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If you don’t plan and track your sports bar budget properly, you're setting yourself up for failure.
When we developed our strategy pack for sports bar owners, we saw a lot of sports bar owners struggling with finances and planning.
They were disorganized, had no grasp of cash flow, and were drowning in financial troubles despite having substantial revenue.
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 sports bar's finances around and set you on the path to success!
Get the budget tracker tailored for sports bars
Most sports bar owners don't know how to plan and track their budget. This spreadsheet will help you.
Example of a full budget for sports bars
Here is an example of a (very) detailed budget for a sports bar, to give you some inspiration
1. Rent and Utilities
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Rent | Lease for sports bar space | $6,000 | $72,000 |
| Electricity | Power consumption for screens, lighting, and kitchen | $1,000 | $12,000 |
| Water | Water usage | $250 | $3,000 |
| Gas | Gas for cooking and heating | $350 | $4,200 |
| Internet & Phone | High-speed internet and business phone | $200 | $2,400 |
| Waste Removal | Garbage and recycling services | $150 | $1,800 |
| Pest Control | Monthly pest control services | $60 | $720 |
| Insurance | Property and liability insurance | $600 | $7,200 |
2. Salaries & Wages
| Position | Number of Employees | Monthly Cost per Employee | Total Monthly Cost | Annual Cost |
|---|---|---|---|---|
| Bar Manager | 1 | $4,500 | $4,500 | $54,000 |
| Bartenders | 3 | $2,500 | $7,500 | $90,000 |
| Servers | 5 | $2,000 | $10,000 | $120,000 |
| Kitchen Staff | 3 | $2,500 | $7,500 | $90,000 |
| Dishwasher | 1 | $2,000 | $2,000 | $24,000 |
| Host/Hostess | 2 | $2,000 | $4,000 | $48,000 |
3. Food & Beverage Costs
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Food Inventory | Bar snacks, appetizers, main dishes | $12,000 | $144,000 |
| Beverage Inventory | Alcoholic and non-alcoholic beverages | $5,000 | $60,000 |
| Condiments & Spices | Seasonings, sauces, dressings, etc. | $600 | $7,200 |
| Cleaning Supplies | Detergents, sanitizers, etc. | $300 | $3,600 |
| Paper Goods | Napkins, paper towels, to-go containers | $400 | $4,800 |
| Kitchen Utensils | Smallwares, cutlery, and kitchen tools | $250 | $3,000 |
| Dishware & Glassware | Plates, bowls, glasses, etc. | $300 | $3,600 |
4. Marketing & Advertising
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Online Advertising | Google Ads, Facebook Ads, etc. | $400 | $4,800 |
| Social Media Management | Managing social media accounts | $600 | $7,200 |
| Print Advertising | Flyers, posters, newspaper ads | $250 | $3,000 |
| Website Maintenance | Hosting, domain, updates | $150 | $1,800 |
| Email Marketing | Email campaigns and newsletters | $200 | $2,400 |
| Promotional Events | Special events and promotions | $300 | $3,600 |
5. Miscellaneous Expenses
| Item | Description | Monthly Cost | Annual Cost |
|---|---|---|---|
| Equipment Maintenance | Regular maintenance of kitchen and bar equipment | $600 | $7,200 |
| Uniforms | Staff uniforms and aprons | $250 | $3,000 |
| Licenses & Permits | Health permits, liquor licenses, etc. | $150 | $1,800 |
| POS System | Point of Sale software and hardware | $200 | $2,400 |
| Contingency Fund | Emergency repairs and unexpected costs | $600 | $7,200 |
| Office Supplies | Stationery, pens, printer ink, etc. | $150 | $1,800 |
| Staff Training | Training programs and materials | $250 | $3,000 |
Some sports bars make 5x more profit than you!
We have studied the strategies of the best sports bars in the world. Replicate them now!
What are the biggest expenses for a sports bar?
Watch out for these budget busters. Here are five major costs every sports bar owner needs to consider, along with some tips on how to manage them effectively.
- Food and beverage costsThese can take a significant bite out of your budget. You're dealing with perishables, and prices can vary based on seasonality, supply chain issues, and quality. To keep these costs in check, focus on portion control, negotiate better prices with suppliers, and minimize waste. It's easy to overspend by buying too much or opting for premium ingredients that don’t add enough value to your menu.
