Have you ever wondered how to open up a bar in the Philippines? Of course, the process to start any business is not the easiest; however, breaking the complicated stages down into easily readable steps is what we do best.
Today’s article will explore how much capital to start a bar in the Philippines, considerations when opening a bar, and share some existing bars for sale in the Philippines.
How To Open Up A Bar In The Philippines Step-By-Step
Step 1 – Create The Business Plan Of Your Bar
It was once said – If you fail to plan, you are planning to fail. These famous words of Benjamin Franklin hold true when opening a bar in the Philippines. A bar business can be costly if there is a lack of initial planning.
You can skip the small details when making your business plan since these are likely to change as your business grows. Your goals in making your business plan are to determine what needs to be fixed before launching and increase the chance of success.
You can start by planning your startup costs and other finances by determining how much capital to start a bar in the Philippines. You also include your target audience, marketing strategies, revenue projections, and other details that gear toward growing and making profits.
A business plan is crucial for any business. To help you better create your business plan, we have a free PDF guide that can be downloaded above.
Step 2 – Choose A Business Structure
One of the first major steps on how to successfully open up a bar in the Philippines is deciding on your business structure. There are 3 business structures in the Philippines: Sole proprietorship, partnership, and corporation.
If you want to start your bar business in the Philippines on your own, you can consider a sole proprietorship. This is the most basic structure since you work alone. It is also easier to set up because you do not need much capital, have less strict regulations, and SP is more straightforward when obtaining permits and licenses from the government.
Nevertheless, one area to consider is that the business owner is accountable for possible legal issues, and there is no limit to the liability.
Another good option is to opt for a corporation as this will avoid this kind of accountability in some respects. For example, you and your business are 2 different entities since you are not the sole owner. So if someone tries to sue your bar, the business gets sued and not you in theory.
When opening a bar in the Philippines, we recommend speaking to a business lawyer for complete details regarding your personal situation.
Step 3 – Picking A Location For Your Bar Philippines
The ideal location of your restaurant depends on your target market. If your target market is young professionals, you can choose your location in the business districts of cities. When looking for bars for sale Philippines, it’s recommended to check if customers and staff can easily access the establishment.
Please note, the location of the bar should not be near government buildings, public plazas, hospitals, athletic stadiums, churches, public schools and parks, and other charity or learning infrastructures. The bars should also have proper lighting and sanitation as per local law. If you are launching a nightclub you may wish to check out executive order 319.
Step 4 – Choose Your Bar’s Name
The next step when opening a bar in the Philippines is to decide on your business name. It would be best if you made it unique. A good piece of advice is to prepare at least 5 names and see what will stick in people’s minds. You can also check the names yourself by visiting DTI’s website to see if your preferred name has already been taken.
Step 5 – Select Your Bar’s Image
Picking the concept for your bar is a crucial step on how to open up a bar in the Philippines. That is because your goal from the beginning is to make your bar stand out even if you consider purchasing bars for sale in the Philippines. Being different is critical in industries with market saturation.
You can set your bar’s image and promotional efforts by being the bar with the best prices or serving specialty beer and other drinks. You can also decide on the type of bar you will have, such as a brewery, lounge, or sports bar, among many others.
Step 6 – Decided On Your Design
Your layout and your menu are the 2 crucial features in the design aspect of opening a bar checklist. You can base the vibe of your bar on the image you have decided. The decor and furnishing you will purchase should tie in with your image. Your menu could also match the vibe of your location.
Step 7 – Get All Bar Required Licenses And Permits Philippines
Required licenses and permits are crucial when writing your “opening a bar checklist.” This prevents your business from getting into legal trouble. A business owner will need to obtain licenses to be permitted to serve alcoholic drinks and food.
First, a new business owner will need to register the business name by going to the DTI to choose a sole proprietorship. For a corporation, a new business owner will need to go to the SEC. In addition, there is also barangay clearance. Then, a business owner will visit the city hall to get the mayor’s permit and the BIR for the TIN.
Since you will be serving alcohol, you need a liquor license and statutory benefits for your employees, such as SSS.
These are just some of the basic requirements. Depending on the city where you will establish your business, there can be different requirements. Therefore, it is best to visit your city’s official website to see the complete list of requirements.
Step 8 – Search For Bar Suppliers Philippines
After you know how much capital to start a bar in the Philippines, you can start searching for suppliers. When looking for suppliers, you can consider the variety of brands they offer, the minimum purchasing cost, and delivery schedule and price.
You also consider the equipment and other furnishings you may need. Some of these are:
- Air Conditioner
- Bar Counter
- Dining Furniture (Chairs, Tables, High Chairs, Etc.)
