If you pass the bar, you walk past the bar. "To pass" and "to walk past" are different. Your sentence started with the word "It's" meaning "It is". That must be followed by "past".
'Passed' (pronounced 'past', is also the past tense and past participle of the verb 'to pass'), so you can also say 'Walk that way and when you have passed the bar it's on the right, past the fruit machine.