How Long Does It Take To Open a Bar? | Bar Startup Timeline

Opening a bar is an exciting venture, but it’s not a process that happens overnight. From initial planning and financing to navigating permits and construction, the timeline to open a bar can range anywhere from eight to eighteen months—or even longer. Factors like your bar’s size, concept, location, and local regulations can significantly impact the timeline. 

For instance, liquor licensing alone can add months to your schedule. In Philadelphia, approval for a liquor license can take up to a year, while in Texas the process may only take about 30 days. That’s why it’s important to create a plan and consider your unique situation so you can find your answer to the question, “How long does it take to open a bar?”

In this article, we’ll break down the major milestones in the bar-opening process and help you create a realistic timeline for turning your vision into a thriving business.

Key takeaways

• The timeline for opening a bar varies depending on factors like location, concept, and local regulatory requirements. Liquor licensing alone can take up to a year in some states, so plan for eight to eighteen months or more to open your bar.

• Begin with detailed market research, competitor analysis, and a business plan that covers operational procedures, marketing, and financial projections.

• Choosing the right location and managing the design and construction process efficiently can significantly impact your timeline and costs.

• Bars require multiple permits, including liquor, health, and building permits, which can delay your opening if not managed proactively.

• Hosting soft openings, VIP previews, and community nights allows you to test operations, gather feedback, and generate excitement before the grand opening.

How long does it take to open a bar?

From crafting a comprehensive business plan to hosting your grand opening event and beyond, let’s explore the typical timeline for opening a bar.

1. Creating a plan (1-3 months)

Opening a bar starts with thorough planning and research so you can lay a solid foundation for your concept. By the end of the initial planning phase, you should have a detailed business plan, clear funding strategy, and data-driven insights to proceed confidently to the next steps.

Market research and competitor analysis

Understanding your market is essential for making informed decisions about your bar’s location, pricing, and offerings. Follow these steps:

• Demographic study: Analyze local population data, including age, income levels, and lifestyle trends, to ensure your bar concept resonates with the community.

• Competitor observation: Visit local bars with similar concepts. Observe their strengths, weaknesses, pricing strategies, and customer volume.

• Trend analysis: Research alcohol and entertainment preferences in your area. Are patrons gravitating toward casual bars with live music, or do they prefer themed cocktail lounges with Instagram-worthy aesthetics?

• Identifying gaps: Look for unfulfilled niches in the market. Are there opportunities for a family-friendly sports bar, a rooftop lounge, or a bar specializing in rare spirits?

This research will not only validate your idea, but also help you refine your concept and ensure your bar stands out from competitors.

Developing a business plan

A strong bar business plan is your roadmap for every step of the opening process and is an essential tool for securing financing. Key sections include:

• Executive summary

• Market analysis

• Menu plan

• Operational plan

• Marketing and branding plan

• Financial plan

Securing financing

Securing financing is one of the most critical and potentially challenging steps. Some common funding options are:

• Small Business Administration (SBA) loans

• Bank loans

• Investor funding

• Crowdfunding

• Personal savings

Each funding option has unique advantages and risks, so consider your financial situation, risk tolerance, and long-term business goals when selecting your path.

2. Choosing your property (1-2 months)

Your location can influence everything from foot traffic to customer demographics and overall profitability. Be sure to prioritize locations with strong visibility, high foot traffic, and accessibility.

Building a custom space allows you to reflect your bar’s brand and concept exactly how you want. You can design the layout to optimize customer flow, create an unforgettable ambiance, and accommodate unique operational needs, such as a large central bar or a stage for live performances.

However, building from scratch can be time-intensive and costly, with expenses like construction, contractor fees, inspections, and permits. The process also requires careful coordination with architects and builders, which can delay your opening.

On the other hand, leasing a pre-built space is often faster and less expensive. Spaces previously used as bars or restaurants may already have essential infrastructure like plumbing, electrical, and kitchen facilities, which can streamline renovations and reduce startup costs.

