Why do farang buy bars?

[dtaai-maai]

I've been here for over a decade now, and one thing that's always puzzled me is why so many farang (apparently) buy bars here.

I can see the immediate attraction, of course, if the Bintabaht lifestyle appeals to you, but it must be pretty obvious after a relatively short time here that most of these places fail miserably.

I'm not talking about bar/restaurants a la Buffalo Bill, just about the little hole-in-the-wall terraces that line the streets of the bar area and now soi 80.

Are they seen as an investment? A way to keep the former BG happy and occupied? A break-even hobby? A means to stay in Thailand?

Please understand that I'm not in any way having a pop at bar owners, I'm just curious.

[richard]

A mix of reasons I guess and it applies to bars, restaurants and massage joints

From my observations:

Some do it as an investment but failed to discover the overheads involved before buying.
Some do it to appease/please a g/f
Some do it because they enjoy the social aspect.
Some do it as a hobby. It's only throw away money
Some consider it an ego trip. "hey fellas, I own a bar in Thailand" touch

I just hope I get corrected or agreed with by some more knowledgeable bar owners who follow the forum

[oakdale160]

Here is a scenario we have seen many many times. Expat buys bar, first 3 months very active, there for the b'fast trade that doubles, there almost every night 8 - 11 at least, greeting, meeting socialising. Great plans.
After 3 months, never there in am, b'fast trade reduced to a trickle, there on big night, Saturday and pool league night. Obviously bored with whole thing, seen drinking in other bars. For sale sign goes up.

[Homer]

Delusions of adequacy?

[Thriftydrifter]

I don't know, but I imagine people underestimate the time and effort that it will take - long hours, 7 days a week, always having to be cheerful and friendly even if your customers are complete d****s, constantly dealing with bureaucracy and unreliable suppliers and maybe troublesome staff. They only see other farang bar owners apparently making money by being in a bar having a good time.

[Pleng]

Some do it as a hobby. It's only throw away money

Indeed. I guess if you've got money to throw away, and want to stay in Thailand, owning a bar would be a relatively easy way to back up a business visa?

[richard]

Some do it as a hobby. It's only throw away money

Indeed. I guess if you've got money to throw away, and want to stay in Thailand, owning a bar would be a relatively easy way to back up a business visa?

As far as know you can only lease a bar. You cannot work in the bar. Therefore you are not eligible for any sort of visa

[richard]

One point to note and I guess this applies more to restaurants than the small ' cubby hole' bars is that some people do buy leases with a view to making something out of it. Hard work, personality, presence, luck, location and a degree of stability in a working relationship with partner/staff can produce a relatively successful livelihood. These, I fear, are now few and far between and most I know are 'old stalwarts' that have been in the area many years.

[theprice01]

Some consider it an ego trip. "hey fellas, I own a bar in Thailand" touch

Yep...this applies to my Uncle ....i would have been more impressed had he of told me he'd found a place that sells Frys' Turkish Delight (i cant find it anywhere!)

[STEVE G]

The only sound reason I can think of for buying a bar in Thailand is if you're afraid of your children inheriting your money.

[Roel]

I don't think that there are many who buy a bar knowing that it is going to cost them money. They all think it is going to make money. Some believe the old owner's (the seller!) success stories, some listen to the GF's advice who suddenly seems to be an expert because of her years long experience in bars. Others, probably the majority, think it is going to be a success because they are going to do it differently and start full of wild ideas and ambition that will slowly fade away once reality kicks in.

I remember a guy opening a bar in Hua Hin in the 90's who told me he was going a different route by hiring real stunners from Bangkok. Offer them a decent salary and they will come he said. Never saw one. Bar lasted a few months.

[lomuamart]

I did it myself back in the days when there weren't very many bars here.
The first year was fine and I quite enjoyed it. However, year two started taking its toll both physically and financially. We never lost money but all of a sudden there were four times the number of bars and things became very competitive.
We sold after 2.5 years and made a small profit.
Would I do it again? No way. It's just not for me. Being present and "correct" all of the time. Being nice to customers. I just can't do that.

[PeteC]

The physical aspect must also kick in for about everyone around age 55. Drinks start not to go down well and certainly not as many as before, one becomes more impatient, and the repetitiveness of it all every night cannot be fun. Time to do something else at that age. Pete

[dtaai-maai]

one becomes more impatient,

And I thought it was just me!

[Spitfire]

I would guess many don't think it through properly but some may not care as it's just something to do, as mentioned earlier.

To make a decent and successful restaurant/bar here in Thailand then you need to know what you're doing and have some experience of the hospitality trade really. Some people do make it work but they would be the ones who more closely resemble restauranteurs as opposed to those who think it's a new way to survive and have a laugh because the bar scene is fun etc...others are probably stuck for something to do and their girlfriend may not be capable of running any other type of business having only experience from her cloudy past at a bar.

I have spent a fair bit of time in the hospitality trade in the UK before coming out here and wouldn't even think of opening a bar or restaurant orientated around foreigners.......maybe a restaurant aimed at the locals would be OK and less of a hassle, but you and your Mrs would have to get it right as there is a tsunami of competition all around you all the time.

Guess naivety probably plays a part too in many cases with that "I've just come to Thailand a couple of times and have had a great time and am unrealistically optimistic about the move over here....I'll start a bar, yeah!"

Many also might not have any idea of the amount of nutjobs they will have to deal with on a daily basis and it can be hard to summon that optimism for customers after a while of dealing with basket-cases everyday with little respite, as it's hard to close too much and get away.

However, having poured scorn all over those that do this.......some do make it work but maybe only 10-20% and they are the focused and passionate about the hostitality trade that have the savvy for the trade and environment they wish to do business in, with an equally motivated other half.......or they could just be as nuts as many of their customers and like to revel in that environment with like-minded nutters.