A bar and grill business is a restaurant where both alcoholic and non–alcoholic drinks are served along with grilled beef, chicken, turkey, bacon, pork, fish, corn, et al. Grilling or roasting is done slowly over low, indirect heat and the food is flavored by the smoking process. The bar and grill restaurant industry is an important segment in the restaurant industry in the United States.
The chain restaurant sector that the bar and grill business is part of in the United States was valued at approximately 128.99 billion U.S. dollars in 2020, down from the previous year’s total of 158.86 billion U.S. dollars.
Steps on How to Start a Bar and Grill Business
Table of Content
Conduct Market Research
If you are considering starting a bar and grill business, you would need reliable market research to be able to maximize profits from the business. The first step in the market research process for your bar and grill business should be to develop market-based research questions in line with your overall business goal and objective.
In this regard, you should source information that will help you maximize your business, information that will tell you what your potential market is looking out for from a bar and grill business, and also help you operate your bar and grill business with less stress.
a. Who is the Target Market for Bar and Grill Business?
- Sportsmen and women
- Corporate executives
- Business people
- Every adult in the neighborhood where your bar and grill business will be located.
b. Is Bar and Grill Business a Profitable Business?
Yes, the bar and grill business is a profitable business. The revenue generated by bar and grill businesses in the United States is put at $2 billion annually.
c. Are There Existing Niches in the Industry?
No, there are no existing niches when it comes to the bar and grill business because the bar and grill business is a niche idea in the chain restaurant industry.
d. Who are the Major Competitors?
- A J’s Bar & Grill
- Main Street Bar & Grill
- The Hideaway Grill
- Gotham Bar and Grill
- Tiki’s Grill & Bar
- Rainbow Bar & Grill
- Grant Grill Lounge
- Weber Grill Restaurant
- Highlands Bar and Grill
- Moonstone Beach Bar & Grill
- Arlington Rooftop Bar & Grill
- Wipeout Bar & Grill
- Porter House Bar and Grill
- Doc Ford’s Rum Bar & Grille – Sanibel Island
- Down Under Bar & Grill
- Grill 23 & Bar
- Redmond’s Bar and Grill
- Madisons New York Grill & Bar
- Sunset Grille & Raw Bar
- Miracle of Science Bar & Grill
e. Are There County or State Regulations or Zoning Laws for Bar and Grill Business?
Yes, there are county and state regulations and zoning laws for bar and grill businesses in the United States. Note that the Food and Drug Administration (FDA) sets the federal Food Code, however, the FDA doesn’t oversee individual bar and grill businesses. Instead, the various states use the Food Code as the basis for their food codes. They may adopt its rules, interpret them differently or set their own rules.
Please note that in the United States, you are required to follow your own state’s food service code. Visit the FDA website for a list of food service codes by state. Use this to find the state authority handling restaurants and bars and view the laws that apply in your state.
f. Is There a Franchise for Bar and Grill Business?
Yes, there are franchise opportunities for the bar and grill business, and here are some of them;
- Mighty Quinn’s BBQ
- Beef’O’Brady’s – Sports Pub Franchise
- Old Chicago Pizza & Taproom
- Juniper Grill
- Buffalo Wild Wings
- Quaker Steak & Lube
- Glory Days Grill
- Buffalo Wings & Rings
- Hotshots Sports Bar and Grill
- Black Rock Bar & Grill.
g. What Do You Need to Start a Bar and Grill Business?
- A Feasibility Report
- Business and Marketing Plans
- Business Licenses and Permits
- A Good Restaurant facility
- EIN (Employer Identification Number)/Federal Tax ID Number
- A Corporate Bank Account
- Suppliers of ingredients
- Startup Capital
Memorable Bar and Grill Business Names
- Hunger Box© Bar and Grill Business, Inc.
- Madison Bob® Bar and Grill Business, LLC
- Delicious© Bar and Grill Business, Inc.
- African Roots® Bar and Grill Business, Inc.
- Right Way™ Bar and Grill Business, Inc.
- Vincent Oscar™ Bar and Grill Business, LLC.
- First Taste© Bar and Grill Business, LLC
- Bonny Moore® Bar and Grill Business, Inc.
- George Shannel© Bar and Grill Business, Inc.
