Should I buy an existing bar or open a new one?
Buying gives you a licensed room, a crowd and a record, and you inherit its reputation and problems. Opening gives you a blank site, a build-out and a wait for licensing before the first sale. Compare both by cash needed, time to first sale and risk, and ask a lawyer about licensing steps.
Both paths lead to a bar with your name on it. They get you there differently. One starts with a room that already serves customers. The other starts with a lease, a plan and a long list of things that must be finished before the doors open. The more clearly you can compare the two on cash, time and risk, the easier it is to choose with your eyes open.
What an existing bar gives you
An existing bar comes with a room, equipment, a staff and regulars, and a sales history you can test. You are paying for that head start, so test it. Ask whether the crowd depends on the seller, an event night or a single manager. Our page on whether buying a bar is a good idea shows how to test a listing.
What a new bar asks of you
A blank site means a build-out, equipment, design and hiring, all before the first sale, and a licence to arrange before you serve. Timelines slip, and rent usually starts running before you open. Ask a lawyer what the licensing steps involve and how long they can take, since those steps are not something a general page can answer.
The reputation you inherit
A bar’s name carries history. That can be an asset or a weight. Walk the neighbourhood, read reviews, talk to nearby owners and ask the seller about disputes, complaints and any incidents with neighbours or police. A new bar starts clean, but it also starts unknown and must earn a crowd from the first night.
How to compare the two
Put both on one page: cash needed before the first sale, how long you can fund the wait, the risks you can name and how much control you want over the room. Ask a lender how it looks at each, and ask your accountant to test the numbers. Then ask yourself which set of problems you would rather have.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- Expert answerHow much cash do you need to buy a bar?
- Expert answerIs buying a bar a good idea?
- Expert answerDoes a liquor licence transfer when you buy a bar or restaurant?
- GuideBuying a bar and pub in Canada
- GuideHow to buy a liquor store or licensed bar in Saskatchewan: licences, ownership rules and what transfers
- GuideBuying a brewery or brewpub in Canada
- Expert answerShould you buy an existing axe throwing venue or start one?
- Expert answerShould I buy an existing skating rink or build one?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentWhat are the steps to buying a business?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernmentBusiness plan template for entrepreneurs
- 04Business Development Bank of CanadaGovernmentHow to write an effective business plan
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