How to Open a Bar: Step-by-Step Guide, Costs, & Equipment Checklist
Opening a bar requires choosing a concept, building a realistic budget, securing the right location and licenses, and planning the menu and service model. Once you finalize your offerings and site requirements, choose bar equipment that supports each part of the operation and smoothly handles peak demand.
Already planning your space?
Talk to a KaTom Foodservice Equipment Specialist about product selection, sizing, utilities, and layout.
Contact UsKey Takeaways
- Bar concept and menu should drive equipment purchases, not the other way around
- Evaluate utilities, ventilation, plumbing, and clearances before signing a lease or ordering major equipment
- Size ice, refrigeration, warewashing, and bartender stations to accommodate peak demand rather than average volume
- Plan bartender and barback workflow before finalizing the layout
- Schedule a soft opening to ensure staff, equipment, and service flow are prepared for the grand opening
Bar Startup Planning at a Glance
Table of Contents
- Decide What Type of Bar to Open
- Research Your Market and Evaluate Locations
- Create Your Bar Business Plan
- Estimate Bar Startup Costs
- Fund Your Bar
- Register the Business and Secure Licenses
- Finalize the Menu and Supplier Plan
- Design the Location for Efficient Workflow
- Build a Bar Equipment List
- Set Up Inventory, Technology, and Operating Systems
- Hire and Train Staff
- Market the Bar and Prepare for Opening
Learn more about starting up a bar
Launching any food or beverage operation is a challenging but rewarding endeavor. Use our complete bar opening checklist or learn more about common startup requirements to help your new bar succeed.
1. Decide What Type of Bar to Open
Every new bar starts with a concept. Some operators focus on creating community hubs with fast service, while others craft a high-end atmosphere focused on experience-driven presentations. Reviewing common bar types can help determine which style best fits your area and understand each format's requirements.
Choosing a concept involves more than simply selecting a bar type. Answer the following questions to help define your business in operational terms:
- Who is the target customer?
- What do you expect guests to primarily order?
- Will food be a meaningful part of the concept?
- How many customers should the bar be able to accommodate?
- How many employees are expected to work peak service periods?
- What operational features will distinguish this bar from nearby competitors?
Not sure what equipment your concept requires?
Talk to a KaTom specialist before finalizing the equipment list.
2. Research Your Market & Evaluate Locations
Avoid committing to a location or concept until you conduct a market analysis. A successful market analysis evaluates the demographics of your target customers, the competition, and market demand. This may involve collecting data through surveys or evaluating census data. Although time consuming, this process can help you avoid future financial disasters, such as opening a nightclub in an area better suited for a tasting room.
Your understanding of location options can also make the difference between success and failure. The best building pairs good visibility and access with the required utilities, amenities, and space for expected guest count.
Evaluating a new space?
KaTom Design + Build can help assess equipment layout and site requirements before you make major purchasing decisions.
3. Create Your Bar Business Plan
Writing a business plan can solidify your strategy, catch issues with your concept, and consolidate a proposal to submit for funding or partnership requests. Use information gathered from steps one and two, then answer questions in the table below to create a complete bar business plan. Even if you already have funding and partnerships in place, sharing your business plan with experienced operators for feedback can help you prepare for the unexpected.
4. Estimate How Much It Costs to Open a Bar
Create an initial budget to determine the amount of money needed to open your bar, plus an operating budget to account for monthly operational costs. Opening costs vary depending on location, bar concept, and whether your building is new construction or an existing foodservice establishment. Most projects end up costing more than originally planned due to unexpected setbacks, including legal obstacles and construction delays, so it's typically best to overestimate costs.
5. Fund Your Bar
Initial funding should cover building and opening expenses. It may come from existing owner capital, business partners, commercial loans, or investors. Equipment financing or leasing may be a viable option. Include enough operating capital in your initial funding plan to cover a designated period after opening, not just enough to cover construction, equipment, and opening costs.
6. Register the Business and Secure Licenses
The first step to making your bar official is registering it with federal, state, and local authorities and obtaining required permits. Depending on the bar style, you will need to obtain permits for producing or selling alcohol, and once your space is fully equipped, it must pass several health and safety inspections. Common bar legal requirements include:
- Business registration
- Federal tax identification
- Federal alcohol-related registration
- State/local liquor licensing
- Foodservice permits (if applicable)
- Health department approval
- Certificate of occupancy
- Fire inspection
- Building permits
- Sign permits
- Music/entertainment licensing
- Sales tax registration
- Responsible alcohol-service requirements
What permits does your location need?
Requirements vary by jurisdiction. Connect with local authorities or the chamber of commerce to confirm current rules, fees, and application requirements.
Learn more about obtaining a liquor license.7. Finalize the Menu & Supplier Plan
Menus can be designed around signature drinks, bar theme, setting, or other defining factors. In beverage-only operations, a menu may offer simple drinks or include more complex cocktails, frozen drinks, and refreshers. Bars serving food can highlight which items pair well with available drinks. Finalize your menu before selecting equipment to confirm production and storage capabilities.
Browse All Bar Equipment
KaTom offers commercial bar and restaurant equipment, including beverage supplies, bar refrigeration, glassware, cooking equipment, and more.
