Learn how to start a profitable mobile bar business in this step-by-step guide to crafting cocktails on the go.
Have you ever dreamed of running your own business and being your own boss? A mobile bar business could be a fun, social way to make that dream a reality.
Owning a mobile bar allows you to cater events all over town with your own custom cocktails and drinks. You'll get to meet new people at every event, build a loyal customer base, and spread the word about your business through social interactions and word-of-mouth marketing.
If you're someone who loves mixing creative cocktails, thrives in social situations, and wants the freedom of entrepreneurship, starting a mobile bar business could be the perfect venture for you. Keep reading to learn how to get your own mobile bar up and running.
The Mobile Bar Market
The mobile bar and cocktail catering industry targets event hosts and planners looking to offer unique bar services at their events. This includes weddings, corporate events, birthday parties, fundraisers, and more. As an owner of a mobile bar business, your target customers would be local event hosts in your city or town.
This type of business tends to serve a more luxury or high-end market, as mobile bar packages are not typically cheap. However, you can offer packages at varying price points to suit different budgets. The key is providing a memorable experience with delicious, artisanal cocktails that keep guests talking about your bar for days after the event.
While the mobile bar industry is still relatively niche, it has been growing in recent years as the craft cocktail movement expands and event hosts look for unique ways to make their events more experiential. If you can establish yourself as a leader in your local market, a mobile bar business has the potential for strong growth and financial success. However, it is important to be aware of your competition and differentiate yourself to stand out.
Your Product: Craft Cocktails on the Go
As a mobile bar business, your product is essentially a craft cocktail experience. You will serve artisanal cocktails made from premium spirits and the freshest ingredients. However, unlike a traditional bar, you are bringing the experience to your customers at their chosen event venue.
To stand out, focus on innovative cocktail recipes using unique blends of flavors and high-quality, local ingredients whenever possible. You might also consider offering cocktail-making classes or demonstrations as an added experience for event guests. The key is providing not just drinks but an entire memorable experience centered around craft cocktails.
Your cocktails and bar services will be delivered via a mobile bar setup at each event. This typically includes a bar structure, glassware, garnishes, spirits, mixers, and all the tools needed to craft cocktails on-site. For larger events, you may need a vehicle to transport your mobile bar equipment. You will also need proper licensing and permits to serve alcohol, which varies in each city and state.
Developing your product will involve perfecting your cocktail recipes, creating a menu, and testing different mobile bar designs to find what works best for your business. You should consider offering different packages at varying price points so you have options for events of all sizes and budgets. Start by focusing on a few signature cocktails you can make exceptionally well before expanding your menu. With experience, you will get better at anticipating how much of each ingredient you need for different events.
Economics and Finances
To start a mobile bar business, you will need to invest in equipment, ingredients, and marketing to get your business up and running. The largest upfront costs will typically include:
•Mobile bar structure and accessories: $5,000-$10,000 for a high-quality bar setup. You will also need glassware, garnishes, tools, etc.
•Initial inventory of spirits, mixers, and ingredients: $3,000-$5,000 to stock your bar for the first few events. You will need to continue restocking inventory for each event which costs around $500-$1,000.
•Licensing and permits: Around $500-$1,000 per year for a liquor license and any required business licenses or permits in your city. Requirements vary in each location.
•Marketing materials: $1,000-$3,000 for a professional website, business cards, promotional photos, and advertising to help book your first events.
•Optional vehicle: $10,000-$30,000 if you need a van, truck or trailer to transport your mobile bar equipment. This depends on how large your bar setup is and how far you travel for events.
Your main ongoing costs will be purchasing inventory for each event and marketing to continue booking new clients. You should price your packages to account for your costs of goods sold and earn a 50-100% profit margin. Packages typically start around $1,000 for a small event up to $10,000 or more for a very large event. You can offer tiered packages at different price points to suit various event sizes and budgets.
A mobile bar business has the potential to be very profitable if you are able to book enough events, control costs, and provide a memorable experience that leads to referrals and repeat customers. However, it is important to be aware of the risks and uncertainties involved with entrepreneurship and account for unexpected costs that may arise as you grow your new business. With hard work and persistence, a mobile bar can be a financially rewarding venture.
Marketing Your Mobile Bar Business
To book events and spread the word about your new mobile bar, you will need to focus on marketing. Some of the most effective strategies for a mobile bar business include:
•Search engine optimization (SEO): Optimize your website to rank higher in search engines for terms like "mobile bar" and "cocktail catering" in your city. This can help you reach new potential clients as they search for bar services for their events.
•Social media marketing: Create profiles on Facebook, Instagram, and Pinterest to raise awareness of your business. Post photos of your cocktails, bar setup, and events. Engage with followers and run paid ads to reach new audiences. Social media is a great way to convey your brand experience.
•Direct outreach: Contact local event planners, wedding planners, venues, and hosts to let them know about your mobile bar services. Drop off professional promotional materials introducing your business. Build personal connections and relationships that can lead to referrals and repeat customers.
•Advertising: Run ads on local radio, in magazines, at wedding expos, or online to reach people planning events. Sponsoring charity events or donating a bar package is also a way to raise brand awareness while giving back to your community.
