So you want to buy a tavern? In agreement! I will tell you that buying a tavern is just as difficult as operating a restaurant or fast food restaurant, if not more so. An important factor that you have going for you is that you will be buying the goodwill, the customer base, along with the other assets of the business. You won’t start from scratch looking for a location to build.
First very important aspect to consider, have a business plan. What are your goals and what are you going to achieve? Will you buy the previous owner’s liquor license or apply for your own? The reason behind the question is that in some towns, counties, suburbs, etc, only limited liquor licenses are available. If the governing municipalities listed above no longer issue liquor licenses, you will need to purchase the existing license from the company. Liquor licenses in some states are declining. Don’t make the mistake of buying the business without the liquor license because the vendor can walk away with his license and open another tavern not too far from you. If that happens, you will only be able to serve non-alcoholic food. In Chicago and its suburbs, when you buy a tavern, you’ll have to wait about three months before having a background check run before your liquor license is accepted.
Second, set up your business entity. I would recommend an LLC (Limited Liability Company), because of its flexibility, easier to maintain, and would protect your personal assets from business liabilities. Once you have completed obtaining your LLC, you will need to apply for your EIN (employer identification number), business license, and business bank account.
Third, don’t remodel if you don’t have to. You will kill your business. Some owners in the food and beverage business start remodeling as soon as they step foot in the door. That would be a disaster. I say this because the remodeling would kill the atmosphere or the decoration that the place had before. If the business was successful when you bought it, why fix something that isn’t broken? Your customers will most likely be local. If they patronized the business before, they must have liked something about the interior landscape. I have seen this happen many times in many taverns and eating places. When I sold my tavern/restaurant, I told the new owner not to change anything. He took my advice and is doing well. The only thing he needs to fix, repair or make new is plumbing, electrical, ceramic tile in the kitchen, walk-in cooler, etc.
Fourth, make sure you comply with local laws. Once the new owner changes hands, it will be visited by the health, building and zoning department, fire department, state and local sanitation department, etc. If the previous owner was exempt from any laws, he will now have to comply with the new laws that were put on the books. For example, if the bar sink had only two buckets for washing and rinsing, he should place another bucket for sanitizing the glasses on the bar.
Fifth, if you intend to have a small kitchen, as I had in my tavern, you will need an Ansul system. It’s a fire suppression system above your grill and fryers and under your hood. This is the “code” in every kitchen everywhere. This should be inspected every three months by a firefighting company and tagged after they finish checking or recharging it. If this is not done, and the fire inspector comes when your next inspection is due, you will be given a concert and given 30 days to correct it.
Sixth and last. Cleaning. I can’t stress this enough. The first impression that a client of your premises takes away is when he visits your bathrooms. If they’re dirty and missing towels, hand dryers, and toilet paper, they won’t come back or they’ll tell their bosses. Not only is it embarrassing for you, but your health department will mislead you when you have a visit.
