Startup cost
$100k–$1.0M
TRUiC Business Ideas
How to Start a Sports Bar Business
Decision Snapshot
Sports Bar
Idea Score
28
Profit margin
3%
Break-even
4 mo–12 mo
Time to launch
12 wk–36 wk
Demand trend
Stable
5-yr failure rate
—
Capital intensity
Very high
Time commitment
Full time
Part 1 - How to start a Sports Bar business - Background
Sports bars offer patrons options for watching their favorite sporting events, while enjoying cold drinks and hot food in a lively atmosphere.
Our guide is in 3 parts:
- Part 1 - How to start a Sports Bar business - Background
- Part 2 - Our planner tool to see if this idea is the right fit for you
- Part 3 - Action plan to get started
What are the costs involved in opening a sports bar business?
The start up costs for a sports bar can range anywhere from $100,000 to $1 million, depending on the size and scope of the operation. An average sports bar start up can usually be estimated around $400,000. Rental of an existing building, or construction and ownership of a new building, will affect some of your costs. Your liquor license will also add an initial fee to the total, somewhere between $15,000 and $400,000, depending on the location and local or regional laws. The build-out of your bar and kitchen, the tables and seating, electronics, and games, such as arcade style, pool, darts, etc. will also need to be purchased with the seed money.
What are the ongoing expenses for a sports bar business?
A majority of your expenses will pertain to the restocking of food and drinks. Liquor, beer, and wine restocks, along with whatever bar food you may offer, will need to be ordered weekly, if not more often. You should be able to estimate your needs, based on customer patronage, within a 6 month period of operations.
Who is the target market?
Your customer base are sports fans who enjoy having some drinks while watching their teams compete. Most customers will also gravitate to a local bar for location and familiarity.
How does a sports bar business make money?
Sports bars make money off of the food and drinks sold to customers.
How much can you charge customers?
Customers should be charged according to market prices of restaurants and bars in your region. Research the average mean pricing of your potential competition and find a fair, yet profitable price point for your food and drink.
How much profit can a sports bar business make?
Depending on the location and size of your establishment, an average bar will make $20,000-$30,000 per week. That adds up to more than $1 million per year. Much of this money will go back into the maintenance of the bar and paying your bar and wait staff, but sports bars can prove to be quite lucrative businesses, if managed correctly.
How can you make your business more profitable?
Offer clubs and organizations options for hosting their meetings at your establishment. Create special nights for sports competitions and trivia nights. Offer weekly specials to get more customers through your doors. Offer catering services, once you’re established, and continue to reach out to the local community. Becoming a staple of a community will go a long way in creating good will and keeping customers positive about your business, ensuring more customers for more sports bar visits.
Day-to-Day and Growth
What happens during a typical day at a sports bar business?
Customers are the goal of any successful business, especially a restaurant. Day to day activities at a sports bar, then, focus on this aspect. Restocking the bar and kitchen are regular activities, along with maintenance of the bar, in general. Contacting distributors and ordering supplies ahead of time ensures you don’t run out of customer favorites. Cleaning and updating the establishment’s amenities, such as televisions and sound system(s), are also necessary to maintain customer patronage.
What are some skills and experiences that will help you build a successful sports bar business?
As mentioned above, extensive knowledge of the restaurant and bar business is essential for striking out on your own. You will also need to create and maintain relationships with your distributors, as they will almost work as an outside partner in your business. Understanding and following trends in these industries is also critical, as is knowing the sports world. Your knowledge of your bar’s specialties, sports, food, and drinks, will help draw customers who share those same passions.
Finally, make yourself available to your patrons. Having more personal relationships with the people who frequent your establishment is an important aspect of your job. These customers will become more like friends and family over the years of maintaining a successful business.
What is the growth potential for a sports bar business?
