How Much Do Bar Owners Make? And Other Essential Questions

Bar ownership is a dream for many potential owners, but it’s critical to learn as much about the industry as possible before getting started. So, how much does a bar owner make in a year? Owners can plan on seeing an average bar revenue of about $330,000 annually before expenses, with a wide range of income based on multiple variables.

• What are the key factors for bar growth?
• What are the associated income and expenses of bar ownership?
• How can I optimize bar operations?

Beginning with these questions helps future owners understand the bar industry from the ground up and can give them a solid foundation for growing their business.

An Expanding Industry Brings Expanding Opportunity

Generally speaking, though, bar ownership can be a growth enterprise. The industry is expanding, with a presence in every sizable community in the U.S., an annual market of more than $36 billion, and a growth rate of 3% over the past year alone.

2. What Are the Key Factors for Bar Growth?

All bars have their own blend of features and appeals, and it’s those aspects that can influence overall bar development and growth:

What approach does the bar take, how does it connect with its customers, and where is it located?

Location, Customer Base, and Theme

Location can be a decisive factor in bar growth. Look for brands that place their business where their customers work and play to give the bar the tools for expansion.

Bar customers themselves are of particular importance when it comes to growth. Ensure that the bar’s theme and approach mesh with its target customers’ preferences and adjust as needed to help the business connect with its guests and create a loyal and growing customer pool.

3. What are the Associated Costs and Expenses of Bar Operations?

Any exploration of the question, “How much do bar owners make?” must include more than net income. Every bar has costs to take into account that affect final income, beginning with fixed expenses.

Here are some typical fixed bar expenses:

• Utilities, including gas, electricity, water, and internet
• Rent or mortgage, which can vary significantly based on location
• Licenses and permits for liquor and food sales, music, occupancy, and more
• Insurance, including general liability, liquor liability, and worker’s compensation

Variable Expenses for Bar Ownership

Variable bar expenses, as the name suggests, change depending on conditions and needs. Owners should keep these costs in mind when calculating bar revenue and assign an average monthly expected cost to each one to help them avoid surprises.

Here are some of the more common variable bar expenses:

• Supplies, including liquor and food
• Labor costs depending on the number of employees
• Costs of goods sold, which can vary significantly
• Advertising and marketing to raise the bar’s profile and keep it growing

4. How Can I Optimize Bar Operations?

A future owner asking, “How much do bar owners make?” can influence the answer themselves, of course. There are many options to help new owners build their businesses and support future development when they start a bar.

The overriding factor that can affect bar revenue is the customer base. Look for a brand that recognizes how essential it is to create a quality customer experience and dedicates the franchise to creating it for every guest with each visit.

Focus on the Customer Experience

Customer service is one of the keys here — the guest should always feel like the most important person in the place, with quick service and regular check-ins. The menu needs to reflect this approach as well, with a lineup of bar grill classics that satisfy.

Making entertainment a priority can be an effective way to create an appealing environment guests want to come back to experience again. Make every seat in the house the best one for watching the big game, with screens on every wall and darts, pool, and more ready for customers to enjoy with their friends.

Find Out as a Hotshots Sports Bar and Grill Franchise Owner!

Building a bar franchise designed for growth in the modern market takes industry expertise and an understanding of today’s customers. That’s what we bring to the owner journey at Hotshots Sports Bar and Grill.

We’ve built a brand that focuses on giving customers a superior guest experience every time they visit. We have established ourselves as a community hub and destination for great food and good times wherever we open our doors.

Hotshots is expanding, and we’re looking for potential owners to join us.

Want more information? Contact us today!