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Start-Up Costs
Rent for six months while waiting on a liquor license: $49,800 (assuming $8,300 a month)
Liquor license and fees: $9,000
Equipment, construction, and demolition: $60,000
Signage: $1,000
Décor and glassware: $21,000
Training for six employees: $858
Initial liquor order: $6,000 (45 percent on beer, 40 percent on liquor, 5 percent on wine, 10 percent on mixers)
Sound system: $1,000
Emergency funds: $50,000
Misc.: $2,000
TOTAL . . . . . . . $200,658
Ongoing Monthly Costs
Rent: $8,300
Booze: $10,000
Insurance: $500
Misc.: $1,900
Staff pay: $1,720 (assuming 100 hours a week at $4.30 an hour)
Utilities: $1,320
Taxes and fees: $1,000
TOTAL . . . . . . . . $24,740
The Markups
Draft beer: $3.59 a pint
Bottled beer: $3.85 a bottle
Well liquor: $4.65 a pour
Top-shelf liquor: $3.35 a pour
Wine: $3.48 a glass
Break-Even Point
Amount you’d have to gross in 18 months before you start turning a profit: $645,978 (monthly expenses of $24,740 for 18 months, or $445,320, plus start-up costs of $200,658)
Number of customers required per night to reach $645,978 in 18 months (assuming $5 per average drink and 1.5 drinks per person): 160
This points up something that seems to be overlooked when Americans dismiss European-style social-welfare systems: they are not necessarily state-run or state-financed. Rather, these societies have chosen to combine the various entities that play a role in social well-being — individuals, corporations, government, nongovernmental entities like unions and churches — in different ways, in an effort to balance individual freedom and overall social security.And, a hilarious summary of the Dutch personality:
'If you tell a Dutch person you’re going to raise his taxes by 500 euros and that it will go to help the poor, he’ll say O.K.,' [an American expatriate] said. 'But if you say he’s going to get a 500-euro tax cut, with the idea that he will give it to the poor, he won’t do it. The Dutch don’t do such things on their own. They believe they should be handled by the system. To an American, that’s a lack of individual initiative.'