Why should you consider a computerized bar POS (point-of-sale) system for your bar?

Let’s face it, we are in the computer age, and we need to bring our bars into the computer age as well. There are simply a number of advantages to having a computerized bar POS system rather than just an old-fashioned Bar Cash Register.

Let’s take these into consideration:

The Advantages of a Computerized POS System

In the bar business—especially if you have a dive bar or a hole-in-wall Tiki bar—we have a Romantic liking of old-fashioned bar cash registers and other aspects of the traditional bar. After all, many of us got into this business to avoid sitting in front of computers.

The computer age has caught up to us, however, and we can no longer afford to avoid it any more. Everything from Nightclub Lighting Software to your Nightclub Website is now run on software. Especially if you have a larger bar or nightclub, you should really consider getting a bar or nightclub POS system. Here are some of the advantages of this kind of system:

• Customized to your Bar or Nightclub: These days the POS software can be easily customized to not only the industry to which it is sold but to your specific business. Most suppliers allow you to change the specifics of your POS system so that your touchscreen will display what you need it to rather than everything a restaurant might need. As you well know, the needs of sportsbar with 5 kinds of beer are different than those of a full service hotel bar that serves everything from a Bloody Mary to a Third Rail.
• Simplified Ring-Up: The Point-of-Sale touch monitors are a significant improvement over most any kind of cash register. They are, first of all, easily programmable so that you can store a large number of drink prices without any difficulty. They are also intuitive and user-friendly so that you will not have to do large amounts of training to get your employees up to speed on how to bill customers.
• Inventory Integration: A good POS system will allow you to track inventory much more easily than regular systems because they will monitor not only what types of drinks are sold, but which specific ingredients were used. So, for example, if Smirnoff is used rather than Absolut to make a specific drink, the POS inventory software will pick this up and you will be able to monitor the rate at which your inventory is being used.
• Helps Standardize Service and Reduces Waste: Because the inventory software can monitor inventory so easily, you will be able to identity waste and standardize service. The software makes it easier to identify over pouring and other forms of waste, by matching inventory reports to actual inventory on hand.
• Reduces Theft: A computerized Point-of-Sale also reduces theft because it allows you to monitor who was on the system when, and to track what transactions were conducted. Most systems require individual users to log in with specific codes so that you can will always know which server performed which actions.
• Remote Ordering: If you have a large multi-level nightclub and you provide table service, your POS system can increase efficiency by allowing your servers to take orders remotely and relay them electronically back to the bartender so that drinks are ready by the time your server reaches the bar. Customer wait time is reduced, increasing impulse sales and keeping servers from waiting around for orders to be fulfilled.
• Easy Billing and Tabs: A good nightclub POS will also allow you to pre-approve credit cards when customers enter so that there are no unpleasant surprises at the end of the night. In this way you can run a tab for a customer and still be assured of payment at the end of the night should the customer slip off without remembering to pay.
• Rewards Customer Loyalty: One of the most lucrative aspects of POS software is its memory capability. Like a great attentive server the POS system is capable of remembering individual customers when they give their names. This means that a returning customer can be rewarded for their loyalty even when the server who is attending to them does not recognize them. Thus a customer can be given a free drink when they reach a certain threshold or the server can ask whether the customer would like his or her “usual” and know what that is from the system. This kind of personalized service increases the chances of return visits and customer satisfaction.
• Financial Accounting: A modern POS system can also integrate with your Quickbooks or other accounting systems so that it is easy for you to monitor sales and profits and make adjustments to pricing in close to real time. You no long have to crack the cash register to figure out how you did at the end of the night. Now you can just run a report and get the numbers.
• Taxes: Because you are integrated with accounting software, this also makes tax time a lot easier. The POS system keeps track of sales and inventory throughout the year and connects with your other accounting systems, so there is no longer a need to dread tax time. Well, at least not dread getting your data together.

Put simply, given the relative affordability of a bar POS, it no longer makes sense to avoid entering the 21st Century.

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So you’re looking into starting a bar, but are having enough of a hard time getting the cost for the down payment, the liquor license, the costs of advertising, the cost of redesign and costs of hiring a staff, before you even start thinking about the bar equipment.

One of the major costs that goes into to Starting A Bar or nightclub comes from the upfront bar equipment costs. Not only are there large upfront costs to buying coolers, ice machines, coffee makers and dishwashers, but there are additional costs for insurance plans, maintenance and costs for replacement when they break down.

As an attempted solution to this problem you may be tempted to buy used bar equipment. Many new bar owners fall into this trap only to find that the cost of maintaining and then replacing used bar equipment ends up being more of a headache than it is worth. Not only that, but broken equipment does not make for the best bar experience for customers and employees either.

One solution to consider for this problem then, is leasing bar equipment.