The main drawback is that rental properties often have restrictions on modifications or certain business operations. You’ll also need to work within the limitations of the existing layout, which may not perfectly suit your needs.

For example, Becida Bar and Grill in Minnesota had to close their business after a lease termination agreement. Owner Carol Kunnerup said:

3. Obtaining permits

Once your property is secured, start the permitting process immediately. Bars require several permits and licenses, including:

• Alcohol/liquor licenses

• Food handling permits

• Building permits

• Health permits

• Entertainment permits

• Signage permits

The permitting process can be complex and time-consuming, so it’s wise to consult with legal and licensing experts to avoid delays. For example, This Bar & Tennessee Kitchen was forced to delay their opening after Metro Nashville Council voted against approving their sign, which was over 20 feet tall.

4. Design and build-out (2-6 months)

With a functional design, striking aesthetic, and well-managed build-out, your bar will be ready to welcome customers and make a lasting impression.

Functional design and layout

The functionality of your bar’s design is essential for creating a seamless customer and staff experience. Consider the following:

• Bar layout: Install a well-placed counter that allows bartenders to engage with customers without sacrificing speed. Ensure pathways for staff and customers are clear and minimize bottlenecks during busy hours.

• Seating arrangements: Maximize seating capacity without compromising comfort. Consider flexible seating arrangements that can adapt to events or changes in customer flow.

• Workstations: Equip workstations with essential tools like sinks, ice wells, and garnish stations. Position storage areas strategically to reduce unnecessary movement during service.

Aesthetic design and layout

The look and feel of your bar reflect its brand and play a vital role in attracting and retaining customers. Be sure to choose a theme that aligns with your brand, such as:

• Speakeasy: Evoke the Prohibition era with dim lighting, vintage decor, and a hidden entrance for an exclusive vibe.

  • Example: Philadelphia-based Ranstead Room is “tucked away in a dark and moody space behind a nondescript door…Not everyone knows where to go or how to get in, but if you take the time to figure it out, the city’s best cocktails, crafted by some of the finest bartenders in the game, await.”

• Industrial: Incorporate exposed brick, metal accents, and minimalist furniture for a modern, urban appeal.

• Tiki bar: Bright colors, bamboo accents, and tropical decor create a fun, laid-back atmosphere perfect for exotic cocktails.

• Rustic pub: Warm wood tones, cozy lighting, and traditional pub decor give your bar a neighborhood-friendly feel.

Additionally, consider important aesthetic design elements like lighting, decor, and exterior design. Think about how you can offer a new take on one of the ideas above, combine multiple concepts, or come up with something else entirely.

For example, Cha Cha Lounge in Los Angeles incorporates some tiki-inspired elements, like a thatched roof over the bar, but it’s not a traditional tiki bar. Instead, it features eclectic décor, offering a distinctive blend of themes and creating a one-of-a-kind environment. 

5. Menu development and sourcing (1-2 months)

Your drink and food offerings are one of the most important aspects of your bar. Developing and sourcing for your menu requires creativity, attention to detail, and thoughtful planning.

Creating and testing your menu

A great bar menu does more than offer drinks—it connects to your brand image, allows your staff to serve customers quickly, and keeps them coming back. Here’s how to craft an exceptional menu:

• Establish a core menu: Identify essential drink categories, such as cocktails, beers, wines, and non-alcoholic beverages. Curate a balanced selection within each category.

• Signature cocktails: Develop signature drinks that set you apart from competitors. Consider using local ingredients, house-made syrups, or unique infusions.

  • Example: The Olde Bar, located in a historic district of Philadelphia, serves its signature cocktail, Fish House Punch—a pre-Revolutionary-inspired drink made with dark rum, light rum, brandy, black tea, fresh peaches, and lemon.

• Seasonal and rotating offerings: Keep your menu fresh and exciting with seasonal or limited-edition drinks. For example, offer fruity and refreshing cocktails in the summer and warming, spiced options in the winter.

