How Much Does It Cost to Open a Sports Bar Business?

You need a minimum of $218,900 to start a medium-scale sport bar business in any city in the United States of America. Note that this amount includes the salaries of all the staff for the first three months of operation.

Sport bar is a business that can be classified under the sports and entertainment industry. A sports bar is a place where customers can eat, drink and socialize while watching the latest televised sports events. Since sports bars are tailored to a specific clientele, they must have certain business objectives in place to ensure success.

Football viewing centers and cafes that also show live matches and allow people who buy at least a bottle of drink from their bar to relax and watch live matches are also considered as sport bars.

Lastly, if you have plans to start a sport bar in your country, then you must employ strategies that will help you attract football and other sport lovers to your bar whenever there are live matches. That is perhaps one of the major ways you can maximize profits in the industry.

Estimated Cost Breakdown for Opening a Sports Bar

When it comes to starting a sport bar, the major areas that you look towards spending the bulk of your cash is in renting or leasing a standard facility and converting it into a sport bar and equipping the bar with the needed gadgets. This are the key areas where you are expected to spend your startup capital on;

1. The total fee for registering the business in the united states of America – 0.
2. Legal expenses for obtaining licenses and permits as well as the accounting services (software, P.O.S machines and other software) – $3,300.
3. Marketing promotion expenses for the grand opening of the sport bar in the amount of $3,500 and as well as flyer printing (2,000 flyers at $0.04 per copy) for the total amount of $3,580.
4. The total cost for hiring a business consultant including writing a business plan – $2,500.
5. The total cost for the purchase of insurance (general liability, workers’ compensation and property casualty) coverage at a total premium – $2,400.
6. The cost for renting or leasing a space or warehouse that will be converted into the sport bar and that can accommodate the number of fans that will come to watch live sport evets for at least 6 months (Re – construction of the facility inclusive) will cost – $80,000.
7. Other start-up expenses including, commercial satellite TV subscriptions, stationery ($500) and phone and utility deposits ($2,800).
8. Operational cost for the first 3 months (salaries of employees, payments of bills et al) – $40,000
9. The cost for Start-up inventory (stocking with a wide range of liquors, wines, beers, tobaccos et al) – $15,000
10. The cost for the purchase of storage hardware (bins, rack, shelves, food case) – $3,720
11. The cost for counter area equipment (counter top, sink, ice machine, etc.) – $9,500
12. The cost for serving area equipment (plates, ash trays, glasses, flatware) – $3,000
13. The cost for store equipment (cash register, security, ventilation, signage) – $4,750
14. The cost of purchase and installation of CCTVs: $2,000
15. Equipping the dance studio (Flat Screen TVs, sound system, DVD players, Pianos, Satellite dish and decoder, furniture (table, stools and sofas), telephones, filing cabinets) will cost – $40,000
16. The cost of launching a website: $600
17. The cost for our opening party: $3,000
18. Miscellaneous: $2,000

From the rough estimate as listed above, you would need a minimum of two hundred and eighteen thousand nine hundred USD ($218,900) to establish a medium-scale but standard sport bar business in any city in the United States of America. Note that this amount includes the salaries of all the staff for the first three months of operation.

Factors Influence the Cost of Opening a Sports Bar

1. Your Choice of Location

The truth is that the costs as it relates to rent or lease, labour, operational costs, and source of supplies are location dependent.

In essence, the costs for opening a sports bar can vary widely and this will be based on factors such as the region, city, neighborhood, and even specific street or building where you want to open your sports bar. Prime locations such as locations with high foot traffic and visibility usually come with higher rent or property prices.

2. The Size and Layout of Your Sports Bar

Trust me, a larger space may require higher initial investments in lease or purchase costs, furnishings, and utilities. The choice of layout you settle for will impact the interior design, seating capacity, and the need for specialized areas like a dedicated bar space, kitchen, and viewing areas.

Optimizing the layout for customer flow and comfort will contribute to the overall customer experience but may require additional costs in design, construction, and equipment.

The best layout for a sports bar typically includes a central bar area, strategically positioned large-screen TVs for optimal visibility, comfortable seating arrangements, and designated viewing zones.

