Dude.. I can't believe people are so damn slow to catch on.. I guess I'll have to spell it out for you since I don't plan on doing business in the DR anytime soon.. If you want to make money, create a restaurant in Sosua (near the center) that caters to African Americans.. I'm talking Big Bubba's BBQ Hut, Mama Jemima's Soul Food Shack, maybe Jamaican food, anything with an urband twist to it, maybe a spinoff of Popeye's (spicy fried chicken with lots of hot sauce). There is a huge influx of this demographic and they are currently eating bad mexican food and mediocre Dominican food in Sosua, reach this market and make money.. this is the only niche I see with an opening on the north coast currently. Don't open a bar in Sosua since you are basically competing against the government (D'Latin owned by the vicemayor- arguably the most successful bar in Sosua).. go the urban food market and hire some great chef and you are guaranteed to make a killing in Sosua. A small possible niche in Cabarete is something like Hawaiian BBQ, think L&L's in San Diego, but wouldn't be near as profitable, the market in Cabarete is surfers who typically want a bargain.
- Thread starter Ico
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Opening a bar
Beer and p**sy. This is all that is needed and DOMINICAN food. I dont go on vacation for the taste buds or palate. lol
"Big Bubba's BBQ Hut?" "Mama Jemima's Soul Food Shack?"
LMAO!
First, that's pretty stereotypical. Sounds more like a criticism of the tourist demographic than a legit suggestion.
Second, Big D's and Rocky's make pretty good BBQ between them.
Third, "soul food" can be tricky to make, which is why most folks only get it from known, trusted sources. It's hard enough to get a decently made burger in Sosua. Nobody in their right mind would even think about handing their short-term health over to folks who don't know the first thing about greens or any kind of meat that required cleaning.
Fourth, both BBQ and soul food take time to prepare, and only appeal to a limited number of people to begin with. For example, collard greens is frequently flavored with a ham hock, which would turn off most folks who don't mess with pork.
Fifth, most tourists are only there for a week at best. So what works is quick, easy, inexpensive-yet-high-margin, tasty, filling, universally appealing comfort food. Like pizza and Chinese.
Back to your stereotype. Both kinds of restaurants collectively do great business in the hood, so there's no reason to think that they wouldn't do great with tourists from the hood. So you can be ignorant and well compensated at the same time.
For the OP, I know you're thinking that most of the margin in a restaurant comes from liquor, and you're right. Problem is, every street has a bar or colmado selling cut-rate drinks, which means you're fighting for pennies, unless you have a killer location (like Jose O'Shay's or Classico). And even Classico charges a cover to supplement income.
Caveat emptor, man.
LMAO!
First, that's pretty stereotypical. Sounds more like a criticism of the tourist demographic than a legit suggestion.
Second, Big D's and Rocky's make pretty good BBQ between them.
Third, "soul food" can be tricky to make, which is why most folks only get it from known, trusted sources. It's hard enough to get a decently made burger in Sosua. Nobody in their right mind would even think about handing their short-term health over to folks who don't know the first thing about greens or any kind of meat that required cleaning.
Fourth, both BBQ and soul food take time to prepare, and only appeal to a limited number of people to begin with. For example, collard greens is frequently flavored with a ham hock, which would turn off most folks who don't mess with pork.
Fifth, most tourists are only there for a week at best. So what works is quick, easy, inexpensive-yet-high-margin, tasty, filling, universally appealing comfort food. Like pizza and Chinese.
Back to your stereotype. Both kinds of restaurants collectively do great business in the hood, so there's no reason to think that they wouldn't do great with tourists from the hood. So you can be ignorant and well compensated at the same time.
For the OP, I know you're thinking that most of the margin in a restaurant comes from liquor, and you're right. Problem is, every street has a bar or colmado selling cut-rate drinks, which means you're fighting for pennies, unless you have a killer location (like Jose O'Shay's or Classico). And even Classico charges a cover to supplement income.
Caveat emptor, man.