The Benefits of Leasing

There are certain key benefits to leasing your bar equipment:

• If your leased bar equipment breaks, you don’t have to go to the expense of fixing it. If the bar cooler suddenly stops working, for example, you just return it and order a new one. It is one of the benefits of not owning.
• Leasing bar equipment will also save you on start-up costs. This is a big one. A bar cooler, an ice machine, a kegerator—these can all run you into the thousands of dollars. Even if you decide to buy used bar equipment, you are still looking at a substantial increase in your starting cost. In addition, as mentioned before, used bar equipment is more likely to break, forcing you into repeated expenses.
• When your lease is up, you can usually choose to renew with a newer model, thus never having to worry about having old, unreliable equipment.
• There are also some pretty good tax breaks for leasing, since this counts as a recurring fee year on year.

What bar equipment to lease.

Generally speaking there is some bar equipment that is ideal for leasing:

Photo Courtesy of Mark Hillary (via Flickr)

• Bar Cooler: Bar coolers are good items to lease because they tend to be so expensive. Additionally, if you are looking to get more than one cooler—say a larger cooler for the back room and a couple of under bar coolers, you can often get a lease deal that is a little better for the three together rather than getting them individually. This will also simplify payment and other transactions since you will only have one company with which to deal.
• Ice Machine: Many bar owners if they choose to buy just one item, choose the ice machine. This is because of all the bar equipment, this is the one that is the most likely to cause problems. Something about the combination of creating ice and keeping things just the right temperature seems to be hard to balance. Having a leased ice machine can often save a lot of financial headaches. (Also, generally speaking of all used refrigeration equipment, the ice machine is definitely not one to get unless you really like to tempt fate.)
• Underbar Kegerator: I am not a huge fan of leasing a kegerator, since it is the least expensive of the equipment I have mentioned so far, and since kegerators are such simple equipment they are unlikely to break. But if you really need to save money early on, you might consider this when first buying a bar and then purchase a kegerator later.

Tip from the Pros: Remember, however to read the fine print when it comes to your lease since not all leases are created equal. You want to make sure that the terms of your lease suit your needs and your business. Get your financial consultant to check it out before signing on the dotted line.

There are also some kinds of equipment that I am not quite as crazy about recommending anyone lease. I am not a big fan of leasing a personal computer since should something go wrong, they might be able to take your computer along with your personal information.

I am also not completely sold on leasing your Bar or Nightclub POS system for a few reasons. In my experience these tend not to break very often, so you don’t really need to pay a recurring monthly fee for them. Second, I’m not sure how beneficial it is to upgrade a POS very often since doing so tends to cause havoc in terms of efficiency as your employees are forced to relearn the system.

Leasing, however, can definitely be an option for some bars as cost savings measure.

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If you are looking for a good way of bringing people in on a slow night or to maximize your sales on a moderate night, one of the best ways to do this is through the use promotional bar games. Bar game promotions keep the atmosphere fun and help spread the word about your bar. There are a number of bar games that you can use to help bring people in. Depending on the kind of bar that you have, you can vary bar game promotions accordingly.

Here is an incomplete list to just whet your appetite and get your imagination going:

Classic Bar Games

There are, of course, lots of bar games that are common place throughout the bar industry. There is a reason for this ubiquity: the best bar games consistently draw customers.

• Pool Tables: This is the classic of all classics. It seems always to draw customers and if you have space for a pool room you can use it as a way of differentiating your bar from nearby competitors. The main drawback of pool tables, of course, is that they take up a huge amount of floor space. So if you own a Tiki bar, this one is definitely out.
• Darts: Similar to having pool tables, darts is a mainstay of pubs and the bar game scene. They also have some space requirements in order to be carried off correctly, however, as you want to make sure your clientele does not end up making a trip to the hospital after visiting your bar.


Bar Darts Photo Courtesy of Naomi Ibuki (via Flickr)

• Bar Trivia Game Night: One of the ways to bring in a lower intensity crowd to your neighborhood bar is with a trivia night. This can also be adapted to certain kinds of theme bars, like having a Superbowl bar trivia game night as part of your Sports Bar games night or by having an Irish trivia night at your Irish pub before St. Patrick’s day. If you also offer prizes like free drinks to winners, you will increase the appeal of these kinds of nights.

There are a number other kinds of games that also fit into this category, from classic pinball tables to bar video games.

