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4 Reasons You Need to Invest in a Bar

Posted by IPS Commercial on October 6, 2022

Amid the numerous businesses you can invest in, one of the leading options you need to consider is a bar. While it falls under the restaurant business since you serve food and drinks, it doesn’t have a limited target customers as some restaurants do due to their theme. It means not only do you have a larger customer base, but the profit margin is bigger.

Besides that though, since restrictions within Cambodia are loosening and most, if not all, businesses are open again, many residents are ready to spend their time having fun. In short, it’s the right time to invest in a bar since it’s a lucrative business. To further convince you on why you need to invest in a bar, we’ve curated its benefits below: 

  1. High profit margin

While there can be other factors affecting monthly and yearly income of bars, the average net profit margin of bars range between 10% to 15%. Since the main selling point is alcohol that has high markup, the profit margin skyrockets, especially compared to other businesses.

For example, if you invest in a restaurant, the average net profit margin you get is only around 3% to 5% since there’s more overhead costs as well as food in general doesn’t have a high markup similar to liquor.

  2. Influx of customers

Bars are one of the most popular go-to places for night outs with friends, especially if you’re within a city like Phnom Penh or Siem Reap. Location can still factor into the popularity of your bar and its accessibility, but in general, there’s often a long list of customers.

Moreover, there’s a large range of customer base if you invest in a bar since there’s no limit as long as they’re of legal drinking age, then they can enjoy the beverages and ambience of the place. In short, you don’t have to worry about how to get customers through your door when you buy a bar!

  3. Inexpensive marketing plans

One key step to ensuring a business becomes successful is marketing, which is also what you need to do when you invest in a bar. However, marketing a bar isn’t as costly as you think since all you need to do is let the community know that your business is open.

You can create a social media page on different platforms for your bar and post your menu, business hours, and even cement the theme of the place without spending a dime. On another note, you can also do paid advertising to get your bar seen by more people, all for a cheap cost!

  4. Quick ROI

If you want to have your own bar, opening one can cost an around of $5,000 to $20,000. Other factors to consider include the salary of your manpower, electricity, rent, mortgage, and more.

However, while the average cost of launching this business is high, getting your return of investment will be relatively quick since the revenue for bars monthly is at an average between $25,000 up to $30,000.

Invest in a bar now in Cambodia

If you want to launch your own bar, you can either start from scratch by finding your own location and setting up your space, or buying a bar with its own location and facilities. There are numerous businesses for sale, so if you’re looking for a bar to buy within Siem Reap, you have a variety of options.


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