The bar owner would continue to sell alcohol and take the profits from the alcohol sales. They will not charge us anything except utilities. We would cover all expenses and purchases pertaining to food and take all food profits. Does a 1099 make sense for a situation like this?
You should form an LLC or S corp to do this for legal protection (what if you food poison someone or one of your employees gets hurt), which would not be a 1099 arrangement. Plus I think then you would get the 20% pass through deduction.