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Upscale Bar/Club/Lounge a la SkyLux - Worth It?
Rank: Member Joined: 1/22/2011 Posts: 322 Location: Chicago, IL, USA
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@mapozi, thanks for asking.
I'm going to build a PR and corporate communications firm, with in-house graphic design, a recording studio, and video editing suites next year. This will be a "side" business to my main computer consulting firm, to which my wife is taking the lead role in its expansion into East Africa.
The club business doesn't seem to have the return on investment that I'm looking for.
Best,
Hill
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Rank: Member Joined: 4/21/2011 Posts: 119
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@Hill, I think its commendable that you will be providing jobs for Kenyans. What is your take on how next year's plitical climate will affect your expansion plans into Kenya?
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Rank: Member Joined: 1/22/2011 Posts: 322 Location: Chicago, IL, USA
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mapozi wrote:@Hill, I think its commendable that you will be providing jobs for Kenyans. What is your take on how next year's plitical climate will affect your expansion plans into Kenya? Thank you for the kinds words Mapozi. Though I know who the power players in Kenyan politics are, I try to stay completely out of it. No matter what happens or who gets elected, it doesn't affect my plans to eventually be taxpayer of the year. The Brits and Muhindis haven't been scared away; neither shall I be. Any possible (God forbid) infighting or political unrest, in reality, doesn't affect my business plans much; it's a stain on the country's reputation for timid investors in the US, who have no idea that there are even concrete buildings in any of Africa, and of course devastating to the poor class, but to the knowledgeable, worldly businessperson, as sad and disruptive as such events may be, Kenya will always be a functioning, growing, stable business hub. That hasn't, and won't change. And yes, my plans will always call for an all-Kenyan staff, save for a few international salespeople located in their respective markets. Best, Hill
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Rank: Member Joined: 1/22/2011 Posts: 322 Location: Chicago, IL, USA
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One more thing about the bar/club business... Once I started getting the ball rolling on it, I started getting the distinct feeling that the family member that I was looking at having run it just wanted to use it to show off and have his buddies around to drink premium liquor, eat Nyama Choma, and for muclimbano purposes, on an unlimited bar tab- my tab. That gave it an eventual thumbs-down from my PM and from myself. For me, personally, it's just not worth the trouble and time for me to have to manage it and have to keep my boot on his neck in order to get a few shillings each month, and if I want a place to have a few drinks, there's always Sarova, Tribe, Karen CC, Muthaiga CC, and the multitude of restaurants, etc. etc. which are upscale, and are a good way to meet good people.
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Rank: Member Joined: 4/21/2011 Posts: 119
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My primary purpose of asking about your upscale club idea was that i wanted to connect you to a DJ friend of mine who specialises in house and rock music the kind that your would be target market really enjoys, though he also plays other types of music. Anyway all the best! I really find your advice on the various threads in wazua factual straight to the point and helpful. All the best when you expand into Kenya. We may even meet on some business front!
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Rank: Member Joined: 11/21/2006 Posts: 608 Location: Ruiru
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I once had a shot at bar as a side business. Not so much of a hassle to run especially stock control... but you need an honest manager. My bar was eventually killed by the manager... but its something I'll try again later in life "..I am because we are. "― Ubuntu, Umtu,
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Rank: Member Joined: 1/24/2008 Posts: 479
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GGK wrote:I once had a shot at bar as a side business. Not so much of a hassle to run especially stock control... but you need an honest manager. My bar was eventually killed by the manager... but its something I'll try again later in life hope you didn't allow him to walk scot free.. bar biz is chaotic,and mututho and his cronies-nema,health and chiefs are making it the worst venture to engage in,but whoever survives these turbulent times will surely reap big Every man is guilty of all the good he didn't do-
Voltaire
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Rank: User Joined: 8/15/2013 Posts: 13,237 Location: Vacuum
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I opened a small local bar with a sitting capacity of 30 pax after my encounter with alcoblow.So far am making gross sales of 5K-6K(on monday's i make sales of even 3K, of which 1K is my bill sometimes) per day and 20-25K for on Friday and Saturday combined. My mark up is 35% daily expenses are as below Police(AP,chief,Nacada, OCPD)-500 Cleaning-200 Mislenous-500 Monthly expenses Rent-25K Waiter-17K Water-1K Electricity-2K The bar operates from 5-11pm I will be able to cut down on the police costs once i obtain the NACADA license which goes for 50K. I anticipate the bar to breakeven by end of April 2014 and make some little profit if the daily sales steadily increase to 8-10k per day and 25-30k on Fridays and Saturdays I hope and pray that more alcoblows to be introduced on the roads to encourage people to drink in their locals. If Obiero did it, Who Am I?
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Rank: Elder Joined: 2/16/2007 Posts: 2,114
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@Swenani,
Is this in the estate?Are you saying that the cops will ask for the Nacada licence failing which you then part with 500?
Did you pay goodwill?
What of the following:
Liqour Licence(Is this the same as the Nacada one?)
Business Licence(from City Hall) if in Nairobi
Health Certificate for the waiter
Music Copyright licence
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Rank: Member Joined: 9/29/2010 Posts: 679 Location: nairobi
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Swenani wrote:I opened a small local bar with a sitting capacity of 30 pax after my encounter with alcoblow.So far am making gross sales of 5K-6K(on monday's i make sales of even 3K, of which 1K is my bill sometimes) per day and 20-25K for on Friday and Saturday combined.
My mark up is 35%
daily expenses are as below
Police(AP,chief,Nacada, OCPD)-500
Cleaning-200
Mislenous-500
Monthly expenses
Rent-25K
Waiter-17K
Water-1K
Electricity-2K
The bar operates from 5-11pm
I will be able to cut down on the police costs once i obtain the NACADA license which goes for 50K.
I anticipate the bar to breakeven by end of April 2014 and make some little profit if the daily sales steadily increase to 8-10k per day and 25-30k on Fridays and Saturdays
I hope and pray that more alcoblows to be introduced on the roads to encourage people to drink in their locals. whats your sitting capacity, gross margin of 35% is low,but guess its a neighborhood bar so that figures what was your initial capital outlay?
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