• Menu structure and pricing: Design an easy-to-navigate layout that highlights high-margin items. Place popular or signature drinks at the top of each section to attract attention.

• Mock tastings and feedback sessions: Invite friends, family, and industry contacts to provide feedback on taste, presentation, and variety to refine your recipes.

• Food pairings: If your bar offers food, select options that complement your drink menu and match your bar’s theme.

Sourcing vendors and suppliers

Reliable sourcing is crucial for maintaining the quality and consistency of your menu offerings. Here’s how to find and work with the best vendors:

• Build relationships: Partner with trusted suppliers who can provide consistent quality and timely deliveries.

• Support local producers: Collaborate with local distilleries, breweries, or farms to incorporate unique, locally crafted ingredients. This not only adds authenticity to your offerings, but also resonates with customers who value supporting local businesses.

• Test ingredients: Before committing to a supplier, test their products to ensure they meet your standards.

• Plan for contingencies: Have backup suppliers ready in case of delays or shortages.

6. Setting up systems and infrastructure (1 month)

Efficient systems and infrastructure are essential for smooth operations. This phase involves implementing technology and establishing procedures that streamline your bar's daily processes.

POS setup

The right software and tools can greatly improve efficiency, reduce errors, and provide valuable insights into your bar’s performance. Be sure to choose a point-of-sale (POS) system tailored to bar operations, with features like tab management, split checks, and tipping options. Other essential POS features include:

• Inventory management: Tack ingredient usage in real time, and set up alerts for low-stock items.

• Staff management: Streamline employee scheduling, process payroll, and manage bartender tips.

• Cost analytics: Analyze sales and costs data to determine your bestselling drinks, peak hours, and other key insights to optimize your operations.

Setting up operational procedures

Financial and operational systems provide structure and accountability, minimizing risks and maximizing profitability. Be sure to implement clear protocols for areas like:

• Cash handling: Implement strict procedures for handling cash to reduce errors or theft.

• Cost management: Monitor expenses regularly, and establish a budget for operating costs. Compare actual expenses against projections to identify areas for adjustment.

• Inventory management procedures: Perform regular inventory counts, and train staff on accurate drink-making techniques to prevent over-pouring.

• Reconciliation and reporting: Conduct daily or weekly reconciliations of sales, inventory, and expenses. Use these reconciliations to identify discrepancies early, such as missing inventory or cash register shortfalls.

7. Hiring and training staff (1 Month)

Having the right team members can make or break your entire business. By recruiting the right employees and equipping them with the tools and knowledge they need to succeed, you can lay the groundwork for a cohesive team that provides a top-tier customer experience.

Recruiting employees

Finding the right team involves more than just filling positions—it’s about building a group of people who align with your bar’s culture and provide exceptional service. You’ll likely need to fill roles such as:

• Bartenders

• Bar backs and cleaning staff

• Managers

Depending on your bar’s format and your priorities, you may also need to consider hiring other employees, like kitchen staff, entertainment managers, social media managers, and more.

Training your team

While hiring good employees is crucial, training them properly is just as important. Here’s how to develop a comprehensive training program:

• Service standards and protocols: Train staff in your bar’s service protocols, from greeting guests to handling complaints. Emphasize responsible alcohol service to ensure compliance with local laws and promote safe consumption.

• Drink preparation and menu knowledge: Provide bartenders with hands-on training in drink preparation, focusing on your menu’s signature cocktails, seasonal offerings, and best-selling items. Ensure all team members understand your menu and equip them with upselling techniques.

• Test runs: Conduct mock service scenarios to help staff practice dealing with real-world situations, such as handling difficult customers or managing peak hours.

• POS system and operations: Train all employees on your bar’s POS system, ensuring they can handle orders, split checks, and process payments efficiently.

