Franchise Spotlight: Bar
After the closure of many bars during the 2020 health pandemic, franchising offers a robust business model in the bar sector.
Bar franchisees will generally manage the day to day running of their bar business, including financial management, stock ordering, recruiting staff and ensuring high standards are met. Bar franchises include bars that serve alcoholic drinks, sports bars, bars which are also nightclubs or restaurants and even juice bars with very different hours and products available.
The bar sector is an exciting, fast-paced industry with the potential for working long hours, including weekends and evenings, depending on the type of bar in which you invest. Franchisees will need to consider where their skills will be best utilized as well as considering the range of products they are interested in stocking. Bar-restaurants can be more complicated to manage but do provide two revenue streams, whereas the working hours for a juice bar will be very different from those of a bar-nightclub.
The bar industry is one that took a significant hit during the 2020 health pandemic, with businesses being forced to close due to social distancing restrictions. Over recent years the impact of people drinking less alcohol or drinking at home due to the increase in costs of alcohol has meant many businesses in the bar industry have had to adapt and diversify to survive. Franchisees would be wise to look at the potential for diversification when investing, to ensure long term survival in a fast-paced market.
Crabby Joe’s Bar and Grill is one franchisor who has capitalized on consumer desires to watch sports together in a relaxed environment with good food and drink options. For franchisees looking for non-alcoholic bar options, Booster Juice bars sell healthy juices, appealing to the more health conscious consumer.
Bar Industry Analysis
A bar is a social and busy environment in which to work and for the right franchisee, this is an exciting and fast-changing market to enter. Running a bar can also be stressful and tiring, with long hours and the potential for challenging consumers. Entering this market alone is hard work, building your brand and establishing yourself within the market - this is where a franchise can be hugely supportive and a beneficial investment.
The ongoing support and access to products at lower costs, which a franchisor can provide, will help those entering the market for the first time to avoid being one of the many bar businesses which do not succeed. Location is an extremely important factor when investing in a new bar so franchisees need to be aware of how much support they will have to decide on the best place to open their business.