Bar Management - Learn How To Run A Successful Bar

The alcohol industry is thriving, with beer revenues alone hitting a staggering $120 billion in the USA last year. It’s pretty clear that, after a global pandemic that closed doors and scared people away, socializing over our favorite drinks is back.

This resurgence doesn’t happen by accident. Behind every thriving bar, every packed Friday night, and every repeat customer is one driving force - a brilliant and successful bar manager.

But what sets a good bar manager apart from a great one? This guide will cover that and more.

Bar industry statistics and management facts

Before we get into what makes for successful bar management, let’s look at the bigger picture. Here’s a snapshot of the industry you work in – or are hoping to work in:

Overview of the current bar market value

The US bar and nightclub industry hit $37.6 billion in revenue last year, a solid 3% growth from 2022. And, the momentum doesn’t stop there. With 62,607 bars and nightclubs operating across the country in 2023, it’s clear that demand is thriving.

What does this mean for you as a future bar owner? That with the right concept and location, there’s nothing stopping you from tapping into this booming industry and building your bar's success.

Trends affecting the bar sector

Let’s talk industry trends, because the hospitality industry is shifting, and you need to pay attention.

1. Responsible drinking is more noticeable: Get this - only 62% of adults under 35 say they drink alcohol today, down from 72% two decades ago. They’re drinking less often, and they’re ditching the binge-drinking habits of the past. Wellness culture is the reason. Health-conscious living is more than yoga mats and green smoothies, it’s shaping nightlife too. The rise of influencers and popular celebs like Kim Kardashian and Blake Lively pushing ‘sober curiosity,’ mocktails, and low-ABV drinks has redefined what a night out looks like. And it's looking pretty mellow and sober to us.
2. Higher demand for bar experiences and themes: A detective themed speakeasy where you solve crimes. A video game bar where you play Pacman while you sip. An ice bar where everything is made of ice - your glass, your seats, your walls. What do these three bars have in common? They're experiences, not just places to drink. Today’s bar-goers want an adventure, something immersive that gets them talking, sharing, and coming back for more. 1 in 5 consumers visit experiential bars, putting them on a par with nightclubs. So, if your bar doesn’t have a theme, a unique experience, or a story that draws people in, you’re missing out on around 20% of your potential customer base.
3. Greater drink selection at bars is a must: Think a basic beer, wine, and simple cocktail menu will cut it? Think again. The modern bar-goer expects variety, quality, and sophistication, and they want it all. How did we get here? Well, according to bar owners' interviews in Vinepair magazine, the pandemic is actually the cause of this. Before COVID, many bars thrived on exclusivity and small, specialized menus that catered to a select crowd. But now that's not the case. As Erick Castro, cocktail pro and owner of Gilly’s House of Cocktails in San Diego, points out, “A lot of these bars that loved the elegance of ‘We only seat as many people as we have seats,’ and ‘We only do this,’ and ‘We only do that,’ realized there was no way they were going to survive.” The pandemic forced bars to adapt, and the shift is clear - today’s customers demand a wider selection or they’ll head somewhere else.

How to manage a bar 

Now that you've got the big picture, let's zoom in and look at the bar management position and bar management process. Here are our top bar management tips:

Remain compliant with legal and safety standards

Regulatory, safety and legal compliance isn’t optional, it’s essential. In the US, if you’re not following alcohol laws, you’re one mistake away from losing your liquor license. And once that’s gone, it’s game over. You have to know your state’s liquor laws (we’re talking about ID checks, alcohol limits, happy hour regulations, and over-serving). Don’t get lazy. You’re responsible for everything happening behind that bar. Make it a point to train your team regularly. No excuses. When your bar’s clean, your liquor’s controlled, and your staff is trained to handle regulations, you’re in the clear.

Employee management

Bartenders. Hostesses. Wait staff. Great bar management is all about your employees. Here’s the thing. If your team sucks, your bar’s toast. It’s that simple. So you need to nail the hiring process. 

Treat your staff like the lifeblood of your business, because they are. Create an environment where they grow, learn, and feel valued. Make sure they're providing efficient service and your bar staff back your business and its mission. Also make sure that you have a clear and easy to understand schedule. 

Set clear roles for your bar employees

Everyone has to know their role, and they have to own it. Who’s handling the drinks? Who's training staff members when you're not around? Who’s checking to see if you've got a tidy bar? Who’s managing the stock? If someone doesn’t know what they’re doing, you’ll see it in chaos. The same way you have manager duties, define your team’s roles from the start, and keep things running perfectly. No confusion. Just action.

Train your employees 

You’ve hired them, now train them. If they don’t know the POS system, if they can’t handle inventory, if they don’t know your drink specials, that’s on you. Don’t throw them in and hope they figure it out. 

Training never stops. New updates? New products? New specials? Your team needs to stay on top of it. A well-trained team is everything. The second your staff starts struggling is the second your bar’s efficiency takes a hit. No more half-hearted training sessions. Having a profitable bar depends on their knowledge and skill.

Provide high-quality guest service in the venue 

Your job isn’t to throw drinks in front of people. It’s to create an experience that makes them want to come back. That’s what guest service is about. Train your team to engage with customers, to create a vibe that makes them feel welcome, and make sure every customer leaves with a smile.

