Beer Bar Adding Liquor

[james47]

I have owned a beer bar since 1993 and now have the opportunity to upgrade to liquor sales. My average weekly order is 3 kegs and 50 cases of beer. Everybody drinks beer or wine (don't sell much wine) because thats all I have to offer them. Some customers want mixed drinks but they are at my place because theres a show or food or there boyfriend likes it here. So what I'm trying to figure is how many mixed drinks I might be expected to sell based on my beer sales. Is there way to project liquor sales based on my known beer sales?
Thanks for any help, its going to be a big investment, the license in Florida is $125,000.

[Jallen0]

Didn't you just have another thread where we were talking about this same issue?

[james47]

Yes I do, Didn't get much help so I rephrased the question.

[HYDDYN MAVURIK]

I have owned a beer bar since 1993 and now have the opportunity to upgrade to liquor sales. My average weekly order is 3 kegs and 50 cases of beer. Everybody drinks beer or wine (don't sell much wine) because thats all I have to offer them. Some customers want mixed drinks but they are at my place because theres a show or food or there boyfriend likes it here. So what I'm trying to figure is how many mixed drinks I might be expected to sell based on my beer sales. Is there way to project liquor sales based on my known beer sales?
Thanks for any help, its going to be a big investment, the license in Florida is $125,000.

Well, if you are historically known as a draft beer, bottled beer and wine place. Why change it?

But if you really want to know whether it is worth the expense of having liquor--consider your clients. Ask them if they want you to start selling liquor at your establishment. How much would they spend for cocktails? And purchase liquor that would support your survey findings. Spend money on well and call liquor brands. But if you are a premium place...Then focus on call to premium liquor brands.

If you don't want to pay for the liquor license...why not find an investor (or investors)that wants (are desiring) to entrepreneurialize a full liquor bar. Become partners with them in purchasing liquor license...liquor inventory...bar supplies...etcetera.

[james47]

I want to upgrade in order to please more people, make more money. my beer customers aren't going anywhere in fact I might be able to lower beer prices because of the stronger profit in liquor.
I have customers that stop in for a show or a cook out or a party but than leave after a couple of hours to get a mixed drink. Also girls around here don't do beer they like their cocktails and of course when you have the ladies you have the guys following.Its definitely on me to figure out to go or not to go for the liquor license. I am trying to, if theres a way based on my beer sales see if I will "make my nut' @ $1200 1400 per mounth.
Thanks jimmy

[SHEP]

When I bought my first bar six years ago, it had been in business for about eight years as a beer bar for the first six. The previous owner added liquor two years prior to my buying the place.
My first year my sales were approx 75% beer, 25% liquor. Over the next couple of years the liquor sales increased until liquor sales became over 55-60%, where it stands today.

My other place that I have had for about six months does about 50-50.

In Mississippi, there are some advantages to a beer only bar, especially if it is a "neighborhood bar". A beer bar can get away with having things like football pools, and what is called a "pig". Not sure how the "pig" worked as that was before my time. A liquor bar is scrutanized much closer, because the casino industry in Mississippi has so much pool that if you are caught doing any kind of gambling, the ABC will pull your liquor license.

[rootsreality]

My neighborhood bar does about 50% beer, 50% liquor. My advice with liquor is to chose your well brands and a handful of premium brands to start out. Buy the well stuff by the case, but buy just three or four bottles each of the premium until you see what the locals are buying. Increase quantities and add brands as you get requests, but don't add everything they request. Your products need to turn. You don't want too much inventory on the shelf.

There are philosophy differences on the well brands - either the cheapest available or a lower end higher quality (Gilbeys, Kessler, Sauza, RonRico)

There are "must haves" on the premium side - Crown Royal, Patron, Grey Goose, Bacardi, Captain Morgan, Jack Daniels, Jose Cuervo, Seagrams 7, Jagermeister, Southern Comfort.

The mid-range is harder to select because there are more choices. Your customers will eventually dictate these brands for you.

Beware: Customers come and go and their tastes can change too.

Real World example #1: We started out selling about 6 bottles of Grey Goose and 4 bottles of Ketel One per month, but certain customers were asking for Stoli 100 proof. I waited about 6 months before adding Stoli 100 to my inventory but once I did it took off like a bomb. Now I sell about 10 bottles of Stoli 100 proof each month, but Grey Goose and Ketel One sales are negligible. One thing nice about the change......my bar is the only place in town with Stoli 100 so the folks that drink it have made my bar their venue of choice. They no longer go bar hopping around town.

Real World example #2: From the day we opened I had three regular customers that drank only Seagrams VO. They bought it regularly enough so that I started ordering it by the case. Eighteen months later one moved out of town and another went on the wagon. Now I have 15 bottles of VO on the shelf, and just one customer asking for it regularly. At this rate those 15 bottles will probably last a year or more. Not good!

Keep it simple! In my experience most customers either buy well brands or go right to the top shelf. Don't overdo specialty liqueurs or unique flavors unless you have a house special that uses them.

[james47]

Thank yall so much for the response, thats the kind of info. I was looking for. And great advice about the 'brands'. Its a big bullet to bite in Florida with the liquor license being so expensive.
I'm familiar with "the pig" spent a little time on the coast( pre casino.)

