Start-Up Costs

Rent for six months while waiting on a liquor license: $49,800 (assuming $8,300 a month)

Liquor license and fees: $9,000

Equipment, construction, and demolition: $60,000

Signage: $1,000

Décor and glassware: $21,000

Training for six employees: $858

Initial liquor order: $6,000 (45 percent on beer, 40 percent on liquor, 5 percent on wine, 10 percent on mixers)

Sound system: $1,000

Emergency funds: $50,000

Misc.: $2,000

TOTAL … … . $200,658

Ongoing Monthly Costs

Rent: $8,300

Booze: $10,000

Insurance: $500

Misc.: $1,900

Staff pay: $1,720 (assuming 100 hours a week at $4.30 an hour)

Utilities: $1,320

Taxes and fees: $1,000

TOTAL … … . . $24,740

The Markups

Draft beer: $3.59 a pint

Bottled beer: $3.85 a bottle

Well liquor: $4.65 a pour

Top-shelf liquor: $3.35 a pour

Wine: $3.48 a glass

Break-Even Point

Amount you’d have to gross in 18 months before you start turning a profit: $645,978 (monthly expenses of $24,740 for 18 months, or $445,320, plus start-up costs of $200,658)

Number of customers required per night to reach $645,978 in 18 months (assuming $5 per average drink and 1.5 drinks per person): 160