Expert Advice on Hospitality Topics

Bar Management Tips: Identifying and Improving Areas of Vulnerability

Posted by Nick Kaoukis on Mon, May, 13, 2013 @ 10:05 AM
By Douglas Robert Brown
Atlantic Publishing

 

Part 1 of 2: Improving Profitability Through Proper Planning and Quality Control

describe the imageMoney losers in a bar come in many forms, and you will want to check your financial records carefully to make sure that you are not being affected by one of these:

  • No plan. Many bar owners have no clear plan of where their bar is headed and what they need to purchase and do to get there. Many say "I only want to run a bar." However, running a bar, like anything else, is a goal, and goals always require a plan. You should know where you will be expanding and how. You should know what products you need to order and when. Keeping everything on paper in the form of a business plan and purchase orders can help make it clear to you.
  • Lack of local products. Many bar managers will justify their lack of local beer by stating that their bar's style or type does not call for local beer. In fact, local beer and local food products are often the best-selling items in any bar. Many customers like or support the local beer, and visitors from other areas are often eager to try the local fare. Always offer local products, even if your bar has a uniquely international or exotic theme. As an added bonus, local products are often easier and less expensive to ship and buy, ensuring higher profit on your initial investment.
  • Spoiled food and drinks. Spoiled product is lost profit. In some cases, such as a major power disruption, this can be hard to avoid. In most cases, though, spoilage is caused by ordering too much. This is avoidable. Keep track of your inventory and past purchasing patterns and buy those products that you need in the quantities they were needed in the past. Frequent checks on inventory tell you when you are running low and when you need to stock up on certain products.
  • Cutting corners on quality. Many bar managers use a variety of ways to reduce quality. In many cases, they do this not to consciously deprive customers, but out of the mistaken belief that low quality costs less. They think that offering less for more will result in larger profits, when, in reality, cutting corners usually keeps customers from coming back. Quality products—be it fresh fruit in drinks, generous portions of drinks, or pleasant bathrooms—will bring the types of repeat customers who will ensure that you make money.
  • Staffing problems. There are many staffing problems that can cost you money. Hiring or keeping unqualified or unproductive staff (because they are friends or family members, for example) is terrible for your bottom line. Selecting the wrong staff is a problem that can cost you a lot of money.
  • Poor storage, wrapping, and handling of liquor and foods. Beer that is left out to get warm, meat that is thawed and allowed to spoil, and food and drinks that are incorrectly handled can mean waste or even food poisoning for your customers. You do not want the health department investigating your bar for poor management of food and drink. Make sure that you control how food and drinks are stored and handled. Food and drink preparation areas should be clean, and staff should keep all products that need to remain cold in the refrigerator or freezer. Food and drinks should be stored and served at their appropriate temperatures to ensure that your customers stay safe.
  • Poor attitude or atmosphere. Customers want a place where they can relax and get great service. If your bar is unpleasant, you will lose money by losing customers. You need to make sure that your bar is an inviting place not only to drink and eat, but also to linger.
  • No customer concern or no customer market research. Bar managers are busy people, and while they may not overlook customers on purpose, far too many lose sight of bar patrons as they worry about the many other elements of running a bar. Not catering to customers, however, can ensure that a bar will lose a lot of money. Not only will unsatisfied customers not return, but they will often share their experiences with other people—potential patrons. In order to avoid losing money, it is important for bar managers to not only please customers, but to impress them enough to make them wish to return. Regular market research will reveal not only who your bar's customers are, but also what they want.

 

This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company
Amazon.com

Topics: Bar staff, bar profitability, NightClub Management, bar business, Bar Management, Increasing Profits, Hospitality

Promote Your Bar By Providing Alternative Types of Entertainment

Posted by Nick Kaoukis on Mon, Dec, 10, 2012 @ 12:12 PM
By Douglas Robert Brown
Atlantic Publishing
 

There's More to Offer Than Music & Dancing

Karaoke BarMany bar operators like to keep their patrons entertained with a variety of eclectic means and don't mind spending a few dollars to do so. In fact, major sporting venues have been employing these kinds of halftime entertain­ments for years and finding great results. If your bar can offer unique and appealing entertainment, chances are very good that you will have plenty of clientele. Better yet, if your bar develops a reputation for providing great entertainment, customers will always be dropping by your bar to look at your latest entertainment options. Consider the following:

Trivia nights. A handful of questions, a few slips of paper for answers, a running score, and $50 worth of vouchers for food and drink to give away—it all makes for a big night of entertainment. More venues are seeing the value of trivia competitions—luring customers in with the offer of freebies. These contests vary from huge nights run by live presenters to computerized interactive trivia games, where patrons compete against bars around the country via satellite. Either option does one important thing: brings people back.

