Opening a bar in Cardiff? Here’s what you need to know

The city of Cardiff has a reputation for being a great place for a night out and with good reason. It has one of the highest densities of licenced premises in the UK. According to the official council figures, within the 0.5 square miles of the city centre, there are 300 bars, clubs and restaurants that can legally sell alcohol. Mostly within the St Mary Street/High Street and Greyfriars Road areas.

Is there room for more bars in Cardiff?

Now, that is a lot, so you would think that there would not be much room for more. In reality, which is not the case. On busy nights you will still see long queues of people waiting to get into certain bars, pubs, and restaurants.

For more than a decade, the number of people who visit Cardiff has grown year-on-year. Apart of course from during the CoVid pandemic when lockdowns and other social distancing policies reduced numbers.

Under normal conditions, on average, 70,000 people visit the city centre area, which adds up to a footfall of 40 million per year. On match days or when there are concerts or other special events, it is not unusual for 135,000 people to pass through that area. With many stopping for a drink and a bite to eat.

Other areas of the city are busy too. Especially around tourist attractions like The Castle.

The footfall figures, and the fact that so many people head to the city for a night out, is a strong indication that there is room for more bars, entertainment venues and restaurants. But opening one of these establishments is not cheap, so anyone who is planning on doing so needs to take their time before signing a lease.

Understand the council´s policy concerning licensed premises

Operating a bar in the city requires a licence, which you get from the council. Therefore, it is important to understand that the council is working to change the overall mix of licensed premises across the city. In certain areas, they want to introduce more food-related establishments rather than vertical drinking spaces. This council report explains more about that policy and the reasons behind them.

Understand the costs

It is vital to understand what your overheads are likely to be. Speaking to a commercial estate agent will help you to do this. They will explain what you can expect to pay for rates and rent in the various parts of the city. Many of them will also be able to give you a fair idea of what the cost of electricity and other bills is likely to be.

You can also get this type of information from other bar owners and places like the Chamber of Commerce. Use this checklist to help you to ask the right questions and take account of all costs.

Set a budget

Once you are sure you can afford to open a bar in the city, set a budget and stick to it. Usually, it takes a year or two before you have enough customers to start to cover your costs and make a profit. So, keep some money aside to take you through that time.

Make sure that you stand out

In a city that has so many bars, restaurants, and clubs it is important to stand out from the crowd. You can do that by opening a themed establishment. But doing so can be risky. If you make a poor choice you can end up wasting a lot of money.

For your first bar, a better approach is to stick with a contemporary design and use other ways to stand out. For example, using digital window signage to catch the eye of passers-by and tempt them in. You can use them to advertise exclusive offers, events and much more besides. Because you can display anything on them it is possible to change the offer to fit in with what the weather is doing or to offer holiday-themed drinks.

Understand what your customers like

During the research phase, spend some time frequenting the bars and restaurants in the area you are planning to operate in. Strike up a few conversations with other patrons. You will have fun doing it and learn a lot about how other bar owners make a profit. Be sure to visit the area at various times of the day, week, and month to get as full an understanding as possible.

There is a lot involved in running a bar. If you have never worked in the industry, it is wise to spend at least a year doing so and maybe take a course. That will give you a far better understanding of what it takes to open a successful bar.