With the popularity and exposure of sports constantly expanding, bars which cater to sports fans can be quite popular, as well. This also means there can and will be added competition. Your sports bar can be very successful if you have a good location, offer top quality entertainment, food, and drinks. Research your area to see which sports are most popular, if you would have enough regular customers, and what food and drinks fare best with your potential customers. The initial leg work will best prepare you for establishing a successful sports bar. Your growth potential will hinge on these numbers.
What are some insider tips for jump starting a sports bar business?
Customers are your number one concern. Initially, you will be looking to attract, with retention being the long term goal. Stay aware of what customers want and don’t be afraid to ask your regulars what they like or might change. Make the bar and sports industries your business and become a student of both.
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Offer weekly specials and incentives to get people through the door.
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Create club or organization nights in which groups will meet up at your bar.
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Advertise with upcoming sporting events on a bar calendar.
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Host trivia or sports competition nights, such as pool or dart tournaments.
How and when to build a team
A sports bar will need a capable bar and wait staff from the beginning, although the size of your team can be minimal to start, depending on the size of your establishment. As your business grows, you’ll be able to continue adding capable members to your team.
Part 2 - Is a Sports Bar business the right fit for you?
Business Evaluation & Strategy Tool
We'll walk you through the four pillars every business needs: Points of Leverage, Marketing Strategy, Financial Model, and Personal Compatibility. At the end you'll see a personalized report and your action plan below will be tailored to your answers.
Step 1 of 4 — Points of Leverage
Every viable business has natural advantages. Below are common leverage points across four categories. Pick the ones that apply to your Sports Bar business. We've pre-suggested a few based on your idea — review and adjust.
Step 2 of 4 — Marketing Strategy
Without a way to connect with customers, even great businesses fail. Pick the channels you plan to use to reach your customers.
Step 3 of 4 — Financial Model
Enter your monthly baseline costs — the minimum overhead to keep the business running. Then we'll calculate how many sales per month you need to break even.
Step 4 of 4 — Personal Compatibility
A business that doesn't fit your life will fail no matter how good the numbers look. Tell us how this business fits you.
Your Sports Bar Evaluation Report
Complete the four pillars and your personalized summary will appear here.
Points of Leverage
Marketing Strategy
Financial Model
Personal Compatibility
Part 3 - Action plan to launch your Sports Bar business in 90 days
Nine concrete steps to take you from idea to open business, grouped into 30-day phases. Complete the planner above and we'll highlight what's most important for your situation.
First 30 days — Foundation
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Form your legal entity
An LLC keeps your personal assets separate from business debts and lawsuits — the most common reason small business owners choose this structure. Sole proprietorships and partnerships do not provide this protection.
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Get an EIN and register for taxes
Apply for your free Employer Identification Number through the IRS, then register for any state or local taxes that apply to your business (sales tax, franchise tax).
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Open a business bank account and credit card
A dedicated business account is required to maintain personal asset protection. Mixing personal and business finances ('piercing the corporate veil') can void your LLC's liability shield.
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Set up business accounting
Recording expenses and income from day one makes tax filing easier and lets you see when the business is actually profitable. Use software (QuickBooks, Wave) or a part-time bookkeeper.
Days 30–60 — Compliance & Risk
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Get permits and licenses
State and local requirements vary widely. Brick-and-mortar businesses typically need a Certificate of Occupancy; service businesses may need specific professional licensing; food businesses need health permits.
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Get business insurance
General Liability Insurance is the most common starting point. If you'll have employees, most states require Workers' Compensation. Specific industries need additional coverage (product liability, professional liability, etc.).
Days 60–90 — Launch
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Define your brand
Your brand is how customers perceive and remember you. A clear name, logo, and visual identity make every later marketing decision easier and protect you legally as you grow.
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Create your business website
Every legitimate business needs a website. Social media pages are not a substitute — you don't own the platform. Modern website builders mean you can launch a clean site in a weekend without a developer.
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Set up your business phone system
A dedicated business number keeps your personal life private, makes the business look legitimate, and lets you route calls professionally. Cloud phone services start under $20/month.