How To Start a Pop Up Bar Business: 14-Step Guide for 2024

Whether it’s a tropical tiki bar on a rooftop, a retro speakeasy, or a themed cocktail lounge at a local event, pop-up bars are an exciting business opportunity. They provide you with the chance to showcase your creativity, test new concepts, and connect with diverse audiences—all without the long-term commitment of a permanent establishment.

According to data from Yelp, the number of pop-up restaurants and bars increased by 155% from 2023 to 2024, far and away the fastest-growing category. Better yet, Statista reports that the bar and nightclub industry grew from $36.5 billion in 2022 to $37.6 billion in 2023, a 3% increase.

However, while pop-up bars are less risky than brick-and-mortar pubs, they still face significant challenges. To help you navigate them, let’s explore all the essential aspects of how to open a bar pop up, from choosing the right locations to developing the perfect drink menu.

Key takeaways

• Pop-up bars provide a cost-effective way to test creative concepts and gauge market interest without committing to a permanent location.

• Bar pop up operators have the freedom to experiment with unique themes, menus, and locations, from rooftops to food festivals.

• A comprehensive POS system, like Toast, simplifies operations by offering payment processing, inventory tracking, loyalty program features, and much more in one easy-to-use platform.

• Leverage social media, partnerships, and exclusive offers to create a buzz and attract customers to your pop-up.

• Compliance with liquor licenses and health codes, as well as careful attention to financial projections, are essential for ensuring smooth operations and profitability.

What is a pop-up bar?

A pop-up bar is a temporary drinking establishment that can appear in one or various locations for a limited time, typically ranging from a few hours to several weeks or months. 

They’re usually designed to offer a novel and immersive experience, often themed around specific events, seasons, or creative concepts. Often used as a proof of concept, pop-up bars allow you to test new ideas, gauge market response, and fine-tune your offerings without the high stakes of a permanent location. 

This approach provides immediate feedback from patrons, helping owners adapt quickly and refine their concepts. If successful, your pop-up bar can serve as a stepping stone toward launching a full-scale establishment. For example, Tatiana Rosana, operator of the Boston-based pop-up Para Maria, said:

“Starting as a pop-up, we were able to see what worked, and what didn’t work and really kind of test it out before we went all-in on an actual concept… If something ran out for the day, people understood because it was a pop-up.”

Pros and cons of starting a pop-up bar

Understanding the advantages and drawbacks of opening a bar pop up can help you determine if this model aligns with your goals, skills, and interests. While pop-ups provide flexibility and room for innovation, they demand strategic planning and resourcefulness to succeed.

Some of the key benefits of starting a bar pop up include:

• Lower startup costs: Pop-up bars are significantly more affordable than traditional bars, as they don’t require expensive renovations, permanent fixtures, or long-term leases. This low-cost entry makes them ideal for testing concepts with minimal financial risk.

• Creative freedom: The temporary nature of pop-ups encourages experimentation with themes, menus, and decor. You can quickly adapt to customer feedback, creating unique and innovative experiences that keep guests returning for more.

• Location flexibility: Pop-ups can operate in diverse settings, such as food festivals, rooftops, or urban storefronts. This versatility allows you to test different markets and discover the best locations to match your concept.

On the other hand, some of the cons of launching a pop-up bar are:

• Limited resources: Smaller setups often mean restricted storage, refrigeration, and preparation facilities. These limitations can affect menu variety and require creative logistics to manage supplies.

• Profitability challenges: With a short operating window, pop-ups have to achieve profitability quickly. This requires careful budgeting, efficient operations, and a strong marketing push to ensure you cover costs and meet revenue goals.

• Customer retention: Building a loyal customer base is difficult when operating in temporary or shifting locations. You’ll need to work harder to encourage repeat visits through memorable experiences and targeted marketing.

• Heavy reliance on marketing: Success depends heavily on strategic marketing efforts, particularly through social media. You have to run consistent, creative campaigns to capture attention, often on a tight timeline.

How to start a pop-up bar business

Launching a successful pop-up bar requires strategic planning and careful attention to detail. Below is a step-by-step guide to help you navigate the process, from developing your concept to ensuring legal compliance.

