The Gopher Bar and Lounge represents a rare opportunity to acquire not just an established business, but a downtown Duluth legacy with multiple income streams and significant untapped potential. This isn't simply a bar sale—it's a chance to own a 6,000+ square foot commercial property with three distinct revenue centers, prime Main Street location, and a 24+ space parking lot.
THE BUSINESS:
Under current ownership since October 2005, Gopher Bar and Lounge serves as a cornerstone of downtown Duluth's entertainment scene. Operating as an authentic dive bar with character, it serves loyal local clientele while hosting live music, comedy shows, bingo nights, and private events. Two full-service bars, a commercial kitchen, professional stage with sound and lighting, and versatile event spaces provide flexibility few downtown venues can match.
PROVEN INCOME STREAMS:
2024 Financial Performance:
Bar Sales: $175,000
Food Sales: $175,000
Rental Income: $127,500
Total Gross Revenue: $477,500
Current absentee ownership produces $35,000 in SDE, but this understates the opportunity for an engaged owner. With $100,000 in employee wages and owners working only periodically, a hands-on owner could reallocate $50,000-$60,000 to owner compensation. Add back $28,000 in rent, and an owner-operator sees $113,000-$123,000+ annually—plus the option to live rent-free upstairs, adding another $10,000-$15,000 in value.
THE REAL ESTATE:
The sale includes the entire 6,000+ square foot building across three levels. Main floor features a full bar, commercial kitchen, office, walk-in cooler, and restrooms. Lower level provides a second bar, walk-in cooler, restrooms, event space, and private meeting room with separate entrance. Second floor houses income-producing rental units: two efficiency apartments and dorm-style apartments generating $127,500 in 2024.
Most valuable: a dedicated 24+ space parking lot directly across the street—extremely rare for downtown Duluth.
EXPANSION POTENTIAL:
Current operations barely scratch the surface:
Hours: Operating 64 hours weekly, closed during weekday lunches and opening late weekends. Add lunch service, weekend brunch, and extended hours to increase operating time 40-50%.
Food Program: Full commercial kitchen supports menu elevation, catering services, or specialized cuisine.
Events: Professional stage and sound system enable expanded entertainment programming. Private meeting room remains underutilized for corporate events and celebrations.
Rentals: Long-term rentals could convert to short-term for tourists or upgrade for premium rents.
OPERATIONAL FLEXIBILITY:
Multiple paths forward: maintain absentee ownership, become hands-on owner-operator, live on-site, or implement your vision while maintaining loyal customers and established cash flow. Eight part-time employees provide lean operations with flexibility for new owner's structure.
THE LOCATION:
Main Street downtown Duluth location provides high visibility, foot traffic, and neighborhood institution status. Owned parking eliminates downtown's biggest challenge.
INCLUDED:
Real estate ($900,000-$1,200,000), fixtures/furniture/equipment ($34,467), and inventory ($50,000). Debt-free, cash-free transfer.
This is your opportunity to own Duluth history while building equity in valuable downtown real estate, collecting rental income, and operating a business with demonstrated performance and significant upside.
Ad#:2460971