- Day Fresh© Bar and Grill Business, Inc.
- Luke Excel® Bar and Grill Business, LLC
- Night Life® Bar and Grill Business, LLC
- Lowey Martins™ Bar and Grill Business, LLC
- Bally Blanco© Bar and Grill Business, Inc.
- Hip Hurray® Bar and Grill Business, Inc.
- Holland Boise™ Bar and Grill Business, Inc.
- Randy Morgan™ Bar and Grill Business, Inc.
- The Den© Bar and Grill Business, Inc.
- Zed Ex® Bar and Grill Business, LLC
- Bonny Lance™ Bar and Grill Business, Inc.
Register Your Business
a. What Type of Business Structure is Best for Bar and Grill Business?
The truth is that there are several options when it comes to the business structure of a bar and grill business, but the one that most players in this line of business consider is an LLC. It is common to consider an LLC because providers want to protect themselves from lawsuits. Please note that an LLC will need an EIN if it has any employees or if it will be required to file any of the excise tax forms listed below.
b. Steps to Form an LLC
- Choose a Name for Your LLC.
- File Articles of Organization.
- Choose a registered agent.
- Decide on member vs. manager management.
- Create an LLC operating agreement.
- Comply with other tax and regulatory requirements.
- File annual reports.
c. What Type of License is Needed to Open a Bar and Grill Business?
- General Business License
- Health and Safety Permit
- Food Handlers’ License
- Zonal Permits
- Signage Permit
- Operational State Facility Inspections
- A live entertainment license if you want to provide entertainment such as live musicians or offer dancing or karaoke.
- A music license if you want to play live, recorded, or streaming music in your bar and grill business
- A dumpster placement permit that specifies where you can put your trash dumpster outside your bar and grill business
- A valet parking permit if you plan to offer valet parking for customers
- Sidewalk permits if you plan to offer outside seating
d. What Type of Certification is Needed to Open a Bar and Grill Business?
You don’t need any certifications to open a bar and grill business.
e. What Documents are Needed to Open a Bar and Grill Business?
- Business and liability insurance
- Federal Tax Payer’s ID
- State Permit and Building Approval
- Certificate of Incorporation
- Business License
- Business Plan
- Employment Agreement (offer letters)
- Operating Agreement for LLCs
- Insurance Policy
- Contract Document
- Company Bylaws
- Memorandum of Understanding (MoU)
f. Do You Need a Trademark, Copyright, or Patent?
If you are considering opening a bar and grill business, usually you may not have any need to file for intellectual property protection or trademark. This is because the nature of the business makes it possible for you to successfully run the business without having any cause to challenge anybody in court for illegally making use of your company’s intellectual properties.
Cost Analysis and Budgeting
a. How Much Does It Cost to Start a Bar and Grill Business?
There is no clear-cut startup cost for a bar and grill business, but available data shows that the cost of starting a bar and grill business ranges between $75,000 to over $350,000.
b. What are the Costs Involved in Starting a Bar and Grill Business?
- Business Registration Fees – $750.
- Legal expenses for obtaining licenses and permits – $1,300.
- Marketing, Branding and Promotions – $1,000.
- Business Consultant Fee – $2,500.
- Insurance – $1,400.
- Rent/Lease – $55,000.
- Other start-up expenses like commercial satellite TV subscriptions, stationery ($500), and phone and utility deposits ($1,800).
- Operational Cost (salaries of employees, payments of bills et al) – $30,000
- Start-up Inventory – $15,000
- Store Equipment (cash register, security, ventilation, signage) – $1,750
- Furnishing and Equipping the Restaurant and Kitchen – $50,000
- Website: $600
- Opening party: $3,000
- Miscellaneous: $2,000
c. What Factors Determine the Cost of Opening a Bar and Grill Business?
- The size of bar and grill business
- The choice of location
- The required licenses and permits
- The type of facility
- The type of products retailed in the restaurant
- The cost of hiring and paying a business consultant and attorney
- The cost for branding, promotion, and marketing of the bar and grill business
- The cost for furnishing and equipping the bar and grill business
- The cost of insurance policy covers
- The cost for registering the business
- Source of your supplies and ongoing expenses
- Cost of recruiting and training your staff
- The cost for the purchase and customizing of uniforms
- The cost of the grand opening of the bar and grill business
d. Do You Need to Build a Facility? If YES, How Much Will It Cost?
