How to Build and Design a Bar: Guide to Bar Construction

Opening a bar is an exciting venture, but the journey from concept to grand opening is no small feat. Bar construction involves navigating a complex process of planning, budgeting, and building—all while ensuring compliance with regulations.

However, once you’re up and running, bars have amazing gross profit margin potential, averaging 75%. Better yet, despite the impact of the Covid-19 pandemic, the United States bar and nightlife industry grew an average of 2.5% per year between 2018 and 2023, reaching a total market size of $37.6 billion.

But success doesn’t happen by chance; it requires a strategic approach to tackle challenges and bring your vision to life.

Whether you’re dreaming of a sleek cocktail lounge or a cozy neighborhood pub, this guide will walk you through the essential stages of bar construction. From selecting the perfect location to assembling a skilled team and managing your timeline, you’ll learn how to build a bar that’s functional, stylish, and set up for long-term success.

Key takeaways

• Thorough planning helps you avoid costly delays, stay on budget, and ensure compliance with regulations.

• Choose a location that aligns with your bar’s concept, target audience, and operational needs. Conduct research to evaluate foot traffic, demographics, and existing infrastructure.

• Work with architects, contractors, and consultants who specialize in hospitality to bring your vision to life while meeting legal and structural requirements.

• Consider bar flow, seating, and accessibility in your design to create a functional layout that enhances the customer experience.

• Secure permits early and allocate extra time for delays to keep your bar construction schedule on track. Integrate the right tools, like a robust POS system, prior to launch to streamline operations and meet customer expectations.

5 reasons proper planning essential for bar construction

Building a bar is a complex process with unique challenges. Without a comprehensive plan, it’s easy to encounter unexpected roadblocks that can derail your progress. Fortunately, investing time and effort into meticulous planning can save you from unnecessary headaches and set a strong foundation for the project. 

Let’s explore some key reasons proper planning is non-negotiable when constructing your bar.

1. Avoid costly delays

Overlooking critical steps such as conducting thorough site assessments, obtaining necessary permits, or coordinating with contractors can lead to significant project delays. 

For example, discovering structural issues or zoning conflicts mid-project can halt construction for weeks or even months. Badlands Bar & Grill in Queen Creek, AZ closed its original location and planned to re-open in a new building that same month. After nine months of construction delays, they finally re-opened in October 2024.

2. Ensure compliance with regulations

Bars must adhere to an array of local, state, and federal regulations, from health and sanitation codes to fire safety and accessibility standards. Missing even one requirement can lead to costly fines, forced closures, or expensive retrofits. 

3. Stay on budget and on-schedule

Without clear planning, construction budgets can quickly spiral out of control. For example, David Bowels, co-owner of Portland-based bar Bethany’s Table, writes:

By creating a comprehensive plan and outlining a detailed budget that accounts for materials, labor, permits, and contingency funds, you can allocate resources effectively and avoid overspending.

4. Enhance design and functionality

Whether you’re building a sleek cocktail lounge or a cozy neighborhood pub, taking the time to map out the layout, lighting, and customer flow can significantly impact the success of your business. 

Thoughtful planning helps you balance aesthetics with functionality to create a space that attracts patrons and operates seamlessly

Additionally, new bar build-outs can help prepare structures from weather-related incidents. For example, Dan Adams, the executive vice president of the construction company that built The Beach Bar in Fort Myers, FL, said:

5. Facilitate contractor coordination

Construction projects often involve multiple contractors and suppliers, each with their own timelines and requirements. Detailed planning ensures better communication and coordination between all parties, reducing the risk of misaligned schedules or material shortages.

How to create your bar construction plan

Building a bar requires careful planning to manage costs, stay on schedule, and meet your expected vision. Read on to discover the essential steps for developing a comprehensive bar construction plan.

1. Create a budget and financial plan

Without a detailed budget, expenses can quickly spiral out of control. Key cost categories you’ll need to consider include:

• Permits & fees: Building, health, liquor licenses and fire permits are just a few examples, but you’ll need to research the specific laws in your area.

• Labor & materials: Costs for skilled labor can vary significantly based on location and the project's complexity. Materials for flooring, bar tops, and furniture also need careful consideration to balance cost with durability.

• Equipment: High-quality refrigeration, draft systems, and a reliable POS system are essential investments.

Of course, it’s also crucial that you have the funding to cover your construction costs. Some potential external funding options are:

• Small business loans: Ideal if you have a strong business plan and credit history. Look into SBA loans, which offer favorable rates and terms.

• Investors: Partnering with investors can improve cash flow, but you'll need to give up equity or partial control.

• Grants and local incentives: Some areas may offer grants for businesses that enhance community development. Research local programs that might help reduce your financial burden.

