design the bar to justify your concept and the name of your bar. Also, focus on design that feels appealing to the target customer. Your design layout should be such that it gives you ample space and focuses on interiors, sitting areas, and others.

8. Decide The Menu

The menu represents your business, so it should be attractive and presentable. Moreover, design the menu in such a way that reflects the theme of your bar. Decide the name of the food and drinks you want to serve uniquely. Menu engineering is very important for your business to succeed. Thus, the pricing should be considered, considering that it should be affordable to customers yet make food profit.

9. Choose The Right Bar Equipment

There is always confusion on how to choose the right equipment for the bar as there are numerous tools and equipment. Thus, here is the list of some important bar equipment necessary at the start of the business. Eventually, you may add the others as your business progresses.

  • You must have bar counters with drainboards and sinks
  • Cooler and refrigerator system
  • Bar stools and chairs
  • Music system
  • Tv system
  • Ice crusher, ice in, ice scoop
  • Liquor well, keg system
  • Blenders, mixers, shakers and strainers
  • Speed bottles pour tops, corkscrews, and others
  • Storage, shelving, glass racks
  • Glasswares of different types and glassware washer
  • Cutting instruments
  • Mats and cleaning rags
  • Basic liquors
  • Serving plates and other cookwares

However, if you are confused about where to get all this equipment, do not worry, as Hadala Kitchen is the best bar equipment platform where you get high-quality equipment from verified sellers.

Moreover, after getting the right bar equipment, you need to focus on furniture and other décor items.

10. Hire Your Staffs

After deciding on the major part of your business, you need to focus on the crucial part, which is hiring staff. Moreover, hiring good staff is a make or break of the business. Thus, hire your staff according to the size of the bar and their role in the bar. It’s good to invest in good chefs and bartenders as they get you repeat customers.

In addition, choose experienced bartenders who can act according to different customers and fulfill their demands easily. Choose capable managers, accountants, bartenders, chefs, waiters, and ground staff.

11. Marketing Strategies

Marketing your bar business is very important to increase the customer flow. As the place is new, so marketing is important to make your bar a familiar place. Moreover, there are many marketing strategies you should follow to make your bar popular:-

  • Spread opening news via social media handle
  • Invite local influencers on opening day
  • Distribute pamphlets in the local areas and display hoardings in the neighborhood.
  • Offer discounts and secret deals on your social media handle.
  • Offer complimentary to the first 50 customers and engage them to share posts on social media.
  • Start happy hour to attract more customers
  • You can have many contests, special deals, and thematic discount days.
  • You may also collaborate with popular businesses.


Starting a bar business is nail-biting. But, once you plan it properly and have the right guidance, then it is the best business for entrepreneurs to invest and grow.

Moreover, like other food businesses, the bar business is also vast and needs many things to be considered before starting the business.

Thus, opening your bar is financially rewarding and fascinating but requires a lot of hard work and brainstorming at the start. The business, along with glory, comes with high risk as it is a very competitive industry, and it is very hard for newcomers to succeed and make their mark in business.

However, the above details will guide you in setting up a fully functional bar with the right bar equipment and investing in the right direction to grow and reach heights.

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