Food tasting. People love food, and if you offer free appetizers or snacks with your beverages, you will draw a crowd.

Theater. Traditional theater (or mystery theater) gives customers a chance to look at something and encourages people to stay for an entire performance.

Karaoke. The Japanese tradition of karaoke has come on in leaps and bounds in North America in the last ten years, but there's still a big difference between quality karaoke and most karaoke. It's far more than simply putting up a bunch of old songs with some fuzzy video. Your karaoke enthusiasts need variety in the music selection. Hire a good karaoke host who can keep things moving and draw a big crowd of listeners.

Board games. A Scrabble or Monopoly night might be a simple idea, but it also works! Quieter nights of the week are an excellent time to try out a board game tournament. It instills a sense of community amongst your patrons.

Stand-up comedy. It's more than possible for you to find four or five stand-up comedians who will keep your audience laughing without costing you more than a hundred bucks total. Live comedy is a great draw, and it tends to keep an audience planted until the finish. Try an open-mike night and see what you find!

Live Entertainment. Eventually all bars consider live entertainment. Few things draw in crowds like a live band. However, knowing which bands to book is not always easy— or affordable. If you have a small bar, consider open-mike night and opening your doors to local bands that need a venue to practice. This will bring some entertainment to your bar at no cost—and entertainers often bring their friends along. For more ambitious booking, you may need to contact managers and publicists of more established entertainers. Prepare yourself by having the stats of your bar—how many customers you can draw, and what the crowd is like—ready. You should give the manager or publicist the reasons why your bar is a great place for the entertainer to perform.

Celebrities. Even celebrities will sometimes appear at smaller venues if there is a good reason for them to do so. If a celebrity will be in your area, contact the their publicist and give them the most compelling reasons you can for appearing at your establishment—be it a charitable cause or some other motivation. Celebrities tend to draw a crowd, and if your bar gets a reputation for celebrity sightings, you can expect a good crowd on any given night. Be sure to give them the ultra VIP treatment, and ask for an autograph that can be prominently but discreetly hung behind the bar.

 

 

This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company
Amazon.com

Topics: NightClub Management, bar business, Bar Management, Nightclub Consulting, opening a bar, Bar Promotion

Coin-Operated Entertainment: An Extra Source of Revenue for Your Bar

Posted by Nick Kaoukis on Wed, Nov, 28, 2012 @ 08:11 AM
By Douglas Robert Brown
Atlantic Publishing
 

Bar ArcadeCoin-operated entertainment machines are a great source of extra revenue for a bar. The eclectic nature of most bars means that coin-ops of all styles, sizes, and functions can fit perfectly within your surrounds while adding to the fun and flavor of your establishment. The profits that coin-ops generate can be huge; they can also run a lot deeper than just the money inserted into the machines.

Coin-ops increase traffic, generate great repeat business, and keep people in your venue far longer. Coin-ops also give people who arrive alone a chance to do something as they sip their drinks. From high-tech games to virtual reality to pool tables, anything that gives your customers added entertainment is a good option, especially if it will bring you higher profits. These machines are cheaper than renovations but can contribute nicely to your profits.

