33 Pros & Cons Of Starting A Bar (2024)

Updated: January 18th, 2023
Start A Bar

Please note that the data provided in this article are estimates and may vary depending on various factors, and should not be considered as perfect or definitive.

Trying to understand the pros and cons of starting a bar?

Here are all of the pros and cons of selling food and drinks online:

Learn more about starting a bar:

Where to start?

-> How to start a bar?
-> How much does it cost to start a bar?

Need inspiration?

-> Other bar success stories
-> Examples of established bar
-> Marketing ideas for a bar

Other resources

Pros Of A Bar

Pros Description

Meaningful business connections

You never know who you will meet as a bar. This could be the start of an incredible business opportunity!

High margins

The gross margins for your bar are typically around 70%, which is considerably high and allows you to grow your business and manage costs easily.

Daily physical activity

Bar's typically involve a much greater degree of movement than other lines of work. Most days, you will spend your day walking, running errands for your business, and performing a multitude of tasks. This can have a positive impact on energy levels and your overall health.

Amazing perks and discounts

Working in the bar comes with its perks! As a seller for these products/services, you typically also get to enjoy industry perks and discounts.

You are your own boss!

With starting a bar, you are the one to make decisions for almost all of the operations. Calling the shots can be empowering and liberating!

Local Community

One of the best parts of starting a bar is that you can develop a local following by selling your products at craft shows, farmers' markets, or even local storefront businesses! This gives you access to additional revenue streams and loyal customers.

Location is everything!

When operating a physical storefront, the location often speaks for itself and serves as it's very own marketing tool! It's important to choose a location in a high traffic area so you can spark curiosity and get people through your door!

Face to face interaction

If you are the type of individual that thrives on human interaction, then this is the business for you! With a bar, you will be hands-on with customers and or employees every day.

You can sell your product in various places!

There are various different markets to sell your product, which will help you reach different audiences and revenue streams.

Simple business model

A bar has the advantage of a simple business model, which makes launching and building the business more seamless.

You get to do something you truly love

With starting a bar, you get to put your energy into something you are truly passionate about! You'll find yourself devoting as much time and energy as possible into the business to make it successful.

You can decide who you work with

Gone are the days of working in a toxic work environment with employees that you may not vibe with. As a small business owner, you get to decide who you work and surround yourself with.

Travel Opportunitites

There are many travel opportunities that come with starting a bar You will need to travel a lot to see and experience some of the destinations you are selling.

Easy to Learn The Business

When starting your bar, there is a ton of information readily available to you online (Facebook groups, Youtube videos, Starter Story etc). This will help you get the business started and answer any questions, doubts or concerns you may have.

Never a dull moment

With starting a bar, there is truly never a dull moment. Your job offers a lot of variety and allows you to meet interesting people from all walks of life.

Various different ways to make money

With starting a bar, there is not just one business model to choose from. This field is amazing in that there are various different ways to make money. Although this may complicate things, it's great to have different options and sources of revenue.

Cons Of A Bar

Cons Description

Crowded Space

Competition is high when it comes to your bar, so it's important that you spend a good amount of time analyzing the market and understanding where the demand lies.

Motivation of employees

If you plan to have a sales/content team on board, finding creative ways to motivate them can be a challenge. It's important that you're able to offer great incentives and a good work environment for your employees.

High employee turnover

In the bar, employee turnover is often high, which can be quite costly and time consuming for your business. It's important to try and avoid this as much as possible by offering competitive pay, benefits, and a positive work environment.

Stressful work

This line of work can be stressful for both you and your clients. This type of transaction is a significant financial decision for your client, so expectations are very high for you. Although this career path can be very rewarding, it also comes with its challenges and stressful moments.

High overhead expenses

With starting a bar, there are overhead expenses that come with selling a physical product. You will want to make sure you strategically budget for these overhead costs. We discuss this more in the startup costs section below.

You may need to charge sales tax

If you are selling your products in various states, you may be required to charge sales tax. Although this may not impact your financials specifically, it can be a headache to create a process and procedure for this. To learn more about sales tax, check out this article

Time commitment

With starting a bar, all responsibilities and decisions are in your hands. Although this is not necessarily a negative thing, work life can take over at times. This can place a strain on friends and family and add to the pressure of launching a new business.

Strict regulations

With any bar, there are strict rules and regulations as it relates to processing your product. You must follow these regulations specifically, or significant legal issues could occur.

Impatient customers

You may offer an engaging user experience for your customer, but customers expect a lot and may be impatient if they aren't pleased with your product or service.

Be prepared to get out of your comfort zone!

Although this is exciting for some entrepreneurs, it can be a big challenge for others! You may find yourself in uncomfortable social and business situations, jumping into tasks and responsibilities you aren't familiar with, and pushing yourself as far as you can go!

More of a challenge to run your business from home!

Running your business from the comfort of your own home is a big appeal for many entrepreneurs. With a bar, you are more likely to run your business out of your office or storefront space.

Work is not always glamorous

With starting a bar, you may need to get your hands a little dirty. Although it may seem glamorous from the outside to start this business, the work can require a lot of physical activity and repetition.

Easy target for criticism

Since your bar has the ability to reach a large audience, you'll need to be able to handle criticism. The internet can be a cruel place, and regardless of your intentions, many people will disagree with you and even take their criticism too far. To survive in this industry, you'll need to have tough skin (or at least learn this along the way).

The job can be demanding

This is one of the major disadvantages starting a bar. It's important to understand that you may need to make yourself available on a 24/7 basis.

You may need to relocate

There can be a lot of opportunities that come your way when starting a bar. Although moving around can be fun and exciting, it can also be physically and emotionally taxing for you and loved ones.

Answering Phones

The bar is still considered a traditional business, which means answering phones is a big part of the job. If you or your team miss phone calls, you could be missing out on potential revenue opportunities. If you are unable to attend to your phone throughout the day, it would be in your best interest to hire a call center or an employee dedicated to this.

Recession-Impacted Industry

When the economy is down, bar's are one of the first things to be cut.