Just to weigh in with my 0.02...
On the menu front, having worked on a couple of biz plans for this type of thing, you need to make a fundamental decision - are you making a pub, or a bar?
If you are looking for a pub, then you can survive with a simplified kitchen - a single grill for making burgers/steaks, a fry-o-lator for chips/fries, and a couple of industrial strength crock-pots for soups - plus work space, fridges (combine it with the beer cooler in a separate room instead of the under-bar coolers for the kegs. The trick to opening a small but successful pub is, as Don said, simple but good food, with an equal balance on food and drink. The potential issues with the pub concept are as follows:
- If food will be a focus, and you want a varied menu, then you need to have a larger stock of food, which is perishable. Getting the stuff for 100 burgers doesn't do much good if you sell 20 and have to dispose of the rest. Most pubs close not because they are not busy, but because their waste/consumption ratio is out of balance.
- Because of the food stores, you will need a larger space (breakeven in the states was close to 50 seats) because you need to purchase more in bulk in order to get a better price, but if you want good quality food, you will need to move it out quickly. Larger space = larger cost.
- Staffing is much higher for this concept. Expect at least two full-on cooks for a successful pub concept. Plus, more bar staff in order to make this work.
This isn't to say that once you get the kinks out, you can't have a very succesful pub... but you need someone who is really experienced in the concept design before moving into it, in my most humble opinion.
On the bar side, things change. The focus is the drink, and the food is there to keep people drinking. That means good food, served simply - and repetition is more acceptable than in a pub. For example - stick to the basics: soups and sandwiches and ready-to-eat items like bags of chips/crisps.
Why soup and sandwiches? It's simple. For a small bar, someone can prep the soup in the morning and assemble the sandwich ingredients. Then, for lunch, have two soup options and 4 sandwiches. Nobody is cooking per se. People start to come in knowing that Monday is chili day, tuesday is split pea soup day, wednesday is cockaleekie soup etc... After lunch, put in a roast or two, and then in the afternoon offer hot sandwiches. The trick is simple assembly - no grilling to order, no panini presses, nothing that takes longer than cutting a slab of meat on bread or putting a ladle full of soup in a bowl. This way, the person running the bar can also deal with the food service.
This becomes really key - one or two people can operate a small bar for 20 people and maintain good profitability. In the summer, get a big grill, put it outside and have someone dedicated to grilling sausages and burgers (the smell of cooking meat over charcoal is a good way to attract business).
As soon as you start actually having to "cook" in real time aside from "serve", you need to think of this like you are running a restaurant, which in any market these days is risky.
Anyway, those are my 0.02. Hopefully we can see a good neighborhood bar come out of these discussions. I vote for western
Schwabing - less competition and better rates than Leopoldstr or Zentrum, but still close enough to the U2 to get a good run of people dropping in. (there is a vacant spot on Schellingstrabe near Schleißheimer - hint, hint)