How much should a small bar/tavern be expected to make?

Question

I'm looking into buying a small neighborhood tavern. I've looked at the books, but can't really tell if they are honest. The books were made up by the person leasing the bar from the owner, who I'm sure isn't thilled about it being sold. I don't know how to get the real info on this deal. What's a good way to tell if the bar does good enough buisness to make it worth buying?

Answer 1

Where are U going to make.......... in   Arctic   or  in Atlantic or in Sahara? Specify the place first Comrade !!!

Answer 2

To figure out of the books are cooked or not check to see what he has reported for sales tax and then ask to see a copy of the sales tax return.  

He is not going to report more sales tax then he paid.  If nothing else he may "short" the sales tax.  That will give you a true idea of what his gross sales are.

There is no set amount of what a bar makes.  You can have bars that make a few hundred dollars a day to ones that make Tens of Thousands per day depending on the City and location of the bar.

It is a cash business.  Many small bar owners have a habit of under reporting their gross sales.  :-)

If you are not sure, have a good accountant check out the books.  Don't invest if you are not comfortable and the cost of an accountant could save you thousands later.