How to Open a Bar or Pub in 2025

So, you get carried away every time you think of the ambiance of lively places, social interactions, and a cocktail or two to boost the mood? Ah, it’s time to think of starting a bar business! However, before your entrepreneurial spirit goes wild, let us look at the basic steps you must take to start a pub/bar for your business venture. Before we go, how much does it cost to open a bar? Be ready to invest from $110,000 to $850,000 to open a pub and get it up and running. But there’s more to it.

Perform Market Research First

Before you dive into the business routine, be sure to explore the local market. Find out what types of bars or pubs already exist. What is it that your potential clients would want more? Are they more into alcohol of all existing kinds, or it’s music that hooks them? How about retro arcade games? Check out the top restaurant management schools out there. Do you think you should enroll in any before you go on a bar business adventure? We recommend using all instruments available, from competitor analysis and in-person/cyber surveys to social listening to know the niche from A to Z.

Pick the Type of the Place

It can be a nightclub, sports bar, cocktail bar, specialty bar (cigarette, wine, tiki, and so on), neighborhood bar, beer bar, pub, tavern, etc. Choose one because the type of the place will influence the target market, the general startup costs, compliance requirements, and profit margins. Whatever concept you go for, your task is to have a memorable one. Well, you know, something people would love to post on Instagram.

Choose the Name

This is the identity that will make people remember your bar. In a perfect world, the name of the pub or bar matches the theme and concept of the place. Thus, it will be easier for your potential clients to recognize and recall the place. Keep the name short and mixed with slang, jargon, or anything else 100% catchy. Keep in mind that the bar/pub name should be registered (make it unique for registration!).

Decide on the Where?

The pub needs an address. Moreover, it should be located as close to your target clients as possible. Thus, people will have easy access to your place. We recommend that you start seeking the best location possible as soon as you have an idea to step into the bar business. After all, the process may take months before you find the right spot.  

Before you start, consider the space requirement for the bar you dream of. In general, 1000-1500 sq. ft. works well for a tavern or neighborhood bar. When it comes to nightclubs or sports bars, go for a place of 2000-5000 sq. ft. or more. All in all, the place should resonate with the concept and target market of your pub. In other words, an outskirt is the worst place for a tavern. It should be located somewhere where people can easily visit it on a sunny Sunday weekend.

Don’t forget to study all of the regulations on how and where to open a bar in your region. Chances are running a bar in some places may be banned.

Create a Business Plan

Be realistic! Craft a detailed business plan that includes the executive summary, your target market, and the concept of the place. Include your budget and funding strategy. Specify your menu and pricing strategy. Finally, provide a detailed marketing plan with your financial projections. This plan is your key to hooking potential investors and getting the desired loans.

Secure Funding as Early as Possible

As you know by now, getting a bar is expensive. Costs can range from $100,000 to more than $500,000, depending on size, type of bar, location, and so on. But the good news is that you can fund it through different options. Consider using personal savings, small business loans, crowdfunding, and browse private investors or partnerships. In 2025, we recommend finding out more about startup grants and sustainable business incentives that are currently available in your region.

Learn All the Peculiarities of Licensing and Permits

There’s a bit of knowledge to gain, guys. First of all, each area has its own set of liquor laws, and you must learn them. For example, the typical ‘pack’ you might need includes a liquor license (beer/wine or full), bar business license, permit for food service, license to provide public/music entertainment, health and safety inspections, etc. Maybe this list isn’t full – find out as early as possible since permits can take months.

Design a Cost-Effective Menu

No matter how perfect the ambiance is, chances are people will leave if the menu sucks and doesn’t correspond to your general concept. We recommend using a blend of high-margin items (for example, signature cocktails) and popular choices. Today, consider focusing on things like alcohol-free options (it’s 2025, baby!), local brews and craft spirits, plant-based bar snacks, as well as various sustainable ingredients that reflect the trends of the epoch.

Invest in Branding

The food and drinks rock, of course. However, it is crucial to work on your name, logo, and décor. After all, your task is to build instant recognition. With that in mind, create a setting that totally reflects the nature of your brand. Think of the lighting, seating, and sound design. Plus, provide your staff with uniforms that align with your unique brand. Remember, people never come for drinks solely! They come for the experience and emotions that every element in the bar should channel.

Make It Smart!

It’s 2025, after all, so the tech-savvy bar is a place to go. First of all, together with paper menus, you should provide your guests with QR-code menus and cyber-ordering systems. Plus, we hope that by now you already know that contactless payment options are a must. Online reservations, in turn, will ease the process, while POS systems with inventory tracking are the instruments to put your bar on the list of gadgetized places out there and, well, boost customer experience.

Hire People

The face of your bar business? You and your personnel! It’s crucial to hire skilled servers, bartenders, and managers who are as passionate about the business niche as you are. Inform them about your unique business culture and be open to providing them (if needed) with training on customer service, drink recipes, conflict management, health, and safety. You’re a family now, and it’s your priority to make sure every member of the family is happy.

It Is Not the End, Guys!

Opening a pub or bar in 2025 is both challenging and rewarding, and of course, the process includes more steps than we listed above. We provided you with the key steps to take to create a space that keeps the drinks flowing, the mood high, and makes people want to come back again and again. Cheers!