Conclusions (2)

It's hard to say, how long would be the life expectancy for an average beer bar in Pattaya under the same management and ownership. Two years? Three years?

But, if we are talking about the newcomers, it's presumably not more than one year, even less. Right now, around my location on Soi Buakhao, I've seen lot of bar owners giving up during the last year. Some of them couldn't run the business even more than 3 months.

The most common mistakes they made include:

1. No attractive ladies or no ladies available at all;

2. Trying to set up or offer something too original, like cocktail lounge, exotic beverages or food etc;

3. Bad location, especially if there were no bars before and/or around;

4. Dreaming too much about regular customers and/or their own friends;

5. Family and/or financial matters.

First of all, this is Pattaya and nobody is coming to sit in your bar for a drink only. If a farang is looking for a beer, he's looking for ladies' company altogether. Of course, not for sex always, but you couldn't underestimate this part of your business.

Secondly, try to set up your bar into the mainstream. Don't make anything too original, especially if you are a newcomer. Yes, if you are living here more than three years, you can try something different, but even in this case, don't go too far from the common.

Location is very important indeed. You have to be very cautious establishing a bar in place where previously was a laundry service and no bars exist around.

Regular customers are like fertilizer for every business. But how and why they are coming? If your bar is outside from the main entertainment area, only the local people are your hope. How many potential customers are living around? And, again, don't dream too much about your friends from your country, especially if you have only a bar and no accommodation to offer.

Last but not least, the family matters. As a rule, you are going to make the bar business together with your Thai wife/girlfriend, aren't you? If there appears the slightest misunderstanding or mistrust between you and your consort, you are lost.

Bottom line: expect no profit for the first year.

Conclusions (1)

First of all: the bar business is not a real business. It's something like a hobby. You can never make money with your bar, although sometimes you can enjoy profit, too. I've seen many bar owners, talking with them, asking details of their businesses, and the conclusion was just the same always.

Besides, how to recognize the owner in particular bar? Just look carefully, and if you can see a farang drinking and sitting in the bar without a bill on front of him, you are right. Another clue: if somebody in the bar seems to be too concerned about everything or if he makes something not usual, e.g. emptying ash trays, switching TV channels etc, it's your turn to ask him: "How is the business?"

In Pattaya there are hundreds of bars for sale always. Some people are trying to start, some are trying to survive, some are looking for quick sale. I think, an average bar business lasts approximately 6 to 12 months. If you can run your bar more than one year, you are happy. One more thing: after the first year the regular customers will coming back again and again.

And after the third year you may give me reply: "The business? Extremely well."

Analysis (2)

Staff matters, as told here before.

Although you are the "owner", you cannot work, because you have no work permit normally. Your wife/girlfriend has to act as "boss" in the bar. But, are you sure she can? Besides, sometimes you want to take a vacancy, travel around the country, see her parents etc. Who takes care when you both are away?

You need an old lady in the bar, called "mama-san". The mama-san should be the key person in the bar, taking care of all the ladies, customers, stock etc. If your lady happens to be not old enough, she cannot act as mama-san.

This was our big mistake: we had no mama-san. My wife was too young for routine work in bar, and all other ladies were very young, too. Nobody had adequate experience and this leads to anarchy. Sometimes the ladies just walked away, to the discotheques or with friends. Sometimes my own wife just made the same. Sometimes I was forced to sit in my bar together with few ladies and with no customers for hours. It's sad to tell now, but the initial mistake was made and there was no chance to improve the situation anymore.

Of course, we tried to hire a mama-san after a month or two after opening, but for this time the set of ladies was established already and a new person was not acceptable for anybody.

Analysis (1)

First of all, starting the bar business, you have to collaborate with local people. The money is coming from you, but in all the documents there appears another name, most usually, your Thai girlfriend's or your wife's. Futhermore, all the documents are in Thai, which means, you normally cannot read them.

For the beginning it seems OK for you, because you love your wife/girlfriend and you trust her. And obviously you think it will last forever. But there is no guarantee.

Your lady can cheat you, actually, in every minute. And so all other ladies working in the bar.

And here you can see your first mistake: too much trustfullness.

How to avoid this mistake?

When bying a bar or another business, let make the initial contract by a lawyer in English. Make sure that the contract is made for your name.

Don't worry about other paperwork: the licences, etc. This will not hurt you financically. Sure you have to pay for very many things after the initial payment, but this is just a small money for you.

If you can avoid the first mistake, you will be able to sell the bar anytime you like.

Yes I made the first mistake, but fortunately, the land lord (a Thai man) acknowledged my rights, mainly because I paid the rent to him, personally.

Sold

Yep, the bar is sold, at last.

It took only 6 weeks.

As a rule, the buyer is a Thai lady who is dreaming about bar business, but the money is coming from abroad, from her boyfriend/husband. In this case the money was coming from Japan.

Asked price was 500 thousand baht, but I was forced to make a discount, 50 thousand, because the buyer did not understand that she will be obliged to renew contract with the land lord in next January. It ment for her more 100 thousand. But, honestly, even 450 thousand was pretty good enough for me.

As told here before, I got the bar for 250 thousand plus the same contract fee, 100 thousand. Anyway, no win, no loose. Back to square No 1.

As promised, analysis will follow soon.

Finishing

Although the bar is now open, it's for sale. The main reason: separation between me and my wife, Lord. Yap, personal relations can affect business seriously sometimes.

It's not the best time for selling. High season is just coming; many friends are on their way, including visitors of this blog. Sorry about that, but there was almost no choice for me.

Right now the bar is running under the next bar's management.

The asking price is 550 thousand baht. For friends interesting in buying there are discounts available sure.

Conclusions and analysis will follow.

Ying

Though some of our ladies decided to take a short vacancy, the bar is closed for a couple of days at the moment. It seems to be good time to introduce our staff.



Ying is eighteen. She came from Nakhon Ratchasima district, or simply, from Korat, North-East region of Thailand, also known as Isan province.

Her family has rural background. Ying has one brother and one sister.

She is always in good mood, joking, smiling, and flirting.

Favorite drink: Bacardi Breezer Lemon.

English: very basic.