Someone may have already started on that idea. A few weeks ago I noticed a new sign hanging in la Costera resturant on Pedro Clisante (between Club Residencial and the Europa). It says:
"Soul Food: 11-2"
Thank you for your time! I have already done the math. What I was thinking about is a bar like Blue Bar (the blue garage that sells very cheap drinks ) in Cabarete. A tiny bar, selling very cheap drinks in foam cups that people just take and go to the beach partying. Also maybe a table for beer pong and drinking games. I have done the math], and all the running costs + rent equal about 50,]000 pesos a month. I have everything on a spreadsheet and it could actually work. I know I can get it to work. I just wanted to know the Dominican law on opening hours and legal documents needed.
You've been given sage advice and ignore it.
I've owned a bar and it was the HARDEST business I've ever been in.
Let me be blunt: If you've never been in the bar business in the states (or wherever you come from) as an OWNER then you are a complete blind fool to even consider one here. You will be chewed up alive and spit out.
BTW: how can you say you've done a spreadsheet when you don't even know the legal hours of operation? How can you project revenues when you don't know how long you'll be open? That's like a colmado wannabe predicting revenues without knowing how much shelf space he'll have for inventory.
The DR is one of the most difficult environments to start and run a business.
The Blue Bar is very, very succesful! But, of course, you already know that the reason it is so successful is because its located directly across the street from all of the main bars and restaurants on the beach.
In this respect, they have the advantage of being able to cater to all of the dominicans, students, surfers, and people on a tight budget. in this niche, they have such a huge advantage over everyone across the street that it's almost comical in their success. If you can get a location close to, or around, the Blue Bar, then yes, you will have great success.
Let me catch everyone up here who do not know what the Blue Bar is: It's a cardboard, 4 square meter shack--painted Blue--that has two people inside serving Cubre Libras and other rum drinks for next to nothing. they also serve small and big presidente beers for next to nothing as well. Surfers, students, and Dominican kids who are on a tight budget can buy their drinks there, then walk across the street and hang out any of the nightclubs or bars on the beach who--because of huge rent, huge electricity bills, several employees, staff, payroll, and other assorted costs--have to charge double and triple the prices as Blue Bar. It really needs to be seen to be appreciated.
Blue Bar has a unique location which allows itself to cater to people who simply do not want to, or refuse to pay the going prices of the beach bars and restaurants. It really is nothing more than a glorified cardboard, driftwood, and corrugated tin shack...i would love to own it. I mean, look at their overhead costs--two light bulbs, two employees, three refrigerators, no rent, no tv, no cable, no seating--except three plastic chairs and a broken beer crate out front. They pay no employee insurance, no 10% annual income set aside, and they don't open until 8 pr 9pm at night--so the three staff only work 5 or 6 hours a night--and they're probably FAMILY Members!
It's fantastic in every sense of the word...but keep this in mind: It's owned an run by a dominican. If you are a north american, and you were to open something similiar, and you didnt offer insurance for your employees, severance pay, etc--it would only take one employee going to the labor board in Puerto Plata and filing a complaint--and they would come and shut you down and fine you through the roof. Also, if you effected the profits of Blue Bar, the owner their could call or send someone to the labor board in puerto plata and file a complaint and make up lies like--you are serving minors, you pay no employee insurance or severance pay, etc. this would bring the law down on you. However, if you were to cover all your basis, make sure that all employees working full time, or working for you more than 90 days--are recieving insurance, severance pay, etc, and you got a goof location directly across the street from all of the bars and nightclubs, then yes, you can really make some money by keeping your overhead costs down to a bar minumum. no doubt about it, it can work, but would need to be there fulltime while you were open or people will start to steal from you and give free drinks away. Also, if a fight were to break out and someone got stabbed on your premises, you would be shut down immediately and hauled to court. if you are found to have served minors, you will be shut down immediately.
This past week, there have been a lot of meetings going on in Cabarete regarding serving minors. if you were to own something like blue bar, minors would be flocking to you for drinks because, lets face it, they're not going to walk into a restaurant or bar on the beach and pay 2 and 3 times the price. So, keep this in mind, plus, there are probably some other bureacratic stuff that i'm forgetting here.