Lastly, remember that unexpected challenges can and likely will arise, whether it's an issue with outdated wiring or a sudden increase in material costs. Allocate at least 10-15% of your budget to cover these surprises without halting progress.

2. Find the right location

From financial considerations to aligning with your concept and infrastructure needs, choosing the right space can make or break your business.

Leasing vs. buying

While leasing offers flexibility and requires less upfront capital, it also often comes with landlord restrictions that can limit your ability to customize the space or sublease it in the future. It’s important to negotiate terms that account for renewal options and avoid clauses that could hurt your business, such as excessive rent hikes.

For example, after a fire impacted Icons, a bar in Colorado Springs, CO, the lease to their business was terminated, forcing them to raise funds to build-out a new location.

Meanwhile, buying provides you with full control over the property, allowing you to renovate and expand as needed. However, it also requires a significant upfront investment, including a down payment, closing costs, and property taxes. 

Aligning your space and concept

Not every commercial space is suited for a bar. The ideal location should align with your concept, target audience, and operational needs. Some key factors to evaluate include:

• Foot traffic and visibility: High-traffic areas, such as busy streets or entertainment districts, increase the likelihood of walk-ins and spontaneous visits.
  Consider visibility from the road, accessibility for pedestrians, and proximity to complementary businesses like music venues or theaters.

• Demographics: Match the vibe of your bar to the local clientele. For example, a speakeasy may thrive in an artsy neighborhood with a young, creative crowd. Meanwhile, a sports bar may work better near college campuses or bustling downtown hubs where sports fans tend to gather.

• Existing infrastructure: Older buildings can have character and charm, but they often require costly upgrades to meet modern safety and utility standards. Ensure your building supports your concept without requiring excessive and expensive changes.

Utility requirements

Evaluating the existing infrastructure before signing a lease or making a purchase can save you time and money down the line. Be sure to consider the following utility installation costs in your bar construction plan:

• Electricity: Bars rely on high-powered equipment, including refrigeration units, ice machines, draft systems, and lighting. Ensure the electrical system can support these needs without frequent overloads or costly upgrades.

• HVAC systems: Proper ventilation is essential for maintaining a comfortable atmosphere, especially if you’re serving hot food or have a crowded space.

• Plumbing: Adequate water pressure and drainage are vital for maintaining operations, as well as health and safety compliance.

Local zoning laws

Before committing to a location, confirm that it’s zoned for a bar and that the property can accommodate the required liquor licenses and permits. Failure to comply with zoning regulations can result in costly delays or even disqualification from opening your business.

3. Build your bar construction team

Assembling a team of skilled professionals ensures your vision comes to life while meeting structural, legal, and operational requirements. 

Essential bar construction team members

Your core construction team should include the following key players:

• Architects and engineers: Architects help design a layout that balances functionality with ambiance, while engineers ensure the building can support unique features like elevated stages or large refrigeration units.

• Experienced contractors: Contractors specializing in hospitality understand the technicalities of installing draft beer systems, creating custom cabinetry, and complying with fire and safety codes.

• Commercial kitchen consultants: If your bar serves food, a kitchen consultant can design an efficient layout that meets health codes and optimizes workflows.

Other bar construction professionals

Beyond the basics, specialized consultants can elevate your bar’s atmosphere and create a memorable experience for your patrons. Consider working with professionals like:

• Interior designers: Whether you’re aiming for a rustic speakeasy, a modern cocktail lounge, or a fun sports bar, interior designers can help bring your brand’s personality to life by advising on materials, furniture, and finishes.

• Lighting experts: Lighting plays a crucial role in setting the tone of your bar. Experts can design lighting systems that adapt to different times of day and events, creating a warm, inviting environment or a high-energy atmosphere as needed.

• Acoustical consultants: Poor sound quality can ruin the customer experience, forcing customers to shout over background music or each other. An acoustical consultant designs the space to manage sound levels.

Tips for hiring and managing your team

To hire and manage your team effectively, consider implementing these best practices:

1. Check references and portfolios: Look for professionals with relevant experience in bar or hospitality projects. Review their past work to ensure their style and quality align with your goals.

2. Communicate your vision: Share your bar concept, budget, and timeline clearly with your team to align everyone’s efforts.

3. Coordinate regular meetings: Schedule regular check-ins to track progress, address challenges, and keep the project on schedule.

4. Set clear contracts: Define expectations, deliverables, timelines, and payment terms in written agreements with each team member.

