Most of us enjoy a night out - and long gone are the days that a spit and sawdust dive bar cuts the mustard. Sure, there's always a place for your basic dirty bar (usually when you've been dumped), but the real profits are in bar & pub franchises that offer more salubrious surroundings for their patrons to enjoy.
Bar & pub franchises offer a broad range of business opportunities, including bars, pubs, lounges, taverns, nightclubs, and other drinking holes that sell late-night alcoholic beverages. Most bars sell beer, wine, and spirits, but others specialize: gin bars, vodka bars, wine bars, for example.
While most bar & pub franchises focus on the sale of alcoholic and non-alcoholic beverages, others serve food that helps boost profits significantly.
There are around 63,000 bars or pubs in the United States, employing approximately 700,000 bartenders, with sales at an estimated $26 billion each year.
The rise in popularity of craft beer has driven people back to bars who might have previously stayed and drunk beer at home.
In fact, there was a 6% increase in sales of craft beers in 2016, and that has continued to rise exponentially. 73% of craft beer is produced by regional craft breweries, 20.4% by microbreweries, 5.5% by brewpubs, and 1.1% by contract brewing companies.
Despite the temporary slump in bar patronage in 2020 due to the pandemic, things look good for bar & pub franchises. If you're looking for a change of career, then explore our excellent range of bar & pub franchises.
Franchising
If you're looking for a business opportunity but - perhaps - lack the experience of running a company from the ground up, you might find the prospect of a bar or pub franchise very attractive. When you invest in a franchise, you take on a fully-formed business that understands its established target market. Additionally, franchises boast an existing supply chain and have proven themselves profitable and sustainable.
Independent companies that go into business without the support of an established partner often struggle to penetrate the market. They often misunderstand what their customers want - it can take a long time for an independent company to get their service offering right.
On the other hand, franchises tend to enjoy more immediate success because the parent company has done their market research. They have spent time developing their services and products to meet the standards expected by their customers.
When you invest in a bar & pub franchise, you inherit not only the immediately recognizable branding of the parent company but the tried-and-tested business model catering precisely to a client base who already know and love their products. You take on the parent company's hard-earned reputation - reputations are hard to build in the catering sector.
Your franchise parent company usually provides an excellent training package for you and your employees to ensure that you can maintain their reputation of excellent customer service. In addition to training, many franchise partners offer a range of business support functions, including HR assistance and compliance with food-, business- and employment regulations.
Franchising is regularly considered THE common-sense way to leave the rat race and go into business for yourself. If you’ve never run a company before, bar & pub franchises offer a great way to build your own little empire.
Facts About Bar & Pub Franchises
Bars and pubs tend to focus their businesses towards their offering of beers, spirits, and wines. Nightclubs offer the same standard alcoholic fare but often rely on more expensive cocktail menus to bolster their profits.
Nightclubs offer dancefloors and big-name DJs to temp punters, for which they can charge premium entry fees. However, most nightclubs - like pubs and bars - make most of their profits from alcohol sales.
Consumption of alcohol has increased in the US in recent years, with sales reaching $250 million in 2019.
Many bars and nightclubs tailor their services around clearly defined themes: sports bars, wine bars, etc. The wine bar sector has remained strong since the 1980s, appealing to older, more affluent consumers.
Franchising Vs. Independent
Bar & pub franchises require an initial investment, from $50,000 upward to several hundreds of thousands of dollars. For this reason, most people need to apply for a source of funding to obtain their startup collateral.
Luckily, banks and moneylenders look at franchise businesses in a favorable light because their business operation has already proven itself successful, profitable, and sustainable. This means that franchise businesses often achieve more reasonable interest rates than independent companies that open their companies without the support of an established partner.
Unfortunately, many independent small businesses go bankrupt within the first five years. Almost 80% of indies survive the first year of operation, but they struggle to recoup their long-term investment over time. Resultantly, half of all independent companies fold within five years. Just one in three independent small businesses survive a decade.
Franchise businesses, however, tend to fare their first five years much more successfully because they are more able to hit the ground running. They can more confidently invest in a service offering that's already been proven resonant with the right consumers, meaning that their profits come faster and sustain over time.
You might be looking for a change of lifestyle or a new career path. The training and support you get from your bar & pub franchise partner will help you make a great success of your new business venture.
So, if you’re looking to start up a business, consider a bar or pub franchise as a viable option, offering passage to a successful business (and the pleasures of being your own boss).
Bar & Pub Franchises
Check out Franchise Direct's fantastic choice of bar and pub franchises, and change your life for the better. Take control of your working life by investing in a franchise opportunity today.
You can also check out many more Food Franchises here on Franchise Direct, such as: