new bar opening in small texas town

[vossler]

I am 23 and in the US Navy. I have been reading posts on here for the last couple months and it's put a few things in perspective. I will be opening this place around late summer 09 after i get back from japan. Here's what I'm working with and your feedback would be so much help!

town population: 2500
avg income: $27,000
1 other bar in town and 18 miles to next town about the same size and 45 miles to the next big town.

my grandparents own a bbq restaurant in the same building

this place used to be a bar many years ago and still looks like a bar. unfurnished and unequipped. needs minor remodeling (paint, new lights, etc...)

now here are my ideas for the place... and this place is going to be a hole in the wall and my ideas will probably seem outrageous to some of you on this forum but here it goes. I'm trying to get this place opened up with a $10,000 budget. anyone think it's possible? I will be serving beer out of ice chests! i have seen it work...

[walawdog]

Anything is possible, it sounds like you are going to do all the work yourself (labor costs can kill your budget). I say go for it and let us know how it goes. By the way, do your folks own the building?

[owneroper]

have seen nice places that should have served out of ice chests cause they served warm beer

[rootsreality]

How much is the liquor license going to cost? Is that in addition to your $10k budget?

What will the health department require as far as equipment and fixtures?

How will you support the bar until you have established a profitable clientele?

[vossler]

here's some more of what im working with...

Labor: I am in a construction battalion in the Navy. so as far as the buildout of the place, plumbing, etc, I will be doing it all myself. Also, i have 3 uncles who have all said they would be more than happy to come down to the texas coast and help out (and do some fishing!) one owns a plumbing business, one owns an aluminum welding business and another is both, welder,carpenter and plumber. anyways, the help is there if i ever need it.

the building, the ENTIRE building is leased to my grandparents for $600 a month, cut in half, my share of rent will be $300 plus utilities and water, im hoping to keep my recurring monthly bills around or under $1500 per month.

As far as equipment and fixtures, I have priced most of what i need and already have some more stuff. lucky for me, a bar in a town nearby has closed down and is selling everything, ill see what I can get my hands on.

now come the customers. that's the risk right? coud be a bomb or could be the big thing... who knows. But from what I know of the town and talking to a few people and also having my grandparent's restaurant there... There is only ONE beer drinking place in town. te average age of the guys and gals at the bar is above 50. the younger people in the town go to the next big town to have a good time. There is NOTHING exciting that goes on in this town... it's so sad. everyone drinks but has to leave town to do it. if anyone has ever seen the model redneck, farmer brown country texas town, you would know. the business is there...

now as for what i need to do with the TABC and the state, i am working on that. it's a new process to me and sometimes i get lost in the proper flow of paperwork... also I am trying to do this all from California where i currently am stationed and then going to japan in january til june. the BG license from the TABC is only a beer and wine consumption license, im going to also allow people to bring in their own liquor and sell set ups. i dont know what the proper license for that is called but im looking into it all.

gotta run to work, thanks for replying and im looking for moe perspective, maybe some stuff i have over looked. any texas business owners who have worked with the TABC and the state have anything for me??

Thanks,
Brent

[Crazy Mike]

I own a bar (private club) in Vernon, TX. If you have any questions shoot me a PM.

[owneroper]

Do they allow a license to bring your own, anyplace that I have been that does that does it to skirt the law, not that it matters.. I knew a club that charged you a stocking charge, you brought it in and they stored it and served it back to you. It ended up costing about the same as a regular bar

[Havensloft]

Do they allow a license to bring your own, anyplace that I have been that does that does it to skirt the law, not that it matters.. I knew a club that charged you a stocking charge, you brought it in and they stored it and served it back to you. It ended up costing about the same as a regular bar


Now there is a smart person!

[Crazy Mike]

Do they allow a license to bring your own, anyplace that I have been that does that does it to skirt the law, not that it matters.. I knew a club that charged you a stocking charge, you brought it in and they stored it and served it back to you. It ended up costing about the same as a regular bar

They have a Beer/Wine BYOB license.

They don't store it for you, just charge you for a set up. Cup/ice, softdrink/water ect

[scott1988]

Just make sure you get ALL........I repeat......ALL of your costs and expenses in line BEFORE you even think about opening the doors.

What happens if you get down to the last $1000 in your pocket and you forgot to order beer or food? Then what? If your uncles or whoever are going to help you then you're not really using just your own money and now have investors and partners. Unless you were talking about them helping you with the labor of the buildout.

$10,000 is next to nothing to get a business going, especially a bar but I guess it could probably be done depending on what is still there. Are there tables, chairs, coolers, signs, plates, silverware, and etc.?

[Crazy Mike]

I spent 50K on a total re-model. I was hoping to get that back in 2 years but it's going to take 3.

[vossler]

Just make sure you get ALL........I repeat......ALL of your costs and expenses in line BEFORE you even think about opening the doors.

What happens if you get down to the last $1000 in your pocket and you forgot to order beer or food? Then what? If your uncles or whoever are going to help you then you're not really using just your own money and now have investors and partners. Unless you were talking about them helping you with the labor of the buildout.

$10,000 is next to nothing to get a business going, especially a bar but I guess it could probably be done depending on what is still there. Are there tables, chairs, coolers, signs, plates, silverware, and etc.?

yes, they will be helping ME... I now have an increase in my budget for this place... $14,000. Hope it can be done! I will keep you guys posted as I go.

also, there is NOTHING left over from when the place closed down.

[walawdog]

Any update on your situation?

[Dynamic Digital]

I would see if you can't get your barstools and furniture while your in Japan. I am sure you will drop in a few local establishments while your in Japan. Take alot of pictures. They utilize small spaces very well. The only down part is in the United States you will have to deal with codes that will prohibit some of the ideas. I would also look for auctions of equipment. Putting ice in a cooler is actually a little more costly than you think. You will need an ice machine. You could also see if you can't find a beer cooler cheeper. A 6 foot Display and a single keg system. You could make it that you only serve one kind of beer...COLD. If it is good, cold and afforardable they will come. You could look into a micro brewery that might supply you. Good Luck