Bar Drinking Games

Some of the best bar games will not only draw clients on a particular night but can actually help you push Drink Sales in themselves. Here are some classics that fit this category:

• Bar Wheel of Fortune: This is an old trick of the dive bar for customers that aren’t sure what to order when faced with drink names like “the Kamikaze.” You set up a pin wheel with drink names on it and pull it out with great fanfare whenever a customer says they aren’t sure what to get. Get the crowd to chant “spin, spin, spin,” and the peer pressure is sure to make the customer let chance choose his or her drink.
• Beer Pong Table: Another classic of bar drinking games is beer pong. This is a game that originating in the fraternities but which can be instituted at a college sports bar games night if you have the right kind of atmosphere. It works especially well for groups of college students celebrating a party since you can isolate them into one corner of the bar.
• The Flip: Another promotion for getting people to come in on an off night is the “Flip night” as it is known. The bar tender flips a coin. If the client calls it right, the drink is free. Of course, for this to be profitable, your drinks have to be properly priced or you have to have a door fee.

Bar Game Promotions: Contests

One of the most effective ways of getting big crowds is by having tantalizing promotion nights. The classic old school version of this the wet t-shirt contest–in which girls are invited to come in and get soaked so that their t-shirts become sheer, wet and transparent—still continues to be a favorite at Spring Break destinations where for a couple of weeks every spring students flock in for a week of total debauchery. There are several variations on these kinds of contests:

• Lingerie Night: Any time you can get gals to come in provocative dress, you are sure to also get guys as well. Having a lingerie night where girls get in free and get a free drink for wearing their nightwear is sure to get guys coming in droves. In addition, offering a larger cash prize to the selected winner of the lingerie contest can also help increase turn-out. (Often, however, you may have to hire some ringers—models and such—to make sure this night actually works to the fullest.)
• Dance Night: Similarly, any night where you give away a prize at the end of the night can help you to draw people in. One fun variation on this, might be a 80’s Night where you have a breakdancing contest and give the winner a free prize at the end of the night. Any number of contest and promotions can work with this kind of promotional bar game.

These are only some of the possibilities when it comes to incorporating games into the bar experience at your establishment. The key is to find a bar game that matches your bar and to use your imagination to make it as fun and inviting as possible. The thing to remember is that the bar business is really part of the entertainment industry. People don’t come to your place to get drinks (they have the liquor store for that); they come to your bar or nightclub for the social experience. The more captivating you can make that experience, the more likely you are to win your prize: profit and success!

For more on bar promotions, be sure to check our Club Promotion article.

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Because there are such low margins in the bar and nightclub business, finding the right bar suppliers is crucial to keeping costs down, staying regularly supplied and having quality product. From nightclub and bar uniforms to beer and wine, having the right bar suppliers makes all the difference in the long run.

Price is, of course, the number one consideration when it comes to your suppliers. You must do all you can to keep cost down, especially when you are first starting a bar or nightclub. But this is not and should not be the only consideration. There is usually a reason why one supplier offers bar supplies at so much lower than the usual rates.

Always be sure to check out the quality of the bar and nightclub supplies being offered. Sub-par quality will affect the overall customer experience which will come back to hurt you in the long run.

Bar Suppliers and Vendors

So what kind of suppliers do you need for your bar business?

• General Bar Supplies (Napkins to Straws): There is no shortage of suppliers that can get you the basics, from toilet paper to straws. The idea here is to try to buy in bulk and save on these costs. (You should also be sure to train your staff to avoid wasting your bar supplies unnecessarily.)
• Bar Glassware Suppliers : One of the recurring costs of owning any kind of bar or nightclub is the cost of replacing glassware. Breakages are just a fact of life when it comes to running a bar business. Find a bar glassware dealer that you like and try to establish a recurring relationship so that you can get your glassware at a discount.


Photo Courtesy of Epic Beer (via Flickr)

• Alcohol Vendors: Depending on whether you are a simple Sports Bar or fully stocked bar that can serve everything from a dirty martini to a calypso (rum and coffee liquor), you may have one or more of these types of vendors. If you have beer on tap, look for distributers that also offer to clean the taps on delivery. This is often a free service and will save you the cost and hassle.

Tip from the Pros: A great way to make your bar or nightclub unique is to find local beer brewers or wineries and offer their products at your bar or nightclub. These days, independent brewers and wineries are popping up even in the least likely locations around the country. Creating alliances with these local establishments can be mutually beneficial and allow you to offer something your competitors might not.

• Bar Uniforms and Linens: If you have nightclub or bar uniforms, you will also need a vendor for these. Look for a bar uniforms vendor that also offers to launder your bar uniforms. This will save you the time and expense of doing so yourself. Having clean crisp uniforms every weak is vital if you want to succeed with an upscale wine bar or similar establishment.

Finding Vendors

The internet has made the job of finding and researching vendors much easier. These days you can simply do a search on bar supplies and find a number of vendors. You should be sure to always do your homework however, and comparison shop.