8. Marketing and pre-opening events (1 Month)

A thoughtful combination of digital, community, and event-based strategies in the lead up to your opening can help you set the stage for your bar’s long-term success. Your marketing plan should showcase your bar’s unique identity, build anticipation, and establish a connection with your target audience. Some key strategies include:

• Brand storytelling: Highlight what sets your bar apart—whether it’s a nostalgic theme or locally sourced ingredients. Create a cohesive brand voice that reflects your bar’s personality and values.

• Social media engagement: Start building your social media presence early to create excitement before opening day. Use platforms like Instagram, Facebook, and TikTok to showcase behind-the-scenes content, menu sneak peeks, and progress updates.

• Influencer and media partnerships: Collaborating with local influencers and media outlets can amplify your reach. Invite influencers, bloggers, and journalists to exclusive tastings, soft openings, or media nights.

• Community involvement: Partner with nearby businesses for cross-promotions or joint events. Participate in local festivals or sponsor community events to increase visibility. 

• Loyalty programs: Reward frequent customers with discounts, free drinks, or exclusive access to events.

• Email marketing and special offers: Use sign-up forms on your website or at pre-opening events to collect email addresses. Send newsletters with exclusive previews, invites, and special offers. Post-launch, use email to announce happy hour specials and upcoming events.

• Pre-opening events: Consider hosting soft openings for family and friends, exclusive VIP pre-launch events to generate buzz, or a community night to introduce locals to your bar.

9. Final preparations (2 weeks)

The final two weeks before your bar’s grand opening are crucial for ensuring everything is ready to operate smoothly. Be sure to keep the following in mind as you prep your bar for launch:

• Inventory checklist: Confirm you have adequate stock of all spirits, mixers, syrups, garnishes, and specialty ingredients. Also, don’t forget operational essentials like napkins, straws, and bar tools.

• Organizing stations: Walk through each bartending station to ensure everything is arranged for maximum efficiency.

• Restocking procedures: Develop a system for restocking during service, such as assigning bar backs to monitor inventory levels throughout the night.

• Equipment checks: Conduct a thorough inspection of all tools and systems, including refrigeration, ice machines, POS systems, sound systems, and more.

• Compliance and inspections: Double-check that you’ve obtained all necessary permits and licenses. Keep copies of these documents easily accessible.

• Final walkthrough: Conduct a final walkthrough of your bar as if you’re a customer, noting any areas for improvement in cleanliness, organization, or ambiance.

10. Grand opening

Your grand opening is the culmination of months of hard work and planning. It’s your opportunity to make a good first impression and build momentum for your bar’s success. To have a successful launch, give careful attention to:

• Event planning: Host an event that aligns with your brand. Consider a themed launch party, a signature cocktail tasting, or live entertainment to attract customers and create a memorable experience.

• Team coordination: Ensure all staff know their roles and are prepared to handle peak volumes efficiently. Brief your team before the event to address any last-minute questions or concerns.

• Social media coverage: Capture highlights of the event—such as crowd interactions, performances, or your signature drinks—and share them on social media.

11. Post-opening follow-up

Of course, opening day is just the start of your bar business venture! To build a strong foundation for long-term success, be sure to consider:

• Customer feedback: Monitor online reviews and ask for direct feedback to identify areas for improvement. Act quickly to address concerns and show patrons you value their input.

• Team insights: Check in with staff to gather their perspective on what went well and where operations could improve. Adjust workflows or training as needed.

• Continuous refinement: Use the feedback to fine-tune drink preparation, service speed, and menu offerings to ensure a consistently high-quality experience.

Open your bar and run it smoothly with Toast

Opening a bar is a rewarding journey that combines creativity, strategy, and perseverance. With careful planning and attention to detail, you can create an unforgettable experience that keeps customers coming back.

As your bar begins its operations, having reliable systems in place is crucial to maintaining efficiency and delivering exceptional service. Fortunately, Toast’s POS system for bars can help streamline daily operations, from managing open tabs and tracking inventory to generating sales insights.

Remember, investing in the right tools ensures your bar runs smoothly, allowing you to focus on what matters most—providing a great experience for your customers. 

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