Cost Calculator

BAR STARTUP
HOW TO USE THIS SHEET:

While costs can vary quite a bit, the average cost to open a pub from the gr
—although costs can range from $110,000 on the low end to $850,00 on the
you’re looking to take over an existing bar, it’s possible to get started for as
right planning, of course).

This template includes LOW and HIGH startup cost estimates, and the numb
your needs. On the Low or High estimate sheets, edit line items based on yo
the graphs update with your information.

For additional information on each cost, check out the Glossary tab.

HELP ME FIND THE RIGHT SHEET:

I have one or more of the following:

1) I'm planning to take over an existing bar

location.
2) I'm opening a specialty bar, such as
a winebar, brewpub, or microbrewery.
3) I'm opening a beverage-only bar, or a bar
with a limited kitchen.

GO!
START
CALCULATING
 GUIDE LOW HIGH GLOSSARY

st to open a pub from the ground up is about $480,000

e low end to $850,00 on the high end. However, if
possible to get started for as low as $25,000 (with the

ost estimates, and the numbers are fully editable for

, edit line items based on your business, and watch

out the Glossary tab.

I have one or more of the following:

1) I'm planning to build my bar from the

ground
up, and will need extensive renovations.
2) I'm opening larger-sized venture,
such as a nightclub.
3) My bar will have a professional kitchen
with an extensive food menu.

GO!
Low Estimate GUIDE LOW

NOTE: Edit items highlighted in pink based on your business. We've placed an

ONE-TIME COSTS

ITEM AMOUNT

Licenses & Permits $4,500.00

Rent/Mortgage Payments Varies

Bar & Kitchen Equipment $8,000.00

Insurance $2,000.00

Renovations and/or Remodeling $35,000.00

Operating Revenue $75,000.00

Signage $1,000.00

Starting Inventory $6,000.00

Staff Salaries Varies

Payment Software/POS System $1,200.00

Emergency Funds $50,000.00

Miscellaneous $3,000.00

RECURRING COSTS (MONTHLY)

ITEM AMOUNT

Rent/Mortgage Payment Varies

Insurance $2,000.00

Utilities $2,500.00

Food and Alcohol Inventory $10,000.00

Taxes and Fees $1,000.00

Payroll Varies

Professional Fees $500.00

Maintenance and Repairs $1,000.00

Marketing and Promotion Varies

Office Supplies $500.00

Miscellaneous Expenses $2,000.00

 HIGH GLOSSARY

s. We've placed an approximate cost for each item to get you started.

ONE-TIME COSTS SUMMARY

Licenses & Permits

Rent/Mortgage Payments

Bar & Kitchen Equipment

Insurance

Renovations and/or Remodeling

Operating Revenue

Signage

Starting Inventory

Staff Salaries

Payment Software/POS System

Emergency Funds

Miscellaneous

Miscellaneous

RECURRING COSTS SUMMARY

Rent/Mortgage Payment

Insurance

Utilities

Food and Alcohol Inventory

Taxes and Fees

Payroll

Professional Fees

Maintenance and Repairs

Marketing and Promotion

Office Supplies

Miscellaneous Expenses
 OVERALL SUMMARY REMAINING BUDGET

MY BUDGET

ermits
$215,000
e Payments

n Equipment TOTAL STARTUP COSTS

and/or Remodeling
$205,200
venue $205,20
TOTAL ONE-TIME COSTS
0

ntory $185,700
ware/POS System
TOTAL RECURRING COSTS

unds
$19,500 $9,800
s

s BALANCE Balance

$9,800 Total Startup Cos

ONE-TIME COSTS VS. RECURRING COSTS

e Payment
90%
One-
Time
Costs
ohol Inventory

es
10%R
ecur-
Fees ring
Costs
and Repairs

d Promotion

s Expenses
EMAINING BUDGET

$205,20
0

$9,800

Balance
Total Startup Costs
90%
One-
Time
Costs

10%R
ecur-
ring
Costs
High Estimate GUIDE LOW

NOTE: Edit items highlighted in pink based on your business. We've placed an

ONE-TIME COSTS

ITEM AMOUNT

Licenses & Permits $11,000.00

Rent/Mortgage Payments Varies

Bar & Kitchen Equipment $40,000.00

Insurance $6,000.00

Renovations and/or Remodeling $100,000.00

Operating Revenue $100,000.00

Signage $1,000.00

Starting Inventory $13,000.00

Staff Salaries Varies

Payment Software/POS System $20,000.00

Emergency Funds $50,000.00

Miscellaneous $3,000.00

RECURRING COSTS (MONTHLY)

