Supplementing Pub Income

[MikeyBW]

Hi all,

I'm going to open a new pub in the New Year. I'm pretty nervous about the fact there's no money in just selling alcohol any more so I'm going to be serving food and showing sport as often as I can! I don't know how many bar or pub owners visit this forum but I was just wondering if they could give me some advice on fruit machines!

Rumour has it: New Law Allows Venue Owners To Make More Money From Fruit Machines | TVC Leisure (http://www.tvcleisure.co.uk/gaming-machines/blog/new-law-allows-venue-owners-to-make-more-money-from-fruit-machines/) jackpots have increased by 180% this year so that's something I'm going to be mentioning to punters. However, do you think fruit machines are worth the investment? I'd have to rent one so I'd either be doing fixed rate or revenue share. Revenue share seems like the safer option but then again, if things went well, fixed rate could end up being more lucrative. Does anyone have any experience in this?

Thankful for any feedback. Cheers.

[kimoonyx]

Forget about a fruit Machine... if you want something automated that will make money in a pub get an ATM machine.. you will clean up.

[Harold Mansfield]

I worked 20 years in the bar business in Las Vegas and gambling is pretty much the entire business model for bars out here. Every bar has at least 15 multi game machines with everything from Video Poker, Keno to various slot games. So I'm going to say definitely do it.

However you're in a different country. I have no idea what it's like to run a bar there, what the laws are, or the gambling culture. Even here in the U.S. it's not all the same. Nevada is the only state that I know like this. Other states have legalized gambling and have gambling parlors, but as far as I know none are allowed to incorporate it into a local bar...at least not at this level and be open 24 hours a day.

Now that I know what I know and have this experience, I can't imagine running a bar any place but here and having to be satisfied with just food and drink revenue. If this is legal where you are and it's legal to pay out, one wouldn't be enough for me. I'd probably want 2 or 3 of them.

ATM's are just second nature to me. Of course you're going to have one. Out here they are everywhere. It's not even something you think about, you know there's one in every bar, restaurant, convenience store and supermarket.

[billbenson]

I haven't been to Vegas since the early 80's but if I remember correctly drinks were comped at the tables. They wanted to get you drunk and spending money gambling. Food was also cheap back then, but I've heard that has changed. It strikes me that a gambling town is going to have a completely different businsss model than a normal town with a bar / pub. Like you, I know nothing about outside the US. Well I lived in various parts of Latin America and the Caribbean as well, but they were similar to the US.

Seems to me you just need to have some special niche to have people coming in the front door. It's kind of hard to think of to many multiple revenue streams for a bar...

[TAAccounting]

Bill,

Congratulation on your business venture! As an accountant, I've worked with several small to mid-size restaurants & bars throughout the Midwest. And I am telling you, there are a LOT of revenue streams you can introduce. It just depends on the type of bar you want to be. As for me, I am the accountant for several sports bar throughout St. Louis and they do make a pretty good killing.

Now, with all that said. I would suggest ATM Machines, Vending Machines (dart games, beer pong for special holidays, shuffle board, etc), and things of that nature. One thing that several of my sports bar do is have Fantasy League night where the winner gets a pitcher of beer for their team. They get a part-time girl to put on a referee costume and do the fantasy league.

There is also delivery companies that will connect you to outside customers simply wanting food deliver to their house. They call the delivery company, the delivery company call you, you make the food, they show up and pick it up, and then take it to the customer. Of course, they then share in the profit with you (an example of this would be 569 Dine or GrubGo).

These are just some ideas. Let me know if you need a hand with any of the financials. I love working with start-up companies.

Best Regards,
Tran Nguyen
[removed. create a signature]

[billbenson]

Way out of my industry, so I haven't thought through multiple revenue streams there. But it makes sense that they exist in pretty much every industry.

[Harold Mansfield]

I haven't been to Vegas since the early 80's but if I remember correctly drinks were comped at the tables. They wanted to get you drunk and spending money gambling. Food was also cheap back then, but I've heard that has changed.

Food is definitely not as cheap as it was. Lots of high end shops, restaurants and no more .99 cent buffets. Actually, I've been here 20 years and have never actually seen a $.99 cent buffet, but people from other cities kept telling me they existed.

The basic principle is still the same on the strip, gamble you get "free" drinks within reason as long as you're playing something. But you have to hunt for the deals, affordable room rates, and $5 tables.

Locally (off strip) it's a very different. Gaming is prevalent because those are state laws, not just the laws of one street. Poker and slot machines are in every bar, convenience store and most super markets. But it's not the strip and you aren't dealing with tourists. You're dealing with people who live and work here...2 million of them. So the approach is much different.