Details of How to Start A Profitable Beer Parlour Business in Nigeria

beer parlour business Lagos
Image Credit: Jumia Food

By Adedapo Adesanya 

One of the most profitable businesses that a would-be entrepreneur can establish in Nigeria is a bar business because many Nigerians like to be happy amid the sufferings and drinks, especially those with alcohol, provide that happiness option.

Like many other businesses, running a bar, usually called beer palour, has things one should put into consideration before venturing into and they would be highlighted in this piece.

Interest

The first consideration is interest. This comes in many forms. The interest of the entrepreneur will determine whatever mission and vision he or she has for the business. Without interest in the beer parlour business, a lot of things can go wrong.

Size

Based on a number of factors, a beer parlour business varies is size; it may be small scale, medium scale, or large scale. A small scale can contain a maximum of 50 customers, a medium will take between 50 to 100 customers, and anything more than that means that is a large scale establishment. Once the would-be entrepreneur identifies what sort of beer parlour, he or she wants to run, issues like capital, location, and number of expected customers can follow.

This article will use a small scale beer parlour as a case study. 

Capital

Running a business needs money and to start a small scale beer parlour can between N600,000 and N3 million, depending on the location the owner wants to situate the business. This will cover rent up to a year and constructing the structure to fit the taste of the entrepreneur, with the different gadgets and instruments needed to run it smoothly like sound system, television set and others.

Location

A good location is something to consider. For a small scale bar, which can house about 50 customers, it is very necessary to situate it where is accessible, where cars can park and probably in a serene environment because of entertainment.

Designs

A calm environment is the best place to situate a beer parlour. With this actualized, the beer parlour must be designed for comfort – this means that it must be conducive. If it is an open space, there will be need for fans, while in a enclosed space, it is necessary that the entrepreneur invests in more fans and air conditioning systems.

Structure

A beer parlour is a place of relaxation; therefore, there must be a good structure such as rest rooms, kitchens, lounges, roofing, flooring, and a working water system in place because people are likely to use the restroom often due to the constant consumption of beer.

The kitchens will serve as where other side dishes that augment the beer will be prepared. This is an additional means of revenue and also used to keep more people coming. Here, you have eatables ranging from meat, pepper soup, and other local delicacies.

Also, a well-lit store may be needed for drinks that have not been refrigerated yet based on demand. This will help keep the business in stock.

Equipment and Furniture 

In a beer parlour, the chairs must outnumber the customers. For a small scale with 50 customers, the entrepreneur has to make room for at least 55 chairs because of guests and tag-alongs. This may be complemented with 30 tables. With chairs costing N15,000 per dozen, the total amount to procure chairs for a small sized beer parlour should be N70,000 and with a market value of N4,000 per table, this amount to N120,000, giving a total of N190,000 for the chairs and tables.

Refrigerators are also needed (at least 2) in anticipation of high demand for beers, which most consumers prefer. Refrigerators are needed to cool the drinks. An average fridge costs N120,000 and two will amount to at least N240,000. Alternatively, an entrepreneur can go for chillers, in the same price range, which prevent bottles from breaking and losses for the business.

Another item needed is the television set and sound system; they serve entertainment purposes. A TV set can be purchased for as low as N45,000 (32 inch) and a sound system of like N15,000 are good to keep the customers entertained while ‘chilling’ at your bar.

You can also keep N100,000 for openers, glass cups, straws, and other miscellaneous items, including subscription for payTV services to show European Club football matches, which attract huge following.

Estimated Total:N580,000. 

Registering the business

A registered business gives it an authentic outlook, hence, the business should be registered with the Corporate Affairs Commission (CAC) under a name. In addition, all other entities that deal with consumption must be alerted in order to carry out routine checkup for health and service compliance.

Get A Wholesaler

The beer parlour business is a retail business and to get drinks at cheaper prices, it is advisable to get a wholesaler who will provide the drinks in large quantity.

A beer parlour business is a very demanding task, therefore, the principal must constantly think of ways to keep his or her customers satisfied, because the customers will determine the outcome to a large extent.

Setting up a profitable beer parlour business can be tasking but it can be done right by following the steps outlined above. You also have to make your customers feel at home to keep them coming back to drink at your place. You should constantly ask them things you need to improve on.

Adedapo Adesanya is a journalist, polymath, and connoisseur of everything art. When he is not writing, he has his nose buried in one of the many books or articles he has bookmarked or simply listening to good music with a bottle of beer or wine. He supports the greatest club in the world, Manchester United F.C.

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