Location, location, location. So what’s the right location for your new bar or pub? Well, it depends on your concept, business plan and budget.
If your pub is based in the middle of the city where there are lots of natural potential customers, it may be perfect for sales but your rental will be very high. In fact, other costs may be higher as well.
On the other hand, if you are based out-of-town, property prices will be cheaper but you’re not going to get any ‘walk-in’ customers and you’ll have to work harder to attract patrons to your pub.
In a way, by spending more money on rental to be in a highly populated area, it could save you on advertising, marketing and other operational costs as you’re likely to get automatic customers from pedestrian traffic and natural brand awareness.
Do note though, that your competition may be greater in the city as well, so when you consider all the possibilities, it does come back to your concept and business plan to decide on what’s the most suitable choice – in the city, outside the city or somewhere in between.
A lot of it really does come down to common sense. If your concept is an all-day family pub with a garden, full kitchen and entertainment for kids, it may not be feasible to be located in the city centre.
So, before deciding on the location for your new pub or bar, try and be very clear about your vision and concept.
Any pub or bar needs to be clear about its concept, market, customers and unique offerings in order to have a well thought out business plan.
Are you looking to start a traditional pub, a modern bar or some sort of a mix between the two? Is it a family friendly pub or more of a nightclub with loud music? Will you offer food or just snacks, will there be any form of live entertainment or any special attractions?
A lot of these questions will help you define your concept before opening a pub.
Once you’ve decided on your concept, the next step is to identify a suitable location. The location is one of the most important factors in establishing a successful bar or pub. Take your time in assessing as many options as possible and do not rush into confirming any property. Remember, once you’ve chosen the location and invested money into renovating it, you’ll be stuck there, so think carefully.
If you’ve found something you like, write down a list of all the positive and negative things about the prospective property. Next, do a detailed examination of all the negative factors and where possible, identify all the costs involved in rectifying the problems.
Once you’ve got a monetary evaluation of the issues and still feel that the positives outweigh the negatives, note it as a shortlisted option.
If you do this for all the properties you’re considering for your new pub, and then compare each of the shortlisted choices against each other, you’ll get a lot of insight into all the relative benefits and setbacks.
Most of all, it will force you to really think deeper and understand more about what’s involved in your new business.