3. The Renovation Requirements

The renovation work you will do in the bar facility will undoubtedly influence the overall cost of opening a sports bar. Most people who rent facilities to open a sports bar usually make the place secure, suitable, and conducive for their customers.

Some of them go as far as effecting structural changes, changing the flooring, the walls, and other modifications that will create appealing aesthetics.

4. The Cost of Equipment and Supplies

Starting a sports bar requires essential equipment such as commercial-grade refrigeration units for beverages, draft beer systems, bar stools, tables, chairs, large-screen TVs for sports viewing, audiovisual systems, point-of-sale systems, storage systems, and a commercial kitchen setup.

You will still also need supplies such as beverages (alcoholic and non-alcoholic), bar snacks, glassware, flatware, napkins, cleaning supplies, promotional materials, and disposable items.

Investing in quality sound systems, themed decor, and gaming options can enhance the overall atmosphere and customer experience in a sports bar.

The quality, brand, and quantity of equipment you will buy will no doubt significantly influence the cost of opening the sports bar business. So also, the variety and quality of supplies you plan to offer on your menu will affect the costs of opening your sports bar.

5. The Cost of Licensing and Permits

If you are planning to open a sports bar in most countries of the world, you will be required to apply for licenses and permits needed to legally operate the business.

For example, in the United States, opening a sports bar typically requires health permits, food handling permits, music licenses, business licenses, and liquor licenses if you plan to serve alcohol.

Note that depending on your location, there may also be specific regulations and requirements related to food safety, health inspections, signage, and accessibility. Ensuring compliance with these regulations may involve additional costs.

The cost of obtaining these licenses, and permits vary depending on your location and the local regulations in the city where you want to open your sports bar business.

6. The Cost of Hiring and Training Your Employees

You will need a manager to oversee daily operations, cashier or administrative staff, bartenders, skilled chefs or cooks, servers, kitchen staff, and cleaning personnel to run your sports bar business. In essence, payroll expenses should be taken into account if you are considering opening a sports bar business.

Note that your payroll expenses include wages, benefits, training costs, and potentially hiring specialized positions such as nutritionists or baristas.

7. The Cost of Marketing and Advertising

If you are planning to open a sports bar business, then you must make provisions for marketing and advertising the sports bar business.

Note that your marketing and advertising costs may include the cost of website development, social media campaigns, roadshows, printed materials, signage, and other promotional activities that can help you attract the right demography to your sports bar.

8. The Required Security Measures

Come to think of it, no entrepreneur opens a sports bar without having adequate security measures in place especially if the sports bar wants to attract high-worth individuals.

Part of what you are going to consider as it relates to security measures are surveillance cameras, trained security personnel, alarms, maintaining proper lighting, ensuring secure entrances and exits, and even security personnel. Trust me, to get the best when it comes to security measures, you must be ready to spend a premium.

9. The Required Insurance Policy Coverage

Insurance coverage for sports bars typically includes General Liability Insurance to protect against third-party claims, Liquor Liability Insurance for alcohol-related incidents, Property Insurance for physical assets,

Workers’ Compensation Insurance for employee injuries, and Cyber Liability Insurance for data security. Protecting your inventory and the business is a wise decision, but it always comes with a cost.

10. Utilities and Operational Expenses

If you are planning to open a sports bar business, then you should consider creating a budget for ongoing expenses or utilities such as electricity, water, and gas, as well as recurring operational costs like insurance, cleaning services, waste disposal, and maintenance.

Aside from that, it is also advisable to set aside a contingency fund for unexpected expenses or unforeseen challenges that may arise during the opening and early stages of your sports bar.

In Conclusion,

Note that this is a rough estimate and we usually advise our readers who are interested in opening a sport bar to have a clear picture of what they want to achieve, go to the market or directly contact wholesalers and suppliers of the types of flat screen TVs, sound system and satellite decoders they want to have in their bar in order to get the real time prices of these items.

The truth is that if you are a good bargainer, you can get a better deal that will help you beat down the estimated price as listed above.