Be sure to be on the look-out for hidden costs and qualitative differences:

• Delivery Costs: Make sure you know how much delivery costs are. Many vendors will add the cost of delivery into the price they quote you while others will have a separate delivery charge added to the cost of your bar and nightclub supplies.
• Extra Services: Sometimes it is better to go with a slightly more expensive vendor when starting a bar, if that vendor supplies extra services that will save you money in the long run. For example, does your beer vendor offer free cleanings of your taps on delivery? Does the bar uniforms vendor offer cleaning services at a discount? Does the wine supplier offer Stemware at a discount. Always be on the lookout for these kinds of money saving add-ons.
• Selection: Does your glassware distributer actually have the kinds of glasses that you require for your establishment? Does the style fit your bar? Can you get a better match with another vendor?
• Delivery Schedule: Does the distributer deliver at a day and time that actually works for you. If you do not have much storage space and need bi-weekly deliveries, is it worth having a distributer that can only deliver once a week. If a distributer only delivers on Mondays when you are closed, do you really want to come in on your day off to receive delivery?

All of these should be considerations when choosing a distributer. Remember that managing a bar and keeping it supplied are the kind of boring, everyday decisions that will have a huge effect on your chances of success in the long run. Don’t take them for granted.

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This bar lease article focuses on negotiation and is a sequel to my previous article, Before You Negotiate Your Bar Lease

As I mentioned in my previous article on this topic, negotiating a bar lease is one of the key steps in the process of owning your bar and will have consequences that will ripple throughout your ownership of your bar or nightclub affecting everything from bar design and build-outs to how much money you will have to start your career in the bar business. If you don’t secure a favorable bar or nightclub lease, not only will you be paying much more than you should, but you may also get stuck paying it for a prolonged period of time. In fact, one of the reasons why so many first time bar and nightclub owners fail the First Time they venture into the business is because they mismanage this stage of the process.

So here then are some tips to help you negotiate a bar or nightclub that will give you best chance of success.

Have a Strategy Going into Negotiations

One of the worst things you can do when going into a bar lease negotiation is to not have a plan of action. Just like a football team going into a ball game, if you don’t have a strategy and haven’t done your homework, you are likely to fail. From the pointers I gave you in the previous article, you should have some sense of the owner and the place where you are looking to lease.

You should know:

• What similar bars and nightclubs in the area pay for their leases.
• What you will need to do to remodel the location for your needs.
• How long it will take you to open.
• How your landlord acts towards other tenants or neighbors.

With those you should develop a strategy. Generally speaking, in the beginning you want to be ready to bring up what you would want from the landlord. (Usually the best course is to ask for too much and then negotiate toward a middle ground.)

Typical Tenant Requests for Leasing a Bar

Here are a few things you might consider asking for:

Bar Open Sign courtesy of GeishaBoy 500 (via Flickr)

• No more than a one year deal: Try to keep the lease to a limited amount of time at first rather than a longer deal, just in case things don’t work out so that you are not liable for keeping up your pub lease even after owning a bar has become an unpleasant memory.
• Pro-Rating Rent: If you get locked into a longer deal, try to ease yourself into it by having a lower rent the first year, and then increasing your rent as your bar or nightclub lease matures.
• Grace Period Until Opening: This is key. If at all possible try to delay the first lease payment until after you have actually opened. The last thing that you want to have to do is pay rent while your doors are closed and you have no money coming in from the business. This can be nerve racking—especially if there are delays in construction.
• Build-Outs and Bar Redesign: If you need to convert the location so that you can install your kitchen, or if it is an older building and needs to having plumbing or the electrical wiring redone in order to accommodate your facilities, you can often get the landlord to subsidize these building improvements. Typically the break-down of who pays what amounts has to do with nature of what is being redesigned. The landlord will probably not want to pay for your bar having Cool Ceiling Lights or for a LED Dance Floor. If, however you going to change the plumbing, create greater ventilation, or replace the electrical your landlord should be able to cover this since it will be a change that he or she will keep even when your bar is gone.

Hidden Terms of Leasing a Bar

The other reason you need to make sure that you bring your lawyer or financial planner is so that you can make sure that there are not hidden costs or terms that you don’t notice. You should be careful that you note whether the following are or are not included in the lease:

• Requirements that you pay extra for trash pick-up or other services.
• Restrictions on what kind s of bar design or redesign you can engage in. Many landlords will not allow you to do build-outs without permission and will make all kinds of restrictions on what you can do to the space. Some will even try to pre-determine your hours of operation. Be aware of these and make sure that you can still create the place that you want.
• Subleasing. If you have a long lease, try to make sure that you will be able to sublease to another tenant should things not work out. This gives you a way of trying to keep from losing too much money in the process.

And, of course, always be sure to bring a trained financial advisor with you, before you sign anything.

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Although bar signs are not the kind of thing that is likely to make or break your bar or nightclub, bar signs do serve a number of purposes in a bar and can not only help you build your bar’s overall image, but also can help with promotions and even with efficiency.

The fact that it adds to your brand image—the general look and feel of your bar—will doubtless come as no surprise to you. But help with promotions and increase efficiency?