To answer your question...yes, something like blude bar--with 2 light bulbs, three refrigerators that are only turned on from 9pm until 3am, two girls encompassing your entire staff, workers comp, insurance, not serving minors, and covering all of your basis, great location--across the street from the bars, it could work. but let me ask you this? The location you have in mind, will you buy the property or rent it? If you are renting, and you get a really good business going, what's to prevent the owner--who maybe dominican--from jacking up your rent to skyrocketing levels and then taking over your bar or giving it to one of his children to run?
FRank
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The location is just 10 meters next to Blue Bar. Right next to the German restaurant that is open all night. I believe the same owners rent the place that I want to turn into bar. They are German and very friendly. Also, about the staff, the idea is for me and my girlfriend to open that bar, with her and our friend working on the bar. Both my girlfriend and our friend have years of experience of working at a bar, including here, in the Dominican Republic. We are, basically, counting on students and surfers as our main clients. With cheap drinks, offers on shots, and interactive drinking games, we believe it could work. The place is just as big as Blue Bar, I have people who can paint it artistically and build the bar for free, just as a favor. The rent is 20,000 pesos and electricity costs won't be much because all that will be running is two freezers, lights, and a fan. We don't plan on opening before 7-8pm and not every night. Monday, because a lot of people go out due to the karaoke nights, Thursday, Friday, and Saturday because they are considered party nights and lots of people go out. The reason I want to know until what time we could stay open is because once the clubs on the beach close at 3, people still don't want to go home and since the casino has been closed for a long while now, there isn't other place to buy drinks. Also, it is right next to the German place that's open all night long and is normally full of people after the clubs close at 3. My biggest concern is the reaction of the owners of Blue Bar, but even before that I have to know the laws on opening hours and legal papers needed to open.
Ico, be careful about putting too much of your idea in the public forum. The pro of telling a lot is that if there is a flaw in the idea, then someone will point it out. The con of telling a lot is that if it really is a good idea, then someone else may just take it.
For example, Frank mentioned that another bar similar to Blue Bar with a similar proximity to bars/beaches as Blue Bar could be a good idea - and then you just told people a location that was rentable - what is to stop someone from walking over and taking the space before you can lock down the deal?
(Assuming it is a good idea, which I do not know, because I do not know the location you are describing...)
For example, Frank mentioned that another bar similar to Blue Bar with a similar proximity to bars/beaches as Blue Bar could be a good idea - and then you just told people a location that was rentable - what is to stop someone from walking over and taking the space before you can lock down the deal?
(Assuming it is a good idea, which I do not know, because I do not know the location you are describing...)
If you genuinely want to do something like this for fun and don't need to rely on the income, go for it. The profit margins at a place like that are going to be basically 0, or blue bar would just lower their prices to put you out of business. I actually think a fried chicken place would be a better bet on that side of the street at those hours.. There's no place to get pica pollo anywhere around that, and I'm not sure why. I have a buddy in La Vega that owns a pica pollo that makes about 40k US a year net working in the mercado so it's definitely profitable, also almost no overhead costs. If you start to do well you will have 3-4 pica pollo competitors within a month or two, so you need to have something special about yours.. Viagara(the special garlic sauce they use) is one way pica pollos differentiate themselves in La Vega, actually the more I think about it the better idea this seems to be for someone that just needs a living income here. (I live in cabarete and trust me there's no pica pollo place over there).
Can't agree more with cobraboy. You have been given sage advise and if you choose to ignore it than don't complain about the results of your failed enterprise.
All I can say is "been there, done that" and if you want to leave the island with a million you had better come here with 2 million.
Ok, you seem like really nice guy looking for information. I'm a sucker for nice people. Let me tell you why i wouldn't do it...although, again, i like the idea, and i know how successful Blue Bar is. Hell, let's be honest, anyone that's lived in Cabarete with eyesight anything short of suffering from glaucoma, knows how successful Blue Bar is. Still, i wouldn't do it for these reasons:
1. I'm lazy; i wouldn't want to be there 7 nights a week, from opening to closing, and unfortunately, you will need to be. and the reason you will need to be there full time is because you "DO Not Want a Partner in such a tiny business." Never, ever have a partner in any business on this kind of minuscule level. In fact, try to never have a business partner in any business enterprise.
