What if the failure rate statistics you've been hearing about the bar industry are all wrong? Join me, Chris Schneider, on this week's Bar Business Podcast as we dispel some of the most pervasive myths that have been haunting bar owners for years. We start by dissecting the oft-quoted but unsubstantiated claim that 80% of bars fail within five years. Leveraging studies from Ohio State University and data from Starfish, we debunk these misleading figures and encourage bar owners to focus on improving their own performance metrics rather than being swayed by inaccurate industry standards.
We also explore fascinating data from the Bureau of Labor Statistics, showing even lower failure rates for businesses opened in 2022, and how establishments that opened just before the COVID-19 pandemic have shown remarkable resilience in the face of adversity.
Finally, let's talk profitability. Contrary to the belief that bars operate on razor-thin margins of less than 5%, data from Starfish reveals that bars in major cities can see average net profits of 10.4%, with non-major cities reaching as high as 21.4%. We delve into the importance of managing prime costs effectively and provide actionable strategies to boost your P&L numbers. From understanding occupancy costs to adapting to consumer behavior trends, this episode is packed with insights to help you steer your bar toward greater profitability. Tune in for data-driven advice and practical tips tailored to your unique business model.
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