Hello people! I have a question about opening a bar on the North Coast. A lot of people told me that everything must close at 3am, however, I see some places being open all night. There is no loud music at those places, if this is a factor. I'd like to know what exactly does the law say about opening hours of bars and restaurants at night. Also, what legal documents would be needed to open a bar. Thank you for your help!
- Thread starter Ico
- Start date
Opening a bar
STOP.....DO NOT PASS GO!
Unless you are having a live donkey show, or naked Russian girls playing ping pong, you are better off donating 1/2 of your money to The Dream Project, children's charity, and saving the other half for a rainy day.
Unless you are having a live donkey show, or naked Russian girls playing ping pong, you are better off donating 1/2 of your money to The Dream Project, children's charity, and saving the other half for a rainy day.
I'd urge you to heed Tambo's advice. Just about everybody who wants to have a business starts with the idea of a bar. The failure rate is almost 100%, as there are already plenty, and if you are asking questions on this board, then you don't know nearly enough about doing business in the DR to invest anything significant.
Nobody is trying to hate on your dreams here, it just really is that treacherous a market.
Take the money, invest it in stocks or bonds, and live off the interest, or maybe start up an internet-based business. If you really want to have a bar, then 1) go to bartending school, 2) get a job at a local bar, and 3) pay very close attention to what the owner is doing.
Nobody is trying to hate on your dreams here, it just really is that treacherous a market.
Take the money, invest it in stocks or bonds, and live off the interest, or maybe start up an internet-based business. If you really want to have a bar, then 1) go to bartending school, 2) get a job at a local bar, and 3) pay very close attention to what the owner is doing.
Yes I remember the good ol day as well. Now after fees, charges, currency whacks, volatility, unknown. The new normal of investing is not how much interest you will make but how much of the principal will be protected.
NO, NO, NO, I'm way way cheaper, send me $1000US and I will talk you out of it and you can save the rest.....and maybe buy windeguy a couple of beers with all that money you saved.....
here's an idea... give ME your money, and I'LL open the bar with it. IF I'm successful, you can take the credit, if I fail, I'll take the blame, and your reputation will be intact. Your money will be gone... but you'll still have your rep. LOL.
That is a really good idea actually.
Bar is a tough business. Depending on your familiarity with the DR all businesses are very tough.
Find someone you know who is or has done business in the DR and discuss your idea with them.
if I were to attempt another business in the DR (which I will not) I would spend a few bucks on some market research.
I was in Sosua 3 weeks ago, while touring around, I noticed how many new bars were being built. I remember commenting why anyone would think that Sosua would need another bar......just too many of them as it is. If you have enough money to open and run a bar in Sosua....why not just keep your money and hang around in other peoples, your money will last way longer that way.
I wasn't going to comment on this, but let's look at some numbers, because, let's face it, at the end of the day, that's what it comes down to.
Using a hypothetical model in dollars:
1. you will be renting, i suppose? let's say you're rent is a modest $1500 Dollars a month.
2. Electricity is very expensive here...i mean like ungodly expensive. Let's say you have a modest place and your electricity bill is only $1200 dollars a month (that's less then half of our monthly bill.
3. Initially, employee wages may seem small, but what no one tells you here is that you have to pay everyone double pay for the month of December. plus you have to set aside 10% of everyone's annual pay just in case you lay them off or fire them. NO ONE HERE QUITS!! That'slike them kissing 10% of there annual pay away. Nt going to happen. Period. Plus, you have to provide insurance for them once they are a full time employee. Ok, so lets say you have a very modest staff of only 10 people and each one of these is full time and makes roughly $200 a month (7800 pesos): $200 x 10 employees. Now each one of these employees has to be provided a basic insurance coverage--lets say just $40 a month per employee $40 x 10 employees. each employee gets double pay in december: $400 x 10 employees.