2. One phone call to the tax office in Santo Domingo--explaining how you are running a successful business but not charging the "Mandatory" 16% government tax" will get you audited...which will get you shut down because in order to compete with Blue Bar you will not be able to charge a 16% tax on top of your drinks and beer and still be competitive with Blue Bar. Of course, someone could do the same thing to Blue Bar as well.
The restaurant where i work at here in Cabarete got audited about 6 years ago; the tax office sent in a team of 5 men who sat next to each computer and "manually" wrote down every single item and transaction we put into the computer and then re-checked it at the end of the day to make sure it corresponded with the taxes we were charging. they spent 3 days straight monitoring every single transaction and only when they were 100% convinced that we were charging the mandatory 16% tax, did they leave. However, if they were to have found anything inappropriate they would have slapped us with a huge fine (The tax office closed down Outback Steakhouse in Santo Domingo some years ago for tax violations) and then they would have accessed a fine based on a little known, cute mathematical formula that looks at how many months (M) you have been opened--we will call that (M), times how many beers and drinks you average a day--we will call that (D), M x D, times what your average monthly sales are--we will call that (A), X x Y x A = ?, and then--based on that total--they access a cute little fine for violating each month you have been open--we will call that (U) for being profoundly "unlucky".
Luckily, for us, we have always charged taxes on every transaction and it is broken down on each receipt the customer receives. However, others have not been so lucky. Your saving grace is that you will be small enough to fly under the radar (like Blue Bar)...unless someone knows someone in the tax office and reports you.
3. I would never want to own a business where i do not own the property. too many things can go wrong and often do. Gorditos--one of my favorite restaurants here in Cabarete--and a fantastic example of how to full fill a special niche in the economy--owns their location. The restaurant where i work at owns the property. we are not at the mercy of anyone. However, there are a few shining examples--not many--where people rent and do fine, but then you have to be able to fill a niche in the market. I doubt Blue Bar is paying rent, however, you will be paying rent, this puts you at a distinct disadvantage. I would never want to be in a business with a competition around me where i am at a distinct disadvantage before one beer has been sold. I also wouldn't go into a gun fight holding a butter knife. I want to show up with Nuclear warheads on my side. I don't like being at a disadvantage, but its more because i'm fat and lazy and old...more than anything else.
Love Frank
1. I'm lazy; i wouldn't want to be there 7 nights a week, from opening to closing, and unfortunately, you will need to be. and the reason you will need to be there full time is because you "DO Not Want a Partner in such a tiny business." Never, ever have a partner in any business on this kind of minuscule level. In fact, try to never have a business partner in any business enterprise.
2. One phone call to the tax office in Santo Domingo--explaining how you are running a successful business but not charging the "Mandatory" 16% government tax" will get you audited...which will get you shut down because in order to compete with Blue Bar you will not be able to charge a 16% tax on top of your drinks and beer and still be competitive with Blue Bar. Of course, someone could do the same thing to Blue Bar as well.
The restaurant where i work at here in Cabarete got audited about 6 years ago; the tax office sent in a team of 5 men who sat next to each computer and "manually" wrote down every single item and transaction we put into the computer and then re-checked it at the end of the day to make sure it corresponded with the taxes we were charging. they spent 3 days straight monitoring every single transaction and only when they were 100% convinced that we were charging the mandatory 16% tax, did they leave. However, if they were to have found anything inappropriate they would have slapped us with a huge fine (The tax office closed down Outback Steakhouse in Santo Domingo some years ago for tax violations) and then they would have accessed a fine based on a little known, cute mathematical formula that looks at how many months (M) you have been opened--we will call that (M), times how many beers and drinks you average a day--we will call that (D), M x D, times what your average monthly sales are--we will call that (A), X x Y x A = ?, and then--based on that total--they access a cute little fine for violating each month you have been open--we will call that (U) for being profoundly "unlucky".
Luckily, for us, we have always charged taxes on every transaction and it is broken down on each receipt the customer receives. However, others have not been so lucky. Your saving grace is that you will be small enough to fly under the radar (like Blue Bar)...unless someone knows someone in the tax office and reports you.
