Opening a bar in Spain: zero rent and a €30,000 investment
A rent-free premises in Barcelona, an initial investment of €10,000 and doubts about cashing in unemployment benefits. A detailed budget puts the basic equipment at €30,000.
English · Original discussion in Spanish · Published
Is opening a bar in the middle of a crisis madness?
Is it worth investing in a bar when the economy is struggling? It's a question many people ask themselves after losing their job, and the answers vary widely. One concrete case: a 70 m² premises on the outskirts of Barcelona with zero rent and an initial investment of €10,000. The promoter, unemployed since March, is considering it with his cousin, a chef. The question is whether the business will hold up or turn into a money pit.
The real cost of opening a bar from scratch
Opening a bar isn't just buying a griddle and a few tables. A detailed budget drawn up by a participant who describes himself as an industry professional breaks it down: €1,000 for the project and certification, €2,000 for electrical installation, €3,500 for air conditioning, €1,500 for ventilation and €10,000 to €15,000 for the kitchen and equipment. In total, €30,000 not counting building work or plumbing. A figure that doubles the planned initial investment. The conclusion: the free premises aren't free.
Does a Madrid-style tapas bar work in Barcelona?
In Catalonia, a free tapa with your beer isn't the tradition. But word of mouth and a good value-for-money offer can make all the difference. The key is the product: excellent coffee, well-poured beer and carefully made tapas. A common mistake is mixing clienteles: a neighbourhood bar and an upscale one don't coexist. Some argue that the owner is 90% of the business and that without people skills the place dies.
Cashing in unemployment benefits and going back on them if it fails
Cashing in your unemployment benefit as a lump sum to start the business is an option, but there's a catch: if the bar doesn't take off within a year, you don't get the benefit back. Grants from Barcelona Activa can help, but they won't cover the gap. The decision is a risky one. With the economy as it is, many people are taking the plunge. Others, like a restaurateur close to the discussion, see the glass as half empty: days taking €10 at the till. The sarracena of the story: a bar isn't a money-making machine, it's hard work.
Is it worth investing in a bar when the economy is struggling? It's a question many people ask themselves after losing their job, and the answers vary widely. One concrete case: a 70 m² premises on the outskirts of Barcelona with zero rent and an initial investment of €10,000. The promoter, unemployed since March, is considering it with his cousin, a chef. The question is whether the business will hold up or turn into a money pit.
The real cost of opening a bar from scratch
Opening a bar isn't just buying a griddle and a few tables. A detailed budget drawn up by a participant who describes himself as an industry professional breaks it down: €1,000 for the project and certification, €2,000 for electrical installation, €3,500 for air conditioning, €1,500 for ventilation and €10,000 to €15,000 for the kitchen and equipment. In total, €30,000 not counting building work or plumbing. A figure that doubles the planned initial investment. The conclusion: the free premises aren't free.
Does a Madrid-style tapas bar work in Barcelona?
In Catalonia, a free tapa with your beer isn't the tradition. But word of mouth and a good value-for-money offer can make all the difference. The key is the product: excellent coffee, well-poured beer and carefully made tapas. A common mistake is mixing clienteles: a neighbourhood bar and an upscale one don't coexist. Some argue that the owner is 90% of the business and that without people skills the place dies.
Cashing in unemployment benefits and going back on them if it fails
Cashing in your unemployment benefit as a lump sum to start the business is an option, but there's a catch: if the bar doesn't take off within a year, you don't get the benefit back. Grants from Barcelona Activa can help, but they won't cover the gap. The decision is a risky one. With the economy as it is, many people are taking the plunge. Others, like a restaurateur close to the discussion, see the glass as half empty: days taking €10 at the till. The sarracena of the story: a bar isn't a money-making machine, it's hard work.
Also available in: Deutsch
Summary of a discussion on Burbuja.info - Foro de economía, actualidad y política., translated from Spanish and reviewed before publication. Read the full discussion (24 replies).
More summaries
-
Catalonia and Brexit: Two Parallel Economic Experiments
A comparison of the economic impacts of Brexit on the UK and Catalonia's independence movement. Examining trade, supply chains, and national identity.
-
P2P crowdlending: from €261 to €964 a month and Mintos' 0.29% fee
A crowdlending portfolio grows from €261 a month in 2023 to €964 in its record month, while Mintos introduces a 0.29% annual fee.
-
Hotel101 sells rooms in Valdebebas for €208,800
Hotel101 sells rooms in Valdebebas for €208,800 plus VAT with monthly income distribution and doubts about what happens if the operator goes bankrupt
-
Degussa Review: Buy Gold Tax-Free and Verify Coins
Gold is VAT-free in Spain, unlike silver. Degussa is generally pricey but offers the best deal for Mexican 50 Peso coins. Verifying coins is easier than bullion bars.
-
Back in the 3x Short Brent: Masterstroke or Russian roulette?
An investor reopens his 3x Short Brent ETF betting on Trump's policy, but semi-liquidation and volatility loom large. Is he right, or is he playing with fire?
-
Index funds: investing when everyone else is already in
Holding on through 30% or 40% drops without selling is the real challenge of getting into index funds when everyone is doing it. A sign a correction is coming?