Starting a cocktail bar is a very reasonable idea, because it is a fairly popular and promising business, so it is not surprising that it attracts the attention of entrepreneurs. However, in order to organize and give life to such a project, you need to make a certain investment and, most important, you need to have an effective cocktail business plan!
Now we will tell you how to start a cocktail business in Nigeria correctly, so that it will bring you decent profits!
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1. How to open a cocktail bar: the benefits
- high profitability of business (up to 50%);
- quick return on investment;
- no need for a large staff;
- specific niche;
- high income due to margins on alcohol products;
- high demand for the cocktail bars;
- a relatively small amount of investment for the industry;
- possibility to grow your business.
2. How to start a cocktail business: evaluate the market and the idea
Ask yourself a few questions:
- Is there a great local market demand for my business?
- What is the level of competition?
- Why do I need to start a business in this direction?
According to experts, the cocktail business in Nigeria has certain growth prospects, because despite the economic crisis, people keep visiting places like these.
3. Create a good bar business plan
If you want to create a perfect business plan, check out these crucial tips for you craft a good business plan:
- Sketch the detailed business concept.
- Embrace profit & loss analysis to define the business profitability.
- Determine the benefits of the chosen location.
- Add a fully detailed overview of bar’s staff with all salaries.
- Plan the potential business risks.
4. How to start a cocktail catering business: deal with the paperwork
And now it’s time to get all the permissions:
- Get the permissions from the local government agencies.
- Pay a visit to the building and safety department.
- Register your cocktail bar’s name.
- Get an EIN (Employer Identification Number).
- Go to local Alcoholic Beverage Control.
- Get the food-service certificate.
- Complete a Special Occupational Tax with TTB.
- Start your cocktail bar’s record book.
- Settle things with the fire department.
5. Starting a cocktail bar: find a suitable location and the premises
In practice, it is quite inappropriate to buy a building at the initial stage. However, when drafting a lease agreement, it is recommended to immediately stipulate a possible purchase of real estate object in the future.
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6. How to open a cocktail bar: buy the necessary equipment
In order to start a cocktail bar, you will need various categories of equipment:
• Furniture (tables, sofas, chairs, bar).
• Refrigeration equipment (refrigerators, wine display cabinets, bar equipment).
• Thermal equipment (ovens, stoves, heat showcases, barbeque makers and so on).
• Bar equipment (blenders, coffee grinders, mixers, toasters, juicers, and so on).
• Electromechanical equipment (vegetable cutters, bread slicers and so on).
Moreover, do not forget about washes, waste bins, cabinets, umbrellas for ventilation, scales, distribution lines, shelves, and so on.
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7. How to start a cocktail business: staff recruitment
For a small bar with 50 seats you will need to hire:
• 2 bartenders.
• 2 cooks.
• 4 waiters.
• 2 dishwasher cleaners.
• 2 guards.
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8. How to start a cocktail business in Nigeria: make the menu, organize the supply
To determine what to create a menu from, you can check out the proposals of your competitors. When the menu is ready, you should decide on suppliers and adjust supply channels.
It is recommended to conclude exclusive contracts with one reliable and reliable supplier for certain categories of deliveries that provide the main menu.
9. Starting a cocktail bar: plan your promotion
To promote the bar, you can use various marketing tools:
- advertising videos in the cinema;
- network promotion;
- business cards, flyers or booklets with a menu;
- event marketing;
- advertising in the media;
- advertising on the radio.
An advertising in social networks, focused on young generation is a very effective method. As part of social network promo, you can hold campaigns like “happy repost”, “review contest”, etc. This tool is aimed at attracting an additional audience to your cocktail bar.
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10. How to open a cocktail bar: startup summary
- Furniture: N200,000.
- Drinks: N250,000.
- Rent: N500,000.
- Food stuffs: N100,000.
- Other expences: N200,000.
- Total: N1,250,000.
How lucrative a cocktail bar business in Nigeria can be?
Bar business is one of the top 5 most lucrative businesses in Nigeria that you can start with a little investment and turn to a big enterprise.
Let’s find out how much money you may be making in a carton of beer, to see if that will encourage you enough!
A carton of bear contains 12/24 bottles sales for N2, 300 or N4,600 at cost price. Selling each of them for N200/N250 makes about 250 x 12 = N3,000.
So, your income per carton is N700. If you sell 10 cartons a day, you will make N7,000. Being multiplied by 24 days (except Sundays), that gives N168,000 in a month.
For the expensive cocktail bars, we have that a carton of beer goes for N2, 300 at cost price. This can be sole for N500 per bottle.
So, N500 x 12 = N6,000. So, you gain N6,000 – N2,300 = N3,700. If you will sell 10 cartons, you will get N37, 000. Imagine you are doing it daily for 30 days!
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