friday, October 7, 1977
section b
You
can open your own bar
if all the paper work is done
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I I 1 Mil!
I 9 7 f t t A mr
So you want to get into the food business. You
thought you'd buy a plot of ground and build your own
restaurant, maybe sell some beer,
like many passing fantacies, ownership of a bar or
restaurant is far from easy.
Setting up your own buisness, whetherr it is a fast food
franchise or bar , not only requires your own commit'
ment, but approval of the city building inspector, fire
marshall, health officials, and of course the buying public.
If you want to build from scratch, first you must apply
to the City Planning Office to make sure the land is zoned
for business.
It it is correctly zoned, you present your building plans
to the Health Department and registered sanitarians will
check them. Building plans are checked for proper
lighting, and ventilation.
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Photo by Mark Billingsly
... Georgia Kuebler administrative assistant to the liquor commission.
But, are there toilets? Screens on the windows? How will the garbage be disposed?
If the plans are approved a building permit is given and construction can begin.
However, "not every Tom, Dick and Harry can get into the food business " according
to Orville DeFrain. state supervisor of the food section and chief of environmental health.
When you are ready to open, you must apply to the heatlh department for an opera
tor's permit. That means another inspection.
Owning and operating a business is "awful hard work," DeFrain said, and "compli
cated as the devil."
A license costs $50 for the first year, he said, and $35 every year thereafter. .
Each eating establishment is inspected at least three times a year, to make sure all
standards are met. If they aren't, you run the risk of losing your license and bieing closed
.down.
You say you were thinking of getting into the spirit of things by selling a little liquor
and beer? There are a few additional procedures to follow. For one thing, youll need a
liquor license.
Your first step might be to reacty city liquor ordinances, to make sure you don't lose
your license before you get it. Chapter 6.08, entitled Alcoholic Liquors explains and de
fines everything about the sale of liquor in Lincoln, including who you can sell to, when,
where, and how much you can sell. There are more than 11 pages of reading, single
spaced.
If you survive the reading and still want to open your own bar, make an application
to the State Liquor Control Commission in triplicate.
There is a 45-day waiting period while the local clerk advertises and holds a public
hearing to see if there are any objections for granting you a license. The city council sends
its recommendation to the commission and while all this is taking place, the commission
investigates your background and the site.
There is no state limit to the number of licenses granted, but Georgia Kuebler, admin
istrative assistant to the liquor commission, said there usually are local limits. Even
though the commission is not bound by them, 'It usually abides by them,' she said.
Each applicant must post $100 to cover hearing and publicity costs. The balance is
returned. There also is a $2 registration fee plus a fee for each type of license applied for,
whether it is beer only, liquor by the drink or a package liquor license (just to name a
few).
These fees are paid at the local level and go into the school fund. Beer license fees are
scaled to the town population. For instance, a town with less than 500 people would have
a $10 license fee for an on sale liquor license.
In addition to the license fee, owners pay an annual occupation tax which goes into
the city's general fund. This can be as much as twice the license fee.
The easy way to do it is to find someone willing to sell their business. That way you
just transfer the license and avoid a lot of hassle. You also avoid building costs. -
That's how Gerald Sasek, owner of the Five O'Clock Lounge at 121 N. 14th St., got
into business.
Sasek said he paid $40,000 for the bar in November 1975 and had $5,000 working
capital. He spend about $1,000 a month on beer alone,' and about $500 on liquor and
supplies. Fortunately food and liquor can be bought on consignment and you have 30
days to pay for it. Not so with beer, That required cash on the spot. Sasek said he grossed :
about $60,000 in 1976. . . : i . i
"I haven't lost any, and 1 haven't made a whole lot,'' Owning a bar
"has a lot of potential " he explained. The value of the business "pretty much stays the
same , if it doesn't go up. You can't lost any money, just fail to make any."
Joyce Durand, co-owner of the Side Track at 700 P, formerly Russian Inn, said setting
up a bar takes a "considerable amount of money," and "it's a lot of hard work" But,
she added, S4It's a lot of fun if you like people." . ,
Durand declined to say how much the place cost. She and Pat Glenn bought the build
ing, business and equipment, They plan to remodel the restaurant's lounge as soon as they
complete legal requirements.
Durand estimated it will take at least two months before they can open because of the
needed liquor license approval, remodeling and inspections. -:
"Everyday we're closed down it's money we're not making," she said. "We want to
open tust as soon as possible."
H
ambureer U' tuition could cost you your buns
v v
If you've had your fill of "two all-beef patties, special
sauce, lettuce, cheese, pickles, onions, on a sesame seed
bun," but the possibility of 30 billion-plus sales mixes
well with your economic chemistry-Hamburger U. is
beckoning you to get your piece of the bun.
Hamburger University, in this case anyway, is not snide .
slang for a tread-mill college education-it exists. Not
only does it exist, but it's mandatory for the up and
coming Ronald McDonalds of America.
Hamburger U. is located in Elk Grove Village, a suburb
of Chicago. Once you've made your career decision, you
may begin.
To apply for Hamburger U., call the corporate office
in Chicago and set up an interview with Licensing Manager
Douff Moreland.
ta rmaiififatinns aren't too steen. Coroorate Communications manager Doug Timber-
lake said they select people with stamina, and those "who really want to get into the
business." .
You also must be interested in your community and be able to get along with people.
In other words, you will not only own a restaurant but you must be "Mr. McDonald
in the community " he said.
Mr. McDonald also needs $85,000-100,000 in cash before he will be accepted.
If you pass the interview and have the money, your name is placed on a list. It some
times takes three to six months before a site is available. You can either start from
scratch and build your own McDonald's or take over another licenser
First there is the license fee of $10,000, plus an additional $15,000 security deposit
required against the lease. Then there is the $2,500 site development fee for selection
and analysis of a building location, $4,000 cash downpayment for lighting, signs and
work, $20,000 for food service equipment, $4,000 for seating and decour, and $30,000-'
$45,000 for miscellaneous expenses, such as construction extras, landscaping and training
of employees
These are just down payments. The total estimated cost is $ 180,000-225,000.
Lighting and signs usually ost about $18,000, fopr service equipment, $80,000 and
seating and decor, $20,000.
At least it costs nothing to apply. x ,
Besides shelling out money, you will need to put in hours at Hamburger U going
through basic and advanced operations courses. The first lasts five eays, the second is
10 days to two weeks. Your building is going up as you hit the books.
Feeling secure with your new education and knowing everything there is to know
ohrmt MrnnmU's vou can start putting your education to good use.
iSffid'fiSSeS to work 400 hours in .McDonald's Restaurant, so he
"nrh knows everv corner of the store from check stand to try pan.
tSffi?iS hot griddle learning, and wondering philosophically did
RonaU NkDonald start this way?" you can dream about the tune your store will be
finished and you can head it all. -
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Because of the large number oi applicanis, mcuohjiu "' &. -vv47""& 7 '
ns"t kast not until the end of 1979. That's how long it will take to get through th
ica-
those
tions
names already on the list.
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