Non-alcoholic bars and clubs were emerging internationally, with establishments in London, New York and Sweden tipped as "the next big thing" by overseas media.
Mr Elliot said the bar would still be R18 and would run as a trial initially.
"We are getting mixed reactions, a lot of people are saying it sounds good and a lot of people are saying, 'What are you thinking?' But we think it is worth a punt."
Mr Elliot had met with police and Auckland Council to discuss issues, including host responsibility, noise and patrons spilling on to the street. Auckland City Police district prevention manager Gary Davey said police "applauded" the fact the business did not sell alcohol, but "there is potential for issues to arise if the venture is not managed correctly".
"The venture is likely to attract patrons that have been drinking, or are intoxicated, and there is also potential for alcohol and drugs to be smuggled into the premises."
Mr Elliot said in lieu of alcohol sales, there will be door charges of up to $15 and drink prices will start from $5.
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