4. Design your bar’s layout

Beyond aesthetics, your bar’s layout directly impacts your staff's ability to efficiently serve drinks. To create a functional layout that minimizes wasted movement and enhances the flow of service, focus on these critical areas:

• Bar flow: Bartenders need quick and easy access to bottles, mixers, glassware, and equipment. Features like under-bar refrigeration, speed rails, and strategically placed sinks can significantly improve efficiency during busy periods.

• Customer flow: Design clear paths for customers to move between the entrance, bar counter, restrooms, and seating areas. This improves traffic flow and prevents congestion, especially during busy hours.

• Seating arrangements: Striking the right balance between seating capacity and customer comfort is essential. Too many seats can lead to cramped conditions, while too few seats limit your potential revenue. Choose seating that complements your bar’s vibe, like high stools for a casual pub or communal tables for a lively beer hall.

• Kitchen setup: For bars that serve food, an efficient kitchen design is a must. Be sure to create zones for food prep, cooking, and dishwashing to minimize movement, and consider using compact, multi-purpose equipment to maximize your space.

• Zoning and flexibility: Divide your bar into distinct zones for different activities, such as seating, standing areas, and a dance floor if applicable. Flexible layouts allow you to adapt to different events by reconfiguring the space.

• Storage solutions: Include sufficient storage for glassware, beverages, garnishes, and cleaning supplies to reduce the need for staff to leave their stations.

5. Navigating permits and regulations

Opening a bar involves navigating a maze of permits and regulations. However, securing required permits early in the process can prevent costly delays and legal complications. Some of the most critical permits you’ll likely need to obtain include but are not limited to:

• Building permit: Required for any structural modifications to your space, including renovations, electrical work, and plumbing installations. Ensure your plans meet local building codes and zoning requirements before submitting an application.

• Health department permit: If your bar serves food, you’ll need approval from the local health department. This involves inspections of your kitchen, storage areas, and sanitation practices to ensure compliance with food safety standards.

• Liquor license: Perhaps the most critical and challenging permit to obtain, a liquor license allows you to serve alcoholic beverages. Licenses vary by state and municipality, often with different categories for beer, wine, or spirits. Start this process early, as navigating regulations and securing approval can take awhile.

Additionally, compliance with health regulations goes beyond securing permits. You should also think about:

• Health and sanitation: Install adequate drainage systems and grease traps, designate specific sanitation areas for washing utensils and disposing of waste, and use materials that are easy to clean and meet health code standards.

• Fire safety: Bars must meet strict fire safety protocols due to the combination of alcohol consumption and crowded spaces. This includes ensuring proper fire exits and installing sprinklers and fire alarms.

• Accessibility: Compliance with the Americans with Disabilities Act (ADA) is a legal and ethical necessity. Be sure to incorporate accessible entrances, restrooms, and seating areas.

Consider hiring a permit expert or consultant who specializes in local regulations to help guide you through the process.

6. Managing the construction timeline

Efficiently managing the construction timeline is critical to opening your bar on schedule and within budget. However, how long it takes to open your bar depends on several factors, including the size, concept, and scope of work. 

For example, Hopdoddy Burger Bar in Austin, TX was scheduled to begin construction in summer 2024 and open in spring 2025. Meanwhile, Icons, the Colorado-based bar we mentioned earlier, began construction in spring 2024 and planned to re-open in fall 2024.

To ensure your timeline is achievable, break the project into manageable phases with clear milestones:

• Planning and permitting (2-3 months): Obtaining necessary permits, finalizing designs, and securing financing.

• Site preparation (1-2 months): If your building requires renovations or structural changes, allocate sufficient time for preparing the site for construction.

• Construction and installations (3-6 months): This phase includes framing, plumbing, electrical work, and installing key features like the bar counter, seating, and kitchen equipment.

• Inspections and approvals (1-2 months): Schedule final health, fire, and building inspections far in advance in case any corrections are needed.

Keep in mind that unexpected delays are common in construction projects. Whether it’s supply chain disruptions, weather conditions, or contractor scheduling conflicts, allocating 10-20% additional time to your timeline can help prevent last-minute stress.

While sticking to a timeline is important, flexibility is key to navigating unexpected challenges. A proactive approach to managing the timeline ensures your bar opens on time while maintaining high standards.

From bar construction to optimizing operations

Constructing a bar is a significant undertaking that requires careful planning, strategic decision-making, and effective collaboration. From creating a budget to managing the construction timeline, every step plays a crucial role in bringing your vision to life. 

While the process may seem daunting, taking the time to plan thoroughly helps ensure a smoother journey and positions your bar for long-term success.

As you move from construction to operations, having the right tools in place is essential. For example you can use Toast’s POS system for bars to streamline service, manage inventory, elevate your customer experience, and much more. With robust features tailored to the nightlife industry, it’s a smart investment for your new business!

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