Is now a bad time to think about opening a wine bar?

Depends on your particular plans. Location, finances, research of market, target market, etc. Is it a new entity or will you be buying out an existing business? Where would you be getting the funding? Have you experience of the business, how long?


The question is too open ended to give a detailed answer, but it is fair to say, economically, it is not a great time.
 
Hi Manda C,

thanks for your reply. In terms of premises: New building, new lease, premises needs fitting out. Good footfall- close to other restaurants, retail units and entertainment complex.

I would need to get full financing (loan) from bank...or I am looking at going in with a partner. I have hospitality and marketing experience, about 3 years of each...but am still anxious about taking a plunge of this magnitude due to family responsibilities....
 
the bank will not finance it 100% they used to put up the same amount as you put in, i.e. loan you 50k if you put in 50k, this may have changed since the "credit crunch" if it has then if anything the amount they'll finance will be less. The banks arent interested in blood sweat & tears
 
I think you may struggle to get full financing from any bank in the current climate. Have you got a partner in mind?
 
Agree with the other posters re finance. I actually feel you will find it hard to get finance, full stop. What Security are you prepared to offer? This is not a reflection on you, or your project, just unfortunately, the way the economic climate is at the moment.
 
Finance issues aside ( Every case is different and there are several ways to skin a cat!) - Its certainly a more "challenging" time to open a business than it was 4\5 years ago, we are heading into a period of economic uncertainty where people may be less inclined to spend on luxury items ( like wine). Having said that, if your product is good, you've done your market research, you're happy with the location slected and you're pricing your product at a competitive level, then you're off to a good start....
The important thing is that you are honest with yourself and address REAL worries that you have about opening a business ( instead of burying your head in the sand and ploughing ahead anyway).
I'm not too familiar with your line of business but I would guess it is safe to say that Irish attitudes towards wine bars have changed over the past few years...there will always be room for a quality product at competitive prices
 
I hear that alcohol sales are "recession proof" not sure if it's true in practice though.
 
I deal with Bars and also Hotels and a lot more of the hotels are feeling the pinch as opposed to the Bars.

There have been three or four established Hotels gone into receivership in as many weeks. Pubs doing best are some of those located in working class areas.
 
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