Bar Owners Lament

[kenandlat 0]

This post was first posted on another forum by the owner of the G Spot.  Certainly worth reading.

 

I dug up this message from one of the forums I belong to.  I think it is the best written posting I've seen on why NOT to go into the bar business in Thailand or the Philippines etc.

 

Income items:

 

 

Sale of drinks  

Sale of Cigarettes  

Barfines  

Pool table fees (if any)  

Sale of bar T-shirts/hats etc.  

 

 

Expense items

 

Beverages  

Wholesale cigarettes  

Ice  

Napkins  

Toothpicks  

Ashtrays  

Trash cans  

Glasses (15 varieties)  

Coasters  

Bottle condoms  

Bartender salaries  

Waitress salaries  

Cashier salaries  

Mamasan salary  

Bargirl salaries  

Rent  

Electricity  

"Key money"  

"Protection money" (aka police contributions)  

Water (for toilets)  

Music system  

CD's  

Furniture  

Fans  

Air conditioners  

Toilet paper  

Locks  

Keys  

Cash register  

Calculator  

Dishwashing soap  

Brooms  

Corporate tax on profits  

Employee withholding taxes  

VAT taxes  

Social fund matching contributions  

Light bulbs  

Swizzle sticks  

Portaits of King  

Paper clips  

Credit card machine  

Bank account charges  

Cost for printing of bank checks  

Postage  

Daily tamboon flowers and offerings

Business cards  

Advertising  

Drink menus  

Hammer  

Wrench  

Screwdriver  

Scissors  

Paring knives  

Cutting board  

Telephone (instrument)  

Telephone installation charge  

Base monthly phone charge  

Telephone call unit charges  

TV set  

Cable installation charge  

Monthly cable charge  

Salt shakers  

Salt  

Spoons  

Coffee maker  

Coffee  

Sugar  

Milk/cream  

Tea  

Blender  

Check-bin cups  

Check-bin checks  

Stapler  

Staples  

Incense joss sticks  

Matches  

Pool table  

Pool balls  

Pool cues  

Pool high “bridge” (rake)  

Pool low “bridge” (rake)  

Pool chalk  

Talcum powder  

Talcum powder dish  

Whiteboard  

Whiteboard markers  

Chalkboard  

Chalk  

Vacuum cleaner  

Pool table brush  

Olives  

Limes  

Maraschino cherries  

Corkscrew  

Ice tongs  

Straws  

 

and a million other things - literally. There are very definite limits for what can bring you income, but there are almost no limits on what expenses can emerge to bleed you white.  

 

And the above does not include the actual costs of company formation, work permit registration, etc.  

 

 

Anyone still interested in getting into the bar business??  

[monkeyman 1,604]

No, but after reading your post I'm thinking about becoming one of their suppliers. [smiley=nod.gif]

[bigbear 0]

He didn't mention bananas did he MM?

 

Bear

[Guest]

Income Items:  Blah Blah

Expense Items: Blah Blah Blah

Upside: Surrounded by beer and women, live in LOS

Downside: Ummm......what [smiley=cheers.gif]  

[fishingtime 0]

Way way too much work for way to little profit. Better to have a business at home with a small profit and sell it. Then with what was a "small profit" move to Thailand and live like a King.

[cbrib 354]

 Most of the items listed in the expense list are one time purchases. Most of those usually come with the bar when you buy. Company and work permit in a beer bar really is not necessary. Items like tissue, salt, pepper, sugar, friut and garnishes are very cheap. Occasionally you may need to replace a few broken glasses ( which the staff pays for if they break) How often you do you need to buy a new cutting board or new knives? The toilets in many beer bar areas are pay per piss, usualy 3-5 baht. Very few complexes are on a dj system where you would have to pay for music..

 Think about just starting your day. You have to wake up. You have to shower, shit, shave, pick out clothes to put on, and then put them on. Wait shit, one may be wrinkled and you need to iron, have your girlfriend iron it, or look for something new. Ok time for socks, shit one is missing.,......again!! Now we have to go through the process of making coffee, breakfast and all that is involved with that. It is a wonder you would have time to go to work with all the steps that are involved with just getting your day started

It is a tough business but the biggest obstacle i have found so far is staff.

Just my 2 bahts worth, B-Man!

[fishingtime 0]

 Most of the items listed in the expense list are one time purchases. Most of those usually come with the bar when you buy. Company and work permit in a beer bar really is not necessary. .. Just my 2 bahts worth, B-Man!

 

"work permits in a beer bar really is not necessary" until you as a foreigner are caught doing any thing in the bar, arrested and deported from Thailand.  What many people do when running  a business is to run along the edge and many go over  it and find themself out of business. Running a business the right way with all the permits costs more and is much harder but these actions  protects the investment you've made in the business.

[cbrib 354]

  Work Permit is not a carte blanche liscence to do what ever you like in your place of business. There are jobs Thai's should be doing and if they are not doing them and you can not provide proof that you have someone to do it you have a problem. With a beer bar you have someone to open the bar and clean up. You have staff serving and making drinnks. There is no reason to actually do anything you can get caught for, i have the security guy on my soi handle certain things for next to nill money. Beer bars are not gold mines but you can get reamed on taxes if you are not careful. Better to stay low profile and enjoy your so called "job" and run it from the customers side of the bar. Just a bar owners point of view. Cheers, B-Man!

[fishingtime 0]

  Work Permit is not a carte blanche liscence to do what ever you like in your place of business. ... Just a bar owners point of view. Cheers, B-Man!

 

B-man I understand your point of view and I agree work permits are not carte blanche licenses but they do give you more protection then not having them. But it is your business to run as you see fit. Hope you can make it work.