[barravaged]

My beer sales are similar to yours and my liquor sales equal them. The percentage is slightly higher for me in the summer for beer and in the winter for liquor. I do not have a Sunday license for liquor and it seriously impairs my sales. My experience is that liquor ismuch more fad-prone than even beer. The must have liquor that you can't keep in stock can quickly turn into the bottles getting dusty on your shelves for months. The advice that was posted to start with a few standards is good. Also don't be swayed by the first couple customers who say, "Are you serious, you don't carry brand-X". Wait until a few people request it before you totally buy in. If a regular big spender makes the request start with a bottle or two. Just like beer the customer that has to have a particular brand will probably want something else when you do get it.

[BarBoy]

I have owned a beer bar since 1993 and now have the opportunity to upgrade to liquor sales. My average weekly order is 3 kegs and 50 cases of beer. Everybody drinks beer or wine (don't sell much wine) because thats all I have to offer them. Some customers want mixed drinks but they are at my place because theres a show or food or there boyfriend likes it here. So what I'm trying to figure is how many mixed drinks I might be expected to sell based on my beer sales. Is there way to project liquor sales based on my known beer sales?
Thanks for any help, its going to be a big investment, the license in Florida is $125,000.

check out liquor license marketplace, they are based in florida and finance liquor licenses.

They basically will put a lien on your license and if you default in payments they'll snag it from you. Yes, they'll charge more than $125k, but then again capital is king, so if you want to preserve cash then you may want to check them out.

[Michael Black]

Well, I will say that I think it's a pretty safe bet as far as an investment. it's not just an expense. That is, it becomes an asset that will likely hold its value or appreciate while it gives you the opportunity to attract and keep customers longer. Heck, just the shots you can push as a beer and shot should be worth it.

[NewBar]

Liquor is quicker. Bigger problems but bigger profits. Liquor attracts new customers you aren't seeing now. 4COP has no restrictions and is transferable. In this economic climate most can't get the million they'll need to open up a bar so negotiate hard on liq lic price. A Great time to buy 4COP. It's a commodity.

If you own the property have your lawyer separate r.e from bar.

Noteworthy, while awaiting final license get the temp license, it's well worth the 100 bucks!

Operationally, Up on Inventory, Insurance premium, Dept of Biz Regs annual, Ice machine capacity.

Are you selling food now?

[casabar]

Do it! Liquor makes you money and the license has value. Beer and wine only joints are for restaurants and frat houses. I can drink beer at home, unless you have lots of ladies, great pool tables and a short time room in the back.

If money is no problem and you do not have to sell out to investor then it is very worth while investment all around.

Super size it!

[originolsin]

James- My liquor lic. is very similiar to what you are thinking about. Mine was slightly more, and is based on the whole population thing as well. It is quite possible to survive with beer wine only, however, I prefer having liquor. Liquor is roughly 50% of my business. The beer drinkers take a shot now and then, the beer drinkers other half wants a place that they can go together. You will definately see a good change once the word gets out. As long as you can support the payments for about 6 months with no additional ROI, then I say go for it. Of course you will see a return right away, but you should just be prepared to support the liquor part of your business until it gets up and on its feet.
As far as the license being for sale at $125k and on the market for a few months, I would hit them at around $95k. Maybe they are hard up for some money because their place didnt make it. Or maybe they are just wanting to get some cash together for something. You could end up coming away with a great deal. The worst that will happen is they will counter offer or tell you there is no way in hell they are selling it for less than 125.
Good luck!

[Oxrock]

I pm'd you.
A lot of good advice in this thread. Let's meet. I know where you are. PM me back!

[David]

Where in Florida?

$125,000.00 for a Full Beverage License? Ours are around $900K to $1.2 with gaming. And, we only have about a third of the population that you do.

Like Mike said they will only appreciate in value, especially with the economy as it is now. License's should be at there lowest price.

I just picked up a distributor in the Tampa/St. Pete area. This area seems to be hurting when it comes to the bar and restaurant business. I visit the area every month for about 10 days at a time. I'm learning more and more every day. I'm also seeing a few bar owners that got into the biz when things were good are failing now. They don't know how to run a bar and they are at a loss for what to do. This is a very common thing when the economy is in the toilet.

Liquor will only add to the volume of your customer base. The nice thing is that the mainstay of the new customers will be female. The girls will get and keep the guys in the club and with the right music format, you should be able to keep them longer.

[alchemybar]

Such a difference. Our license system doesn't separate types of alcohol - if you can sell one you can sell them all. It costs around $600 a year in renewal fees, with no upfront purchase costs. It makes the license affordable but leaves low barriers to entry into the market

[Warehouse]

As a sub plot to this thread, I think it might be interesting to post the cost of a liqour license in our various areas. I am in northern Indiana, and the licenses in most cases are only available from an existing owner, and not available directly through the state. Here a limited number are issued in each city rather than each county, and the number available is based upon population.
For example, in the city of South Bend a license would cost between $40,000 and $50,000. In the adjacent city of Mishawaka the same license would run $300,000. (These licenses may not be moved outside of the city in which they were issued.)
Ok, bar owners, how much are they in your areas?
David, holy#%&*, $900,000????? What city/state is this in?