4. Do you have your own generator for the electrcity shortage? If not, you'll have to buy it from someone. lets say this is a very modest $500 a month. this will be true if you are buying diesel fuel for you own generator (plus upkeep and maintenance--they break down all the time) or purchasing it from someone else.
5. does the place need remodeled at all? chances are that its yes, even if its just a modest make-over. are you going to have internet and cable and satellites? Whew...if you are goin to have satellites and NFL, NHL, MLB, PPV packages, you better sit down and get ready for the shock of your life. if, however, you are just going to have cable tv, then that's affordable.
There's many, many things here that i'm leaving out, because, well, i'm sitting at the bar right now at work, and i dont have time to go through them all--i.e, are you on the beach? It costs money for every chair that you have on the beach...you got to pay the city. Do me a favor, and do the math above and get back to me with a rough, monthly estimate in operating cost. After that, we can more specific and you can get a better idea. I have a lot of horror stories but, among those, there are a few good examples that where things worked out fabulously...I.E Gorditos and Mohitos in Cabarete.
Sorry... i got to get back to work
Frank
Using a hypothetical model in dollars:
1. you will be renting, i suppose? let's say you're rent is a modest $1500 Dollars a month.
2. Electricity is very expensive here...i mean like ungodly expensive. Let's say you have a modest place and your electricity bill is only $1200 dollars a month (that's less then half of our monthly bill.
3. Initially, employee wages may seem small, but what no one tells you here is that you have to pay everyone double pay for the month of December. plus you have to set aside 10% of everyone's annual pay just in case you lay them off or fire them. NO ONE HERE QUITS!! That'slike them kissing 10% of there annual pay away. Nt going to happen. Period. Plus, you have to provide insurance for them once they are a full time employee. Ok, so lets say you have a very modest staff of only 10 people and each one of these is full time and makes roughly $200 a month (7800 pesos): $200 x 10 employees. Now each one of these employees has to be provided a basic insurance coverage--lets say just $40 a month per employee $40 x 10 employees. each employee gets double pay in december: $400 x 10 employees.
4. Do you have your own generator for the electrcity shortage? If not, you'll have to buy it from someone. lets say this is a very modest $500 a month. this will be true if you are buying diesel fuel for you own generator (plus upkeep and maintenance--they break down all the time) or purchasing it from someone else.
5. does the place need remodeled at all? chances are that its yes, even if its just a modest make-over. are you going to have internet and cable and satellites? Whew...if you are goin to have satellites and NFL, NHL, MLB, PPV packages, you better sit down and get ready for the shock of your life. if, however, you are just going to have cable tv, then that's affordable.
There's many, many things here that i'm leaving out, because, well, i'm sitting at the bar right now at work, and i dont have time to go through them all--i.e, are you on the beach? It costs money for every chair that you have on the beach...you got to pay the city. Do me a favor, and do the math above and get back to me with a rough, monthly estimate in operating cost. After that, we can more specific and you can get a better idea. I have a lot of horror stories but, among those, there are a few good examples that where things worked out fabulously...I.E Gorditos and Mohitos in Cabarete.
Sorry... i got to get back to work
Frank
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Ok, i just finished work...let's look at a very modest budget for a very modest size restaurant or bar. Remember, this is just a hypothetical model, based on only 10 employees. Naturally, with less employees or more employees, things can vary dramatically up or down.
This is in US Dollars, and its based on a monthly budget:
1. Payroll: 10 employees x $200 a month > $2000 a month.
2. Rent: $1500 a month.
3. Electricity: $1200 a month.
4. Double pay in December for each employee: 10 x $200> $1000 (This does not include their regular pay) for December, or $83 a month when divided by 12 months.
5. Insurance for each employee: 10 x $40> $400 a month.
6. Monthly Generator costs--whether you own your own generator (lots of maintenance), or if you rent or buy electricity from someone else: about $400 a month regardless.
7. Satellite TV? or just regular cable? Ok, just regular cable > $17 a month (depending how many cable boxes you have.
8. internet? Modest speed costs $50 a month.
