The Bar is not a part of the School building, and is a building itself. It can be found by walking downwards from the front of The Furniture Shop. Then, you will appear on a street(Chinatown) with two more stores, Hardware and The Bar.
Food can be found at the bar, but it is not free, and you will have to pay, or steal (stealing is not recommended). Foods found at the bar are usually unhealthy, such as soda, or beer. Beer, however, raises popularity, but drains strength, health, agility and raises sanity.
Cigarettes, pool sticks, a pool table, as well as a drum set can be be bought at The Bar. Cigarettes are similar to beer, and are unhealthy, though good for popularity.
Money can be earned at The Bar by "providing entertainment ". This is done by playing musical instruments (This also raises popularity and sanity). Usually, money will be payed to you when someone thanks you for entertaining them, and gives applause. They will tell you the amount of money you were payed in their speech too. Money rewards are usually around 5 or 10 dollars. However, beware your enemies, who will most likely take your instrument. This can also be done in the streets, and is called busking.