  • Profit-based coin-ops. Some coin-ops don't have to cost you a cent, but they can bring in a good source of revenue. Simply open the phone book and look under "Coin-operated" and you'll find a slew of companies that will bring you games and entertainment for your customers for no charge—other than a share of the profits. This kind of a deal can only be good for your business. No maintenance worries and you get a new machine whenever an old one stops earning money—all free of charge.
  • Deal directly with the machine manufacturers. In a scenario like this, your venue will handle most of the daily maintenance required of the machines and the manufacturer's repairperson comes out only as needed. While this limits your selection of game alternatives, when you want to switch games, it's only a matter of changing a couple of computer chips. The actual game casing stays the same, but a completely different game appears, keeping your customers from getting bored with their options.
  • Don't forget change machines. If you are going to offer coin-ops, make it easy for your customers to use the machines without taxing your staff too heavily for change. One change machines is all that is needed.
  • Responsibility. If the machine is on your premises, take responsibil­ity for it and either return the customer's money or see to it that your supplier can fix the malfunctioning machine A.S.A.P. There's nothing worse than wanting to play a machine and finding it switched off— again.
  • Photo-machines. Customers put up to five dollars into the machine and step in to have their photo taken. In a few minutes, they can have their image on stickers or postcards; they can even pick a background. These machines are huge moneymakers and can even incorporate an ad for your bar within the picture. Your local phone directory will list plenty of suppliers.
  • Lottery machines. If your state allows them, they can be a great source of revenue. The latest machines work much like slot machines in Las Vegas, allowing customers the chance to win big.
  • Retro arcade machines and video game machines are very popular and go well with bars. Many people love these games and gladly spend extra time at a bar in order to play them.
  • Dancing machines. Patrons throw a dollar into the machine and step onto a stage that features a series of lights. They then try to step on whichever lights flash to keep in time with an on-screen dancer. These machines can be very addictive and often draw a large crowd—which can't hurt your bar's takings. Again, any amusement machine vendor in your local phone directory should be able to supply this machine.
  • Virtual reality (VR) sports are becoming a reality. More and more bars are installing VR golf ranges, VR batting cages, VR racing games, VR bowling alleys, VR hockey games, and VR boxing machines. These machines are the same as any other coin-operated gaming machine, except they cost the customer more and deliver a superior product. While they take up more room, they give you far greater profitability and extensive replay value.

Coin-operated games come in many varieties. Just about any game you can think of has a coin-op version available. Football, air hockey, video games, shooting games, skee-ball, basketball games, even video poker and blackjack machines that fit into your bar-top—it's all available and it's all going to bring in a newer, younger customer for a minimum investment or no investment at all.

And let's not forget the old stalwarts--pinball and darts. Going old school nowadays can seem fresh and new. Retro is in:

Pinball Machines

PinballThe trusty pinball machine has been around since the late 1800s yet still uses the same formula as the pinball machines of old. Lights, sound effects, the bounce of the ball, the sound of the flipper, and the lure of a high score. With a little smart thinking, your pinball machines can earn you a lot of money.

  • Install a pinball machine in your waiting area. If you keep the noise levels down so nearby customers don't get annoyed, they can be a great moneymaker. Vendors can bring you the latest pinball machines for free and will split all profits with you at the end of the month. At 50 cents a game, a machine only needs to be played ten times a day to bring you $75 a month in profit sharing. Not a bad return on zero investment!
  • Vintage machines. Invest in a vintage pinball machine rather than getting a coin-op company to bring in a high-tech modern machine on which you'll have to split your profits. Older machines cost far less to buy and a lot less to maintain, and the appeal of an old machine will bring back memories for your older patrons. Machines such as these can be purchased through online auctions such as eBay (www.ebay. com).
  • Outright purchase. If you choose to purchase your own pinball machines, look in the classified ads in the newspaper or at local auctions for the best deal. Of course, purchasing your own machine will mean you're responsible for its maintenance, so look for a machine that either comes with an array of spare parts or that has been fully serviced recently. The older the machine, the tougher it becomes to track down spare parts when the time comes to repair them.

Darts


Long a bar game institution, the old dartboard has become high-tech.

  • Darts at a BarNew technology. Look at what's available on the market today. The dartboard has received a technological boost. Coin-operated dart systems not only keep score for your patrons, but they also bring in a new source of revenue. Turnkey systems can be purchased or brought in under a profit-sharing deal.
  • Dedicated area. Even if you can't be bothered with a coin-op version of darts, it still pays to set aside an area for a dartboard. Tournaments and leagues can bring in a steady flow of new customers.

