I'm not trying to dispute the majority of what you're saying, but I disagree that the cost and margin on beer is the problem. You're citing labor and insurance costs as the profit-killer. Your example of liquor being more profitable doesn't diminish the profitability of beer. The cost of labor to transport it and serve it aren't expenses that are inherent in selling/serving/re-selling beer, that's just the cost of running a bar. Like I said, any time you want to pay me $3 for a 16 oz. PBR, I'll be happy to sell you one and pocket my $2 profit. I understand that BARS and restaurants are not magic money machines, but that would be the case even if you're not serving alcohol. I have run the numbers on opening a bar a few times (with friends who were also interested in the proposition of 'investing.') The bottom line was that we would have to do the grunt work ourselves to avoid paying employees we didn't trust and losing our shirts. Rent, liquor license, and insurance were killer - the margin on the product was not the issue.