Not too sure if this is the right place to post this but here goes.
I have been interested in opening a restaurant/bar in Taichung City for quite some time now. The thing is I don’t know where to start my foray into filing papers and applying for licensing. I realize that after the ALA fire this is a touch topic in Taichung, I still want to test the waters and see where it gets me.
Has anyone ever opened a restaurant/bar in Taichung? If you have please tell me how you got started.
Cheers 
What kind of restaurant do you want to open?
The restaurant I have in mind is a Sports Bar and Grill.
Just a head’s up…
The reasons bars haven’t been reopening is because of the new regulations put on them. They have to be in very specific places. The places they allow you to be in would cost (from a few former pub owner’s descriptions) about 5 million NT just to get the building up to code. Never mind the actual bar itself, the inventory, chairs, decorations, TVs, etc.
Just a head’s up…
The reasons bars haven’t been reopening is because of the new regulations put on them. They have to be in very specific places. The places they allow you to be in would cost (from a few former pub owner’s descriptions) about 5 million NT just to get the building up to code. Never mind the actual bar itself, the inventory, chairs, decorations, TVs, etc.[/quote][/quote]
Argh. That is the reason ONE popular bar did not reopen. Seriously. Other bars HAVE reopened. Apparently other establishment owners saw the cost of renovating and setting up a new place (or using stuff from their other place) as part of the cost of opening a new establishment. Opening a tea shop can cost a couple mil to just set up, so yes, it’s going to cost some money to open a nice sports [strike]bar[/strike] grill.
If you rent a place that was formerly a restaurant you won’t have to spend as much time/money on renovations. I know of two restaurants in the West District on high-traffic roads that are available for rent, and both restaurants already have useable interiors and are up to code. Their rent is on the high side, at around 40K/mo, though. A friend recently closed his restaurant (for unrelated reasons) right next to Elementary Bar and I know it’s still for rent. Might be good to be next to another bar… There are spaces all over town, at a whole range of rents.
Note: There is already a lot of competition for the foreign market in terms of sports grills. Or, are you going after Taiwanese patrons?
To answer your first question, though, yes, there are a good handful of foreigners who have opened businesses and these businesses are still open. You really should do a bit more research on the market – Taichung is not very big and finding these foreign-owned establishments is not difficult. (The owners – at least the ones I’ve met – are also pretty nice, and probably will be willing to answer your questions.)
Really, good luck in opening a restaurant in Taichung. It’s always great fun going to new places, and in Taichung, everyone seems to live to eat. :+)
I am definitely interested in something in the the West district. Please PM me and let me know where about the locations you are talking about. The rent amount you mentioned seems to be somewhat reasonable. This of course depends on a variety of factors: size, location, parking, being the main ones.
Clientele: The patrons that I would like to serve primarily would be local Taiwanese. I know that it is extremely difficult to make money of foreigners. This comes down to numbers simply put, we are the minority here. I think relying on foreigners for your income would be a foolhardy decision.
As I said please PM me the locations you are talking about.
Just did. Stop in anytime, too.
Just a head’s up…
The reasons bars haven’t been reopening is because of the new regulations put on them. They have to be in very specific places. The places they allow you to be in would cost (from a few former pub owner’s descriptions) about 5 million NT just to get the building up to code. Never mind the actual bar itself, the inventory, chairs, decorations, TVs, etc.[/quote]
if you are lucky, you could find offers on the 591 website. Some patrons can’t cope with expenditures and want to let it take over.
Just maybe - you find a location with a take over of 1-2 million NT take over of equipment and a decent rent. Putting it up to your needs might be less all together than 5 MM. Success !
Just a head’s up…
The reasons bars haven’t been reopening is because of the new regulations put on them. They have to be in very specific places. The places they allow you to be in would cost (from a few former pub owner’s descriptions) about 5 million NT just to get the building up to code. Never mind the actual bar itself, the inventory, chairs, decorations, TVs, etc.[/quote][/quote]
Argh. That is the reason ONE popular bar did not reopen. Seriously. Other bars HAVE reopened. Apparently other establishment owners saw the cost of renovating and setting up a new place (or using stuff from their other place) as part of the cost of opening a new establishment. Opening a tea shop can cost a couple mil to just set up, so yes, it’s going to cost some money to open a nice sports [strike]bar[/strike] grill.
If you rent a place that was formerly a restaurant you won’t have to spend as much time/money on renovations. I know of two restaurants in the West District on high-traffic roads that are available for rent, and both restaurants already have useable interiors and are up to code. Their rent is on the high side, at around 40K/mo, though. A friend recently closed his restaurant (for unrelated reasons) right next to Elementary Bar and I know it’s still for rent. Might be good to be next to another bar… There are spaces all over town, at a whole range of rents.
Note: There is already a lot of competition for the foreign market in terms of sports grills. Or, are you going after Taiwanese patrons?
To answer your first question, though, yes, there are a good handful of foreigners who have opened businesses and these businesses are still open. You really should do a bit more research on the market – Taichung is not very big and finding these foreign-owned establishments is not difficult. (The owners – at least the ones I’ve met – are also pretty nice, and probably will be willing to answer your questions.)
Really, good luck in opening a restaurant in Taichung. It’s always great fun going to new places, and in Taichung, everyone seems to live to eat. :+)[/quote]
West district isn’t set up for it. It’s illegal to open there in most spots. I’d be VERY careful.
What is in the competition for the market of sports pubs? Interested to learn more.