Before you start to think that I have taken one too many swigs from the Budweiser tap, let me explain.

Uses for Bar Signs

Here then are some ideas for how to use your bar signs to help build your image, increase business, and even help with efficiency to some extent:

• Use Bar Signs to Build Bar Identity: Of course, the first and primary use for your bar signs is in building your bar’s identity. A sign that reads “Head” over the bathroom doors gives off a very different impression than signs that reads “Monsieur” and “Madame.” Similarly neon beer signs create a different impression than vintage bar signs showing classic paintings of drinkers. Bar signs and mirrors can also go together well, creating a greater sense of space even as they promote the drinking lifestyle.


Bar Sign photo courtesy of Petr Kratochvil via WikiCommons

• Use Neon Bar Signs to Draw in Business: Especially if you have a dingy exterior or have an entrance that is somehow difficult to spot, it is important to place a “Open” sign on your window and to light it when you are actually open. I have seen some bars that increase their walk-ins by a full 50% just through the purchase of a neon sign. Don’t ever assume that people will know you are open. Make it foolproof by placing a sign in the window indicating it.
• Use Signs for Safety: In most states it is a requirement, but even if it were not, you want to use bar signs to indicate where the exits and fire extinguishers are. These should be beyond clear so that should a problem occur no one gets trapped inside leaving litigious relatives to ask questions afterwards. Neon bar signs with beer brand names and that kind of thing are also a good idea in dark hallways and other places where lighting might be deficient. (For more on LED Lighting for Your Bar or Nightclub see our articles.)
• Use Bar Signs to Show Where the Bathrooms Are: This might seem like a silly point, but if you can cut back on the number of people who bother your staff with a the question by simply putting up a sign telling people where the bathrooms are, why wouldn’t you. You should especially do this if you own one of those establishments where the location of the bathroom is not obvious (e.g., if it is in the basement).
• Help Promote Your New Drinks and Specials: Another great use for bar signs is to have one that is a dry erase where you post the newest cocktail or the specials. You can’t always count on your wait staff to promote it and even if they do, many people notice things visually rather than through speech. This is especially the case if you have a noisy bar where your customers may have trouble hearing their server anyway.

Tip from the Pros: Here’s a tip, especially if your bar is partly a sports bar. Get an LED sports ticker which you can hang behind the bar or in a strategic spot (such as by your specials or a large promo for your main cocktail). A LED sports ticker is great because it feeds scores from games you may not have available on TVs in your bars while also, subliminally advertising more drinks. LED sports tickers can also often be set to pick up news, so they can serve several purposes.

Several similar high tech versions of bar signs can now be found and are worth looking into when it comes to your bar signs.

Where to Find Everything from Vintage Bar Signs to LED Sports Ticker Strips

As for finding bar signs of all varieties, the internet is a great resource since you can find all kinds of compelling bar signs with a simple search.

Here are some sites that I like for their selection:

Neonsigns.com has a really solid set.

Kegworks.com is pretty good overall.

ShopLEDauthority.com for an LED sports ticker.

But these are certainly not the only places to find bar signs. You might even ask your vendors. Many beverage providers are more than happy to hook you up with some free advertising for you to pin up to your walls to help increase their sales.

Sometimes it is also a good idea to keep on the look-out for bars that might close in your area, since they can provide you with a good place to get vintage bar signs and maybe even get some more Bar Furniture while you are at it.

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The days when you can forego a cash register and just use pen, paper and calculator to keep track of your sales are long gone. That method pretty much has gone out with the 8-track. The inefficiency and opportunities for fraud, theft and just outright error with that old-fashioned kind of system are just too high. Not to mention, given the low cost and convenience of modern cash registers, getting one is simply a no brainer. The last thing you want to be doing is trying to add up your sales for the day at 3 am every night.

There are a lot of different kinds of bar cash registers from which to choose. The kind of bar cash register you choose will largely depend on what kind of bar you have and what you believe the growth potential for your bar or nightclub is. If you own a tiny hole-in-the-wall Tiki Bar, for example, where you and your brothers are the only employees and you have no room for development even if you wanted to expand, then a simple Sharp XE might be able to do the job for you.

On the other hand, if you own a thriving club that is quickly expanding and will soon be opening a second story LED lit dance floordance floor—then you may actually need a more advanced POS system. So how to you decide how much cash register you actually need for your establishment?

Here’s a helpful guide to choosing the right cash register:

The Basic Cash Register

So, you know that Tiki Bar that I mentioned? Well if you happen to have a Tiki Bar, then this might be your best bet for your cash register, because it is cheap, small, simple and durable—just like your Tiki Bar. First of all, the tiny dimensions of this cash register make if perfect for a tight little bar where space is at a premium. At 13” by just over 14” this is only slightly larger than your average notebook. You can nestle it right within your bottle display on your back bar. (For more on the placement of your cash register see my Cash Register Basics article.)

