![How to plan and track the budget of your craft beer bar [template]](http://onlineyougrow.com/cdn/shop/articles/cov-budget-7_915468bc-3b96-488f-a605-c686dc574940.png?v=1715856565&width=1100)
If you don’t plan and track your craft beer bar budget properly, you're setting yourself up for failure.
When we developed our strategy pack for craft beer bar owners, we saw a lot of bar owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having a loyal customer base and a great selection of brews.
Don’t let this be you—stand out and succeed.
We’ve created a small, free tool to help you get started: our Budget Tracker and Planner. Let’s turn your craft beer bar's finances around and set you on the path to success!
Get the budget tracker tailored for craft beer bars
Most craft beer bar owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for craft beer bars
Here is an example of a (very) detailed budget for a craft beer bar, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for bar space | $4,000 | $48,000 |
| Electricity | Power consumption for bar and refrigeration | $600 | $7,200 |
| Water | Water usage | $150 | $1,800 |
| Gas | Gas for heating | $200 | $2,400 |
| Internet & Phone | Internet service and business phone | $100 | $1,200 |
| Waste Removal | Garbage and recycling services | $100 | $1,200 |
| Pest Control | Monthly pest control services | $50 | $600 |
| Insurance | Property and liability insurance | $400 | $4,800 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Bar Manager | 1 | $3,500 | $3,500 | $42,000 |
| Bartenders | 3 | $2,500 | $7,500 | $90,000 |
| Barbacks | 2 | $2,000 | $4,000 | $48,000 |
| Servers | 2 | $2,000 | $4,000 | $48,000 |
| Security | 1 | $2,500 | $2,500 | $30,000 |
3. Beverage & Supply Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Beer Inventory | Craft beers, kegs, bottles, and cans | $8,000 | $96,000 |
| Non-Alcoholic Beverages | Sodas, juices, mixers | $1,000 | $12,000 |
| Bar Supplies | Napkins, straws, garnishes | $300 | $3,600 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $200 | $2,400 |
| Glassware | Beer glasses, pint glasses, etc. | $300 | $3,600 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $300 | $3,600 |
| Social Media Management | Managing social media accounts | $500 | $6,000 |
| Print Advertising | Flyers, posters, newspaper ads | $200 | $2,400 |
| Website Maintenance | Hosting, domain, updates | $100 | $1,200 |
| Email Marketing | Email campaigns and newsletters | $150 | $1,800 |
| Promotional Events | Special events and promotions | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of bar equipment | $400 | $4,800 |
| Uniforms | Staff uniforms and aprons | $150 | $1,800 |
| Licenses & Permits | Health permits, liquor licenses, etc. | $200 | $2,400 |
| POS System | Point of Sale software and hardware | $150 | $1,800 |
| Contingency Fund | Emergency repairs and unexpected costs | $500 | $6,000 |
| Office Supplies | Stationery, pens, printer ink, etc. | $100 | $1,200 |
| Staff Training | Training programs and materials | $200 | $2,400 |
Some craft beer bars make 5x more profit than you!
We have studied the strategies of the best craft beer bars in the world. Replicate them now!
What are the biggest expenses for a craft beer bar?
Watch out for these budget busters. Here are five major costs every craft beer bar owner needs to consider, along with some tips on how to manage them effectively.
- Beer and beverage costsThese can take a significant bite out of your budget. You're dealing with perishable products, and prices can vary based on seasonality, supply chain issues, and quality. To keep these costs under control, focus on portion control, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by stocking too many varieties or opting for high-end brews that don’t add enough value.
- Your bar staffYour staff is the heart of your bar, but paying for their wages, benefits, and training can be costly. This expense is always high because you need a certain number of employees to provide excellent service and keep things running smoothly. You can optimize labor costs by scheduling efficiently, cross-training staff, and monitoring productivity. However, be careful not to underpay or overwork your staff, as this can lead to high turnover and poor service.
- Rent and utilities of your barPrime locations come with high rent, but they can attract more customers. Utilities like electricity, gas, and water are essential but can add up quickly. To optimize these costs, negotiate favorable lease terms and invest in energy-efficient appliances and lighting. Overspending often happens when you choose a location that's too large or too upscale for your needs.
- MarketingYou need to get the word out about your craft beer bar, but advertising can be expensive, whether it's online ads, social media campaigns, or traditional media. Optimize this expense by focusing on cost-effective methods like the ones we give in our pack. Overspending can occur if you invest in flashy campaigns without a clear return on investment.
- Bar equipment and maintenance costsThis includes everything from draft systems to seating. These are expensive because quality equipment and regular maintenance are crucial for smooth operations and customer satisfaction. Optimize by investing in durable, energy-efficient equipment and maintaining it regularly to avoid costly breakdowns. You can overspend by going for the latest high-tech gadgets you don’t really need.
