How To Start A Tavern Business In South Africa
What is Tavern?
A tavern is a place of business where people gather to drink alcoholic beverages and be served food such as different types of roast meats and cheese, and where travelers would receive lodging. An inn is a tavern that has a license to put up guests as lodgers
How To Start A Tavern Business In South Africa
1. Get a liquor license
The first thing you will want to do is get a liquor license, the license permits you to sell liquor. You will have to have your premises ready before applying for the license because they are likely to come and check out the place where you will be selling alcohol before deciding on whether you get the license or not.
A lot of people in rural areas and townships operate taverns without a license, this is not recommended as it is illegal and you will run into trouble with the law.
2. Operating premises
Your operating premises should be in a very accessible area, an area that is preferably busy. Your best bet is a town and busy township. People love alcohol and don’t mind traveling very far just to get it.
Your tavern should have space and lots of it, it’s not uncommon to find taverns that are cramped up with not much space. These taverns are usually small on the inside and the tables are closely put together that it becomes hard for anyone to pass through. Don’t create a tavern like that. Make sure that your tavern has a lot of space.
3. Renovations
Fortunately, a tavern doesn’t have to be very classy, this means that you won’t spend a lot of money renovating it by buying expensive furniture. It’s often better to not use tiles on your floor, tiles can very slippery and cause a lot of mess. Buy a few tables and chairs and organise your tavern in such a way that people will have a place to chill and relax even on the outside but while still in your premises.
4. Inventory
Stock up on the liquor that you are going to sell, a lot of tavern goers prefer beer, brandy and whisky. Sell things you know that people are going to buy. You will have to make a habit of keeping extra inventory in your storage room. This will prevent you from running out of alcohol, which might turn off a lot of people.
5. Marketing
A tavern in a good location automatically market itself. You don’t need to do any form of digital marketing for a tavern. The best way to get people to know about your tavern when opening is reducing the prices and making a few flyers about it. This should be your grand opening day.
Taverns are not known to hire celebrities; this is because it’s generally not a smart financial decision. You can hire celebrities to do live performances if you are operating a nightclub.
Frequently Asked Questions (FAQs)
What kind of business is a tavern?
These are the operations that would normally fall outside the ambit of the existing legislation such as the Gauteng Liquor Bill of 2003. Tavern: A place of business where people gather to drink alcoholic beverages and are served food, and in some cases those travelling through the town or city may receive lodging.
How much is a tavern license in South Africa?
How much is a tavern license in South Africa? The cost is between R15,000 and R25,000.
How much does it cost to open a small liquor store in South Africa?
The cost of starting a new Liquor City store varies according to size and location. The average store costs between R1.7 million to R2 million. There are fewer costs incurred if converting from an existing store.
How do I get a tavern licence in South Africa?
- Premises. You need a premises before you can even apply for a Liquor License.
- SARS clearance. Apply for your Tax clearance certificate at SARS.
- Liquor License. Contact a reputable Liquor License Consultant to give you a quote clearly confirming all cost.
- Start planning your shop. Decide on your target market.
- Budget.
How much profit does a liquor store make in a month in South Africa?
South African liquor stores have the highest turnover in the country, a new report by retail software platform Vend found. The Retail Benchmarks Report for independently operated stores found that South African liquor stores have an average monthly revenue of R506,251, followed by shoe stores with R325,015.
Is owning a liquor store profitable in South Africa?
Even with the high taxes on liquor sales, people still buy alcohol regularly. A liquor store can be a highly profitable venture, especially if you go the franchise route in which the franchisor helps you through the entire set-up process.
How do I become a wine distributor in South Africa?
The process of setting up a wholesale distribution company is similar to applying for any alcohol license. The process starts with a free federal application, followed by state and local applications that require fees and approval. Distributors must warehouse sufficient inventory to fulfill orders in a timely manner.
How much money do you need to start a liquor store in South Africa?
The cost of starting a new Liquor City store varies according to size and location. The average store costs between R1.7 million to R2 million. There are fewer costs incurred if converting from an existing store
How do I become a liquor distributor in South Africa?
All macro manufacturers and/or distributors of liquor must be registered with the NLA. The prospective registrant has to complete and submit the required information in a prescribed manner and form and submit it to the NLA. Applications may be hand-delivered, e-mailed or posted to the dti.
How do you manage a tavern?
8 Steps to Run a Bar Successfully
- Keep Your Bar Stocked.
- Measure Your Liquor to Reduce Overpouring
- Create Signature Cocktails.
- Host Happy Hour and Events.
- Hire the Right Bartenders.
- Train Your Bartenders and Wait Staff to Upsell.
- Invest in a POS System.
- Take Liability Seriously.
Do you need a liquor license to sell alcohol online South Africa?
Although technology now makes it possible to order liquor online or via an app, the Liquor Act, 2003 (Act 59 of 2003) that regulates retail sales requires a licence holder to keep records and issue invoices containing prescribed information.
Do bottle shops make money?
On average, liquor stores tend to have an overall profit margin of between 20% and 30% annually [4]. There are pros and cons to aiming for higher profit margins since you’ll need to charge customers higher prices for your products, which might not make your store as appealing as a lower-priced competitor.