Agreed West district is the most difficult to open up in. Having said that, it is the place that everyone wants to be. All the new residences are there and it’s ridiculous to think that people will travel across town to go out for a drink.
Sports bars in Taichung, in my opinion, are few and far between. The only one I can think of is The Londoner. As for Taiwanese owned I can’t think of any. There used to be FUBAR but we all know what happened to them.
I do think it is possible and can be done but the location is the most important part. There is the location where FM is located. They have been shut for quite some time now, I think it’s been about 8 months. From what I understand they are trying to get themselves a new license that will allow them to operate as a bar and restaurant. If you pass by FM and take a peek in the window you’ll see that everything is there chairs, tables and even all the alcohol is on the shelves. I would love to have an opportunity to open a place there. It seems like the last place in the West District that could potentially allow a bar to open.
[quote=“stare”]Agreed West district is the most difficult to open up in. Having said that, it is the place that everyone wants to be. All the new residences are there and it’s ridiculous to think that people will travel across town to go out for a drink.
Sports bars in Taichung, in my opinion, are few and far between. The only one I can think of is The Londoner. As for Taiwanese owned I can’t think of any. There used to be FUBAR but we all know what happened to them.
I do think it is possible and can be done but the location is the most important part. There is the location where FM is located. They have been shut for quite some time now, I think it’s been about 8 months. From what I understand they are trying to get themselves a new license that will allow them to operate as a bar and restaurant. If you pass by FM and take a peek in the window you’ll see that everything is there chairs, tables and even all the alcohol is on the shelves. I would love to have an opportunity to open a place there. It seems like the last place in the West District that could potentially allow a bar to open.[/quote]
That is not even the West District; that is XiTuen bordering on NanTuen.
I would first and foremost look at ability to do so. Resteraunts/pubs have nearly a 90% failure rate within 5 years. Are you sure you want to buck those odds?
Also, what credentials do you have here? A big consideration so I am sure you must have considered the issue.
Next, is it just you, or a you and a local partner? If a partner is involved, just kiss your a. goodbye.
I’ll forget to mention menu, portions, shopping at 5 am, working until 4 am and paying off the local wogs whilst you get underway.
Man! A wet blanket, I am. Or a realist? You decide.
I wouldn’t be into opening a full service restaurant or late night bar. I’m sure there are more simple operations that can potentially make money.
[quote=“stare”]Agreed West district is the most difficult to open up in. Having said that, it is the place that everyone wants to be. All the new residences are there and it’s ridiculous to think that people will travel across town to go out for a drink.
Sports bars in Taichung, in my opinion, are few and far between. The only one I can think of is The Londoner. As for Taiwanese owned I can’t think of any. There used to be FUBAR but we all know what happened to them.
I do think it is possible and can be done but the location is the most important part. There is the location where FM is located. They have been shut for quite some time now, I think it’s been about 8 months. From what I understand they are trying to get themselves a new license that will allow them to operate as a bar and restaurant. If you pass by FM and take a peek in the window you’ll see that everything is there chairs, tables and even all the alcohol is on the shelves. I would love to have an opportunity to open a place there. It seems like the last place in the West District that could potentially allow a bar to open.[/quote]
But you can’t legally open a bar in the West District in Taichung.
Yes. But realize it’s a lot harder than it sounds. I’m putting together my business plan for a pub and there are so many things you don’t think about.
–Taxes, Insurance, Licenses
–Do you hire employees? At what point? Full time or part time? If you hire them and business sucks, where will you get the $$ from? If you don’t hire them and business is good, how will you handle the overflow? You might get a percentage of people that won’t touch your shop unless a cute 19 year old skinny girl is serving drinks. You might also hire that person and customers harass her. Is that her job and she should suck it up? Or do you decide that’s not what you want at the bar?
–Menu? And how much each item costs vs. price.
–What is different about your bar? This is key. All the bars in Taichung (when it had them) all had unique things about them.
–Marketing. Remember here, you may only be thinking of foreign audience, but then your bar will fail. No matter what, Taiwanese will be the main source of income. How do you reach that target?
–Cost of upgrading or creating the bar. Realize most bars that are closed in Taichung are not usable as bars now. A friend of mine just moved his bar and I asked about the price of the actual bar itself and the shelves behind it. His reply: About $250,000 NT. Now, he had it custom made exactly how he wants it, but if you’re just looking to rent out a space and serve drinks on card tables, that place is going to suck.
–Initial inventory. What do you need and how much of it?
–How will you handle certain types of customers? Someone comes in with a group of people and orders a bottle of Jack Daniels. Do they pay as they go or do you run the risk of them leaving without paying?
A huge reason bars fail is largely because of the bright-eyed idea they bring. A person starts a bar thinking, “I wish I had a place like Cheers, where people hang out and drink all day and night.” Then people look at markup on the product. Bars and pubs have huge markups on their product. Every time I consider a drink and look at my cost vs. my income on said drink, my lungs skip a beat. I have to remind myself that pouring or mixing drinks is such a small part of the bar business.
If you’re serious about this, those are just the initial questions to start to plan out. Trust me, so many more questions will come up as you plan. What’s more, the start up cost is staggering.
Sarge, I presume you have read the following Article regarding Taichung’s extreme difficult approach on any bars / restaurants yes ?
Might help you to prepare better.
Check this out:
http://www.escapeartist.com/efan/taiwan.htm
maybe taizhongders know even more of what reported!
[quote=“micheleru”]Check this out:
http://www.escapeartist.com/efan/taiwan.htm
maybe taizhongders know even more of what reported![/quote]
Not familiar with them, but a great read.