Shop Now8. Design the Bar for Efficient Workflow
An effective bar layout should combine a welcoming atmosphere with a streamlined workflow. Design a space that lets customers easily order, receive, and enjoy drinks while giving staff room to retrieve ingredients, prepare drinks, and interact with customers.
Efficient bar layouts should account for these stations:
- Ordering
- Bottle or ingredient retrieval
- Ice production and storage
- Drink preparation
- Garnish storage
- Drink service
- Dirty glass return
- Washing
- Clean glass storage
- Restocking
Operations with partial or full food menus should designate stations for storage, prep, cookline, expo, and dishwashing. Learn more about professional kitchen design in KaTom's layout guide.
Need help creating a workable layout?
KaTom's Design + Build team provides professional expertise and design tools that help turn your menu and service model into an efficient system.
Request a Quote9. Build Your Bar Equipment List
When you're ready to purchase equipment, start with larger, more complex systems, such as refrigerated storage, draft systems, bar stations, and ventilation if needed. Then select mobile or smaller units that fit the layout. Consider factors including unit footprint, capacity, configurations, and utility requirements before placing an order.
Refrigeration – Match Storage to the Menu
Most bar operations require a variety of commercial refrigerators and freezers for a balance of bulk storage and efficient access. Small operations often use underbar refrigerators and bottle coolers. Medium-volume operations may add reach-ins and undercounter beer dispensers, while high-volume draft production typically depends on walk-in storage for holding kegs.
When purchasing refrigeration, consider:
- Product types being stored
- Peak inventory
- Unit width and depth
- Door vs. drawer configuration
- Temperature requirements
- Voltage
- Ventilation clearances
- Compressor location
- Door swing and staff traffic
- Glass or solid doors
Ice – Calculate Demand Before Choosing a Machine
The first step to selecting a bar ice machine is determining the required production capacity. To find the right size, bars should choose a unit that produces about 3 pounds of ice per customer per day.
Different types of ice are available for serving liquor, cocktails, and other drinks. Larger cubes are great for presenting high-end liquors and feature a large surface area that sustains cooling and slows melting. Half-cube ice is better for soft drinks, while nugget and flake ice suit frozen cocktails.
When choosing an ice machine, consider:
- Drinks served during the busiest hour
- Length of the peak period
- Recovery between service periods
- Amount of ice used per drink
- Amount of ice used to chill bottles or fill wells
- Storage-bin capacity
- Ambient conditions
- Water and drainage requirements
Glass Chillers – Enhance Beverage Service
Glass chillers can add a premium touch to bar service and help maintain drink temperature. While optional in most bars, these units enhance customer experience by frosting glassware.
If opting for a glass chiller, consider:
- Service volume and glass turnover
- Instant CO2 vs. undercounter vs. top access units
- Type of glassware
- Space and utility requirements
Underbar Equipment – Build a Bartender Workstation
Underbar workstations can be purchased as a single unit or constructed from modular pieces. The right piece of equipment depends on the menu, available space, and service needs.
Most bars include the following underbar equipment:
- Ice bin/cocktail station
- Speed rails/display racks
- Hand sink/dump sink
- Drainboard
- Glass storage
- Glass washer
- Blender station
- Garnish storage
- Soda gun components
- Bottle opener/cap catcher
Warewashing – Size for Peak Glass Turnover
Glass washers are typically undercounter units designed to wash and sanitize 20 to 40 racks per hour. Choose the proper capacity by calculating the number of drinks served in reusable glassware during peak periods, the number of glasses needed between wash cycles, and required backup glass inventory. Lower-volume operations or bars with limited space may benefit from glass brushes, which are designed for manual washing.
Blenders and Frozen Drink Equipment – Choose What Fits Your Menu
Commercial blenders are needed when the menu includes made-to-order blended drinks, such as margaritas and daiquiris. Choose a frozen drink machine when frozen beverages with a uniform consistency are a meaningful, high-volume part of the menu and per-order blending would slow service.
Consider the following when purchasing a blender or frozen drink machine:
- Volume
- Peak usage
- Capacity
- Electrical requirements
- Ice-crushing ability
- Noise level
- Cleaning
Glassware – Calculate Quantities for Menu & Turnover
Glassware is an essential part of a customer's bar experience and should be selected with care. Create a glassware list based on your menu, then estimate quantities for peak drink volume, wash-cycle turnaround, breakage, and backup supply. Plan for glassware storage, transport, and display to protect glasses and elevate bar aesthetics.