1. Define your pop-up bar concept

A clear format will shape everything from your drink menu to your decor and marketing strategy, so choose a concept and style that aligns with your vision and target audience. 

Consider these ideas to help your business stand out from the competition:

• Themed bars: Highlight a unique idea, such as a retro speakeasy, tiki bar, or fandom-inspired theme, to create an immersive experience.

• Specialty drinks: Focus on specific drink offerings, like craft cocktails, local brews, or seasonal beverages, to appeal to niche markets.

• Location-centric concepts: Build your pop-up around the allure of your chosen location, whether it be a rooftop, beach, or city street corner.

• Cultural or trend-based bars: Consider leaning into trends, such as wellness-inspired mocktails or globally inspired cocktails.

One great example of a pop-up bar with a strong concept is Philadelphia-based White Elephant, which looks like a pink holiday paradise. Teddy Sourias, who led the project, said:

“We had a vision for a disco pink & sparkly Christmas party with every square inch of the venue covered in pink, silver, gold holiday ornaments, streamers, garland, and other Christmas decor!”

2. Choose your location(s)

The location or locations you choose should align with your concept and attract your target demographic. Remember to pick a location that maximizes visibility and aligns with your budget while providing a memorable experience for your customers. Some popular options include:

• Rooftops

• Food festivals

• Vacant storefronts

• Event venues (ie, weddings, corporate functions, and private parties)

• Outdoor markets

• Hotel lobbies

• Breweries or wineries

For example, Assembly Rooftop Bar in Philadelphia hosts a winter pop-up bar featuring ski lodge-inspired hot cocktails, festive winter ales, blankets and themed decor, and fire pits. 

3. Research licenses and permits

Operating a pop-up bar requires strict compliance with local laws and regulations, especially since you’ll be serving alcohol. To ensure your business operates legally, be sure to look into:

• Liquor licensing: Research temporary or special event liquor licenses, as these are typically required for serving alcohol at short-term venues.

• Health and safety regulations: Ensure your food and drink preparation protocols meet local health codes, including proper storage, cleanliness, and sanitation practices.

• Event permits: Check whether you need permits for outdoor spaces, sound systems, or late-night operations.

• Liability insurance: Secure insurance coverage to protect against potential risks, including property damage and alcohol-related incidents.

Ultimately, proactively addressing all pop-up bar licenses and permits will save you time, prevent fines, and boost your business’s credibility with customers and partners.

4. Build your pop-up bar menu

Design a menu that highlights your concept and is feasible within the constraints of a pop-up. To develop a menu that’s both appealing and efficient, think about these tips:

• Signature drinks: Focus on a small selection of creative, high-quality cocktails or beverages that reflect your theme and appeal to your target audience.

• Efficient preparation: Choose menu items that you can make quickly and require minimal equipment, especially if space is limited.

• Seasonal offerings: Incorporate seasonal ingredients or rotating specials to keep customers coming back for more.

• Cost-effective ingredients: Opt for ingredients that you can use across multiple menu items to reduce waste and maximize profitability.

For example, Philadelphia-based Rodin Museum’s weekly summer pop-up bar keeps their menu simple, offering just three varieties of wine, two types of hard seltzer, four varieties of beer, and four non-alcoholic beverage options.

5. Find inventory suppliers

Reliable suppliers are crucial to keeping your pop-up bar running smoothly, and it’s important to source vendors who understand your unique, short-term inventory needs. Be sure to keep these tips in mind:

• Local suppliers: Partnering with local businesses can provide fresh ingredients and help build community connections.

• Wholesale vendors: Larger distributors often offer bulk discounts and consistent delivery schedules, ideal for higher-volume needs.

• Flexible ordering: Look for suppliers who allow small or flexible order quantities to prevent overstocking.

• Beverage partners: Collaborate with alcohol distributors who can provide special deals or marketing support in exchange for featuring their products.

Overall, building strong supplier relationships will ensure you have the inventory you need while keeping costs manageable.