How to spend less with your craft beer bar?
Here are practical tips to help you, as a craft beer bar owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Beer Costs | Partner with local breweries for exclusive deals and seasonal brews at lower prices. |
| Labor Costs | Implement a scheduling software to optimize staff hours and reduce overtime. |
| Utilities | Install LED lighting and energy-efficient cooling systems for your beer storage. |
| Marketing | Run social media contests for your craft beer bar and collaborate with local beer influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of taps and refrigeration units. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Glassware | Use high-quality, durable glassware that can withstand frequent use and washing. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems. |
| Staff Training | Conduct regular in-house training sessions on beer knowledge and customer service, and use free online resources. |
| Waste Management | Implement a keg tracking system to minimize waste and donate excess beer to local events or charities. |
| Technology | Invest in multi-functional bar equipment and utilize bar management software for inventory and orders. |
| Menu Printing | Use digital menu boards or QR codes for menu access to reduce printing costs. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs. |
| Office Supplies | Purchase supplies in bulk and go paperless where possible with digital order systems. |
| Inventory Management | Use inventory management software to track stock levels and reduce spoilage. |
| Pest Control | Schedule monthly pest control services and maintain cleanliness standards to prevent infestations. |
| Music and Entertainment | Use a streaming service for background music and host local musicians during off-peak times. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
Copy the tactics of the best craft beer bars in the world!
There are craft beer bars that make way more money than you do. We have studied their tactics. Get them now!
Expenses that are just useless for a craft beer bar
Yes, some expenses for your craft beer bar are just unnecessary. They don't contribute to increasing revenue or improving customer experience.
| Craft Beer Bar Expense | Reason It's Useless |
|---|---|
| Overly Fancy Decor | Extravagant decorations don't necessarily attract more patrons and can be a drain on the budget. |
| Top-Shelf Liquor Brands | Unless you are a high-end bar, most customers are satisfied with mid-range options. |
| Too Many Beer Varieties | A large selection increases inventory costs and can lead to more waste if certain beers don't sell. |
| High-End Brewing Equipment | Top-of-the-line brewing equipment is not always necessary and can be cost-prohibitive. |
| Paper Advertising | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your craft beer bar. |
| Multiple Uniform Styles | Having various uniform styles increases costs without adding significant value to the customer experience. |
| Excessive Staff | Overstaffing leads to higher labor costs without necessarily improving service quality. |
| Premium Subscription Services | Expensive subscriptions for music or magazines often go unnoticed by customers. |
| Exclusive Ingredients | Using rare ingredients can inflate costs and complicate supply chains. |
| Costly Furniture | High-end furniture is not always appreciated by customers and can be a significant expense. |
| Custom Printed Coasters | Personalized coasters are a minor detail that most customers overlook, and they can be expensive. |
| Unnecessary Software | Paying for software with features you don’t use is a waste of resources. |
| Premium Water Brands | Most customers are content with filtered tap water, making expensive bottled water unnecessary. |
| Extra Delivery Vehicles | Maintaining a larger fleet than needed increases operational costs. |
| Excessive Membership Fees | Paying for multiple industry memberships often yields little benefit. |
| Overly Frequent Renovations | Constantly updating decor and layout can be costly and disrupt operations. |
| Expensive Table Centerpieces | Elaborate centerpieces are often ignored by customers and add to the cost. |
| High-End Glassware | Luxury glassware is prone to damage and expensive to replace, often going unnoticed by customers. |
| Excessive Staff Meetings | Too many meetings can reduce productivity and increase labor costs. |
| Expensive Menu Designs | Frequently redesigning menus is costly and often unnecessary. |
| Unused Promotional Materials | Ordering more promotional items than needed leads to waste and unnecessary expense. Get our marketing budget planner template. |
| Paid Directory Listings | Many free listing options are available, making paid listings often redundant. |
| High-End Catering Equipment | Specialized catering equipment is often unnecessary and adds to costs without a proportional benefit. |
Stop working with a tight budget for your craft beer bar!
Managing a budget for a craft beer bar when funds are tight can feel overwhelming. It's like being trapped in a cycle where any unexpected expense can throw you off balance.
This constant pressure makes it nearly impossible to invest in new brews or events, leaving you always scrambling to cover costs. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, pinching pennies and barely making ends meet. But there's another part of the equation you might be overlooking. Instead of just trying to cut costs, you can focus on growing your revenue. More income means more flexibility and more resources to enhance your bar.
And no, you don't necessarily have to spend money to grow. There are plenty of zero-cost initiatives and strategies that can help you increase your revenue by 10%, 20%, or more. We've detailed all of these strategies in our guides, after studying dozens of craft beer bars just like yours. Get them now!
Make your craft beer bar more profitable
We have studied the strategies of the best craft beer bars in the world. All their tactics are explained in our pack!