The simple, fool proof set-up also makes this perfect for a no-frills, zero pretentiousness kind of a bar. (Think the total Dive experience.)

Tip from the Pros: Don’t forget about the Power Source for your cash register. If you want to place a cash register in a hut up by the pool of the hotel or down on the beach, and there is no power source, you will have a hard time powering the more complicated types of cash registers. Always take power and dimension into mind when purchasing a cash register for your bar or nightclub.

Standard Cash Registers

Samsung along with other cash register companies make a series of cash registers that are perfect for the bar business. The basic standard model, the Samsung register ER920 is well-suited to the bar, nightclub and restaurant business. This Samsung register is a large, sturdy electronic cash register with an internal computer system that is easily programmable. (Samsung also has excellent customer service should you get stuck.) This helps because it allows you to program a series of functions. Unlike the Sharp XE, for example, which only allows you program 8 keys, the Samsung has 99 programmable keys and it also allows you to give individual users separate ID codes so that you can track who was on the cash register when.

In addition, the keyboard is spill resistant—a big help in our line of work—and it is not too much larger than the Sharp XE. These registers will also calculate sales tax as well, making sales quicker and more efficient. On the other hand, it is a good 4 times more expensive than the Sharp, so it is much more of an investment.

Point of Sale Systems

Of course, if you own a large, multi-level bar or nightclub (or maybe just an establishment with more than one point of sale), you should definitely considerate purchasing a POS system that allows you have an integrated system to help with tracking sales and inventory. This kind of an integrated POS system allows multiple cash registers and locations to connect with one another so that you can have waiters and servers on one level, instantly relaying orders to the kitchen or bar even if they are on another level. These increases in efficiency optimize customer satisfaction and improve efficiency so that profits are maximized.

This is the perfect system for a large high-end nightclub with multiple floors and various points of sale.

You can find out more about this kind of a Point of Sale System in my forthcoming article, which I will LINK to here when it is published.

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When you were first dreaming of owning a bar, your dream probably did not include the section where you took all the necessary steps to make sure that you got the right bar or nightclub lease. But getting the right bar lease is vital for anyone who wants to have a successful bar. Making a mistake in your lease could end up sinking your dreams or so handcuffing your possibilities that the bar hardly feels like your own.

Leasing a Bar or Buying It?

First things first. You may want to consider just outright buying the building that contains your bar rather than trying to get a landlord to agree to the terms you need for your pub lease. Owning a bar and the building it is in is certainly much cleaner than having to deal with a landlord. Owning a bar in totality will certainly give you much more freedom and control in terms of bar design and build-outs.

The main drawback to owning a bar and its property is in terms of upfront costs of course. Raising this kind of capital can be difficult for many first time bar owners. In addition, if you are a first time bar owner, a bar lease decreases your risk should you not turn out to be cut out for the bar business, or should you make critical mistakes on your first time out.

In many cases, you may have no choice for a particular property.

Tip from the Pros: Get a Professional Real-Estate Broker: As you will see, there are many considerations when it comes to working out bar, nightclub or pub lease details. From early on in the process you should hire a professional real estate broker who has experience with restaurant or bar leases and completely acquaint them with your bar design ideas. It is important that they are experienced because a general commercial real-estate broker simply may not know the special needs that a bar or nightclub lease will need to secure to operate successfully and the broker may not be able to make sure you get these needs met. If you are buying into a bar franchise, they may provide a real estate consultant for you. As always when hiring anyone, be sure they have your best interests in mind and are not just looking to making a quick buck at your expense.

Evaluating the Lease Location

Photo courtesy of Daniel Lobo (via Flickr)

Even before you begin haggling over the lease, you need to do your homework so that you can have a clear sense of the value of the location. This is important because it will determine how far you are willing to go in leasing the bar or nightclub location. One of the big mistakes that first time bar owners make is jumping into what looks like the “perfect location” without doing the proper research.

Some of the things that you will want to consider about the location:

