How To Start A Lucrative Beer Parlour Business In Nigeria: The Complete Guide
All across the world, beer is widely consumed. According to historical reports, China has been producing beer for well over 7000 years. It is the third most popular drink after water and tea, and the highest alcoholic beverage in terms of consumption. As a result, the global brewing market continues to enjoy massive growth over the years.
In 2017, the global beer market was valued at about $593 billion, and it is expected to grow at a CAGR of 1.8% within 2019 and 2025 to reach at least $685 billion. Individual countries of the world generate millions of dollars from the beer industry, with China taking the first spot with about $85 billion generated from 45.7 billion litres in 2019. China alone holds 20% of the global alcohol market value. They are followed by the United States, which produces over 21 million kilolitres of beer per annum. Other major producers are Brazil, Mexico and Germany.
However, the situation is different with exportation. Statistics reveal that Czech Republic generates $330.6 million per annum and a CAGR of 2.1%, making the country the biggest exporter of beer worldwide. They are followed by Denmark ($276.5 million) and China ($255.3 million). On the other hand, the United States and France spent $5.9b and $1b respectively on imported beer in 2019.
Although there is an increase in health awareness in the country, Nigeria currently produces 17.72 million hectolitres per annum. Going by available statistics, reports say the volume is bound to grow to 53 million hectolitres at a CAGR of 6% within the next ten years. More so, the regular competition between major bigguns in the Nigerian brewery industry such as Guinness Plc., Nigeria Breweries and others, has festered the market value of beer in the country.
Despite the competition, however, a beer parlour business remains a lucrative business in every part of Nigeria, ranging from cities to villages. Nigerians have a strong relaxation culture, and most people prefer to ‘relax’ with a few bottles of beer after a workday. In 2016, Nigerians spent over N203 billion on beer and South-South states such as Delta, Edo, Bayelsa, Rivers, Akwa Ibom, and Cross River, were at the forefront. In essence, the beer parlour business is a highly lucrative one with steady demands. If you’re planning to start a lucrative beer parlour business in Nigeria, here is a detailed step-by-step guide to help you.
What Is Beer?
Beer refers to the alcoholic drink brewed mostly from cereal grains such as barley, rice, maize and wheat. While brewing, many other substances such as hops, fruits or herbs may be added, depending on the brand in question. Although beer is generally alcoholic, the alcohol levels may range from as low as 0.5% to as high as 40%! The commercial brewing of beer is common in most parts of the world, and large companies have made their mark with the production of beer.
What Is A Beer Parlour Business?
A beer parlour business involves retailing beer in bits, typically in bottles and cans, to everyday consumers. In many parts of Nigeria, beer parlours are major relaxation centres where people go to unwind after a hard day’s work. The beer parlour is often a reasonably large shop that can contain about 20 to 50 customers at a time. Beer Parlour owners add side attractions like entertainment and foods like pepper soup to make the service complete. In more modern parlours, an air conditioner system is installed to make the buyers feel comfortable.
Business Opportunities In Beer Parlour Business In Nigeria And Around The World
A beer parlour business creates windows of opportunities in the following categories:
1). Selling And Bartending Services:
Every beer parlour requires the services of smart people who can attend to customers without losing track of sales. This is especially important in large beer parlours where customers run into hundreds, particularly at weekends. Sales personnel or bartenders are needed to drive the activities of the business regularly as customers come in.
2). Food Production:
Since beer is a subsidiary of the food and beverage industry, it is not out of place for beer parlours to add snacks and meals to their services. As a matter of fact, in most beer parlours in Nigeria, the people prefer pepper soup, asun, goat meat and other assorted dishes with their chilled beer. A beer parlour business will require the services of cooks to undertake this.
The supply chain from manufacturers to local retailers and beer parlour business owners is operated by young, agile distributors. They deliver beer in volumes of crates to beer parlours across the country, and that keeps them employed.