•Reviews and referrals: Ask happy clients to leave reviews on your website, Facebook, and Yelp. Word-of-mouth marketing and referrals from previous hosts and their guests can be one of the most effective ways to get new business. Offer discounts or incentives for referrals to encourage sharing.
•Networking: Get involved in your local chamber of commerce and attend industry events to network with others in hospitality, catering, and event planning. Look for opportunities to partner with venues, planners, and other vendors to cross-promote your services. Networking leads to new connections and collaborations that grow your business.
Sales Strategies and Processes
To book mobile bar events, you need to have effective sales strategies and processes in place. Some key steps include:
•Create detailed package offerings at different price points for events of various sizes. This makes it easy for potential clients to understand exactly what you offer and how much it costs.
•Have a professional sales kit ready to share with leads including photos of your bar setup, cocktail menus, reviews from past clients, and information about your business and experience. This helps convey your brand and quality of service.
•Respond promptly to all inquiries and leads. Contact potential clients within 24 hours to set up a phone call to discuss their event and your packages in more detail. Speed and responsiveness are important.
•Ask good questions to determine the client's needs, budget, vision for their event, and how you can craft an experience that aligns with what they want. Provide options at different price points and make recommendations based on their priorities.
•Share photos and details of previous events you have done that are similar in style or theme. This helps give potential clients an idea of what you can create for them. Offer to meet in person if possible so they can sample some of your cocktails.
•Provide a detailed proposal outlining exactly what is included in the package, the number of guests you can serve, timeline, and total investment. Be very transparent about what the client can expect.
•Negotiate and handle any objections to close the sale. You may need to make some compromises or substitute in alternative options to meet budget needs. It is better to work with the client than lose the business altogether.
•Have a strong contract in place to protect both you and your clients. Outline details like the date and time of service, location, package inclusions, payment terms, cancellation policy, and any other important stipulations. Both parties should sign the contract before the event.
•Collect a deposit, often 50% of the total package cost, to reserve the date. The remaining balance should be paid either before or at the conclusion of your bar service at the event. Deposits are non-refundable if the client cancels within a certain time period before the event date.
Operations and Execution
To execute a successful mobile bar event, you need to ensure you have all operational details covered. This includes:
•Confirming all details with the client in the week leading up to the event including venue location, setup time, start and end time of service, final guest count, etc. Make sure you have a point of contact at the event venue as well.
•Doing an inventory of your bar to make sure you have enough of each spirit, mixer, garnish, glassware, and any other supplies needed for the event. Shop for any additional items required and prepare garnishes.
•Loading your vehicle with all equipment, tools, ingredients, and decor needed for the event. Make sure everything is secure for transportation. You may need 1-2 assistants to help load and unload the vehicle.
•Arriving at least 1-2 hours before the start of service to set up your bar, arrange glassware and garnishes, fill ice bins, and prepare any cocktail stations. Allow time for traffic and any unexpected issues. It is better to be early.
•Greeting guests with a smile, making eye contact, and engaging people as they approach your bar. Have a friendly, energetic presence and make personal connections with attendees.
•Serving cocktails efficiently but also taking time to describe the ingredients and flavors in each drink. Educate guests about the cocktails and your business. Make recommendations based on individual tastes and preferences.
•Constantly checking that you have enough cut fruit, mixers, ice, and spirits. Restock as needed to avoid running out of anything during service. Have back-up supplies on hand for popular cocktails.
•Breaking down your bar and loading all equipment and leftover inventory back into your vehicle once service has ended. Do a final sweep to ensure nothing is left behind.
•Following up with a thank you note or email to the clients and venue within 1-2 days of the event. Ask for a review and referrals to help book future events. Provide information for rebooking your services again in the future.
Legal Considerations
Before starting a mobile bar business, it is important to research all legal requirements in your city and state. You will need proper licensing and permits to serve alcohol which typically includes:
•Liquor license: Required to purchase and sell spirits. License fees range from $500 to $5,000 per year depending on location. You will need to pass an exam on safe alcohol practices in some states.
•Business license or permit: Required to operate a business in your city. Fees are usually a few hundred dollars per year.
•Health department permit: Required if you will be serving food in addition to cocktails at events. There is an inspection process to obtain a permit.
•Insurance: Liability insurance and possibly business insurance are highly recommended to protect yourself in the event of any issues. Policy costs will depend on factors like how many events you do per year.
•Zoning laws: Check if there are any restrictions on operating a mobile bar business in residential areas or at certain venues. Some cities prohibit bars within a certain distance of schools, churches or parks.
You should also have proper contracts, hiring procedures, payroll, accounting systems and other business practices in place. Consult with a lawyer to ensure your business meets all legal obligations before your first event. Failure to obtain proper licensing and follow regulations can result in legal trouble, fines, or even having your business shut down.
In Summary
Starting a mobile bar business is an opportunity to turn your passion for craft cocktails into an exciting entrepreneurial venture. While it does require an investment of both time and money, if you focus on providing a memorable experience, build a loyal customer base, and properly market your services, a mobile bar can be a financially rewarding business. Do your research, develop a professional brand, and get the necessary licensing and permits. Then start booking events, perfecting your cocktail recipes, and investing in high-quality equipment to get your mobile bar on the road to success.