• Visibility and Foot Traffic: How visible is the location and how close to other entertainment spaces. A bar right by the Walk of Fame on Hollywood Blvd. is likely to be able to attract tourists and other night time revelers without any difficulty. But if your location is just a block down from the main drag, you might need a bit more marketing. Take these extra costs into consideration when evaluating your lease arrangement.
• Parking and Transportation: If you get a lot of foot traffic at you location from other entertainment destinations then transportation concerns might not be an issue. However, if people need to drive to your location, you must think about where they will park. If you are in a financial district, do the parking lots stay open late into the night? Is it feasible for people to take public transportation at night time, during your peak hours? Will they do it? In some cases, you may need to work out these nighttime parking arrangements (sometimes even pay for a late night parking attendant) in order to have accessible parking. Find out before you negotiate the lease.
• Bathroom Facilities: If you are leasing a bar in a building with shared bathrooms, you need to make sure that these will be available during nighttime hours.
• Kitchen Needs: If you are going to open a Bar and Grill or any kind of bar or pub with kitchen needs, you need to make sure the location has the proper ventilation and facilities for a kitchen. Many locations will have to be modified to handle kitchen needs. Find this out, and make sure that you know exactly what modifications you will need to make before you negotiate your bar, club or pub lease.
• Plumbing and Electrical Upgrades: Be sure to determine what kind of upgrades the location will need before you can get fully operational. This should be factored into your financial considerations.
• Space Redesigns (Build-Outs): Determine whether you will need to do major changes to fit your club or bar design. Will you need to tear down walls to create new spaces, for example. All of this goes under the general category of what are called “build-outs”. Build-outs involve everything from changing the flooring to adding outdoor awnings and attaching signs to the outside. Determine which build-outs you will need to do and make sure you get these build-outs approved in writing long before your Grand Opening.

Tip from the Pros: Interview the Other Tenants: Before you even begin negotiating your bar lease, you should get a good feeling for the landlord. One of the best ways doing this is to interview the other tenants with whom you will share the building. Find out what they think about you leasing a bar or nightclub in the same building. Find out their concerns about noise and security and try to set their minds at ease. But even more importantly, find out about the landlord. Does the landlord help businesses succeed? Is the landlord flexible? Does the landlord take a hands-off approach but expect tenants to fix all problems that may arise? Does the landlord respond to tenant problems in a timely manner? Does the landlord try to micromanage everything that goes on in his or her building from the changing of a light bulb to the number of keys allowed? These are huge considerations when it comes to deciding whether a bar or nightclub lease will succeed.

Only once you have completed all of this are you ready to get into serious bar lease negotiations. With this information and the help of a real estate professional who specializes in bar, club and restaurant leasing you will be able to come to the table fully prepared to get what you need. Furthermore, by being prepared you will make it clear to the landlord that you are actually ready to take on the complications of the bar or nightclub business and will thus set the landlord’s mind at ease as well.

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Back bar design ideas are vital to the efficiency of your bar whether you own a small hole-in-the-wall style dive or a large dance club. Making effective use of your back bar space is vital to properly managing your establishment, increasing your worker’s productivity and maximizing the earning potential of your business. Having a well-organized back bar not only minimizes waste, but also opens up new options for you as a business owner.

Here is a list of the top ways that you can improve the efficiency of your back bar:

1. Use Overhead Glass Rack: An overhead glass rack is one of the best choices you can make when it comes to maximizing your back bar space. An overhead glass rack both saves you counter space in the back bar and decreases the number of breakages—especially when it comes to fragile Wine Glasses.
2. Choose Proper Equipment: From beneath bar Kegerator to back bar coolers, both which equipment you choose to have and their sizes make a big difference in terms of space use. You always want to be sure to choose equipment which does not stick out and does not get in the way of your bartenders (don’t forget to leave room for bartenders’ feet—uncomfortable bartenders don’t provide good service for long). Remember to get coolers with sliding doors so bartenders don’t trip.
3. Don’t Use the Bar as a Storage Area: If you have the choice, keep all extra liquor and ingredients out of the back bar and in a storage room. Although this may not be possible this is a big help for most bars. Not using your back bar as a storage room, allows you to have smaller back bar coolers and gives you a number of better options as far as back bar design ideas. Bartenders should have individual speed racks with all their main ingredients and keep only what they need for the shift in small beneath bar refrigerators.
4. Use Multiple Cash Registers: Here is a big time saver—two Cash Registers —one at each end of the bar, so that bartenders do not have cross past each other to make change.
5. Create Bartender Stations: Bartender Stations are vital both to efficiency and for inventory and quality control. Creating individual stations for bartenders keeps bartenders from waiting on each other and from having to look for items the other bartender may have swiped. In addition, if you want to make sure all your bartenders are pouring exactly the same proportions, having stations for each makes this much easier to monitor.
6. Let Servers Handle the Easy Orders: Along similar lines, let waitresses and runners poor the beers and/or the wine glasses and let the bartenders make the real drinks—the ones that actually allow them to use their bartending skills. If it only has one ingredient, then you probably don’t need a trained professional to mix it.


Photo Courtesy of JD Harvill (via Flickr)

7. Use the Under Bar Space Properly: Make sure that the underbar space is used correctly. Don’t place mixing boards above the ice maker. Don’t put back bar refrigerator right beneath the cash register or in under a bartender station that is always being used. Think through the motions of your workers and try to limit the amount of interference in your back bar.
8. Use Runners: If you have a particularly busy bar, makes sure that you use runners to lend your bartenders support emptying trash bins, replenishing ingredients, doing quick spot cleans and all the things that take your bartender away from his or her primary duties—making drinks.