ITEM AMOUNT

Rent/Mortgage Payment Varies

Insurance $6,000.00

Utilities $2,500.00

Food and Alcohol Inventory $10,000.00

Taxes and Fees $1,000.00

Payroll Varies

Professional Fees $1,000.00

Maintenance and Repairs $2,000.00

Marketing and Promotion Varies

Office Supplies $500.00

Miscellaneous Expenses $2,000.00

 HIGH GLOSSARY

s. We've placed an approximate cost for each item to get you started.

ONE-TIME COSTS SUMMARY

Licenses & Permits

Rent/Mortgage Payments

Bar & Kitchen Equipment

Insurance

Renovations and/or Remodeling

Operating Revenue

Signage

Starting Inventory

Staff Salaries

Payment Software/POS System

Emergency Funds

Miscellaneous

Miscellaneous

RECURRING COSTS SUMMARY

Utilities

Food and Alcohol Inventory

Taxes and Fees

Payroll

Professional Fees

Maintenance and Repairs

Marketing and Promotion

Office Supplies

Miscellaneous Expenses

Miscellaneous Expenses

Miscellaneous Expenses
 OVERALL SUMMARY REMAINING BUDGET

MY BUDGET
mits

Payments $500,000
Equipment
TOTAL STARTUP COSTS

d/or Remodeling $369,000

$369,00
nue
0
TOTAL ONE-TIME COSTS

ory
$344,000
are/POS System TOTAL RECURRING COSTS
ds $131,00
$25,000 0

BALANCE
Balance
$131,000 Total Startup Cos

ONE-TIME COSTS VS. RECURRING COSTS

ohol Inventory
93%
One-
es Time
Costs

Fees

and Repairs
7%Re
d Promotion curring
es Costs

s Expenses

s Expenses

s Expenses
EMAINING BUDGET

$369,00
0

$131,00
0

Balance
Total Startup Costs
93%
One-
Time
Costs

7%Re
curring
Costs
Cost Calculator GUIDE

GLOSSARY OF TERMS
ONE-TIME COSTS:

Licenses and Permits – The liquor license is likely your most important
one, but most localities require a number of operating licenses. If
you’re doing any construction, make sure you have the proper building
permits. And don’t forget to consider the associated legalities if you’re
planning on serving food.
Rent/Mortgage Payments – This one can vary dramatically depending
on your location. Do some comparative research and plan on having at
least 6 months’ worth put away—it can take some time to turn a profit,
but you’ll have to keep your doors open in the meantime.

Bar and Kitchen Equipment – A beverage-only bar will require much

less equipment than a bar that serves food. The bare-minimum bar will
need taps, refrigeration, and glassware. Food menus can range from
simple to extensive, and will impact how much kitchen equipment is
needed. You’ll at least need some basic appliances if you’re serving
food.
Insurance – Another legal necessity. You’re looking at $2,000 to $6,000
in premiums to start.

Renovations and/or Remodeling – This cost varies greatly depending on

how much of an overhaul you’re planning on doing and what you
expect your end result to look like. On average, factoring interior
design and decorating, fixtures, furniture, stereo equipment and
lighting, you’re looking at about $65,000 for a thorough overhaul.
Operating Reserve – This fund should cover anything that will need to
be replaced from normal use and act as a safety net to cover the costs
of operating your bar during the off months.
Signage – Every bar needs a sign. You’ll spend about $1,000 on
average.

Starting Inventory – You will know your customer-base best, but a good
starting inventory percentage breakdown is 45% beer, 40% liquor, 5%
wine, and 10% mixers. Adjust as needed.

