Does Your Bar Need a Bar Consultant? Yes! Here’s Why

If you Google “What is a bar consultant?”, you’ll notice that no two definitions are alike. Sometimes the definition is synonymous with “beverage consultant” and sometimes with “bar operations consultant”. The liquor license consultants at Thrive Liquor & Cannabis Advisors provide many bar operations services including liquor license applications, compliance audits, compliance training and more.

Bar consultants provide guidance to bar owners – helping them improve operations with the goal of becoming more efficient, effective and profitable. They often have expertise in one or more areas: liquor inventory, mixology, customer experience, licensing and compliance, operations or marketing.

Bars need consultants because of the costly, competitive and volatile nature of the business. According to 2024 Gitnux market research:

• The average lifespan of a bar business is about 4.5 years
• About 19% of bars fail within the first year of operation
• 50% of bar owners report difficulty in hiring and retaining staff
• The average profit margin for bars is between 10% and 15%
• The average bar spends 24.4% of sales on cost of goods sold
• Labor costs in bars typically range from 20% to 30% of total sales

Source for statistics above: “Global Bar Industry Statistics: Revenue, Trends, and Future Projections Revealed”, Jannik Lindner, July 17, 2024, Gitnux.

While bars have higher profit margins than restaurants, where profits typically range from 3-5%, bars are costly to open and operate. According to the Investopedia article “Economics of Owning a Bar”, while potential profit is enticing, startup costs for bars are very high and bars operate with greater risk than many other businesses. Those risks include fire, property damage, personal injury (staff and customers), and other liabilities.

Bar Consultants Provide Many Services at Different Phases

Bar consultants provide many different services depending on their areas of expertise. In the lists below, those services provided by Thrive Liquor & Cannabis Advisors are denoted by an asterisk (*).

In the start-up phase, a bar consultant may provide:

• Competitor analysis, viability analysis*, business plans
• Location and lease research
• Municipal permits, business licensing services
• Liquor license consulting*
• Insurance research and procurement (e.g. fire, liability)*
• Liquor inventory and beverage selection
• Mixology training*

After a bar is open for business, a bar consultant may provide:

• Operations audits
• Inventory audits
• Compliance audits
• Municipal license approvals and updates
• Liquor license consulting*
• Marketing plans*
• Employee acquisition and training

Top 10 Signs You Need a Bar Consultant

The following are 10 key signs that you need a consultant:

1. Even on weekends, your bar is failing to attract customers
2. Repeat business from regulars is waning
3. Sales and profits are down
4. Expenses are increasingly difficult to meet
5. You’re having difficulty paying wages month to month
6. You struggle to cover unexpected costs (fines, lawsuits, maintenance, inventory, training)
7. Liquor license compliance and municipal compliance issues are costing you in fines or temporary closures
8. Employees are difficult to find
9. You have a very high employee turnover
10. Customers are complaining about poor service

Read other articles about pub and bar consulting.

Thrive Liquor & Cannabis Advisors Helps Bars Succeed

Thrive is BC’s go-to liquor licensing consultant. From liquor license applications to compliance audits and employee compliance training, we make it easier to obtain and retain your liquor license.