Keg Bar Business Plan

Keg Bar Business Plan

Keg Bar Business Plan Overview

This Keg Bar Business Plan covers the business of selling Senator Keg which is brewed by East Africa Breweries Limited (EABL), packed in barrels and poured in cups. The keg was introduced into the market in 2004, and is aimed at low income consumers.

Presently, as seen by consumption figures the business is looking up again, not the least helped by policy which is harsh on cheap second generation spirits. This has a created a gap among the low income alcohol market which is still reeling from the effects of the 2015 wines and spirits crackdown.

A Keg Bar is not special and considered like any other bar. Thus licensing, like that of other bars, is governed by the alcohol drinks act.

Like noted in our other alcohol business plan in the last two years the counties have come up with a raft of somehow arbitrary rules aimed at curbing the consumption of alcohol. Such rules are aimed at “protecting our youth ““increasing productivity” and all other such justifications aimed at maintaining the ‘good morals ‘of the county.

There are keg bars which operate without the alcoholic drinks license. They start the operations then chase the license later. The ability to do this depends on the authorities in your area of operations. To keep in operations you need to keep the authorities and especially the police happy.

There are a couple of keg bars, especially in urban centers which operate for 24 hours. Or other hours beyond the 5 pm to 11 pm bracket. By law for a bar to operate within the said times it needs to have a Members Club license which costs KSHS.100, 000 per annum or a Restaurant Alcoholic License which costs Kshs30,000 per annum. This allows the bar to sell food accompanied by alcohol.

Again the realities of such timings are not based on licenses only but also the police and other authorities. County liquor boards are reluctant to issue restaurant alcoholic licenses to keg and other low end bars. This has especially become tricky with the 2015 crackdown on ‘killer spirits’.

In the eyes of some the difference between a kegs bar and wines and spirits outlet are minimal. Sometimes the hustle and risks that comes with operating off hours on the goodwill of authorities are not worth it. Make the call based on your local conditions. Create rapport with a waiter of a bar which operates off hours to get an idea of what to expect in the particular location.

Due to the opening hours of majority of keg bars (5pm to 11pm, weekdays, 2pm to 11pm, and weekends), enforcement of licenses often happens at night or weekends. So it’s not uncommon for health officials to pop in at 8pm and if all is not well order closure of a bar or bribes depending on the individual.

Download Keg Bar Business Plan / guidehere