Opening a bar in Spain is often seen as a potentially lucrative venture.
But for many owners, the reality is far from glamorous, and in some cases, it becomes a financial nightmare.
That is the case for Javier, owner of Pou Cafe Tapes in the heart of tourism mecca Sitges, in Barcelona.
He spoke openly about the strain of running a bar during an interview with YouTube creator Eric Ponce.
Javier said his children encouraged him to open the bar so he would have something to do after spending long periods at home.
‘I loved cooking,’ he recalled, ‘but I never imagined it would be like this.’
He began with what felt like a manageable investment of €35,000, which he considered fair at the time.
But the business quickly became a burden, weighed down by the demands of the sector and a growing list of fees and taxes.
The situation has now deteriorated to the point where the bar barely stays open.
‘My wife comes to help me, and sometimes my daughter-in-law as well, because I can’t afford an employee,’ he explains.
When you hire staff in Spain, the total cost per employee is up to 1.7 times their gross salary, mostly thanks to the worker’s social contributions that you have to contribute to.
For a €40,000 gross annual salary, for example, the total cost could be between €60,000 and €68,000 due to these mandatory contributions and benefits.
As he is unable to afford staff, Javier works far beyond a standard eight-hour day.
‘I work from seven in the morning until 11 at night, every day,’ he said, adding that the financial pressure is relentless.
‘Many nights I’m awake at three or four in the morning, thinking: ”Tomorrow I have to pay this bill… where am I going to get the money? God help me.”
Javier admits that the steep learning curve due to his lack of previous experience has made matters worse.
‘I had town hall staff and bank workers coming in for breakfast,’ he said, ‘But I had no experience in hospitality. They only have half an hour for lunch… and I think that affected the business too.’
Despite the long hours and sacrifices, the numbers simply do not add up.
‘We don’t have the resources. I don’t have the capacity to say I’m going to keep going with the bar,’ Javier admitted.
‘A bar is not a way to get rich… I wouldn’t recommend opening one. I don’t know how other bars manage to survive. I really don’t. But I’m completely ruined.’
Despite everything, Javier refuses to raise his prices.
‘Whatever discount suppliers give me, I pass on to the customer,’ he explained.
Since the day he opened, the prices of coffee and beer, whether served at the bar or on the terrace, have remained exactly the same.
‘The price is the same because I understand people,’ he said. ‘Not everyone can afford to pay more.’
