starting a bar in Chicago

August 9, 2007 12:11 PM

How much does it cost to run a bar in Chicago, initially and annually? What do I need in terms of both licenses and stuff? Outside of costs, are some neighborhoods harder to get licensed in than others?

I figure I should start working towards my dream. Here's what I want:

A small place with enough room for a DJ or a live band; a 4am liquor license, a good selection of beers and whiskey, and a modest decor (not a club, not a dive, just a nice, dark place to drink and listen to music).

If I were to start today, I would be trying to find a space in West Pilsen/Little Village or the Wester parts Humbolt/Garfield Park. I'm assuming that these are places that will be out of my means in five to ten years, but are on the affordable side right now, if I got some loans.

posted by elr to Work & Money (6 answers total)

Here in NYC, I took an amazing course in how to open a bar at the New School. First of all, I'd totally recommend you taking this course; it was amazing. There were students there from Chicago and Miami and even Puerto Rico. The instructor gave out a bunch of files and templates and secret figures and basically gave the class carte blanche to contact her from that point forward for advice.

Here's the course info:

How to Open and Operate a Successful Bar NCLS0108
A 1 session. Sat., 10:00 a.m.–4:00 p.m., Oct. 6. $145; materials fee $15 payable at registration.
Lisa Chodosh

This seminar offers guidance for the startup and operation of a successful bar, whether stand-alone or in conjunction with a restaurant. Topics include site selection, financial requirements, licensing and compliance, bar design and equipment, glassware needs, pricing strategy, staffing, purchasing, and inventory control. Market trends in mixed drinks, beers, scotches, flavored vodkas, and wines by the glass are explored, and promotional programs are discussed. Class meets at The New School (room assignments posted at 66 West 12th Street lobby), New York, NY.
posted by xo at 12:43 PM on August 9, 2007 [3 favorites]

Finding a space isn't the problem; the problem is that it's very difficult to get a license unless one buys a pre-existing bar with a transferable license, and for the most part any good bar in existence would cost you heaps. The once-popular Lounge Axe made scads of money and would even have reaped some decent dosh made from a Touch & Go tribute album on their behalf - but the owners never could find a good space after it was closed, despite the support of the entire alternative music community and big honchos in city government and in places like the Chicago Tribune. Licenses are granted based on numerous factors, but outside of neighbourhoods where aldermen are begging for anything remotely "upscale" to open, your chances are slim. A lot of palms would have to be greased with a lot of dosh and no promises. Your chances are much better if you've lived in the neighbourhood, own the bar space and personal living space nearby - just to give you some idea. Deep pockets is another thing you'd need in all likelihood. I know many people who've tried to do this, but none have succeeded; I'd imagine it would cost many hundreds of thousands of dollars to have it work out right. A 4AM liquor license truly is a dying species; you'd be lucky to score a 2AM one. If you want enough space for live bands, your odds diminish greatly because you'd almost certainly have to show that noise would not affect neighbors - good luck on that! It's very hard, and many bars have closed because of people who complained about noise and moved in AFTER the bar was well established. (Like Lounge Axe, now that I think about it.)

And loans for a bar are very tough to get.

You don't seem to know much about the process of opening a bar, so at least go downtown and talk to someone in the liquor commission or something. I suspect what you hear will be very disheartening, but good luck . . .
posted by Dee Xtrovert at 12:51 PM on August 9, 2007

Chicago. Licenses. City hall. Better check with experienced owners regarding wheel-greasing and such.
posted by StickyCarpet at 12:52 PM on August 9, 2007

I'll second what the above have said about the 4am thing, especially - my understanding is that Daley is trying to make those go away, so you can't get a new one. It would be nice to have more of the places like you're suggesting around, though.
posted by bibbit at 1:16 PM on August 9, 2007

ChiReader article on the Black Rock:

The old boys bought the Black Rock for $425,000 in 2000, and every dollar it generates in profit—about $30,000 a year, says Terry Connors—goes to help cover the $80,000 to $90,000 the Griffins rack up annually in travel and other expenses.

posted by damn dirty ape at 1:20 PM on August 9, 2007

If you're going to have any kind of music, you should cover your ass and get an ASCAP license too.
posted by lockle at 1:49 PM on August 9, 2007