Is buying a bar a good idea?

The hours, the cash, the crowd and the licence make it its own kind of business. Rather than ask whether it is a good idea in general, ask whether this bar suits your life and skills, and test the listing on each point below.

Late nights, weekends and the owner’s role

Most bars earn the bulk of their trade at night and on weekends. Ask the seller what a normal week looks like for them: who opens, who closes, who handles problems on a busy night. If the owner is on site for most of it, you should expect to be too, or to hire a manager you trust and can afford.

Cash handling and pour control

Drinks are sold quickly and in small amounts, so ask how the bar tracks stock against sales. Ask how the bar counts inventory, how it reconciles the till with its point-of-sale reports, and what happens when the numbers differ. Your accountant can review these records. A bar with weak controls may be harder to read than one with careful ones.

Regulars, events and the licence

Find out how much trade comes from regulars, a house band, trivia night or a sports team that drinks there. Those can leave with the previous owner. Then ask your lawyer how and when the liquor licence can be put in your name, and what you can and cannot do while you wait. Do not assume it simply carries over; the rules differ by place, so your lawyer should confirm.

Ways to test a listing

• Visit on a quiet night and a busy one, once the seller allows it.
• Ask for sales by day of the week and by season.
• Ask what the owner does that a manager would have to do.
• Ask about staff tenure and who holds the key relationships.

The step-by-step process is in buying a bar and pub in Canada.