The Peril of Bar or Restaurant Ownership

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Big Boy
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The Peril of Bar or Restaurant Ownership

Post by Big Boy »

This is our fourth year of regular bar map updates. These maps cover 4 key areas:

- Khao Takiab
- Soi 94
- Soi 80
- Binthablock

Year on year, we show incredible figures. In the last 12 months there have been 114 changes. Many businesses going out of business. As soon as a bar or restaurant goes out of business, there's somebody else waiting to make their fortune. Of course, the more successful ones just carry on year after year, but the cake only has so many slices. Is there enough trade in Hua Hin to sustain so many businesses?

Bar trade doesn't affect me much - there's only 1 bar that I can drink at. Restaurants is a different story, but how do they survive?
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Re: The Peril of Bar or Restaurant Ownership

Post by europtimiste »

They dream, they buy a bar without any experience, they have not any contact with customers, they consider them as a slot machine.
Actually at Soi 80 you have a bar for sale: First price was 450.000, second time 350.000 and soon at any offered price.
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Re: The Peril of Bar or Restaurant Ownership

Post by centermid7 »

Even in western countries the #1 business failure is the restaurant business. Bars are not far behind.

All of that is made worse here in Thailand by the need of work permits, licenses held in the name of a Thai, staffing problems, etc., and all other manner of regulation (real or imaginary by the authorities) so that the person putting up the capital rarely has a chance. Inexperience as well as has all ready been mentioned. Not to mention that in nearly all cases there is a love interest whose real interest is not love at all.

They think they are buying a lifestyle or perhaps bragging rights that "I own a bar in Thailand" but it does not take long for all of that to wear thin and all the while money is going down the drain.

I wish them all well and thank them for their efforts but it would never be for me.
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Re: The Peril of Bar or Restaurant Ownership

Post by Vital Spark »

Dare I say it, but one of the longest running restaurants in Hua Hin is All In Hua Hin, and it's run by a German couple (who are lovely). It's the place we always go to when in Hua Hin, because it caters exactly for our needs.

VS
Sorry mods, this isn't an advert for them, it's just to explain that a maybe a restaurant based on inexperience, and lust for love of a Thai 'lady' and the good life isn't a great recipe for success.
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Re: The Peril of Bar or Restaurant Ownership

Post by huahin4ever »

As the subject state, the peril of being a bar owner. As I see it from an outside of the bar perspective, isn't the owner accommodating and entertaining for his customers many times the bar will not have a chance to survive, and as I have seen with many of my friends "owning" bars, doing the above nearly makes them go under of alcoholism so for me that is the biggest peril by having/owning a bar!
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Re: The Peril of Bar or Restaurant Ownership

Post by buksida »

Advertising and marketing is also lost on 99% of Hua Hin's bar/restaurant owners that would prefer to freeload on farcebook. :roll:
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Re: The Peril of Bar or Restaurant Ownership

Post by caller »

buksida wrote: Fri Dec 15, 2017 9:17 am Advertising and marketing is also lost on 99% of Hua Hin's bar/restaurant owners that would prefer to freeload on farcebook. :roll:
Have to agree with this. A place not far from me opened and all the mates chatted about it on facebook which seemed to be the limit of their advertising. That's all died off now. No menu details are available, no drinks details either but some months on it's sill operating and as I drive by a lot I might see 2/3 farangs in there early evening but that's about it with occasionally, a couple or group sat at a table. It looks fine, but I have never felt the inclination to go in. I doubt the business is thriving and I wonder why such places feel all they have to do is announce they are open to attract customers?
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Re: The Peril of Bar or Restaurant Ownership

Post by JWWhite »

Very few of these "bar owners" have any sort of business plan and when they fail many blame the Thai property owner for hiking the rent up, but in reality their lack of planning means that it was inevitable that they would fail. The most successful and long standing bars in HH are owned and managed by HH local families.
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Re: The Peril of Bar or Restaurant Ownership

Post by HHTel »

Many buyers just don't think it through. A good example comes from a friend of mine who had a bar in Pattaya. He actually was doing well but wanted to retire. His bar was on the market for 2 years without a sniff. Then out of the blue he called me telling me that he'd manage to sell it for the full asking price.
"How long has the buyer been in Thailand" I asked.
"Two weeks" he said. "He's from Australia and didn't even haggle. Paid in full...... hehe"
"You horrible man" I said. "Buyers beware, not sellers" he replied.

Another bar and restaurant opened close to me. I went into his empty bar and he was asking how long I've been here. Seems he's only been in Thailand for 10 weeks!!

There must be many 'buyers' with the same mentality.
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Re: The Peril of Bar or Restaurant Ownership

Post by JWWhite »

Most don't seem to understand that they don't actually own anything except the furnishing and equipment. The contracts clearerly state that the property must be returned to its original state or if the owners decides left as is, so the property is continually being modified/improved and therefore increasing the potential for increased rental fees.......win win for the owner.....
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Re: The Peril of Bar or Restaurant Ownership

Post by RCer »

Some restaurants seem to exist because the farang owner has a burning desire to share their cooking passion but could not do so in their home country because they don't actually know how to cook.
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Re: The Peril of Bar or Restaurant Ownership

Post by handdrummer »

RCer wrote: Thu Dec 21, 2017 10:47 am Some restaurants seem to exist because the farang owner has a burning desire to share their cooking passion but could not do so in their home country because they don't actually know how to cook.
Or is that a passionate desire to share their burnt cooking?
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Re: The Peril of Bar or Restaurant Ownership

Post by JWWhite »

It's a never ending cycle of guys coming with plenty money and no experience and then leaving in a few years with no money, but plenty experience.
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Re: The Peril of Bar or Restaurant Ownership

Post by Peroni »

So what does it cost to purchase the lease of a bar, monthly rent and other expenses regarding staff and services? What kind of returns per month can be expected with a few farang regulars?

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Re: The Peril of Bar or Restaurant Ownership

Post by HHTel »

It's not an exact science. There are small bars, big bars and bar restaurants. Rents depend a lot on the area and how much the landlord can get away with. When you're buying always check on how long is left on the current lease because the landlord will increase the cost for a new lease.
Most bars are for sale so it's a case of spending time here and checking them out. Not a deal to be rushed into.
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