 

 

This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company
Amazon.com

Topics: bar profitability, NightClub Management, bar business, Bar Management

Maximizing Your Bar's Profits

Posted by Nick Kaoukis on Wed, Nov, 14, 2012 @ 10:11 AM
By Douglas Robert Brown
Atlantic Publishing
 Maximizing Bar Profits

Once your bar is open, it will start making profits on each drink sold. However, in today's competitive marketplace, a profit is not always enough to keep a bar in business. In many cases, you need to focus on getting more per drink in order to make your bar a success. There are several ways that the bar can help ensure a larger profit:

  • Offer your bar staff incentives to make sure that you are getting the business you need. Your staff can help customers find a venue (your bar) for functions or can promote a drink that is a known profit maker if they know that they will get more money for it. If a staff member books an event that brings in $500, a $50 incentive for the staff member is well-spent money indeed.
  • Know which drinks make the most profit and advertise them. Knowing which drinks can help bring in the money is key. Once you have figured out which items bring in the most money, make sure that you advertise them. Have staff mention these drinks by name, and make these drinks more visible and more visually appealing. In many cases, suppliers will help by providing you with coasters, posters, or other items that advertise certain brands.
  • Make sure your customers get value. Too many business owners (and bar managers) cut corners, thinking that spending less means more profit. Studies have shown that the opposite is true—if the customer thinks they are getting more than they can expect, they will often respond in kind by patronizing the bar and bringing their friends. 
  • Make it easy to linger. Have interesting television on in the background. Have your staff ask "How about a round of coffee?" rather than "Would you like the bill?" The longer people linger at your pub or bar, the more they will buy. Also, if your bar has some people in it, it will be more appealing and lively to other customers. Customers are valuable—never rush them out.
  • Stay flexible. Keep eyeing the crowd, and if you notice shifts in the crowd, be flexible enough to change to suit the crowd. Did a bachelor party just come in? Adjust by running a one-off special on beer or by turning on dance lights. Is there a more sedate crowd tonight? Bring things down a notch with softer music and lights. Your customers will appreciate the extra touch and will be more likely to stay if your place is just what they're are looking for.
  • Make sure that there is always someone on staff who can make executive decisions. If there is a profit to be made and a customer to be satisfied by veering from the ordinary (by preparing special drinks or booking special functions), be sure that someone on staff can make the right decision for the bar, fast.
  • Cut down on how often you say no. There is no way to satisfy each customer, but do try to keep a variety of things on hand so that you can make the drinks and snacks customers demand. Don't spend lots of time or money trying to buy every item, but do stock up on items that can be used in the near future (sodas, non-perishables). Make sure your staff know what is on hand and have them suggest an alternative when the customer asks for something that is not available. Whenever someone at your bar says no, they are giving a patron an excuse not to return.
  • Consider merchandise. A great logo on T-shirts, pens, golf shirts, baseball caps, key chains, lighters, and glasses takes up little room but can bring in as much money (or even more) than your beverage items.
  • Consider vending machines. Vending machines are easy places for customers to get anything from antacids, breath mints, phone cards, bottled water, condoms, feminine products, snacks, to cigarettes. Vending machines allow you to make a profit without taking much effort. Your local Yellow Pages can easily put you in touch with vending suppliers near you. You can even place your snack vending machines outside the bar proper so that you keep earning money while the bar is closed.
 

This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company
Amazon.com

Topics: Bar staff, bar profitability, NightClub Management, bar business, Bar drinks, Bar Management, Nightclub Consulting, bar design

Monitoring Your Bar's Performance: The Closeout and Audit

Posted by Nick Kaoukis on Mon, Nov, 12, 2012 @ 08:11 AM
By Douglas Robert Brown
Atlantic Publishing

 

Bar Sales PercentagesAt the end of each month, it is important to close out all expenses and sales and balance all accounts. This process ensures that finances are being monitored and helps prevent financial problems down the line. It also lets you, the bar manager, see whether the bar is making a profit or not and what changes (if any) need to be made to operations.

Closeout actually depends on what goes on financially in your bar all month. It is essential that all expenses are recorded each day. Not having a reliable list of expenses incurred is sure to result in inaccurate bookkeeping and many problems at audit time. You need to record all expenses—including those that are prepaid or those for which you get a bill.

Monthly Audit Procedures

On the last day of the month:

1. Gather the completed inventory forms for food, liquor, wine, and operational supplies.

2. Using current invoices and past inventories, cost out the Inventory Form. The unit cost (or price) entered on the Inventory Form must correspond to the item and unit in the actual inventory. Correct prices are ensured by continual evaluation of invoices and/or contact with the suppliers.

