The Advantages of A Wine Bar

Cheap supermarket booze, a drop in income and sky TV are all driving us away from town bars. In the last few weeks alone I know of three bars in my town who have closed their doors. Nationally up to 50 pubs a week are closing. If you are a bar owner you need to take heed of this advice.

It is almost impossible at present to make any money from running a bar. If you think of all the fixed costs that you have with the bar, namely the rent, heat, light, rates, lease costs on equipment, none of which are cheap, it can cost you hundreds each week before you open. 호스트바

You have staff costs as no-one can run a bar alone all day everyday, including cleaning, stocking, re-ordering, serving etc. So you need at least two bar staff a  shift and you will probably have to run two shifts. If you do food, and I suggest that you have to to make a decent return, you have all the costs associated with that. It is now thousands a month that you need.

If you are running the bar as a tenant of a pub co, you will be obliged to purchase your beer wines and spirits from your landlord, at largely inflated prices to those you would pay if you could source your stock yourself. This of course puts you at a disadvantage from other similar outlets to you who are not tied in as they can pass on their discounts in the form of lower prices for the same product, which is what some drinkers are interested in.

Many bars find that they simply cannot make turnover meet costs. The Chancellor in his wisdom has decided that alcohol duty will rise over the next five years at the same time as pub spend is dropping. This will only make matters worse.

The solution for many is simply to close the doors and never re-open them. In my experience so far some pub co’s are not helping by dropping rents and taking the stance that they will instead have a closed pub or bar, until they can find others to move in.

Others however are taking insolvency advice early, and being helped out of their debt by either an administration, where the company is placed in protection whilst the going concern element of the business is prepared to be sold on immediately to a new company. The bar then continues to trade normally whilst the lease is re-assigned to the new company, staff are transferred and assets bought and transferred in.

The old debt is left with the old company, and the bar has a new lease of life.

It is not a panacea however as the old trading conditions which caused the problems with the first company still exist, but at least contingencies can be put in place and the company will not be saddled with historic debt.

 

Leave a Reply

Your email address will not be published. Required fields are marked *