Bar Up For Grabs, Take Over Payments

[overseasplease 3]

55sqm bar located in Soi 10, Second Road. 20 meters from Soi Honey and next door to Fawlty Towers Guest House.

 

Basically the bar is ready to be signed over and the new owner would take over payments.

 

Currently the key money for 3 years is 200,000 baht and the rent would be 12,000 baht per month.

 

Contract can be 3years + 3years +3years if you would like.

 

The bar is fully functional and ready to be taken over. A sign would be the only thing you'd want to add.

 

 

 

 

 

 

 

If you have questions please leave them here on the thread or contact Dave at FawltyTowersPattaya.com

Edited September 15, 2010 by overseasplease

[sinbinjack 244]

Three questions,What do you get for this "Key money", why are there no comfortable seats in the bar,don't you want people to come in and sit or are you (and loads of other bar owners)trying to move your customers on quickly.Seriously whats with the uncomfortable seating arrangements in so many Pattaya bars.And finally Where is the other 20 sq m of your bar as I can only see about 30 sqm in your pics.

Edited September 4, 2010 by sinbinjack

[overseasplease 3]

Three questions,What do you get for this "Key money",

 

This is not a new concept for foreigners with bars in Pattaya...the following may help

 

http://en.wikipedia.org/wiki/Key_money

http://www.thaivisa.com/forum/topic/77014-what-is-key-money/

http://www.businessdictionary.com/definition/key-money.html

 

Gotta love google

why are there no comfortable seats in the bar,don't you want people to come in and sit or are you (and loads of other bar owners)trying to move your customers on quickly.Seriously whats with the uncomfortable seating arrangements in so many Pattaya bars.

 

I think it may be a case of "it's always been like that, why change it?". Not sure, but I agree...a lot of the time the bar stools aren't the most comfortable of places to sit. I assume you could always replace them if you'd like.

And finally Where is the other 20 sq m of your bar as I can only see about 30 sqm in your pics.

 

The 55sqm could have been a guestimate by the owner, but I will personally go measure it for you today and post my findings here later this evening.

 

Please, feel free to ask any other questions.

 

OSP

Edited September 5, 2010 by overseasplease

[Fondles 94]

1 baht is cheap, how much money do I need to put down upfront to take it over ??

[lovedog100 1,372]

1 baht is cheap, how much money do I need to put down upfront to take it over ??

it looks like 200,000 key money, and 12,000 for a months rent. (plus one baht?) That would be 212,001 by my estimation. I'm wondering where the one baht sale comes in. What do we get for the one baht? The right to pay key money, and rent?

[overseasplease 3]

it looks like 200,000 key money, and 12,000 for a months rent. (plus one baht?) That would be 212,001 by my estimation. I'm wondering where the one baht sale comes in. What do we get for the one baht? The right to pay key money, and rent?

 

Actually yes...that's pretty much it.

 

Basically the 1baht is moot...you'd be taking over payments.

[overseasplease 3]

And finally Where is the other 20 sq m of your bar as I can only see about 30 sqm in your pics.

 

The inside bar area is 37sqm.

 

There is also the sizeable space with tables and chairs outside of the bar.

Edited September 6, 2010 by overseasplease

[CheshireTom 1,377]

The inside bar area is 37sqm not including the bathroom.

 

There is also the sizeable space with tables and chairs outside of the bar.

 

It looks more like a bog-standard 4x8 shop including the bathroom.

Edited September 5, 2010 by CheshireTom

[Emil 0]

it looks like 200,000 key money, and 12,000 for a months rent. (plus one baht?) That would be 212,001 by my estimation. I'm wondering where the one baht sale comes in. What do we get for the one baht? The right to pay key money, and rent?

 

Sounds like the 1 baht will get you the stock on hand and the furnishings. Key money sounds like another term for prepaid rent. I took the 200k and divided by 36 which equals a little less than 6k a month. Add the 6k to the 12K and divide by 30 and it equals 600 baht a day. So one would have to sell enough drinks a day and have barfines minus commission to cover the 600 baht rent, wages, cost of goods and other overhead to break even.

[overseasplease 3]

It looks more like a bog-standard 4x8 shop including the bathroom.

 

Are most bars in Pattaya not? I don't own a bar myself, but I'd assume that the owner and the service you provide would make or break the bar.

 

A lot of owners could care less about the customer, a lot of owners tank in town

 

Look at the Cherry Bar. The looks of the bar are "bog-standard", but it's well known because Adam has a broad online presence and takes care of his customers.

 

Sounds like the 1 baht will get you the stock on hand and the furnishings. Key money sounds like another term for prepaid rent. I took the 200k and divided by 36 which equals a little less than 6k a month. Add the 6k to the 12K and divide by 30 and it equals 600 baht a day. So one would have to sell enough drinks a day and have barfines minus commission to cover the 600 baht rent, wages, cost of goods and other overhead to break even.

 

You're absolutely right Mr. Emil.

