I want to buy a tavern

So you want to buy a tavern? Well! I’ll tell you, buying a tavern is just as hard as operating a restaurant or fast food joint, if not harder. One major factor going for you is that you will buy 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 be purchasing the previous owner’s liquor license or applying 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 licences, 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 seller can walk around 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 purchasing a tavern, you will have to wait approximately three months before you have a background check to have your liquor license accepted.

Second, set up your business entity. I would recommend an LLC (Limited Liability Company), due to 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 a thing. He took my advice and is doing well. The only thing that he needs to be fixed, repaired or made new is plumbing, electrical, ceramic floor in the kitchen, refrigerator, etc.

Fourth, be sure to 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, now he will have to comply with the new laws that were put on the books. For example, if the bar sink had only two basins for washing and rinsing, he would need to add another basin for sanitizing the bar glasses.

Fifth, if you intend to have a small kitchen, like 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 fire fighting company and tagged after they finish checking or recharging it. If this is not done, and the fire inspector comes when his next inspection is due, he will be given a concert and given 30 days to correct it.

Sixth and last. Cleaning. I cannot stress this enough. The first impression a customer gets of your store is when he visits your bathrooms. If they are dirty and lack towels, hand dryers, and toilet paper, they won’t come back or tell their bosses. Not only is it embarrassing for you, but your health department will fool you when you have a visitor.