6. Design your branding and marketing strategy

From your logo and color scheme to your menu design and signage, your bar’s branding should match your theme and resonate with your target audience. Be sure to develop a cohesive aesthetic that reflects your concept, such as retro typography for a speakeasy or vibrant hues for a tropical tiki bar.

When it comes to marketing, some effective strategies for pop-up bars include:

• Social media marketing: Use platforms like Instagram, TikTok, and Facebook to build excitement. Post teaser images, countdowns, and behind-the-scenes content in the weeks leading up to your launch.

• Event promotions: Partner with local influencers or sponsor community events to generate awareness.

• Merchandising: Consider branded merchandise, like custom coasters or cups, to enhance your visibility and encourage guests to spread the word.

Remember, a compelling brand and strategic marketing will make your pop-up bar memorable and help you stand out in a competitive market.

7. Plan your finances, sales forecasts, and operating expenses

It’s essential to develop a comprehensive financial plan tailored to the shorter operational window of a pop-up bar. To ensure profitability, be sure to keep a close eye on the following categories:

• Budgets: Allocate funds for key areas, such as ingredients, staff wages, licenses, marketing, and equipment rentals.

• Sales projections: Estimate daily sales based on your expected foot traffic, average drink price, and operating days.

• Expense tracking: Monitor costs regularly to avoid overspending, and look for ways to control expenses.

• Break-even analysis: Determine the minimum sales required to cover expenses and aim to achieve profitability quickly.
  
  

8. Create a pop-up bar business plan

A solid bar business plan serves as your operational roadmap, helping you organize your ideas, anticipate challenges, and set realistic goals. Your plan should outline all of these key sections:

• Executive summary: Provide a high-level overview of your pop-up bar, highlighting your concept, mission, goals, and unique selling points. For example, are you focusing on artisanal cocktails, a retro speakeasy theme, or a pop culture-inspired menu?

• Market analysis: Define your ideal customers, such as event attendees, outdoor market visitors, or professionals seeking after-work drinks. Analyze local competition to identify market gaps you can fill, such as offering mocktail options or themed nights that appeal to niche audiences.

• Menu offerings: Outline signature cocktails or mocktails and consider limited-time specials that encourage repeat visits.

• Operational plan: Detail your preferred locations, hours of operation, staffing requirements, and supplier relationships. Address potential challenges, such as unpredictable weather or fluctuating foot traffic, and explain how you’ll adapt.

• Marketing and branding strategy: Explain how you’ll attract and retain customers through social media campaigns, email lists, promotions, and partnerships with local businesses.

• Financial projections: Estimate your start-up costs, operating expenses, and projected revenue for the first year. Include key metrics like your break-even point, expected profit margins, and how seasonal changes might impact earnings.
  
  

9. Secure funding and loans

Pop-up bars typically require less funding than permanent establishments, but you’ll still need some upfront capital. To cover your initial costs and working capital, consider exploring financing options such as:

• Personal savings: Since bar pop-ups don’t require a huge investment, you might be able to self-fund using savings or contributions from family and friends.

• Small business loans: Research small business financing programs tailored for short-term ventures.

• Crowdfunding: Platforms like Kickstarter or GoFundMe allow you to raise funds while promoting your concept to potential customers.

• Sponsorships or partnerships: Partner with beverage brands, breweries, or local businesses for funding or discounted supplies in exchange for co-branding opportunities.
  
  

10. Handle tax, DBA, and EIN requirements

Beyond licenses and permits, some other key legal considerations you’ll need to make include:

• Register your business: File a DBA (Doing Business As) name to establish your pop-up bar’s brand identity.

• Apply for an EIN: Obtain an Employer Identification Number from the IRS if you plan to hire staff, open a business bank account, or handle payroll taxes.

• Research tax obligations: Understand local tax requirements for sales, alcohol, and employment to avoid compliance issues.

• Track finances: Set up accounting software or hire a bookkeeper to keep accurate records of revenue, expenses, and tax liabilities.
  