- Entertainment Equipment (TVs, Speakers, Etc.)
- Glassware And Serving Tools
- Measuring Tools
Step 9 – Hire Staff For Your New Bar Business
The last task to complete the process on how to open up a bar in the Philippines is hiring the best people who will help you operate your bar. Depending on your bar plan and size, you will need security guards, bartenders, servers, hosts, and hostesses. If you have a kitchen, you may also need to hire chefs.
How Much Capital To Start A Bar In Philippines
The estimated capital you need to start a bar business in the Philippines is 2 million pesos to 4 million pesos for a large bar and 500,000 Pesos to 1 million pesos for a small-sized bar. Nonetheless, your business plan will determine the total price you need. This price will be decided by the staff, size, location, facilities, and others.
- Commercial space – P35,000 to P40,000 per month (This is the estimated lease price in Quezon City.)
- Renovations and decor – P15,000 to P20,000 for every square meter (The cost includes construction, furniture, and decor.)
- Kitchen supplies and equipment – P100,000 – P1,000,000 (This includes storage hardware such as shelves, store equipment such as security and cash register, and serving equipment such as glasses.)
- Licenses and permits – P7,000 to P14,000 (This depends on the chosen business structure.
- Furniture and gadgets- P200,000 – P400,000 (TVs, computers, air conditioners, telephones, POS system, and sound system are considered.)
- Food and beverage costs – P150,000 – P400,000 (This is the estimated cost for your startup inventory.)
- Operational cost for the first 3 months– P2,500,000 (This covers the salaries of your staff, bills payment for electricity and internet, etc)
- Miscellaneous- P120,000 (Examples of these are uniforms and staff training.)
There are also existing bars for sale In the Philippines. For instance, in a premium spot in Muntinlupa, a well-maintained bar with a POS system, website, and following on social media was purchased for P9,000,000 through a broker.
Rules And Law On How To Open Up A Bar In The Philippines
Here are some of the rules you need to remember when you open or check out bars for sale Philippines.
The location of the bar should not be near government buildings, public plazas, hospitals, athletic stadiums, churches, public schools and parks, and other charity or learning infrastructures. The bars should also have proper lighting and sanitation. All the staff should also have a health certificate from the city health office. This is to prove that they are free from any contagious diseases.
Licenses and permits have to be complete and updated. Therefore, it is best to verify the validity of all the permits and licenses you obtain. The business license can be revoked if there is evidence of gambling or playing prohibited games in the bar.
Opening A Bar Checklist
Your opening a bar checklist gives your bar a better chance to succeed. Here are some of the things you need to tick before your launch:
- Buy And Monitor Your Inventory
- Choose The Business Structure For Your Bar
- Conceptualize Your Bar
- Create Bar’s Business Plan
- Do Marketing (Social Media)
- Hire Excellent Staff
- Obtain The Required Licenses And Permits
- Pick A Location
- Register Your Business Name
Bars For Sale Philippines
- Location: Ortigas
- Link: https://linkbusiness.ph/businesses-for-sale/OR00491/FAMOUS-RESTOBAR-FOR-SALE-in-ORTIGAS
- Price: P4,500,000
- Sports bar
- Location: Cubao
- Link: https://linkbusiness.ph/businesses-for-sale/OR00389/Your-Neighborhood-Reputable-Sports-Bar
- Price: P1,800,000
- Location: Muntinlupa
- Link: https://linkbusiness.ph/businesses-for-sale/AL00144/Modern-Comfort-Food-in-Filipino-Style-Serving-With-Wine-and-Liquor
- Price: P8,000,000
Tips On Opening A Bar In The Philippines
When purchasing a bar in the Philippines, it is important to know why it is being sold. Being thorough in your research would help. For instance, the bar we mentioned in Muntinlupa was sold due to the retirement, absence of successors, and a change in lifestyle of the owners. Other things you have to consider are the finances and competition of the bar you are considering when opening a bar business in the Philippines.
Starting A Bar Business Philippines: Resourced & References
- Department of Trade and Industry – https://www.dti.gov.ph/negosyo/business-registration-and-permits/
- Business Law (for foreigners) – https://lawphil.net/statutes/repacts/ra1968/ra_5455_1968.html
- Other Business Law – https://businesstips.ph/list-of-business-laws-in-the-philippines/
- Consumer Beer Price – https://iprice.ph/groceries/alcohol/beers/
- Beer Price – https://business.inquirer.net/194424/its-more-fun-for-cheap-beer-drinkers-in-ph
- Filipino Beer Expense – https://www.philstar.com/lifestyle/food-and-leisure/2021/02/24/2080054/average-filipino-spends-p23000-yearly-beer-report