Bartending Supplies and Inventory Control
Bar tools for preparing ingredients, crafting drinks, and serving bottles are essential for professional bar service. Cleaning supplies help keep bars sparkling, while portion control items ensure consistent drink service during repeated prep tasks. Essential smallwares include:
- Cocktail Prep: Shakers, strainers, jiggers, bar spoons, and muddlers
- Garnish Prep: Knives, cutting boards, peelers, and garnish caddies
- Wine Service: Corkscrews, bottle stoppers, and coolers
- Beer Service: Openers, cap catchers, and drip trays
- Ice Handling: Scoops and appropriate storage
- Cleaning: Brushes, sanitizing supplies, and bar towels
- Inventory Control: Approved measuring and pour-control tools
Where to Spend vs. Where to Save on Bar Equipment
Commercial bar equipment often takes up a large portion of the budget, but this doesn't mean you should always buy the most expensive option. Look for features that suit your expected volume and match your menu. High-volume nightclubs or pubs may require top-performing equipment, while smaller tasting rooms and community bars may choose smaller, more affordable units. Drink equipment, cold storage, and ice machines are worth investing in, but glass chillers, glass washers, and bottle merchandisers may not be needed in certain operations.
Don’t Order Until You Know
Before purchasing equipment, confirm the following details, as applicable:
- Equipment dimensions
- Doorway/hallway clearance
- Equipment door swing
- Required operating clearances
- Voltage, amperage, and phase
- Plug type
- Gas type
- Water connection
- Drain requirements
- Ventilation
- Ambient operating conditions
- Production or capacity requirements
- Installation requirements
- Local code requirements
- Service access
Not sure whether a unit will work in your space?
Ask a KaTom Foodservice Equipment Specialist before you order.
Contact Us10. Set Up Inventory, Technology, & Operating Systems
A well-run bar requires systems for covering safety, inventory and waste management, technology, accounting, and daily operations.
11. Hire & Train Your Bar Staff
Online job boards, flyers, and networking events are helpful tools for finding qualified bar staff. Make sure to train staff members on proper equipment use, bartending skills, policies, and menu items. You may need to fill a variety of roles, including bartenders, barbacks, servers, managers, kitchen staff, hosts, and security.
Training should cover:
- Bar etiquette
- Drink preparation and service
- Beverage dispensing equipment
- Glassware cleaning procedures
- Ice handling
- Safety guidelines
- Guest allergy awareness
- Cooking equipment use and safety
12. Market the Bar & Prepare for Opening
Consult your business plan to develop a marketing plan for your opening. Effective marketing combines digital, physical, and in-person aspects. As you develop your business, you'll be able to learn which methods are more effective and adapt the marketing plan accordingly.
Digital marketing includes creating a website with accurate information, establishing online business listings, creating social media accounts, collecting email or SMS lists, and photographing the space and drinks. In-person marketing includes community outreach, organizing events, and forming local partnerships. Ensure you communicate your grand-opening date across multiple platforms.
Host a Soft Opening
Soft openings give operators and their teams a chance to test operations and streamline workflow. Use a trial opening to confirm details such as:
- Drink ticket times
- Ice supply
- Refrigeration capacity
- Glassware turnaround
- POS/payment flow
- Restocking process
- Food production (if applicable)
- Guest flow
- Equipment performance
Ready to Build Your Bar Equipment List?
KaTom can help you find commercial refrigeration, ice machines, underbar equipment, warewashing, and other bar supplies to suit your menu, space, utilities, volume, and workflow.
Frequently Asked Questions About Opening a Bar
How much does it cost to open a bar?
Opening a bar in the United States can cost anywhere from $100,000 to several million dollars. Total cost will vary by location, bar style, volume, menu, and construction requirements, among other factors.
What equipment do you need to open a bar?
Essential bar equipment includes cold storage, ice machines, underbar equipment, bar tools, glassware, smallwares, and potentially kitchen equipment.
What licenses do you need to open a bar?
While specific requirements vary by location and bar style, bars in the United States will generally need to register the business, obtain a federal tax identification number, register with the Alcohol and Tobacco Tax and Trade Bureau as required, and secure applicable state and local alcohol licenses. Local requirements may include health permits, fire inspections, a certificate of occupancy, music permits, and others.
How long does it take to open a bar?
From start to finish, opening a bar usually takes a year or more, but timing depends on a variety of factors, such as equipment lead times, license approval, and construction requirements.
What should you buy first when opening a bar?
After securing a location and planning your layout, purchase larger equipment such as refrigeration, draft systems, storage supplies, and hoods.
How do you choose the right size ice machine for a bar?
Calculate the number of customers you serve on your busiest day, then plan for about 3 pounds per customer per day. For example, if you expect 300 customers on a busy day, a 1,000-pound ice machine should meet your daily ice requirements. But also keep in mind rush periods. If all your ice needs come over a one to two hour period, you may find your machine doesn't keep up.
How much refrigeration does a bar need?
Refrigeration requirements depend on the bar style, service volume, whether food will be offered, and the ratio of packaged drinks to draft service. Large draft systems require walk-in storage, while bars primarily serving bottles or cans need multiple bottle coolers, wine coolers, or reach-in merchandisers. Operations offering food need enough refrigerated and frozen storage to meet demand, which may include undercounter coolers, worktop refrigerators, reach-ins, and walk-ins.
Can you open a bar without serving food?
Yes. Many bars only serve drinks, while some partner with local restaurants or ghost kitchens to serve light snacks or food.
How many glasses does a bar need?
Calculate glassware par levels by accounting for the peak guest count, glasswashing turnaround, and extra stock for breakage. Prioritize standard or multi-use glasses but always have extra specialty glassware on hand.
