<BLOCKQUOTE class="ip-ubbcode-quote"><font size="-1">quote:</font><HR>Originally posted by RIO SHILL:
Jake, I actually thought the All star sportsbar was decent. Why did they go under?
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When All-Star was doing well was before 9/11, in the "hey-day" of CR's economy. One of the reasons they went under had to do with the economic downturn of CR after 9/11. Also, there was rampant theft going on there as well. In the bar business in CR, you are going to be paying very high rent most likely, and you're selling beers for $1.25 a bottle. There's not much of a profit margin. The only beer distributor in Costa Rica is Cerveceria Costa Rica, which has a monopoly. Cerveceria CR will even compete against it's own customers by throwing special events like the 4th of July where they will be giving it away. Also, you have to deal with the quincenas. People are only going to spend money on two weekends a month. The rest of the time they don't spend nearly as much. Semana Santa they don't even allow bars to be openon the weekend, as well as two or three other weekends a year (they close down the bars when there are elections). If you charge at the door you have to give the municipality 6 % of the gross at the door, and if music is being played you have to give 6% to ACAM as well. That's 12% of the gross door for which you get absolutely nothing in return. You have to pay liscense fees every three months also. And if there is any profit after the landlords, lawyers, accountants, government (who you have to constantly bribe to stay open), employees and their benefits, then you pay 30% tax on profit. And keep in mind, you're trying to make money off people who are making $80 a week.
Save yourself a lot of blood, sweat and tears and just enjoy someone elses bar.