9. Setting aside 10% of 10 employees annual wages > $2400 a year, or $200 a month (remember, no one quits a job here. Period.)
10. Monthly Phone bill > $50 a month is modest.
The Operatian costs for just one month of expenses based on 10 full-time employees is: $6000 a month.
Please remember, this is just a hypothetical estimate. The numbers can vary dramatically based on so many different variable--I.E location, food costs, rent, bar breakage, stealing/theft, electricity bill, internet speed, satellites and packages--NFL, NHL, MBL, NBA, PPV, etc.--these alone can come into the thousands per month.
Again, there are too many things to list here and i don't have the time or energy to go through them all, but this is just to give a rough idea, nothing more. don't think this estimate is a model of any kind; it does not reflect any particular model.
Frank
This is in US Dollars, and its based on a monthly budget:
1. Payroll: 10 employees x $200 a month > $2000 a month.
2. Rent: $1500 a month.
3. Electricity: $1200 a month.
4. Double pay in December for each employee: 10 x $200> $1000 (This does not include their regular pay) for December, or $83 a month when divided by 12 months.
5. Insurance for each employee: 10 x $40> $400 a month.
6. Monthly Generator costs--whether you own your own generator (lots of maintenance), or if you rent or buy electricity from someone else: about $400 a month regardless.
7. Satellite TV? or just regular cable? Ok, just regular cable > $17 a month (depending how many cable boxes you have.
8. internet? Modest speed costs $50 a month.
9. Setting aside 10% of 10 employees annual wages > $2400 a year, or $200 a month (remember, no one quits a job here. Period.)
10. Monthly Phone bill > $50 a month is modest.
The Operatian costs for just one month of expenses based on 10 full-time employees is: $6000 a month.
Please remember, this is just a hypothetical estimate. The numbers can vary dramatically based on so many different variable--I.E location, food costs, rent, bar breakage, stealing/theft, electricity bill, internet speed, satellites and packages--NFL, NHL, MBL, NBA, PPV, etc.--these alone can come into the thousands per month.
Again, there are too many things to list here and i don't have the time or energy to go through them all, but this is just to give a rough idea, nothing more. don't think this estimate is a model of any kind; it does not reflect any particular model.
Frank
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Remember that astute investor from New York that bought a bar on Sosua Beach for his novia and she sold all the inventory?
What amazes me is how FAST a new place can close it's doors. Take the one on DR Rosen that had the wild expensive interior (red?) makeover, with the big fancy bar stools (forget the name). I don't think it even made it a year?
It always comes down to money. Too much going out and not enough coming in. Dreams are funny that way.
It always comes down to money. Too much going out and not enough coming in. Dreams are funny that way.
Frank12 gave you a good start in his hypothetical - there would be a few more expenses in the monthly budget, but he covered enough to get you thinking.
Your expenses on beer, rum, soda, juice, etc will be covered in the price you charge the customer - assuming you get a codigo from Presidente and others in order to get the discounted price for beverages, then you can make some gross profit - but will you draw enough people? In Frank's example (staying in USD as he did), you need $200USD per day in profit just to cover the space and personnel costs and you are going to probably need another $150USD per day to cover your own expenses (rent, vehicle, insurance, food, etc), because you will have to be there to manage the bar and know where the cash is going - doesn't seem like much, but to be competitive, you are going to be making less than $1USD per Presidente in gross profit - which means you would need over 116 customers per day ordering at least 3 Presidentes to cover your basic needs... the longer you do not not draw that kind of business, the debt will build up... So, can you afford to ride it out and spend time and money to promote your bar well enough to develop the regular amount of customers that you will need on a daily/weekly basis? If yes, then explore further.
Do not expect to "earn back" any money you spend on renovations, installing ACs, fixing the bathrooms, getting new tables and chairs, getting a new sound system, getting TVs or any of those kinds of expenses - write that all off as part of your initial investments.