3. Ensure that the employees organize and clean the storage areas and walk-ins so that the ending inventory may easily be taken the following morning. Combine all containers and bottles. Organize and label all shelves.

4. Schedule the bookkeeper and the employees involved in taking the physical inventory—the assistant manager, kitchen director, bar manager, and general manager—to arrive early in the morning prior to the start of business on the first of the month.

5. Schedule the preparation cooks to arrive an hour after the inventory crew so that you may inventory the food areas without disturbing them.

On the following morning, the first of the month:

6. The bookkeeper should arrive as early as possible in order to complete all of his or her work prior to management's completion of the inventory:

A. Reconcile and record all the transactions from the previous day, as
usual.

B. Enter the information on the Daily Sales Report Form. Total,
double-check, and verify all the columns.

C. From the employee time cards complete, total, double-check, and verify the Labor Analysis Form.

D. Ensure that all purchases are recorded in the Purchase Ledger. Complete, total, double-check, and verify the Purchase Ledger for each company. Total the purchases in each expenditure category: food, liquor, wine, and each individual operational category.

Ensure that all paid-outs entered on the Cashier's and Bartender's Reports have been posted into the appropriate Purchase Ledger categories. Total the cash paid-outs. Add this figure into the purchase total for each expense category.

Computation of Key Percentages


 

This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company
Amazon.com

Topics: Bar inventory, NightClub Management, bar business, Reducing Liquor Costs, bar control

Maximizing Bar Profits Without Sacrificing Quality and Integrity

Posted by Nick Kaoukis on Tue, Oct, 09, 2012 @ 14:10 PM
By Douglas Robert Brown
Atlantic Publishing

 

Making the Most from Sales

Bar PromotionThe savvy bar manager knows how to maximize profits and get the most sales possible without sacrificing ethics or drink quality. You can do the same if you follow a few simple tips. One simple way to maximize profits is by offering promotions or discounts. The small cost factor involved in initiating these promotions make them a good promotional vehicle.

"Happy hour," for example, a period of time when drink prices are generally reduced, can be an effective means of increasing bar sales. However, to be substantiated, it must draw a large volume of customers. "Happy hour" is most often run prior to opening the dining room, usually between 4 and 6 p.m. Drinks are sold at half-price or at a substantial discount. Hors d'oeuvres and salty snacks are often served, which will induce the customer's thirst.

In order to offset the enormous increase in the cost of sales due to the lower drink prices, total liquor sales must be increased substantially. A restaurant that lowers all drink prices by 50 percent during "happy hour" will be simul­taneously doubling its cost of sales. When analyzing the feasibility of a "happy hour," you must also consider the additional cost of labor during a non-operating period; the food cost of hors d'oeuvres and other snacks; and any variable costs, such as the use of additional utilities.

The gross profit margin during any "happy hour" is small, though it can be substantiated with sufficient sales. An increase in revenue, small as it may be, will be created where none had previously existed.

There are other possible benefits from initiating a "happy hour." Lounge customers will be exposed to the restaurant and may wish to return at a later date to try the dining room. Customers may stay past the "happy hour" period and purchase cocktails at the full price or remain for dinner.

Employees will also benefit from a "happy hour" by an increase in income through increased hours and tips. This point is an important consideration, as employees may become discouraged during periods of slow or seasonal business. A "happy hour" that may not provide the restaurant with the desired profit may be deemed worthwhile for increasing employee morale and decreasing job turnover, eliminating the costly expenditure of rehiring and retraining new personnel.

Bar Tabs

Bar TabsAnother way to maximize spending, and your bar's profits, is with bar tabs. Bar tabs make it easier for customers to spend without hassle, encouraging multiple orders of drinks. To allow bar tabs or not is a policy that can be debated from both sides with sound reasoning. Many bars and restaurants have been victimized by customers who walk out and do not pay their tabs. A policy of no bar tabs will alleviate the initial problem, but it will certainly be inconvenient—and possibly insulting—to some customers.

