How to start a Bar business in Nigeria: It can be called beer Parlour or joint and it’s very profitable.
In Nigeria, Bar business is one of the lucrative businesses to venture in but it requires a decent capital to start.
There are basically two types of bar business which are categorized based on the capital used. They are the common bar and the expensive bar.
Some people are interested in this business that’s why you see questions like “how to start a beer Parlour business,” “how to run a bar” cost of “setting a joint” etc
This post covers a wide range of your question and by the time you apply the information on this article, you will surely have a booming bar in your chosen area.
First of all, let’s analyze how much you may be making in a carton of beer, to see if it is encouraging enough.
There are 12 or 24 bottles per a carton.
For Common Bar
You may buy a carton for N2,300 or N4,600.
And sell them for N200 or N250.
Calculating from the latter, 250x 12=3,000.
That means you have made from a carton N700.
Now if you sell 4 cartons a night, you have made N2,800.
For Expensive Bar
A carton- N2,300.
Price per a bottle-N400.
If you sell 4 cartons a night, you will have N19,200.
This analysis shows you a glimpse of your “gains” for selling a particular number of cartons per day or night as the case may be.
Recent Beer Consumption Stats For Nigeria:
According to Heneiken, Nigerians are drinking more beer in spite of the economic downturn. Further research shows that its consumption rose to 4.6% across Africa and Middle East, with Nigeria being a major driver of that growth. With this, your question now should be, ‘How do I start a bar business in Nigeria?’ ‘How do I tap into this opportunity?’
Things To Note
- Before making up your mind for this business, you need to understand that there is too much competition revolving around it.
- Also, you need capital to start. For a common bar, you will need at least N400,000 to set it up.
- You may need a license because what you are operating is alcoholic. Some states in Nigeria gives license. Some of the states I know very well includes Niger state, Abuja, Port Harcourt, Enugu, Lagos, Kano. There may be others but these are the ones I am sure of.
Remember, 4 out of 5 beer joints closes after 5 years and new ones emerges.
The reason for this is will be discussed later on this post but then, you need to package yourself and the joint very well to keep Your customers trooping in. One of the factors that determines how much gain you make is the number of people coming to your bar.
How To Start A Bar Business In Nigeria
1. The Common Bar Business
Three out of five streets bear witness of the proliferation of bar . Its competitive status is also undeniable. Therefore, it requires some strategies to win customers and keep them. Which starts from knowing exactly what your customers want, and how they want it.
The first thing to consider before every other thing is the location. The amount of people who live, or come around your location will determine the inflow of people. And the inflow of people will determine patronage. So, get a place with this prospects in view.
- Get a Good Name
It is important that every business has a name that distinguishes it from others. And bar isn’t an exception. Therefore, make a simple name that people will have no trouble calling. If anyone has to meet anyone in your bar; it’s an easy call.
Bar activities always happen in the night, which means, you need a backup generator in case the usual thing happens, (power failure) and to keep other necessities that require electricity in their place.
Another crucial part of it. They always ask: is it cold? A good refrigerator will answer that question. Some alcohol beverage are better served chilled, and that is one the purposes that a generator would serve. There should not be an excuse of power failure.
It triggers ones mood of relaxation and extrovertism. Sometimes, there could be a need to shake it off, (dance) and music will serve the purpose. However, the type of music to be served may depend on your location and the type of people who patronize you.
Drinks are better served with meats, fish, or pepper soup. You may not have to serve them all, but choose any that will satisfy your customers. Point and kill, and pepper soup are better options, because they contain pepper, and are always hot. Moreover, smoke fish, and barbecue are popular choice. If you cannot do it all by yourself, make a franchise, get people who specialize on any of those, and give him, or her a stand.
- Football matches
Get connected to a digital TV network. Nigeria is a football nation, most of the people who drink, may want to do so while seeing a football match. If your bar does not have such a facility, your customers will look for another place they could have it.
- The price of a drink
Another thing that could draw people close, or chase them away is how much they are paying for a bottle. If they find a little difference in price “nearby” that favors them. They may be tempted go there. So, the best thing is to make the price as affordable as possible.
This depends on how big the bar is. Having a security personnel will ensure that customers behave. You should make sure to have the important number to call during emergency. Here in Nigeria, calling 112 in time of chaos or fight outbreak might help.
2. The Expensive Bar Business
The differences in the process of setting up a “common bar”, and “expensive bar” isn’t much, but matter. In expensive bar, the location has to be in a serene environment.
It may use the setting of a hotel bar, even though it’s just a bar. This is because, people’s lifestyle differs, some like it where it is cool. So get a quiet location, and set it up in way that fits the interest of the cool guys. Every of the aforementioned steps should be taken in setting up expensive bars, yet some other additions.
- Air condition
Unlike the common bar, you need to make the atmosphere conducive through air conditioners.
Adding more fun to drinks. Set up games like snooker, squash etc. Make sure you have a specious indoor place for the bar to accommodate all the items.
NOTE: The money paid for drinks does not cover for games, if any customer wishes to play, he pays. But you will have to decide on price per game.
- No smoking
The common bar doesn’t have rules for smoking, in fact everything goes. But here, you need to establish a (to be or not be) rule. Some people may actually come to your bar because it’s a non smoking bar. Others may not come because they would not be allowed to smoke. Your decision is a standard you have chosen to be known by.
- Add wine to your menu
Since choices differ, it would be appropriate if you put wine in your bar. A lot of people would appreciate having something different from beer or gin.
How To Remain In The Business
- Package your services very well
- The environment should be neat always
- Be friendly with your customers
- Don’t hike your beer prices above what your competitors are selling
- You may provide VIP table
- Always serve your drinks chilled
- Employ more people to help in serving as your business grows.
Thanks for reading this. That’s how to start a profitable bar or beer parlor business in Nigeria.