 

Definitely not a big money maker here, but more of one of those "Yeah, I own a bar in Thailand" kind of things. As well as a way to live here for free basically...if you break even or come out ahead.

[sinbinjack 244]

The inside bar area is 37sqm.

 

There is also the sizeable space with tables and chairs outside of the bar.

Surely the " sizeable space with tables and chairs outside of the bar " is the rest of the world and not therefore part of the rental agreement .I also read all 3 of the Explanations of key money and my observations are ,that key money is to be paid so you get a cheap rental,at least below market value,but i see no value in the rent for such a small space which is expecting a further 12000 baht a month as well as the 200000 baht key money.I presume that the current "owner" wants to close up and go home without having to pay up his lease ,so who would the 200000 baht go to ,Him or the buildings owner,if him then he needs to lower his sights(as far as I am concerned) ,and if the building owner then surely the present rental period should be covered by a previous Key money "donation".

Anyway you slice it I am no longer even slightly interested at these figures.

[overseasplease 3]

I am no longer even slightly interested at these figures.

 

Fair enough...thanks for replying to the thread.

[plahgat 523]

The bar is fully functional and ready to be taken over. A sign would be the only thing you'd want to add.

 

How about adding a few girls as well!?

 

Plahgat

[papillon 695]

55sqm bar located on Second rd, Soi 10. 20 meters from Soi Honey and next door to Fawlty Towers Guest House.

Where exactly is it located? Doesn't look like Second Road out front.

[honeypot 27]

Surely the " sizeable space with tables and chairs outside of the bar " is the rest of the world and not therefore part of the rental agreement .

 

Absolutely fucking hilarious. Thankyou.

[overseasplease 3]

Where exactly is it located? Doesn't look like Second Road out front.

 

2nd road Soi 10 is maybe 20 meters down from Soi Honey on the right hand side. Then the bar is about another 20-30 meters down the soi on the right hand side.

[papillon 695]

2nd road Soi 10 is maybe 20 meters down from Soi Honey on the right hand side. Then the bar is about another 20-30 meters down the soi on the right hand side.

So it's on Soi 10 then. Not Second Road. Big difference. Thanks for the clarification

[overseasplease 3]

So it's on Soi 10 then. Not Second Road. Big difference. Thanks for the clarification

 

You're right. I switched it in the OP to clarify.

Edited September 15, 2010 by overseasplease

[JohnnyK 28]

Looks like somebody spent a ton of money to set it up. The decor will certainly encourage punters after a unique ambience.

Key money + rent = 17,500/month then more key money after 3 years. Nope!

[englishinsiam 15]

Key money is something devised by greedy Thai owners many years ago and they get more and more greedy.

 

You rent their shell properties furnish it for them take care of it and on top of rent you are expected to give them a tax free backhander every 3 years.

 

I'm not slating the OP just the key money thing in principle.

 

I wish the OP all success but I don't think he will get any takers in this forum your better off looking elsewhere. Sometimes a punter comes on holiday gets all misty eyed and has a pocket full of redundancy ready to throw at a business he thinks is a good idea while sitting the other side of the bar.

 

Maybe that'll happen here.

[joekicker 53]

Surely the " sizeable space with tables and chairs outside of the bar " is the rest of the world and not therefore part of the rental agreement .I also read all 3 of the Explanations of key money and my observations are ,that key money is to be paid so you get a cheap rental

 

No, key money is so the landlord/owner GETS low rental. His taxes are based on the rent. Key money is a VERY old, tested, tried and true concept throughout Asia, but at the base, it's a tax dodge by the owner of the property to lower his monthly income and thus taxes.

 

.

[MM 6,562]

No, key money is so the landlord/owner GETS low rental. His taxes are based on the rent. Key money is a VERY old, tested, tried and true concept throughout Asia, but at the base, it's a tax dodge by the owner of the property to lower his monthly income and thus taxes.

 

.

 

Also, it's a way for the landlord to guarantee a good piece of the rental income when the business goes bust early on in the rental contract period.

 

Somebody pays 1.5M key money for 3 years (41,667/mo) , with a rent of say 50K, yielding a total rent of 91,667/month over 3 years.

 

The business closes after 1 year. The landlord reaps 1.5M + 600K = 2.1M for a 12 month rental....equivalent to 175K/month.

 

The lease contract (generally) does not allow subleasing, so the owner gets to find a new renter and get key money again.

 

Landlords always win.

[Fondles 94]

If it does not sell and you wanna split it up I'll offer 5,000b for the fridge... I need a new beer fridge at home.

[FatherMojo 2]

Another mark against this place is that it is located on something of a dead end (cul de sac) so foot traffic will be mostly limited to people who have a reason to be on the Soi.

 

Probably worth 8-10k with no key money and 10 baht on the 100 baht for the furnishings.

 

 

 

FatherMojo

[joekicker 53]

Landlords always win.

 

That was really my point, I guess. Key money is not for the benefit of the rentER, yep.

 

.