Coordinate suppliers with inventory management 

You need to know your stock. The last thing you want is a customer asking for something you’re out of. Keep a tight grip on your inventory. If your stock levels are low, or you’ve been slacking on ordering, your bar will fall apart. Use bar inventory management systems that track everything. And for the love of all things good, don’t let your suppliers fail you. Communicate, stay on top of orders, and ensure your bar is always fully stocked.

Manage financial performance 

Profit is the name of the game. Use bar management software to track every drink, every sale, and every cost. Overpouring? Wasting ingredients? That’s money down the drain. Financial management isn’t something you can ignore if you want a profitable bar. Margins matter. If you’re not keeping an eye on your numbers, you’ll struggle to stay in business.

6 top tips to improve your bar management

There’s always room for improvement. Here’s what we think you could do to level up your bar management role:

Build a strong team morale and a safe work environment

Happy staff = happy customers. Building strong team morale starts with respect, clear communication, and leading by example. Show your team they matter, celebrate wins, encourage teamwork, and always have their backs during busy shifts. When your staff feels safe, supported, and motivated, they’ll bring their A-game every shift and you’ll improve team morale.

Provide career development for your bar workers

You shouldn't view your bar staff as temporary hires. They’re future bar managers, head bartenders, or even owners. Investing in their career growth pays off. Offer training, workshops, or mentorship to develop their skills. Give them a clear career path so they know there’s room to grow. A motivated team sticks around, works harder, and takes pride in your bar’s success.

Automate daily operations to improve productivity in your bar

Running a bar isn’t all cocktails and charm – there’s a mountain of tasks behind the scenes. From managing stock to paying your team, let tech do the heavy lifting. Here’s just a few things you can automate:

Bar inventory software for real-time updates

Guesswork and manual counts are so last decade. Bar POS software gives you real-time updates on stock levels, so you’ll know what’s selling fast and what’s collecting dust. No more panic when you run out of vodka mid-shift. You’ll reduce waste, save cash, and always have what your customers want, when they want it.

Automate supplier’s invoicing processes

Paper invoices? Lost emails? Not on your watch. Automate your supplier invoicing to keep things streamlined and stress-free. Payments are made on time, invoices are tracked, and your records stay squeaky clean. This will help you build those strong relationships with your suppliers and you’ll be able to count on them.

Integrate payments to track transactions easily

Every transaction—cash, card, or contactless on your card machines—syncs automatically with your POS system. No manual inputs, no cash disappearing into the void. Payment processing made easy.

Implement more efficient payroll processes

Automating payroll takes care of everything (shift tracking, wage calculations, and payouts) without the hassle. It’s faster, fairer, and removes the risk of human error.

Sync your bar and kitchen operations smoothly

If your bar and kitchen aren’t talking, you’ve got a problem. Syncing your systems using a kitchen display system (KDS) means orders move seamlessly from bar to kitchen, keeping everyone on the same page. No missed tickets, no staff shouting over the chaos, and no frustrated customers waiting on drinks or food.

Adjust your drinks menu according to demand and trends 

Your drinks menu isn’t set in stone. It’s a living, breathing part of your bar. If you’re not adapting to what people actually want, you’re leaving money on the table. Keep an eye on trends, things like ready-to-drink (rdt) cocktails and seasonal specials, give your customers what’s hot right now. You can also use sales data to spot the top performers (and ditch the dead weight). 

Organize events and promotions to enhance guest experience

Live music nights, themed parties, happy hour deals - these are the things that keep your bar buzzing and your customers entertained. Advertising promotions like two-for-one deals or trivia nights fill seats, bring in new faces, and turn regulars into loyal fans. Get creative, stay consistent in your marketing strategy, and make your bar the place people talk about.

Analyze your bar performance to spot peak hours and opportunities

Use your POS system and sales data to find out exactly when your bar is booming—and when it’s dead quiet. Spotting peak hours means you can staff up and prep accordingly, so service is smooth when the pressure’s on. If you notice that Wednesday’s are your slow night you can turn it into an opportunity with promos or themed events.

How to become a bar manager 

Unlike other professions, like law or medicine, there are a lot of different routes you can take to become a bar manager. You don’t need years of formal education or piles of certifications. However, you do need passion, experience, and a commitment to the industry. Here’s how to fast-track your way there:

• Study a hospitality-based degree to showcase your interest in the industry: Want to stand out in a competitive field? Get that degree. Hospitality degrees give you the foundation you need to understand the business side of things, customer service, and overall operations. It shows potential employers that you’re serious about your career. A degree doesn’t guarantee a job, but it’ll definitely open doors.

• Specialize in the bar sector to demonstrate your passion: General knowledge is good, but specializing is better. Get yourself known as the expert in your niche, whether it’s mixology, craft beers, or event management.
• Never stop investing time in learning further for career opportunities: The bar industry moves fast. Don’t think you know it all. Never stop learning. Keep up with trends, technology, and customer expectations. Attend industry events, take courses, or shadow experienced bar managers. Every little bit of knowledge makes you a better manager and helps you climb that career ladder even if you start at entry level.
• Show your dedication by picking up extra hours to be noticed in the bar: Put in the hours. Show up early, stay late, pick up shifts when needed. The more time you spend on the ground, the more you’ll learn.