  

11. Design your bar pop up

The design and atmosphere of your pop-up bar are crucial for creating an unforgettable experience that captivates customers. To make the most of your design and create the right ambiance, consider these design ideas:

• Lighting: Use creative lighting to set the mood, whether it’s string lights for a cozy feel or neon accents for a modern, edgy vibe.

• Music: Curate playlists or hire a DJ to complement your bar’s atmosphere and keep the energy aligned with your concept.

• Decor: Incorporate thematic elements, such as tropical decor for a tiki bar or vintage props for a speakeasy, to immerse guests into the world of your pop-up.

• Seating and layout: Design your layout to balance comfort and social interaction. Keep in mind that flexible arrangements can maximize space in small venues.

Though you don’t need to go to this extreme, a great example of a unique and fun pop-up bar design is The Ball Pit Bar. They bought 40,000 multi-colored balls for a pop-up at the Romper Room in San Francisco, and patrons were able to drink and play in the ball pit.

12. Integrate a point-of-sale (POS) system

A comprehensive point-of-sale (POS) system is vital for streamlining your pop-up bar’s operations and meeting customer expectations. For example, with a solution like Toast, you can access essential features like:

• Payment processing: Accept a wide range of payment methods, including credit cards, mobile wallets, and contactless payments, to ensure a fast and seamless checkout experience.

• Cost analytics: Gain insights into your sales performance, track revenue trends, and identify your best-selling drinks. Use this data to adjust your menu, optimize pricing, and refine your overall strategy for greater profitability.

• Inventory management: Monitor ingredient and supply levels in real-time, and set automatic alerts for restocking essential items like spirits, mixers, and garnishes.

• Loyalty programs and email marketing: Build customer loyalty with rewards programs designed to encourage repeat visits. Use integrated email marketing tools to announce new pop-up locations, themed nights, or limited-time drink specials to your audience.

• Handheld POS: Equip your staff with mobile devices to take orders and process payments directly from the customer line or at tables, speeding up service and reducing wait times.

• Payroll and staff scheduling: Simplify staff management with tools for creating employee schedules, tracking hours, and managing tips.
  
  

13. Hire your pop-up bar team

Your staff plays a pivotal role in the success of your pop-up bar, helping everything run smoothly and creating a positive experience for your guests. So, it’s important to hire a team that appreciates your vision and can handle the fast-paced environment. 

To accomplish this, try looking for applicants who are:

• Multitaskers: Look for employees who can handle diverse responsibilities, such as bartending, serving, and restocking supplies.

• Customer-focused: Creating a welcoming and friendly environment is key to building a loyal customer base, so train your team to deliver exceptional service.

• Enthusiastic: Hire employees who are enthusiastic about your pop-up’s concept.

• Need part-time work: Since pop-ups are short-term, focus on hiring part-time staff or freelancers who are comfortable with temporary roles.
  
  

14. Launch your pop-up bar business

The final step is turning your vision into reality by launching your pop-up bar with a splash! To have a successful opening, think about using these tips:

• Soft opening: Host a soft opening to test operations, gather feedback, and fine-tune your setup before the official launch. Invite friends, family, or local influencers to generate PR.

• Grand opening event: Plan a memorable grand opening to generate excitement, such as offering limited-time drink specials, live entertainment, or themed activities.

• Social media and promotions: Promote your launch heavily through social media platforms, local event boards, and partnerships with nearby businesses.

• Customer engagement: Collect feedback from guests during the launch and adjust your operations to address any issues, ensuring a seamless experience moving forward.

Launching your pop-up bar is your moment to shine, so focus on delivering an unforgettable experience that sets the tone for your brand.

Launch your pop-up bar with the tools you need

Starting a pop-up bar is an exciting opportunity to explore your creative ideas, engage with diverse customer bases, and gather valuable insights without the financial burden of a permanent location.

While pop-up bars offer significant flexibility, lower startup costs, and opportunities for innovation, they also require careful planning, strategic marketing, and adaptability to overcome challenges like limited resources and short operating windows.

Additionally, it’s essential that you have the tools you need to streamline your operations and offer an amazing customer experience. Fortunately, with a comprehensive POS system like Toast, you’ll have access to all the features you need.