Following these guidelines will help you to make your back bar runs smoothly, increase your profits and improve the happiness of your bartenders, minimizing turnover at that key position.

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Choosing a bar cash register—or till as it is quaintly called in England still–may seem like a small matter when it comes to the overall success of your bar, but believe it or not, it makes a bigger difference than you might think.

What is your first line of defense against theft (both external and from your own employees)? What can keep a club from growing effectively and lead to the kind of poor service that drives customers away? What is your best friend when it comes to keeping track of inventory?

Yes that’s right. Your bar cash register can do all that. Your cash register or point of sale is the spot where the money actually exchanges hands and although this may seem like a minor aspect of the monetary transaction, making it efficient and orderly is important to success of not only bars but all for-profit businesses.

So whether you have a computerized PoS system hooked up to multiple bar cash registers spread throughout your bar or you have a just a good old fashion brass register like the kind you might see in the saloon in a cowboy flick, it is important to spend a bit of time thinking about the cash register and how you use it.

Cash Register Placement

Bar Cash Register (courtesy of Infrogmation, via Flickr)

One thing you may no doubt have noticed, is that in the majority of cases, the point of sale—your cash register in a traditional bar–is placed on the back bar and centered. (The second most popular location being the end of a bar by the section that lifts to allow easy access behind the bar or, if you have a bar and grill, by the wait person’s pick-up station.)

Why is this location so popular, and is it worth it?

Back bar is the best location for cash registers for two reasons:

• First, counter space=money. If you place your cash register on the counter you are taking up valuable counter space. Most customers will simply not want to sit in front of a cash register that is blocking their view. A poorly spaced cash register can take up the place of one, sometimes even two bar stools?
• Second, there is a theft risk on the counter. Placing the cash register on the counter makes it a lot easier for customers to reach over and do a grab-n-run. One sloppy employee transaction, or a distraction (a glass breaking behind them) and the thief is off with a wad of money. This is a much bigger commitment for the thief than jumping the bar and then jumping back.

Improving Cash Register Efficiency

Beyond the simple placement of your point-of-sale, there are also a number of steps you can take to improve efficiency with your bar cash register. For example, just like a cashier register at most restaurants, most registers these days—even if they are not fully optimized with the full gamut of cutting edge options of a top-level PoS system—will have memory functions that allow you to program certain keys for certain high frequency items—so that you only need one touch to ring them up.

If you are a basic bar that sells a few different kinds of beer, having that easy to use method will save you and your employees quite a bit of time in the long run.

If you have a larger establishment or growing establishment, having multiple registers at multiple locations, will also increase efficiency since you will not create bottle necks at the bar cash register, slowing down customer service and delaying other customers’ service as wait people sit twiddling their thumbs. (This is also the time to seriously consider getting a fully integrated Point-of-Sale system for your bar or nightclub.)

Individualizing Cash Register Users with the assigned Cash Drawer

One of the best ways to create thieves among your employees is to let there be too many hands in the till. Although there are some employees who will try to steal from you no matter what precautions you take, you greatly increase your chances of having thieves among your employees when you allow multiple employees to have access to the bar cash register without proper oversight.

The best way to limit problems of theft is to make sure there is one assigned user to each cash drawer. When there is a switch in shifts, you switch out the cash drawer and take account of the tickets for it. Some bars have a trusted manager at the cashier register giving out all the change so that there is only one person for each cash drawer and thus the responsibility is focused on that one person.

(Of course, as you will see a computerized Point-of-Sale system—PoS—can also be effective because it forces employees to enter their individualized code when they use the register thus recording the amount of the transaction and when it occurred.)

For more on security measures for your bar or nightclub see: Bartender Theft.

Inventory and Promotions

Keeping careful track of sales can be helpful for several reasons:

• First, it can help you track inventory—especially if you have a new promotion and it is doing particularly well for a particular drink, the register will give a good sense of whether you have increased sales overall and if it is due to the promoted drink. This can also mean that you need to order more of that drinks ingredients if you see that the rate you are using up that ingredient will outstrip what you have in stock.
• Second, you may also begin to notice useful patterns according to time of day. If you are selling a lot of martini’s to lawyer types at lunch, it may be useful to put up a lunch sign to promote this to others with similar tastes who may be walking by at that time.
• Third, sales receipts can also help determine whether you have hit the right price points. Undersold drinks may be overpriced, or you may have priced a very popular drink too low.

All of this, however, can be done even more simply with a bar PoS system that automatically records this kind of data so you do not have to go searching for it. In the 21st century, there is little excuse for not knowing exactly what is happening on the business end of your bar business.

Want to find out more about PoS systems that bring technology to you? Just sign up for a membership and I will send you a notice as soon as I publish my forthcoming article on it.

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