Why Set Up A Mobile Bar Business?
If you’re looking to set up a new business which sells alcohol, no doubt you’ve come to us to look for either business courses or licensing training courses. Many of those who come through our doors are those working in bars and pubs, but we’re also seeing a rise in the number of independent traders looking to set up mobile bar businesses.
Serving the likes of pop-up food events, weddings and more, these businesses can be great earners with low overheads and upfront investment, so it’s unsurprising they have appeal to burgeoning entrepreneurs. The National Catering Association have even produced a guide to give those interested an idea of how to go about setting up such a business. But why are the pros and cons about this sort of business? Knowing how to approach and navigate these concerns could be the way to make your business a real success.
The UK is of course a great area to set up a alcohol related business – we love to drink as people, however, a key part of licensing training is making sure you retail alcohol responsibly.
This sort of business is extremely trendy at the moment, meaning there is great potential for not only private work at events, but also corporate events. While it’s undoubtedly a competitive marketplace, it’s not saturated to the point that you can create a unique selling point to make your business stand out from the crowd.
There may also be the potential to get sole rights for events, meaning that you’re the only business retailing alcohol to consumers. That means you don’t have to worry about competition on prices, so they have no choice but to come to you for a drink.
While craft beers are continually growing in popularity, other drinks such as craft spirits and Prosecco, have much better profit margins and can be much easier to set up for retail in a smaller mobile bar.
So those are the pros, but what about the cons?
For a small business, the price of buying space as an alcohol concession can be excessive. Starting out, you may want to identify smaller events to get a grip on potential profit margins.
Though the start-up costs of this business are nothing like setting up a bricks and mortar business, there are still some significant costs involved. The mobile bar itself, stock, licensing as well as branding and marketing, it isn’t something to jump into on a whim.
It can be difficult for you to break into big events as a new business, and you may have to rely on your contact books to secure your first pitches. You will need to build up your expertise before tackling large events, where you may need to think about staffing costs also.
Competition as an individual retailer may be made more difficult as you will be competing against established retailers, such as pubs and bars, which can also provide mobile options. These retailers not only have experience, they also have access to buy alcohol at the right price to make sure they achieve appropriate margins on their drinks.