Applying for Jobs with a Criminal Record: Know Your Rights

The Pros And Cons Of Adding Liquor To Your Bar Or Restaurant

23 July 2015

Michelle Garrett

Getting a liquor license for your bar or restaurant can reap your business many benefits. But it is notoriously difficult to obtain a liquor license. Not only is obtaining a license a long and drawn out process, it can also be expensive. The laws and regulations are different in each state, county, and city. You should consult a lawyer before making a decision about whether or not you should apply. You should also familiarize yourself with the pros and cons of running an establishment that allows hard liquors and spirits before you decide if applying for your liquor license is worth it.

Pros

Great profit margin

Alcohol is likely to be the most marked up item on your menu. When you add liquor, your profit margins can soar. Not only are you able to charge more for drinks that are made with liquor, you can charge more for specialty and signature drinks. If your bartender has special training or is a talented mixologist, your house drinks can fetch a premium price at a low cost to you.

Offset other costs

Food can be difficult to recoup costs on. Paying your bar staff and wait staff cost money as well. With the high profit margin on liquor, these costs can be offset.

Draws more of a crowd

If your bar serves liquor along with beer and wine, a whole group of friends will be able to have dinner there and drink. Many people prefer spirits to beer or wine or would prefer a mixed or specialty drink. If your bar selection runs the gamut from beer to liquor, you have a higher chance of drawing in a crowd that might go elsewhere if liquor is not available.

Cons

Greater chance of fines

From bar patrons sneaking in and ordering a drink with a convincing fake ID to customers driving drunk, serving liquor brings its own set of headaches. If your bar serves liquor, customers are likely to get drunk faster from drinking less and could end up getting rowdier than expected. You will have to have constant vigilance to make sure that there is no underage drinking going on, that customers aren't being over-served, and that they aren't trying to leave drunk in their vehicles.

Greater cost upfront

Obtaining a liquor license is pricey. Not to mention hiring staff that knows how to mix a mean Tom Collins on demand rather than just opening a beer or pouring a glass of wine.

For more information, contact Arizona Liquor Industry Consultants or a similar organization.

Share