The Peril of Bar or Restaurant Ownership

General chat about life in the Land Of Smiles. Discuss expat life, relationship issues and all things generally Thailand and Asia related.
stumorelli
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Re: The Peril of Bar or Restaurant Ownership

Post by stumorelli » Thu Dec 21, 2017 10:38 pm

I would agree that Bars are generally a bad investment. Far too many new owners fail due to the same things which have nothing to do with rent rises, Most might have been on holiday a few times and met the girl of their dreams in a bar. They have sat in a bar drinking and have maybe seen the owner sitting at the side of the bar having a drink and chatting to the staff , they will think to themselves that this is an easy life and I could do that while running the idea past the new love interest of who of course thinks its a great idea and how much help she could be running it .

So he finds the money to pay the key money and he is now the owner of a bar. He is happy at the moment

2 or 3 months go by and he starts to notice his bar is not as busy as he hoped and he now realises he has forgotten that no matter how quiet the bar is he still has to pay staff wages , drink suppliers , electricity and now seems to be be spending more and more time sitting in the bar watching his money disappear and his new partner having fun drinking with her friends.

Now the low season comes around and he discovers his funds are drying up and the bar is empty almost every night his bank account is nearly empty.

Ask yourself a simple couple of questions

Would you put all your savings into a business at home you have no experience in ?
Do you have funds available to rub that business for 2 years without taking a salary out for yourself ?
Do you know how to market a business from scratch ?

If the answer to these questions is NO then do not buy a bar.........

Peroni
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Re: The Peril of Bar or Restaurant Ownership

Post by Peroni » Fri Dec 22, 2017 6:20 am

Thank you stumorelli. I personally am not contemplating "Bar Ownership" and your scenario is pretty much as I had imagined but was wondering in general terms the costs associated. One of my favorite past-times when indulging at a venue not visited before, is to review the whole scene and decide what is good and what I would change, just a mental exercise while having a beer and watching the world.

John :cheers:

Homer
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Re: The Peril of Bar or Restaurant Ownership

Post by Homer » Fri Dec 22, 2017 9:53 am

stumorelli wrote:
Thu Dec 21, 2017 10:38 pm
Do you have funds available to rub that business for 2 years without taking a salary out for yourself ?
I'd open a massage parlor if I wanted to 'rub that business'. :D

Homer
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Re: The Peril of Bar or Restaurant Ownership

Post by Homer » Fri Dec 22, 2017 10:00 am

A few years ago I was watching sports in a bar during the daytime. Couldn't help but overhear the nearby conversation. Quickly realized the owner was literally handing over the keys to the new owner. Then the conversation got one sided. In short, simple sentences, the owner summarized key points about running a bar in Thailand. Things to do, not to do, to think long about why you want to do something. Some of it was the sort of advice you wouldn't give a prospective buyer for fear of scaring him off. New owner didn't take notes. New owner didn't ask questions. New owner sat there with a polite but disinterested expression. New owner didn't last a year.

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