Buying a beer bar

[Redbaron]

All this talk about beer bars and their profitability. (TC selling cathouse, torenova stating his beer bars are trading at double what they need to to be viable- "Cathouse" thread in GD). Also if you believe Stickman's interview with Boss Hogg, BH says his beer bars are more profitable than his gogos.

3 different bar owners, 3 different size beer bars. BH's are pretty big, TC's Cathouse probably a medium sized bar, although trading in huge volumes of beer, and torenova's 2 smaller pattaya beer bars- all doing well $$$ wise.

 

I've been a member of this board for a while now, and this is the first time bars have been mentioned in the same sentence as 'profitable'. In the past it's been always mentioned as an easy way to lose money.

I also know a few lads in Phuket who own beer bars, and while they aren't busy all the time, they still make enough to be worthwhile. One guy has been there 10 years, if not more, one only 2 years. They all show no signs of selling up.

 

From a personal point of view, I'd love to own a beer bar, a few years ago I nearly did. But being a member here makes one sceptical of ANY business venture in asia.

 

So are they really such a bad investment?

[kwai_hai]

I think they can be good investment but in Thailand you either need previous experience (in Thailand) or a trustworthy Thai partner.

 

Without those I reckon it would be very hard yards. Thinking about the bar owners in Cowboy I reckon there is a Thai involved in running most of them. Maybe behind the scenes, maybe out the front, but there is a Thai there in most places I believe.

 

TC has described counting the stock - hard bloody work - can you imagine counting the beers in, beers out and reconciling the two against the chits. I have seen the way a well run bar is reconciled every day and there is a lot of work. And it is something you have to do because if you don't the staff WILL try it on. I have seen the calculator being rattled for bloody ages trying to find the missing 20 baht in the nights takings.

 

Not for me.

 

Cheers N Beers

[Nervous_Dog]

I stick by my statement, if you a business man used to owning businesses, and have a history in hospitality, you can prob make a go of it.

 

If you've never done it before, but do it as a whim to plese some girl, as I nearly did for about 3 minutes, then you'll prob fail.

 

DOG

[Redbaron]

I stick by my statement, if you a business man used to owning businesses, and have a history in hospitality, you can prob make a go of it.

 

My thoughts exactly. I imagine the people who fail, either don't know what they are doing, or are underfinanced. OR they are being fleeced (ridiculous rent, price, wages etc) from day 1.

Might give it a whirl one day.

[Redbaron]

TC has described counting the stock - hard bloody work - can you imagine counting the beers in, beers out and reconciling the two against the chits. I have seen the way a well run bar is reconciled every day and there is a lot of work. And it is something you have to do because if you don't the staff WILL try it on. I have seen the calculator being rattled for bloody ages trying to find the missing 20 baht in the nights takings.

 

All businesses face this dilemna. It's called accounting/book keeping. Unfortunately every business requires a bit of hard work, especially your own. If this wasn't the case and it was all money for jam, every man and his dog would be doing it. In the case of a LOS BB you'd either do it yourself, or if you're lucky, find someone else you trust to do it for you. Even then I'd be checking up every now and again to keep them on their toes.

[krml]

I also think you need to have an understanding of the bar business as well. Believe me I have worked in the business off and on for 13 years. Nothing is different no matter where a bar is opened in the world.

 

You have to be aware of the many ways your staff can rip you off and how to be one step ahead of them. You also need to know how to cater to your clientele which is where a lot of places fail. As well as managing the inventory etc.

 

Maybe this is what I should do to make the move to LOS. I have been to many bars in Thailand and have seen how many of them are failing due to pretty obvious mistakes.

 

I would be interested in hearing from torrenova on this. His observations and the others who own bars as well.

 

Plus the three rules of real estate apply location, location, location.

[samak]

to have a profitable bar you need to have what you must have to run other businesses successful. a good biz concept, know what the customers want, experience, good and reliable partners if you can't do it alone, strong leadership towards your staff, absolute control of what is going on and above all ability and willingness to work hard, hard, hard!

 

the failure rate of bar ownership is very high as many think it is a easy task and underestimate above prerequisites.

a lot also fail as they submerge to seductions luring them into perdition; above all: booze

i do not say that drinking is the first step towards failure; i know pretty successful bar owner who drink a lot, but they compensate by having strong leadership skills and reliable partner in place when they are too drunken. but many don't and are faster out of business and the country as they thought!

[Lord Toad]

There is little doubt that most beer bars effectively fail. I do not think Boss Hog is a good example his bars cost a lot of money: if you have serious money (say $500K +) then you can get the best site and should earn well.

If you look for a good site you will probably have to pay sensible money for it: either up front, or in rent. That means you have to run a proper business. The problem is that far too many people pay little money for an iffy bar and think they can make a go of it.

I know plenty of people with successful bar businesses in Thailand. The main dynamic is location and hard work. Understanding a bar business helps but the reality is that you are operating (in many cases) a 50/50 bar/bordello business.

I re-read this article recently and referred somebody to it who asked me about buying a bar hereweb page . I think it raises most of the issues

[shygye]

You should work as an employee in a bar for a few months in your home country. See what the biz is really like.

[jitagawn]

I have an old Tha friend who owns a non p4p pay business on Soi Yodsak(6) in Pattaya. He has been there about 12 years before the bars and I Have known him for about 10 years. We have watched the Farang owners come and go come and go. They are always saying about the owner they are buying from.

"He does no run the business properly I can do better-Then 6-18 months later the next owner-buyer says the same thing,

These are bars in general and Beer Bars-LOts turnover for about a decade with a few steady owners who make money.

My friends wife knows many of the mamasans and girls.She says some ok but most no good farang and girls same same. ::

Many of the girls have gone up country to die from Aids.

Rugged business and environmnet (booze and sex)to live in.

I never naughty boy in soi 6 for 10 years-roo yud gern bai ::

No thanks...