It is not compulsory to build a new facility for your bar and grill business, but if you have the required finance, it will pay you to build your own facility. The truth is that building or reconstructing a restaurant facility will help you come up with a facility that will perfectly fit into your overall business goals.
e. What are the Ongoing Expenses of a Bar and Grill Business?
- Supplies (inventory expenses)
- Utility bills (internet subscriptions, phone bills, signage and software renewal fees et al)
- Salaries of employees
f. What is the Average Salary of your Staff?
- Restaurant Manager (Owner) – $45,000 Per Year
- Accountant – $32,630,000 Per Year
- Barman – $30,800 Per Year
- Grillers – $30,000 Per Year
- Waiters and Waitresses – $28,100 Per Year
- Cleaners – $25,000 Per Year
- Security Guard -$24,000 Per Year
g. How Do You Get Funding to Start a Bar and Grill Business?
- Raising money from personal savings and sale of personal stocks and properties
- Raising money from investors and business partners
- Sell shares to interested investors
- Applying for a loan from your bank/banks
- Source for soft loans from your family members and friends.
Write a Business Plan
a. Executive Summary
Zed Ex® Bar and Grill Business, LLC is a registered bar and grill business that will be located in one of the busiest residential districts in Garland, Texas. We have been able to lease a restaurant facility along a major road and the restaurant facility is located in a corner piece property directly opposite the largest residential estate in Garland, Texas.
b. Products and Service
- Barbecued beef, fish, bacon, pork, chicken, and turkey et al.
- Alcoholic and non-alcoholic drinks
- Bottled water.
c. Mission Statement
Our mission is to build a world-class bar and grill business that will meet the needs of our customers in the regions/cities where we have our outlets and to sell franchises all across the United States of America and Canada.
To be amongst the top 10 leading bar and grill restaurants in the United States of America before our 10th anniversary.
d. Goals and Objectives
The goals and objectives of a bar and grill business are to maintain a strict cost-control policy. General cost-control goals set by most bar and grill restaurant owners include maintaining food costs at or below 33.3 percent and beverage costs at or below 25 percent of the revenue they generate.
e. Organizational Structure
- Restaurant Manager (Owner)
- Waiters and Waitresses
- Security Guard
a. SWOT Analysis
- Ideal location for a bar and grill business
- Highly experienced and qualified employees and management
- Access to supplies of alcoholic and non-alcoholic drinks
- Unique grill recipe.
- Reliable and efficient inventory management system.
- Financial constraints may restrict the publicity and branding of the business
- Our new business will be competing with well-established bar and grill restaurants in the city.
- Inability to retain our highly experienced and qualified employees longer than we want during the teething stage of the business.
- A rise in the number of grilled food lovers within our market space
- Online market, new services, new technology, and of course the opening of new markets.
- The arrival of a new bar and grill business within our market space
- Economic uncertainty
- Liability problems
- The U.S. Food and Drug Administration (FDA) could change its regulatory status and decide to enforce strict regulations that can strangulate new businesses like ours.
b. How Do Bar and Grill Businesses Make Money?
Bar and grill businesses make money by selling the following products;
- Barbecued beef, fish, bacon, pork, chicken, and turkey et al.
- Alcoholic and non-alcoholic drinks.
- Bottled water
c. Payment Options
- Payment via bank transfer
- Payment with cash
- Payment via credit cards
- Payment via online bank transfer
- Payment via check
- Payment via mobile money transfer
- Payment via bank draft
d. Sales & Advertising Strategies
- Introduce your bar and grill business by sending introductory letters alongside your brochure to corporate organizations, households, sports organizations, gyms, schools, socialites, celebrities, and other key stakeholders throughout the city where your bar and grill business is located.
- Advertise on the internet on blogs and forums, and also on social media like Twitter, Facebook, LinkedIn to get your message across
- Create a basic website for your business to give your business an online presence
- Directly market your products.
- Join local bar and grill business associations for industry trends and tips
- Provide discount days for your customers
- Advertise our business in community-based newspapers, local TV and radio stations
- List your business on yellow pages ads (local directories)
- Encourage the use of word-of-mouth marketing (referrals)
a. How Much Should You Charge for your Product/Service?
