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 Post subject: Advice on leasing a bar in Lanza
PostPosted: Tue Jul 14, 2009 9:26 pm 
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Hello, as you are the experienced ones, I thought this be the best place to ask for your advice.

We, are currently looking into the prospect of leasing a bar in Lanzarote. I am hoping to get voluntary redundancy from work in a couple of months so will have a little capital behind me (although not a great deal!!)

I really don’t want my hard earned money to go to waste (its all I will ever have in my life!!) as I have heard alot of bars are closing, although have also heard that it will pick up again next year and alot of current bar owners are sticking it out.

Since visiting for months at a time over the last 5 years, I have always wanted to live in Lanzarote but never had the opportunity until I now have this option of VR. I am not niave in thinking that its not hard work, I know it will be and am more than willing to put the effort in to ensure that we run a successful profitable business, so are looking for a bar that has a great winter trade too. The bar will need to make enough money to keep myself, my husband and our 13 year old son. (and no, I'm not thinking of becoming an overnight millionaire LOL!!)

So if anyone living in the area can give me some much needed advice I would be extremely grateful - having done some very basic prelimary research there seem to be a couple of great leases going for as little at £25K with rental of around £1000 per month!!

PLEASE HELP!!


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Wed Jul 15, 2009 6:46 am 
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Joined: Wed Apr 22, 2009 7:29 am
Posts: 311
"I really don’t want my hard earned money to go to waste (its all I will ever have in my life!!)"

I suggest you hold on to your money or if you want to waste invest it in a bar.
Why do you think so many bars are available? It is very tough out here at the moment and this is meant to be the busy period :? :?

"have also heard that it will pick up again next year"

Who said it willl pick up next year? I dont believe in those fortune tellers. Nobody knows what the future holds :?: It could get worse or it could get better!! Its a gamble.
Your decision but if i was in your position it would be a no.
The money your talking there would get you a kip of a place.
For a good bar you'd be looking at €85000 and €2500/3000 rent.

Good Luck with your decision


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Wed Jul 15, 2009 8:51 am 
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Joined: Mon Mar 31, 2008 2:10 pm
Posts: 1024
Why is it that so many people with absolutely no experience see running a bar as an "easy" option...........

Personally that will be the easiest way to fritter away your hard earner redundancy cash.

In 2 years time you will have spent it all and be stuck with a bar where your family is work 100 hour weeks and paying yourselves a pittance.

If you have a substantial amount of cash you are better off buying property in an area you know and renting the property - ideally looking at a return of 8-10% on your investment before tax.


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Wed Jul 15, 2009 9:27 am 
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Joined: Tue Aug 09, 2005 8:11 pm
Posts: 1333
There seems to be an idea that if you’re prepared for a bit of hard work it’ll all be ok but unfortunately there’s a lot more to it than that, even the people who know the ropes and pitfalls and local idiosyncrasies are struggling at the moment.
if you want to earn a living from the tourist trade (and that’s just about everything in Lanzarote) then the basic raw commodity is tourists – and if they’re not about you can’t sell to them.
I’m not saying it’s impossible and if the market picks up again then this would be a good time to establish yourself in preparation for it but it’s very difficult and you really have to accept the lifestyle and climate as recompense rather than financial reward.

Ole


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Fri Jul 17, 2009 8:20 pm 
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Joined: Wed Jul 01, 2009 6:25 pm
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doom and gloom bhaaa humbug go for it if thats what u want if it dont work at least you can say you give it a go good luck what ever u decide


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Sun Jul 19, 2009 3:22 pm 
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Joined: Sat Jul 19, 2008 2:07 am
Posts: 105
But it would be very foolish to do so when all the evidence suggests that now is NOT the right time to try something like this.

Have you any experience in running a bar, bailey? If not.........well, you wouldn't be coming to Lanz and setting yourself up as, say, an electrician if you hadn't extensive experience in the field.

(Y'know, I've always fancied being a brain surgeon..........)


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Sun Jul 19, 2009 6:21 pm 
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Joined: Tue Jul 14, 2009 9:08 pm
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DrRobert wrote:
But it would be very foolish to do so when all the evidence suggests that now is NOT the right time to try something like this.

Have you any experience in running a bar, bailey? If not.........well, you wouldn't be coming to Lanz and setting yourself up as, say, an electrician if you hadn't extensive experience in the field.

(Y'know, I've always fancied being a brain surgeon..........)



