Debunking Bar Failure Myths & Boosting Profitability

The Bar Business Podcast: Smart Hospitality & Marketing Secrets For Bar & Pub Owners

Send us a text

What if the failure rate statistics you've been hearing about the bar industry are all wrong? Join me, Chris Schneider, on this week's Bar Business Podcast as we dispel some of the most pervasive myths that have been haunting bar owners for years. We start by dissecting the oft-quoted but unsubstantiated claim that 80% of bars fail within five years. Leveraging studies from Ohio State University and data from Starfish, we debunk these misleading figures and encourage bar owners to focus on improving their own performance metrics rather than being swayed by inaccurate industry standards.
We also explore fascinating data from the Bureau of Labor Statistics, showing even lower failure rates for businesses opened in 2022, and how establishments that opened just before the COVID-19 pandemic have shown remarkable resilience in the face of adversity.
Finally, let's talk profitability. Contrary to the belief that bars operate on razor-thin margins of less than 5%, data from Starfish reveals that bars in major cities can see average net profits of 10.4%, with non-major cities reaching as high as 21.4%. We delve into the importance of managing prime costs effectively and provide actionable strategies to boost your P&L numbers. From understanding occupancy costs to adapting to consumer behavior trends, this episode is packed with insights to help you steer your bar toward greater profitability. Tune in for data-driven advice and practical tips tailored to your unique business model.

Learn More:
The Bar Business Podcast Website
Schedule a Strategy Session
Chris' Book 'How to Make Top-Shelf Profits in the Bar Business'
Bar Business Nation Facebook Group
Thank you to our show sponsors, SpotOn and Starfish. SpotOn's modern, cloud-based POS system allows bars to increase team productivity and provides the reporting you need to make smart financial decisions. Starfish works with your bookkeeping software using AI to help you make data-driven decisions and maximize your profits while giving you benchmarking data to understand how you compare to the industry at large.
**We are a SpotOn affiliate and earn commissions from the link above.
A podcast for bar, pub, tavern, nightclub, and restaurant owners, managers, and hospitality professionals, covering essential topics like bar inventory, marketing strategies, restaurant financials, and hospitality profits to help increase bar profits and overall success in the hospitality industry.

Hoofdstukken

1. Debunking Bar Industry Failure Statistics (00:00:00)

2. Bar and Restaurant Failure Rates Study (00:07:32)

3. Analyzing Bar and Restaurant Profitability (00:17:29)

4. Bar Business Data and Statistics (00:25:38)