How profitable is it to open a bar?

Compared to a restaurant business, bars are a more easily profitable venture. Because of the very high markup on alcohol, lower inventory costs, lower labor cost, and, sometimes, smaller brick-and-mortar footprint, bars have a higher average profit margin than restaurants. While restaurants deal with an average profit margin of 3-5%, bars have an average profit margin of 10-15% — making them 3-5x more profitable than restaurants.

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