The price of drinks and grilled food depends on the size and type of grill food, and the brand of drink but the average price of a beer in the U.S. is $4.75.
b. How Much Profit Do Bar and Grill Business Owners Make a Year?
The profit a bar and grill business owner is expected to make in a year depends on some factors, but available reports show that most bar and grill restaurants bring in profits of between 7% and 13%. Therefore, a restaurant with annual revenue of $800,000 will have net profits somewhere between $56,000 and $104,000.
c. What Factors Determine the Amount of Profit to Be Made?
- The capacity of the bar and grill business
- The types of grilled foods and brands of drinks retailed in the restaurant
- The location the bar and grill business is covering
- The management style of the bar and grill business
- The business approach of the bar and grill business
- The advertising and marketing strategies adopted by the bar and grill business.
- The number of years the bar and grill restaurant is in business.
d. What is the Profit Margin of a Bar and Grill Business?
The profit margin of a bar and grill business is not fixed. On average, bar and grill businesses tend to have an overall profit margin of between 7% and 13% annually.
e. What is the Sales Forecast?
Below is the sales forecast of a bar and grill business. It is based on the location of the business and other factors as it relates to such startups in the United States;
- First Fiscal Year: $320,000
- Second Fiscal Year: $450,000
- Third Fiscal Year: $600,000
Set Up your Restaurant
a. How Do You Choose a Perfect Location for Bar And Grill Business?
- The demography of the location especially as it relates to people that eat grilled foods regularly
- The demand for drinks and grilled foods in the location
- The purchasing power of businesses and residents of the location
- Accessibility of the location
- The number of bar and grill businesses, and related businesses in the location
- The local laws and regulations in the community/state
- Traffic, parking and security et al
b. What State and City are Best to Open a Bar and Grill Business?
- Las Vegas, Nevada
- Los Angeles, California
- New York City, New York
- San Francisco, California
- Washington DC
- Chicago, Illinois
- Dallas-Fort Worth, Texas
- Atlanta, Georgia
- Boston, Massachusetts
- Palm Beach, Florida
c. What Equipment is Needed to Operate a Bar and Grill Business?
You will need grill making machines (propane smoker, and grilling machines et al), cooking table, cooking utensils, storage hardware (bins, utensil rack, shelves, food case), Counter area equipment (countertop, sink, ice machine, etc.), receipt issuing machines, Sound System (For playing music),
Point of Sale Machines (POS Machines), CCTV Cameras and Flat Screen TVs. You will also need computers or laptops, internet facility, telephone, and office furniture (chairs, tables, and shelves) amongst others and all these can be gotten fairly used.
When it comes to hiring employees for a standard bar and grill business, you should make plans to hire a competent restaurant manager (you can occupy this position), account clerk, barman, grillers, waiters, and waitresses, cleaners, and security guard.
Launch the Business Proper
In recent times, no bar and grill business opens its door for business without first organizing an opening party to officially launch the business. You can choose to do a soft opening if you are operating on a low budget or you can go for a grand opening party.
The bottom line is that with a proper launching of the bar and grill business, you will be able to officially inform people in your city that your bar and grill business is open for business.
a. What Makes a Bar and Grill Business Successful?
- Choose a good location and restaurant facility to launch the business
- Make available several recipes of grill foods and alcoholic and non-alcoholic drinks (give your customers options)
- Throw a party before officially opening the bar and grill business
- Be deliberate with your marketing sales approach
- Encourage the use of word of mouth to promote your bar and grill business
- Leverage on all available online and offline platforms to promote your bar and grill business
b. What Happens During a Typical Day at a Bar and Grill Business?
- The restaurant is open for the day’s work
- The kitchen, ingredients, serving areas, serving wares, chairs, and tables are cleaned and properly arranged
- Walk-in customers are attended to
- Deliveries of orders are made
- Stocks are taken and reports are written and submitted to superior officers
- The business is closed for the day.
c. What Skills and Experience Do You Need to Build a Bar and Grill Business?
- Excellent customer services skills
- Interpersonal skill
- Accounting and bookkeeping skills
- Business management skills
- Bargaining skill
- Work experience in a bar and grill business environment
- Experience in managing people
- Experience in business administration
- Experience in making different types of grill foods.