Yes, I have plenty of experience of running a bar and I am also in my second year of learning Spanish too


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Mon Jul 20, 2009 1:28 pm 
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It's a good start. What about the wonderful Spanish bureaucracy and the way things get done?

I still advise extreme caution!


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Tue Jul 21, 2009 7:13 am 
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DrRobert wrote:
It's a good start. What about the wonderful Spanish bureaucracy and the way things get done?

I still advise extreme caution!

we are still looking for bars to buy or lease i came accross paddy macs for sale then on the relocation site icame across fergus and hazels story whom own paddy macs saying how wonderfull there life is now and paddymacs is one of the best irish bars on the island it made me think why theyre selling to open another bar just down the road ?????


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Tue Jul 21, 2009 7:22 am 
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Joined: Mon Mar 31, 2008 2:10 pm
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Mandy - totally correct in asking those questions.

Probably got a cheaper lease. Some landlords think they can charge what they want.

Hope you are doing lots of market research before you even think about signing a lease!


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Tue Jul 21, 2009 8:11 am 
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foodie wrote:
Mandy - totally correct in asking those questions.

Probably got a cheaper lease. Some landlords think they can charge what they want.

Hope you are doing lots of market research before you even think about signing a lease!

its actully my hubby hes constantly online searching all things lanza going from one kink to another then cross ref if one thing is mentioned on one link then he sees it on another he checks to se if they are saying the same in most cases they dont so there is something not right whilst on the subject of bars does phil run the mucky duck its just a unusual name and we used to drink in one of the same name in rochdale


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Tue Jul 21, 2009 8:44 am 
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Location: Canary Islands
The Mucky Duck is run By Julie and I think she is from down south and the other one is run by a Scottish lass, so don't think any connection with Rochdale.


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Tue Jul 21, 2009 9:48 am 
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overhere wrote:
The Mucky Duck is run By Julie and I think she is from down south and the other one is run by a Scottish lass, so don't think any connection with Rochdale.

cheers it was just a thought as we havent heard there whereabouts 4 a few yr now


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Tue Jul 21, 2009 11:44 am 
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Joined: Thu Jul 16, 2009 9:31 pm
Posts: 25
Hiya Bailey,

I worked in Puerto del Carmen for years and considered looking for a place where i'd be called boss on a few occasions. (I never did in the end, but i wouldn't rule it out completely just yet.)

All that really matters is location: without that, nothing you do will work. The best advice i received was that a bar shouldn't be in a square, shouldn't be upstairs or downstairs (i.e. should be on street-level) and should have passing trade. There are exceptions to this, of course.

If you have all this, then you're still only at square 1 of a very tough business.

Staff, music, food are the next things to look at - which of these is going to be your unique selling point? What can you do better than the other established bars/restaurants in the area? (Brutal self-honesty is needed here or you're beaten before you start.)

The comparison made by another poster, between publican and electrician is not really a fair one. You can learn an electrician's trade and you can learn how to be a publican in Lanzarote, but being a publican is a more personal thing. You are either good at it or you're not. It's a hard thing to try and learn, being a good publican.

The importance of rent and key-money is self-evident. You can tick the above boxes, but if you're under pressure to come up with the rent, wages, supply costs, water/rubbish-collecting fees, etc. then this will be evident in your bar/restaurant's atmosphere - tourists can smell this and it puts them off.

In summary:

The right location + the right staff/music/food + the right rent/costs + lots of hard work + an abundance of luck = success.

Hopefully, this is some food for thought. My advice would be to move over if you like - it's a great place to live (it's just not a great place to work, sometimes!) - and get a job in a bar/restaurant someplace there. (If you can't get a job anyplace, take this as a sign.) If you can get a job, then you can find out more about working/living in Lanzarote, without it costing you your life savings.

K.

DISCLAIMER: Everyone's an expert, everyone knows what's expensive and what's good value, everyone knows what's going to happen next month/year, etc. I'm no different - take what i say in this context.


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 Post subject: Re: Advice on leasing a bar in Lanza
PostPosted: Tue Jul 21, 2009 12:12 pm 
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Joined: Wed Apr 22, 2009 7:29 am
Posts: 311
I read alot of crap and some of the stuff I write is probably rubbish!!!!
But i have to say that is a great post. Very well written and makes alot of sense. Great to read a decent post for a change :D
Well done Kieran.


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