Staff Salaries – Most bars require a manager, bartenders and barbacks

to really operate smoothly. If you’re serving food, you’ll need a kitchen
staff (chefs, line cooks) and a serving staff (servers, bussers).
Employees should be paid competitive salaries based on individual
experience. As the owner, you’ll need to pay your employees even if
you’re not turning a profit yet.
Payment Software/POS System – You’ll want to make sure you accept
the major forms of payment and are set to accommodate customer
payment requests like splitting the bill.

Emergency Funds – You’ll want to be covered in case of emergencies.

The ideal is $50,000. That might sound steep, but you should at least
make it a point to have something put away for potential disasters.

Miscellaneous – Miscellaneous expenses can range from legal or

consulting fees to a great advertising opportunity you just have to
seize. It’s recommended to factor at least $3,000 for miscellaneous
expenses.
 LOW HIGH
MS
ly your most important
rating licenses. If
ve the proper building
ated legalities if you’re
amatically depending
and plan on having at
me time to turn a profit,
eantime.
ar will require much
bare-minimum bar will
enus can range from
kitchen equipment is
ces if you’re serving
ing at $2,000 to $6,000
s greatly depending on
ng and what you
factoring interior
o equipment and
orough overhaul.
thing that will need to
net to cover the costs
GLOSSARY
RECURRING COSTS:
Rent/Mortgage Payments – You can’t avoid this one. Yo
first 6 months covered in your startup budget, but you’l
paying this every month. Again, price will vary dependi
size.
Insurance – Another unavoidable expense. Expect to sp
annually to stay insured.
Utilities – You have to keep the lights on and the music
your electric, water and gas bills, expect to pay about
Food and Alcohol Inventory – This might be an obvious
to keep the bar stocked each month. You can easily sp
month, depending on your turnaround.
Taxes and Fees – Always check with local authorities a
and fees applicable to your bar, although it’s likely they
These fees will vary by location, but expect to pay som
$1,000 per month total.
Payroll – Once you start turning a profit, you’ll be deduc
from those funds. Your staff is the backbone of your ba
them paid.
 bout $1,000 on Professional Fees – This cost runs on a sliding scale. I
accounting for the bar yourself, you won’t have regular
smart move to bring in a professional periodically to co
issues. Expect to spend around $200 per hour when ne

r-base best, but a good Maintenance and Repairs – You’ll have to be on top of t
% beer, 40% liquor, 5% bar up to code. Bathrooms must be in working order. K
refrigeration equipment must be functioning. And don’t
heat and air conditioning.
rtenders and barbacks Marketing and Promotion – Ongoing advertising is key f
, you’ll need a kitchen You’ll want to devote some capital each month to stay
ers, bussers). new customers coming.
based on individual
r employees even if

make sure you accept Office Supplies – Here’s one that you might not think of
mmodate customer up. You can spend about $500 per month between print
and the like.

case of emergencies. Miscellaneous – Again, you always have to be prepared

ut you should at least opportunity arises. Budget in about $2,000 per month t
potential disasters. legal fees or operating supplies.

nge from legal or

y you just have to
0 for miscellaneous
avoid this one. You should have the
budget, but you’ll have to get used to
will vary depending on location and

nse. Expect to spend $2,000 to $6,000

on and the music playing. Between

ect to pay about $2,500 per month.

ht be an obvious cost, but you’ll have

You can easily spend $10,000 per

ocal authorities about specific taxes

ugh it’s likely they’ll let you know.
xpect to pay somewhere around

it, you’ll be deducting payroll costs

ckbone of your bar, so you must keep
 a sliding scale. If you’ll be doing the
on’t have regular fees. However, it’s a
periodically to consult if you have any
per hour when needed.

e to be on top of this one to keep your

working order. Kitchen and
ioning. And don’t forget about your

dvertising is key for bar success.

ch month to stay relevant and keep

might not think of but can really add

nth between printer ink, paper, pens

ve to be prepared if a problem or
,000 per month to cover unexpected