Top 7 important tips on how to run a bar successfully. Part I
The food and beverage venture is one of the most difficult to operate. To run a bar successfully, for instance, it is crucial to establish, optimize, and control numerous processes, from customer service to inventory tracking and background music curation.
Bar management requires creativity, diligence, strategic approach, and adaptivity. In order to thrive in the competitive environment, you need to employ certain techniques while keeping an eye on various aspects.
In the article, we’ll provide you with the recommendations on how to effectively run a bar. Some of them may act as reminders and checklist points, some may become quite surprising. Have a look.
Top 7 tips on how run a bar successfully
1. Make competitor research
Whether you are going to open a bar or have already founded it, it is important to conduct competitor analysis, then making it on a regular basis. Having an understanding of why some bars captivate the audience and generate high revenues while others don’t is vital to success.
Competitor research involves more than just checking their menus and prices. You should discover their business models, marketing strategies, and approaches to customers. For this purpose, it is important to consider rivals from various points, including offerings, visual design, atmosphere, client service, social media, and PR.
As a result, you will identify market challenges and opportunities to differentiate your bar, create an appealing unique selling proposition (USP), and lure guests.
2. Know your audience
Knowing the audience is crucial to boosting consumer engagement, retention, and loyalty. First and foremost, businesses should conduct demographic research (age, gender, income levels, and other factors) of the area your bar is located.
In addition, you need to analyze F&B venues of the same or similar type, for example, cocktail, speakeasy, or wine bars.
This will allow you to determine potential customer groups that may be college students, young professionals, sports enthusiasts, or craft beer aficionados. Then, it is essential to define the target audience by age ranges, interests (i.e., sports, live music, or craft cocktails), lifestyle (health-conscious, night owls, etc.), and spending habits.
3. Promote your bar
Effective promotion and event organization enable F&B establishments to attract clients and increase revenue. Food and beverage companies can employ a variety of tools and methods. For instance, now social media is a must to gain bar visibility.
Here F&B venues can interact with the audience, respond to comments and messages, publish menus, inform about the offerings, as well as carry out polls. Furthermore, social networks like Facebook and Twitter are a powerful advertising way to stimulate customers to come and boost brand awareness.
Additionally, you can hold various events such as trivia nights, themed parties, and live music performances, to turn your bar into a community hub.
Email marketing, word-of-mouth marketing, local advertising, partnerships with influencers, collaborations with local businesses, public relations, and loyalty programs are other ways you can use in your promotion strategy. So, test hypotheses and see what works best for the venture, helping you run a bar successfully.
4. Tailor offerings to different customer groups
These days, dietary limitations are prevalent, whether they are brought on by an allergy or a lifestyle decision. Additionally, there is a good chance to reach an underrepresented market, such as vegans, persons with dairy allergies, or gluten-free diners.
Make sure your menu has something that will appeal to different client segments. Examine various gluten-free beers and experiment with natural ingredient cocktails. If your bar provides dishes, it is advisable to include special-diet and healthy menu offerings.
5. Create a compelling concept and USP
A bar’s concept is the cornerstone of brand identity. Whether it’s a high-energy sports bar, a cozy speakeasy bar, or a themed establishment, the concept should be compelling and well-executed, taking into account interior design, background music, and menu decoration.
What’s more, it is important to make sure that all elements match each other. It would be weird, for example, if you play a calm instrumental in a sports bar.
A unique selling proposition is another fundamental aspect you should consider to run a bar successfully. A USP is what differentiates your business from competitors. This can be, for instance, signature cocktails, or exclusive drinks, or themed events.
Regarding emerging trends, you can use a jukebox app for bars that will let your guests request their favorite songs, choosing from a large music catalog. With a digital jukebox, you will provide memorable entertainment to your customers, resulting in improved engagement and sales increase.
6. Control utility costs
When wondering how to run a bar successfully, it is essential to control utility costs. If not managed carefully, utility expenditures can exceed limits, leading to reduced profitability.
As practice shows, a bar’s utility expenses can range from 3.8% to 4.8% cost to your turnover depending on factors like venue location, menu offerings, and macroeconomic situations.
Utilizing energy-efficient solutions and monitoring utilities usage can help you to significantly cut costs. This will also allow you to identify trends and areas for improvement, contributing to more efficient bar management.
7. Track the cost of goods sold (COGS)
Cost of goods sold (COGS) is exactly what it sounds like: the entire cost of items sold at your F&B venue. Businesses that produce their own products include expenses on sourcing and manufacturing in the COGS. For most bars, however, this encompasses only the price of buying the items that are sold on-premises.
To calculate COGS, you need to add the amount of inventory (in this case, food and beverage) at the beginning of a period, to the amount of inventory purchased during that period. Then subtract from that the amount of inventory at the end of that period, and get your cost of goods sold!
COGS monitoring will help you fine-tune a pricing strategy to maintain competitiveness while securing healthy margins. So, COGS control is critical to successfully run a bar.
Final words
Providing effective bar management requires passion, diligence, and resources. By understanding your target audience, creating a unique concept, focusing on quality, and optimizing expenses, you will lure customers, stand out from competitors, build loyalty, and save costs.
Remember, the key to success lies in attention to detail, from drinks your F&B establishment serves to the experience you offer. By following the recommendations described above, you will be able to run a bar successfully, boosting client satisfaction and generating higher profit.