A bar tab should always be run if a customer so desires. The lounge is a place where the customer may relax and enjoy a cocktail before dinner. He should not be inconvenienced by paying for each drink order as he goes along. Drinks should also be automatically added to the dinner bill unless the customer wishes otherwise.

 

 

This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company
Amazon.com

Topics: bar profitability, NightClub Management, bar business, Bar Management, Bar products, Increasing Profits, Bar Promotion, liquor products

Bar Management Tips: Keeping Up Appearances

Posted by Nick Kaoukis on Thu, Sep, 13, 2012 @ 11:09 AM
By Douglas Robert Brown
Atlantic Publishing
 

Outdoor Areas Deserve Focus

Most customers will be people who have passed you by in the past and decided to try your venue. In order for this to happen, you need to pay far more attention to the exterior of your venue than most bar operators do. Here are some easy ways to spice up your outside areas:

  • A graphic projection lighting system. Also known as a "bat light," this type of system can provide a highly effective way to advertise your bar to passersby. It also looks great when used on the inside of your establishment. Bat lights use a light and optic setup to project your logo or other related graphics onto any surface, including walls, ceilings, the outside sidewalk, and more. They can be purchased or rented for far less than you might think. 
  • Bar Neon SignSignage. From how far away can your bar be seen? If you can't be seen at least a block away, consider increasing your outside signage. While this is not a small expense, there's no point in hiding the fact that your bar is nearby. If you talk to your distributors, you might find that one of them is prepared to subsidize the cost of your signage, in return for mention of their product.
  • Neon works! Why do you think every bar has neon beer signs in the window? The answer is simple: because people notice them. An impressive neon sign is a local landmark. Think of those huge neon signs in Times Square and how many tourists know of them and send photos of them home to their family. You don't have to go to quite that scale, but a small investment in neon will bring people in to take a closer look.
  • Don't discount the appeal of a nice paint job. Is your exterior freshly painted? A new paint job isn't just about aesthetics. The outside of your venue is usually assumed to reflect the inside. Consider asking your staff to come in after-hours and paint the walls for you, in return for a bonus. Most bar staff could use a few extra bucks now and then. It'll be a lot cheaper than hiring a professional.
  • Landscaping isn't a luxury. Just as your exterior walls say a lot about your interior, so, too, do your grounds. If all you have outside your venue is a gravel-covered parking lot and a few beat-up pickup trucks, you're not going to attract a broad demographic, no matter what you offer inside. Plant some hardy greenery outside that will survive any weather extremes (choose varieties that will not need constant trimming and watering). This will soften the outside of your bar exterior. A few trees around the outside of the parking lot won't hurt, and some up-lights underneath them can offer a particularly breathtaking look, for not a lot of money.
  • Keep things neat. Remove snow in the winter, have an awning to protect patrons from the elements, and make your entrance attractive to ensure that more people will peek into your bar.
  • Who is greeting your customers? Is someone making them feel welcome right away or are they being greeted only by a suspicious security pterson? Do not give customers an excuse to walk away after they have made it all the way to your bar's door. Make them feel welcomed.

Add a Touch of Class

Formal SilverwareSometimes the only element that separates successful bars from those that fail is in the small professional touches of excellence. This extra effort implies that tremendous thought has been made all around to attain the highest level of quality possible. Professional bartenders and courteous cocktail waiters/waitresses can be found in any well-managed restaurant. However, it is the small, un-demanded touches and extra procedures that separate good lounges from superb ones. Described in this section are some simple, inexpensive suggestions that will give your bar the extra touches—the finesse—that will separate yours from the rest.

Simple signs of quality that make a big difference include:

  • Real napkins and table linens.
  • Fresh ingredients, real fruit juices, and high-quality garnishes.
  • Elegant presentation of drinks—garnishes, fancy napkins, and pretty glassware can turn even ordinary drinks into extraordinary ones.
  • Elegant cutlery and dinnerware.
  • Fresh flowers and candles.
  • Quality tables, chairs, and seating. Comfort is always appreciated.
  • Entertainment. Giving patrons something to do or something to look at while drinking is appreciated, especially by those customers who arrive alone.
  • Beautiful bathrooms. Many customers judge a bar by the bathrooms. If yours are beautiful, clean, and offer extras such as a sofa and breath mints, your bar will seem all the more impressive and wonderful to your customers.    
  • