Bar Manager in The Complex asking questions

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Jun

Re: Bar Manager in The Complex asking questions

Post by Jun »

BKKDreamer wrote: Sat Jan 21, 2023 8:37 pm Then last night, I went with a friend to Double Shot and the normal manager was there and it was a totally different experience - the host guys were more forthcoming
When the cat's away, the mice will play.

One night last year, the bells for calling service were missing from Divarium and hence service was slightly slower than usual. Then the hot young Thai Bar manager arrives on the back of a motorcycle. Before he's even got off it, the bells were being simultaneously delivered to all the tables.

Your Double Shot experience is slightly more difficult to understand, as sitting with customers means more tips, so there's a financial incentive for them to be proactive.
Jun

Re: Bar Manager in The Complex asking questions

Post by Jun »

Other aspect of running a small bar:

Scale effects.
If the salaries of the bar manager and bartender have to be supported by a smallbar with 6 tables, then the profit margins will be lower for a given occupancy. Of course, the worst scenario is a large bar with few customers. However, the bars with some scale seem to be the ones surviving for years.

Other Costs
WiFi
Licensing
Shrinkage etc

I would put the whole lot in a spreadsheet and check various scenarios.
However, understanding the finances is the easy part.
Attracting sufficient customers in a competitive market is the tricky part.
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Re: Bar Manager in The Complex asking questions

Post by BKKDreamer »

I relayed your calculation of the requirement of having to sell 26 drinks per day to break even and the person that was trying to decide whether or not to buy this small pop-up bar in the Jomtien Supertown Complex DROPPED the idea like a hot potato - as it was quite clear that being able to sell 26 drinks per day cannot be met in this small bar.
This would explain why the current young cute owner is very ready to off-load his bar as soon as possible.
Jun

Re: Bar Manager in The Complex asking questions

Post by Jun »

BKKDreamer wrote: Thu Jan 26, 2023 12:15 pm I relayed your calculation of the requirement of having to sell 26 drinks per day to break even and the person that was trying to decide whether or not to buy this small pop-up bar in the Jomtien Supertown Complex DROPPED the idea like a hot potato
That's scary. Why hadn't he done a calculation himself ?

Managing a bar ought to involve some grasp of the economics and if planning to invest in a bar, doing a spreadsheet to calculate out all the costs would be an obvious step.
Admittedly it's not difficult to do some basic estimates in your head, but it's far too easy to forget costs that way.

Warning: I made assumptions about gross margins. Anyone already running a bar ought to know the real cost of goods, so can use actual gross margins.

I do wonder how much thought goes into some investments. I just had a coffee where some built a small coffee shop in their garden, in an expensive looking outbuilding, complete with a professional coffee machine. I was the only customer. The seating is outside, with some shade from trees, so I guess sales are near zero when the weather is bad.
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Re: Bar Manager in The Complex asking questions

Post by BKKDreamer »

He asked me to help him with the original calculations where we did put the numbers down in a basic spreadsheet where we determined that 85.000 baht in monthly sales, with an estimated CGS (cost of goods sold) markup of 100%, and then deducting the individual expense items (tea money, rent, salaries, utilities, etc.).

However, we did not translate this into a per drink per day calculation and when you do that, to sell 26 drinks per day, it is an alarming expectation for this small bar entity.

I have to admit that there was too much hopium by the both of us and many of the ideas that we put forth to drive additional business into the bar were poo-pooed in this forum and also in other falang centric spaces.

What we learned - even if I do not like this revelation - is that the falangs who frequent the Jomtien Supertown Complex actually do just want to sit and drink with NO effort put towards expending ANY energy for fun activities that may give cause to expending calories in a bar. They ONLY want to expend those calories either in the bed with a guy or in the energy that it takes them to get to and leave the Complex.

So, I see that my future here will be bleak.....
Jun

Re: Bar Manager in The Complex asking questions

Post by Jun »

If I were specializing in this line of business, I would still play around with the numbers to figure out what needs to be done to make a bar work.
For instance a Singha costs between 80 and 100 in the complex. I can buy the same beer for 40 in a 7-Eleven, so can he get this wholesale for less than that? So the gross margins could be more interesting.
Then, is it economic to have a manager and a bar tender in such a small bar ?

As for farangs not wanting exercise, well I walk several miles a day. When I go to a bar, that's relaxation time, so I want to sit on my butt the whole time. If I'm not meeting a lad after, I will usually walk home as well.
windwalker

Re: Bar Manager in The Complex asking questions

Post by windwalker »

I have been to Coqtales Bar recently and have not seen the manager, Paul. Anyone else notice this?
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Re: Bar Manager in The Complex asking questions

Post by BKKDreamer »

windwalker wrote: Thu Jan 26, 2023 3:38 pm I have been to Coqtales Bar recently and have not seen the manager, Paul. Anyone else notice this?
Paul is not currently working there right now......

He may reappear in a nearby bar......
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Re: Bar Manager in The Complex asking questions

Post by Gaybutton »

BKKDreamer wrote: Thu Jan 26, 2023 4:42 pm Paul is not currently working there right now......
To me, the real question is did he apply any of our suggestions and if he did, which ones? Are they working - bringing in more customers?
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Re: Bar Manager in The Complex asking questions

Post by BKKDreamer »

Part of the reason as to why he left was because one of the MAIN suggestions that he implemented that was one of the ideas from this forum and thread, was to offer a happy hour from 5pm until 8pm at 50% of the normal price.
It was becoming successful and bringing in customers before the normal Supertown rush begins.

One of the days when Paul was coming to work, he was about 10 minutes late and he asked the staff, where is the Happy Hour sign. They were all quiet and shy and after insisting for a response, they said that the previous bar manager came and took the Happy Hour sign away and cancelled it.

An escalation was made by Paul but unfortunately the powers that be there decided to not over-ride the previous bar manager's cancellation of Paul's Happy Hour endeavour, and consequently the situation there became unteniable for Paul to remain there.

It was truly unfortunate and in my opinion, a great loss for the Coqtale bar.
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