Facts And Benefits Of Beer
Contrary to popular opinion, beer holds certain health benefits. They include:
- Beer is low in calories and helps to check body weight.
- It also improves the cholesterol level in the body by flushing out the LDL, also known as bad cholesterol.
- Unfiltered beer is rich in Vitamin B, which helps to protect the heart and keep it healthy.
- Beer contains Xanthohumol, a flavonoid found only in hops, which fights cancer-causing enzymes.
- Beer keeps the body light and, contrary to popular belief, it does not give ‘beer belly’ if consumed in moderation.
- Beer aids digestion because it promotes bowel movement.
- Beer protects against mental diseases such as Parkinson’s and Alzheimer’s diseases.
- A University of Ontario research proved that beer reduces the risk of developing eye cataracts.
- Beer is very low in sugar. It reduces the risk of having Type-2 diabetes.
- Beer boosts healthy bones.
- Beer contains Lactoflavin and nicotinic acid, which help to cure insomnia.
- The antioxidant constituents of Vitamin E in beer slow ageing.
- China, USA, Brazil, Mexico and Germany are the highest producers of beer.
- In Nigeria, Delta, Edo, Bayelsa, Rivers, Akwa Ibom, and Cross River states are leaders in beer consumption.
- The world’s most expensive beer, Allsopp’s Arctic Ale, sold for $503,300.
- April 7th is the United States National Beer Day.
- There are over 7,000 breweries in the US alone.
- A refrigerated beer can last as much as two years after its expiry date!
- In Ancient Egypt, beer was first consumed by women. The men drank wine.
- The oldest beer brewery in history dates back to 1040 BC.
How To Start A Beer Parlour Business In Nigeria: Step-By-Step Guide
1). Prepare A Business Plan:
For a start, you need to prepare a business plan which will include all your expenses and start-up capital. All major decisions and steps to take should be included in your business plan, so you can always check and regulate your expenses from time to time.
2). Select A Suitable Site:
The location of a beer parlour could make or mar its success. Whether you’re in a town or village, make sure your beer parlour is located in a busy area and, specifically, a strategic position where people will not have to struggle to find you. Set the pub with enough decorative fittings to make customers feel comfortable.
3). Procure The Necessary Materials:
Having located your beer parlour at a suitable site, you need to invest in devices and materials including a generator for power supply, a refrigerator, chairs and tables, tumblers, a TV set, a sound system, air conditioner or fans, and plates if you plan to add edibles to your services.
4). Network With Suppliers And Stock Up:
After preparing your parlour, it is high time to stock it up. You should network with manufacturing companies and wholesale distributors with favourable prices. Buying from large wholesale distributors or directly from manufacturers reduces the costs by a wide margin.
5). Hire Sales Personnel:
You need the services of salespersons, cooks and errand personnel. The size of your staff depends largely on the scale at which you choose to operate as well as how many customers you have.
6). Register Your Business:
For smooth operation, you should register your beer parlour business with the Corporate Affairs Commission. Registration has been made easy online. Once you’re fully registered, your beer parlour business is set to begin operations. To make things move faster, you could run ads on local radios.
Challenges Of Beer Parlour Business In Nigeria
- Stiff competition in the brewing industry.
- High start-up costs
- Distrust between beer parlour owners and employees.
- Exposure to physical danger since fights are common in local pubs.
- Occasional low sales.
- Possibility of selling on credit and running into debts.
- High costs of rents in cities and towns
- Erratic power supply in the country.
- High maintenance cost since materials such as tables and chairs can get damaged by customers.
- Delivery delays from distributors
To Sum It Up
Beer parlours may have sprung up in almost every corner of major cities in Nigeria, but there is still a vast expanse of opportunities for prospective investors.
The beer parlour business in Nigeria can be a lucrative and profitable venture to start-up, due to its vast market demand and on your ability to build a wide sales network. If you’re looking for a lucrative business to venture into, the beer parlour business in Nigeria is a great option to explore.
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