3. I would never want to own a business where i do not own the property. too many things can go wrong and often do. Gorditos--one of my favorite restaurants here in Cabarete--and a fantastic example of how to full fill a special niche in the economy--owns their location. The restaurant where i work at owns the property. we are not at the mercy of anyone. However, there are a few shining examples--not many--where people rent and do fine, but then you have to be able to fill a niche in the market. I doubt Blue Bar is paying rent, however, you will be paying rent, this puts you at a distinct disadvantage. I would never want to be in a business with a competition around me where i am at a distinct disadvantage before one beer has been sold. I also wouldn't go into a gun fight holding a butter knife. I want to show up with Nuclear warheads on my side. I don't like being at a disadvantage, but its more because i'm fat and lazy and old...more than anything else.
Love Frank
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blue
All the stories i know are about dominicans getting pretty aggressive when americans beat them at their game.
Everyone local has heard about the guy who tried to compete with the local taxi guys etc.
The best case scenario is it works and then you make a couple of dollars for awhile until the police show up prompted by another local business owner whose profits are impacted.
I would like you to go for it and do well. I will come visit. Can I recommend that you compete by painting yours another color and then we can call it yellow bar. "hey ill meet you a yellow bar its near blue bar its where all the skin flints are going these days."
As for me Im still in NY working because i think it is so much easier to make money here, that it would be foolish to try and make money down there.
All the stories i know are about dominicans getting pretty aggressive when americans beat them at their game.
Everyone local has heard about the guy who tried to compete with the local taxi guys etc.
The best case scenario is it works and then you make a couple of dollars for awhile until the police show up prompted by another local business owner whose profits are impacted.
I would like you to go for it and do well. I will come visit. Can I recommend that you compete by painting yours another color and then we can call it yellow bar. "hey ill meet you a yellow bar its near blue bar its where all the skin flints are going these days."
As for me Im still in NY working because i think it is so much easier to make money here, that it would be foolish to try and make money down there.
Blue Bar... Yeah they are successful in the sense there is a lot of people, but I don't think they make much money, if any. Not only the cheapest, but also by far the strongest cuba/santo libres. Sometimes I get the feeling they run it just to **** regular restaurants off.. 3 drinks and you are wasted. They still have the "Wall of fame"? You drink 8 (6 as a girl) and still can walk you get your name on the wall with big letters. No, lists on the wall always been very short...
Opening a bar/restauarant... save the headache. Blue Bar is an institution, run by dominicans, nobody messes with Blue Bar. It might be different in your case if the regular bars on the other side of the street see that it affects their profit.
Opening a bar/restauarant... save the headache. Blue Bar is an institution, run by dominicans, nobody messes with Blue Bar. It might be different in your case if the regular bars on the other side of the street see that it affects their profit.
ICO, your electrical bill will between 5-8000 pesos each month with what you plan on running. The rent price seems fair for the area. You will need at least one Dominican working for you as the law states that 80% of your staff must be Dominican....not including the owners. Many bars don't follow this rule and never get into legal issues. Many of the prices you have been told in this thread are for larger restaurants so don't be scared off by that. If you did your homework and have the balls to try it out, then go for it. Better to try and fail then to never try and have regrets. Doing business here is more difficult than in Canada and in other aspects it is much easier....but the same business sense applies...customer service, good product, friendly staff all at a fair price. Good luck.
I suggest opening it up as long as you have 20 years experience in some business that is successful . generally the ingediants are the same ! you MUST HAVE A GREAT LOCATION, LONGTERM FINANCIALS,HANDS ON SUPERVISION REGULARILY,GREAT BUYERS , PROPER CONNECTIONS. AND REMOVE DANILO FROM OFFICE .... HE JUST INCREASED TAXES ON LIQUOR BIG TIME ! Now if you cab do all of these you have 50 / 50 chance of being open for two years !
THE BAR THAT IS ONE OF THE BUSIEST IN CABARETE IS A SMALL ONE ON THE OCEAN . MOST OF THE LOCALS GO THERE , AND LOTS OF TOURISTS BECAUSE THEY ARE EXPERIENCED 22 years , youngish , there lease is cheap ! , they Know what they are doing !!!! And locals refer them to it . Zthey do all the basics well !most other bars are open thats it !