Bacchus
05-18-2004, 09:44 PM
How much does location determine success?
I have been searching for the past 6 months for a bar to buy in the Cleveland area. I have what I think is a unique concept, in this area at least, but have been unable to find something that fits three important criteria. I want something in what I consider to be a good location, it should be architecturally interesting and currently underperforming. Underperforming is important because I could not justify buying an already successful bar and then completely change the concept—certainly losing the vast majority of the current clientele. Since I am looking at small places, 2000 sq. ft. and under, buying an underperforming bar would also help reduce my costs and subsequently, the risk/exposure. I am unwilling to budge on this point because it is an unproven idea in this market. It may not work and need to be shut down or sold in a year. I want to be able to recoup as much as possible if this happens.
This concept is not a club—no dance floor, special lighting, etc. Rather it would be considered more of a neighborhood bar. However, it would go after a niche market and should become a “destination” drawing from an area much larger than a single neighborhood. Target market is mainly 25-35 year olds, college educated, good incomes and live within a 10 mile radius. Specifics are taken care of in a business plan but these are the basics.
Back to my main question. I am finding that it may be necessary to compromise on the other criteria since I am unwilling to pay a lot for someone’s clientele. I am lucky in that many of the bars in the areas I’m looking come with things such as tin ceilings, ornate woodwork and other architectural features. That leaves location. I would certainly prefer to be in the middle of the area with my largest target audience. That’s where I’ve been looking mainly and have found several places that meet two of the three criteria. The one not met always seems to be the “underperforming” one. Once again, I don’t think I can bring myself to buy a successful business, close it to do some remodeling, change the concept from a neighborhood bar to a specialty bar and lose 90% of the current business.
What I don’t know is can I sacrifice location? There are a ton of places that fit the remaining two criteria. Many of these are cheaper as well. I’m not talking about putting this in some cornfield 40 miles out of the city. We’re only talking a few miles from my preferred location but still in a safe area that is easily accessible. However, there are currently few if any reasons to go to these areas unless you live there (no large shopping areas, no large entertainment complexes, no grouping of bars and restaurants). I would really have to be correct about this being a “destination” bar. Does anyone have experience or knowledge of a similar situation? Is this something to think about or am I just grasping at straws to try and make this happen?
I have never owned a bar but did work in bars as a bar back, waiter and bartender to pay my way through college. I graduated 10 years ago. I worked in the special event management industry for the past 10 years producing major events (100,000+ paid admissions) in large markets throughout the eastern half of the US. I have some money and an idea that I think will work well and be able to be reproduced. I plan on sinking all of my energy into this place and will do whatever is necessary for this to work. Having said all that, I can see why so many restaurants/bars/clubs can fail so quickly. Time can become essential and potentially force you into doing things that you know aren’t correct just to get them done. Maybe I just answered my own question.
There does not seem to be any other thread that has posed this question. I have looked through the entire boards and did not see this. I apologize if it is already there and missed it. I appreciate everyone’s time and look forward to responses.
--Bacchus
I have been searching for the past 6 months for a bar to buy in the Cleveland area. I have what I think is a unique concept, in this area at least, but have been unable to find something that fits three important criteria. I want something in what I consider to be a good location, it should be architecturally interesting and currently underperforming. Underperforming is important because I could not justify buying an already successful bar and then completely change the concept—certainly losing the vast majority of the current clientele. Since I am looking at small places, 2000 sq. ft. and under, buying an underperforming bar would also help reduce my costs and subsequently, the risk/exposure. I am unwilling to budge on this point because it is an unproven idea in this market. It may not work and need to be shut down or sold in a year. I want to be able to recoup as much as possible if this happens.
This concept is not a club—no dance floor, special lighting, etc. Rather it would be considered more of a neighborhood bar. However, it would go after a niche market and should become a “destination” drawing from an area much larger than a single neighborhood. Target market is mainly 25-35 year olds, college educated, good incomes and live within a 10 mile radius. Specifics are taken care of in a business plan but these are the basics.
Back to my main question. I am finding that it may be necessary to compromise on the other criteria since I am unwilling to pay a lot for someone’s clientele. I am lucky in that many of the bars in the areas I’m looking come with things such as tin ceilings, ornate woodwork and other architectural features. That leaves location. I would certainly prefer to be in the middle of the area with my largest target audience. That’s where I’ve been looking mainly and have found several places that meet two of the three criteria. The one not met always seems to be the “underperforming” one. Once again, I don’t think I can bring myself to buy a successful business, close it to do some remodeling, change the concept from a neighborhood bar to a specialty bar and lose 90% of the current business.
What I don’t know is can I sacrifice location? There are a ton of places that fit the remaining two criteria. Many of these are cheaper as well. I’m not talking about putting this in some cornfield 40 miles out of the city. We’re only talking a few miles from my preferred location but still in a safe area that is easily accessible. However, there are currently few if any reasons to go to these areas unless you live there (no large shopping areas, no large entertainment complexes, no grouping of bars and restaurants). I would really have to be correct about this being a “destination” bar. Does anyone have experience or knowledge of a similar situation? Is this something to think about or am I just grasping at straws to try and make this happen?
I have never owned a bar but did work in bars as a bar back, waiter and bartender to pay my way through college. I graduated 10 years ago. I worked in the special event management industry for the past 10 years producing major events (100,000+ paid admissions) in large markets throughout the eastern half of the US. I have some money and an idea that I think will work well and be able to be reproduced. I plan on sinking all of my energy into this place and will do whatever is necessary for this to work. Having said all that, I can see why so many restaurants/bars/clubs can fail so quickly. Time can become essential and potentially force you into doing things that you know aren’t correct just to get them done. Maybe I just answered my own question.
There does not seem to be any other thread that has posed this question. I have looked through the entire boards and did not see this. I apologize if it is already there and missed it. I appreciate everyone’s time and look forward to responses.
--Bacchus