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What Is The Cost To Open A Bar In India?

Opening a bar is a heavy, heavy investment. It can cost you A LOT, but it will also give you A LOT once it picks up. The bar business is challenging and costly. You need to get many things, from the right place, furniture, appliances, and licenses to even the right smaller bartending equipment

If you are considering setting up a bar and are confused about the costs, you have come to the right place. This blog will cover in detail the cost to open a bar.

Cost to open a bar can be extremely high. Know more.
The initial cost to get a place is going to be more. If you get your space on a lease or rent, you only have to pay your rent recurringly.

How Much Does It Cost to Open a Bar in India?

The cost to open a bar in India depends on multiple factors like bar location, its type (pub, club, sports, franchise), and your scale of operations.

1. Location Cost and Rent

When you take an estimate of the cost to open a bar, or any restaurant, cafe, or cloud kitchen, the first concern is to figure out the location and the rent which you will be paying. 

  • Finding the perfect location for your bar is critical in developing a customer base. Your bar location will affect your target audience, your bar menu and prices, your marketing strategy and much much more!
  • The cost of space to open a bar depends on your locality and the area you’d be renting. If you get a 5,000 sq ft space, the cost can range from INR 1.5L to 2L (depending on the locality). 
  • The cost of acquiring space can be around INR 4L to 7L (including your advance and two-month security deposit).

2. License Cost To Open A Bar

You need many licenses to sell food and alcohol in India. Add that to one of the many costs to open a bar!

  • As a bar owner, you must register your business. You can register your business in different ways, including as a partnership firm or a cooperative society. 
  • Then apply for a liquor license and licenses like an FSSAI license, music license, eating out license, health & trade license etc. Read our blog here to get a comprehensive picture of all the licenses you need. 
  • Acquiring a liquor license is expensive, as you need an initial security deposit of INR 10L. Another is putting around INR 7-8L for the license and qualifying fees.

3. Interior Cost

The cost of interiors depends on the type of bar you are planning to start and the ambience you’d be creating for your bar. 

Did you there is more than one type of bar? If not, then you have to click here to know more!

  • Your interior sets the tone of the ambience you want to create for your guests. Your furniture adds to the appeal of your bar. 
  • The cost to set up the interior when you open a bar can range anywhere from INR 20 to 30Lakhs (depending on how you want to go about it).

4. Appliances Cost

Whether you are planning to brew your own beer or planning on buying hundreds of liquor bottles, you’ll need storage and bar equipment before you open your bar.  

  • You must buy bartending equipment like pints, beer, wine, mixing, etc. And also bartending tools like jiggers, muddlers, cocktail shakers, and can openers.
  • Other appliances like TVs, amazing music systems, ACs, ventilators, commercial refrigerators etc., also need to be installed. 
  • Your appliance cost can widely vary depending upon the scale of your operations. On average, you take a range between INR 10L to 20L.
You need to budget for venue, licenses, bartending equipments, amongst many other things when you open a bar. Know more.
Your salaries, rent, utilities, food, marketing and maintenance costs will be ongoing, regular expenses.

5. Staff Cost

Your staff represents the tone of your establishment. And so, they need to be reliable and engaging. And to retain them for a longer time, they need to be paid well which will be your other cost to open a bar.

  • To run a successful bar, you will need to hire a bar manager, bartender, servers, bouncers, chefs, cooks, and dishwashers, amongst other staff (depending on your requirements). 
  • Your total costs for hiring and training staff will depend on the number of people you plan to hire. 
  • On average, you can take an estimate of paying around INR 10L to 15L in salaries in your first month

6. Bar Technology

Technology will simplify billing, inventory, CRM, and many more operational tasks for you and your staff. And so, investing in Bar POS, order-taking and management apps, kitchen display systems, etc. is essential.

  • A bar POS will give you a seamless billing and inventory management experience.  
  • An exemplary restaurant bar POS software will offer you multiple unique features like alcohol inventory management, waiter calling system, and waiter performance report, amongst many other features.
  • Although bar pos can be an expensive investment too, we have a way to get India no.1’s POS at the cost of less than your daily chai! Click here to know how!!

7. Marketing and Promotional Cost

A great bar, great drinks, amazzzing food and fantastic music, but no one knows about it? That happens a lot because of a lack of marketing!

  • Once you check all the above steps and the cost to open a bar, you need to let people know about your bar. 
  • Design a logo, promote your bar extensively online (including every social media platform), and plan a launch party
  • You can budget around INR 2L to 4L.
Always remember to budget for some miscellaneous expenses.

To know about setting liquor prices in your bar, read our blog here

The cost to open a bar can be extremely high and the entire process can be challenging. To make the entire process easier, you can hire a restaurant consultant to help you with finances, menu engineering, and hiring and training your staff. 

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Abeera Dubey
Abeera Dubey
Abeera is a freelance content writer at Petpooja.

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