Bar business in Nigeria: One of Nigeria’s profit-making businesses is a bar business. It is lucrative because lots of Nigerians drink a lot, so they enjoy having a nice time to relax during the day’s work so weekends.
Although we have a huge number of Nigerians who drink alcohol we have other than some who don’t drink but even those Nigerians who don’t drink alcohol still enjoy having a good time as a form of relaxation by drinking juice or Chapman or soft drinks.
Aside from the enormous demand in Nigeria for alcoholic beverages and non-alcoholic beverages as a means of relaxation, there are also foods such as pepper soup, roasted fish, asun and suya that are in demand in bars.
Bar business in Nigeria is lucrative as long as you get only a few things right. Some of these are venue, customer loyalty , customer service, and the ability to keep food and drink well.
I’ve visited a couple of bars in Nigeria so far, especially in Lagos, and what I can tell you their owners make money week out.
If other employers or employment end at 5 p.m. through weekday in Nigeria bar business begins at 6 p.m. and never stops before dawn.
It’s said during weekends they make more money as they start at 12 pm and close 6 am.
There are stuff you need to put in place in a bar company too to make things run well.
Topics like health and even laws and regulations for daily consumers because it is also said that there is no law where there is no sin.
I ‘m saying this because in the name of fights that got people hurt or killed I’ve seen several bars closed all down.
Safety, laws , and regulations protect you from customers and government and your bar business.
How lucrative is the peer parlour business
Beer parlour industry in Nigeria is a profitable business as long as you know how to draw your customers and keep your customers so you can get your drinks from the right locations with decent prices.
If it’s beer, palm wine, mixed drinks or alcoholic drinks and non-alcoholic beverages, as long as you know where to buy those beverages at the lowest prices and be able to sell at a higher price, you ‘re going to make big profits.
An example of this is beer purchased at N179 and priced at N250.
It’s also lucrative as you make money from the company not just on drinks but also on other businesses that you run in the bar lounge, such as food sales, relaxation center service.
How to start and run a Bar business in Nigeria
1. Get Capital
The first step you need to take when it comes to opening a bar business in Nigeria is getting your capital. As we usually say in any business, capital is necessary except if you are in charity company.
You need capital not only for renting a shop or room, but also for buying furniture, lamps, cooking appliances and drinks.
So the bigger the money you ‘re investing in your bar business the better the business profits you’ll make. In terms of money it is just like any other company in Nigeria.
How much is needed for you to start a bar business in Nigeria
You would need a capital of N500,000 – N2,000000 to start a bar business in Nigeria, as the capital you need depends on the region you want the company to be.
Whether it’s in a low-income region – the capital of a rural area you’ll need to start the bar business can’t be more than N500k but if the place you want to set up the bar business is an urban area it will cost you more – potentially up to N2M.
If you have the money or borrowed from a reputable source, this capital can be self-invested but my best advice here is that you start with what you have and expand the company as time goes by.
2. Rent a space or shop for a bar business in Nigeria
When it comes to setting up a Nigerian bar business you can either rent a shop or room.
A shop is good in the sense that it allows your bar business to be on the side of every major road of your choice and space is good because it lets you serve more customers in one session.
Basically, if you rent a room your customers won’t have to wait for each other to relax and drink until they can have seats.
When it’s a store you can have only 30 customers in a sitting room but if it’s a hotel you can have as many as 100 customers in a sitting room depending on how large the room is and how you can handle it.
Apart from deciding whether you want to rent a shop or room for your bar company you do need to decide where you want the bar to be.
Know your company is about selling Nigerian food and beverages. You won’t sell if your bar business is where people can’t see you or can easily find you.
Make sure that every place you rent for your bar business is a place where thousands of likely customers travel every day, whether on their way home or back from work.
3. Set up Shop or space for your bar business in Nigeria
The next step you can take after you’ve gotten your shop or room is to set up your bar.
You need to remember the places where your wine counter should be, the kitchen, shop, refrigerator, generator, and furniture (table and chairs) for customers when setting up your bar.
In this situation, it’s better to be in an environment where people would have less access to your kitchen and shop. Those areas can be reached only by your bar staff.
Let’s speak quickly about main equipment you need to set up a bar business in Nigeria.
Equipment used in a Bar business in Nigeria
- Wine shelves
- Wine and Beer cups
To put all the electrical equipment in the right place you might need an electrician’s services and put all the furniture in order you would need a carpenter’s services.
4. Buy Drinks
Proceed to buy the drinks for your bar after installing the equipment in your bar and making sure everything’s perfect.
Such drinks should be purchased in an varied way so that they can fulfill the needs of each customer.
It should also be bought from wholesalers so you can get the drinks at their lowest prices and be able to sell at whatever price you want.
Kind of drinks in a bar business in Nigeria
- Soft drink
- Wine (Red and Other Kinds of Wine)
- Water (Bottled)
Because beer is the cheapest alcoholic beverage and the highest requested drink in bars you can buy more than any other drink.
Shoprite also buys all its beverages from wholesalers, sometimes from the manufacturing companies themselves.
This is why their drinks are the cheapest in comparison to drinks sold in any other shops or malls.
Although Shoprite can not be called a bar company it still shows us how wise they are in their purchase.
All drinks (beers, wine, spirits, and champagne) should be purchased and kept in a lock & key shop.
5. Start selling drinks
Since your business is different as you are starting at night instead of day, you can use the time of day to plan for the future.
You can place all the drinks needed for the night in the refrigerator during the daytime and also go to the market to buy customers food that is likely to order alongside their drinks for certain foods.
Food ingredients such as, fish (croaker and catfish), goat head, pepper soup ingredients, and the likes should be purchased and stored in the fridge before customers need them at night.
Open your bar on the evening of the first business day and make the place lively by playing some loud music this will draw customers to the bar.
Invite your friends and family to come and hang out there in your restaurant.
Remember: This article is about how to start a bar business in Nigeria
6. Hire the services of employees
Bar business can be very tiring particularly if you have so many customers on the ground to respond to at the same time and you can hire other people to alleviate the stress that will help you run the company.
When you are unable to hire employees due to the inability to pay them wages for now, then you should hire your relatives to support them and give them tips.
7. Maintain good hygiene in your bar
Hygiene is key in a bar. Inability to manage this will cause unpleasant odors and this is not good for your customers and sanitation officers who will regularly come in for inspection.
And because of this, they will shut down the bar business so it is very important to keep the bar clean before and after the business closes.
How to drive customers to your bar business
1. Have a good customer service
While this sounds like a cliché when you visit bars today a decent customer service is still scarce.
And you can draw more customers to your bar by simply offering high-quality customer service to people who are going to visit your bar particularly the first-timers.
2. Give good security
I spoke briefly of that in my introduction.
No one would want to be in a position where their properties which includes their lives and properties, is not assured.
By offering protection in and around your bar you can draw clients to your bar.
If customers know they ‘re safe whenever they come to relax they’ll always want to go to your bar.
3. Practice live events parties
You can also draw big customers to your bar business by inviting people to host their birthday bashes and live events like comedy shows and enabling them to.
You can charge a token for these events for a start, and increase the charges as time goes by.
You’ll also make profit from doing so as they’ll buy from you drinks required for the events.