- Your sports bar staffYour team is your backbone, 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. 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 sports 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 big or too fancy for your needs.
- MarketingYou need to get the word out about your sports bar, but advertising can be pricey, 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 happen if you invest in flashy campaigns without a clear return on investment.
- Entertainment and equipment costsThis includes everything from big-screen TVs and sound systems to pool tables and seating. These are expensive because quality equipment and regular maintenance are crucial for a great customer experience. 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 sports bar?
Here are practical tips to help you, as a sports bar owner, optimize your budget and manage expenses more effectively.
| Expense | Tips to Optimize |
|---|---|
| Food and Beverage Costs | Partner with local breweries and suppliers for bulk discounts and seasonal specials. |
| Labor Costs | Use scheduling software to optimize staff hours, especially during game nights and peak times. |
| Utilities | Install energy-efficient lighting and appliances, and consider smart thermostats to manage heating and cooling. |
| Marketing | Run social media contests for your sports bar and collaborate with local sports teams and influencers for free exposure. |
| Cleaning Supplies | Train staff on efficient use of cleaning supplies to reduce waste and maintain a clean environment. |
| Equipment Maintenance | Set up a maintenance log for regular checks and servicing of kitchen and bar equipment. |
| Rent/Mortgage | Negotiate lease terms during renewal or consider moving to a less expensive location with good foot traffic. |
| Insurance | Regularly review insurance policies to ensure they meet current needs and compare rates annually. |
| Packaging | Use cost-effective, eco-friendly packaging for takeout orders and offer discounts for customers bringing their own containers. |
| Tableware | Purchase high-quality, durable tableware that can withstand frequent use and the occasional rowdy crowd. |
| POS System | Choose a POS system that offers essential features with low transaction fees and integrates with other systems like inventory management. |
| Staff Training | Conduct regular in-house training sessions and use free online resources to keep staff updated on best practices. |
| Waste Management | Implement a food waste tracking system to minimize waste and donate excess food to local shelters. |
| Technology | Invest in multi-functional kitchen appliances and utilize bar management software for reservations and orders. |
| Linen and Laundry | Partner with a cost-effective linen service and consider reusable napkins and tablecloths. |
| Menu Printing | Use digital menu boards or QR codes for menu access to reduce printing costs and easily update specials. |
| Licensing and Permits | Stay up-to-date with local regulations to avoid fines and costly renewals, especially for alcohol licenses. |
| Transportation | Plan delivery routes to maximize efficiency and reduce fuel costs, especially for catering services. |
| 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, especially for perishable items. |
| 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 bands or DJs during off-peak times to attract more customers. |
| Uniforms | Choose durable, easy-to-clean uniforms and offer staff a stipend for maintenance instead of using an external service. |
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Expenses that are just useless for a sports bar
Yes, some expenses for your sports bar are just useless. They don't contribute to increasing revenue or improving customer experience.
| Sports Bar Expense | Reason It's Useless |
|---|---|
| Over-the-Top Decor | Extravagant decorations don't necessarily attract more patrons and can be a budget drain. |
| Top-Shelf Liquor Brands | Unless you're a high-end establishment, most customers are happy with mid-range options. |
| Extensive Menu Options | A large menu increases inventory costs and leads to more food waste. |
| High-End AV Equipment | Top-of-the-line audio-visual equipment is not always necessary and can be cost-prohibitive. |
| Paper Flyers | Traditional paper ads often have a lower return on investment. Don’t include them in the marketing strategy of your sports 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 Napkins | Personalized napkins 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 Tableware | Luxury tableware 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 sports bar!
Managing a budget for a sports bar when funds are tight can feel like a nightmare. It's like being in a penalty box where any unexpected expense can knock you out of the game.
This constant pressure makes it nearly impossible to invest in growth projects, leaving you always chasing after expenses. It's a life filled with stress and sleepless nights.
Yes, you can continue down this path, scraping together 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 breathing room and more money to spend.
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 sports bars just like yours. Get them now!
Make your sports bar more profitable
We have studied the strategies of the best sports bars in the world. All their tactics are explained in our pack!