If you do go forward and are able to arrange everything - The first month, you might have decent business, but do not use that as a gauge, because people are checking the place out - they may or may not return - they might tell others good things or bad things, and word of mouth is going to be your biggest advertising. After 3 months, you will know - though, you might decide to adjust a few things and do more promotions and see if that works, but by the 6 month point, you will know if you are going to have enough business to keep the bar open. That is why everyone is saying - know as much as you can before you even start.
Good luck if you go forward - at the very least you will learn a lot. Just make sure that you can afford to lose whatever you invest in case it does not work.
Your expenses on beer, rum, soda, juice, etc will be covered in the price you charge the customer - assuming you get a codigo from Presidente and others in order to get the discounted price for beverages, then you can make some gross profit - but will you draw enough people? In Frank's example (staying in USD as he did), you need $200USD per day in profit just to cover the space and personnel costs and you are going to probably need another $150USD per day to cover your own expenses (rent, vehicle, insurance, food, etc), because you will have to be there to manage the bar and know where the cash is going - doesn't seem like much, but to be competitive, you are going to be making less than $1USD per Presidente in gross profit - which means you would need over 116 customers per day ordering at least 3 Presidentes to cover your basic needs... the longer you do not not draw that kind of business, the debt will build up... So, can you afford to ride it out and spend time and money to promote your bar well enough to develop the regular amount of customers that you will need on a daily/weekly basis? If yes, then explore further.
Do not expect to "earn back" any money you spend on renovations, installing ACs, fixing the bathrooms, getting new tables and chairs, getting a new sound system, getting TVs or any of those kinds of expenses - write that all off as part of your initial investments.
If you do go forward and are able to arrange everything - The first month, you might have decent business, but do not use that as a gauge, because people are checking the place out - they may or may not return - they might tell others good things or bad things, and word of mouth is going to be your biggest advertising. After 3 months, you will know - though, you might decide to adjust a few things and do more promotions and see if that works, but by the 6 month point, you will know if you are going to have enough business to keep the bar open. That is why everyone is saying - know as much as you can before you even start.
Good luck if you go forward - at the very least you will learn a lot. Just make sure that you can afford to lose whatever you invest in case it does not work.
Been there done that. Frank, you need to include the minuscule profits made on each beer, rum, etc.. At the time we had a bar outside Luperon, long ago, we only made 5-10 pesos per beer since we had to be competitive. I'm sure the profit margin is much higher now but it will take a lot of beers and/or rum and cokes to cover the above costs. Add food and you also up the monthly expenses. We generally did good just to break even barring we didn't have long power outages that ate up all the profit using the generator. It turned out being more for something to do rather than making any money. Needless to say we didn't last more than a year and moved on to just drinking at them instead of trying to be profitable with one of them.
the only way it would work is:
you run the bar from your home/garden
you have no employees apart from yourself
you have additional income you do not mind wasting
it could be something to do to pass time and have drinking buddies. just for fun. because for money making.... difficult. there are some dominican bars here that make money. but then owners are dominican, they had money to start the place and knowledge on how to run it, plus lots of contacts to smooth the bumps.
you run the bar from your home/garden
you have no employees apart from yourself
you have additional income you do not mind wasting
it could be something to do to pass time and have drinking buddies. just for fun. because for money making.... difficult. there are some dominican bars here that make money. but then owners are dominican, they had money to start the place and knowledge on how to run it, plus lots of contacts to smooth the bumps.
You would think a nation of 85 peso jumbo fria emporiums (colmados) scattered across every free street corner and every 5th storefront would send a message other than....quick we need more bars! Now perhaps fried chicken or drive in hourly hotels tickle your investment fancy as well?
You wanna make legit money in Sosua or Cabarete? Open a (real NY style) pizzeria or chinese food spot. Keep them both open until an hour after the clubs close, and have some seating but focus on take out.
No, you won't retire by Christmas, but you will make a living.
No, you won't retire by Christmas, but you will make a living.