Beckaly Franks: What they don’t tell you about being a bar owner 

The refreshingly open founder of Hong Kong’s Hungry Ghost (which includes venues Call Me AL and ARTIFACT Bar) and former co-owner of The Pontiac, reveals what it really takes to own a bar business.  

The idea of owning my own bar was not foreign to me. I’d opened a couple bars alongside my partner in my twenties, and before I moved to Hong Kong I knew that I didn’t want to open a bar in Portland, or at that time. I also didn’t want to move to New York to cut my teeth. I had already diligently earned my stripes and after a brief consulting trip in Singapore opened my eyes, I was ready for a global change.  
 
In 2015, I was recruited to become a sweat equity partner at what is now The Pontiac. Sweat equity is when you either get a discounted rate on your shares or they are given to you by the directors of the company in return for your added value to the business. This can look like a percentage of the company over time or based on financial goals and so forth.  

The legal implications of owning a bar change from state to state and country to country. It also depends on how much of the company you own. Ultimately, if you’re the majority shareholder and all the licences are in your name or the company name (which you would also own) the buck stops with you, metaphorically and literally. You are the one responsible.  

I think one of the biggest misconceptions of being a bar owner is that there is taking ‘ownership’ and being the actual owner.

In 2022 my wife and I created our parent company Hungry Ghost under which we’ve now opened our other venues. We partner with investors that have the same vision and are earnest about wanting to see the business succeed. I am stepping away from other business relationships where I am not the executive.   

I think one of the biggest misconceptions of being a bar owner is that there is taking ‘ownership’ and being the actual owner. I have been in a couple situations at this point where I am a minority shareholder at best but have built the venue from the physical ground up and taken full ownership of it. The brand, the team, the culture, the cocktails and the heart were built by my hand.  

Front-facing the audience, I am the owner for the purposes of needing to transfer and sell the vision but I was not the owner. It happens a lot in sweat equity scenarios. I think if we continue to be open about our experiences, then we can educate the next generation on how to navigate these opportunities. Achieving sweat equity can still be a vital and invaluable chance to learn and build your career.   

 There are real challenges that make the job a constant learning curve which is exhausting. I am tired after the 2019/2020 political demonstrations and riots (in 2019 HK saw its first recession in over a decade) followed by the turmoil, occupational whiplash and need for endless endurance and from covid.  

Not only did we adhere to bizarre and unwarranted social distancing mandates, but our borders were also closed from March 2020 to April 2023. It’s been a long five years and though she is undeniably iconic and a force to be reckoned with, Hong Kong has not fully ‘bounced back’, so maintaining a state of survival instead of relishing in a state of thriving is hard after putting in all the work.   

It is impossible to make sure you won’t ‘get burned’. At the end of the day this is business, and our most effective tool is communication.

But it is all hard. If you want to be an owner, you need to swallow that reality and use it to empower you. I love nurturing people through hospitality and art. It is the way I transfer my energy and I need to be able to do that in my own way on my terms.  

If you want to educate yourself on the back-of-house of ownership, get a good lawyer and involve yourself with mentors, both peers and/or otherwise in multiple professions outside of F&B. Ask all the questions. If you are the creative person, get someone that is business savvy. A functioning business doesn’t run on creativity, it sells it. Then protect that creativity in writing. Don’t let anybody steal your shine! For real.  

It is impossible to make sure you won’t ‘get burned’. At the end of the day this is business, and our most effective tool is communication. Parties often feel like they have been done wrong when there isn’t communication or transparency. And often they/we are done wrong. Unfortunately, that is a part of the learning process.  

As we grow our companies moving forward it is important that we do our best not to repeat the mistakes that we have learned the hard way. (In hospitality we tend to learn most things the hard way, so I know that statement goes against the grain a bit.)  When in doubt ask for help, look for guidance and be open to the process. And get a lawyer and have some fucking fun!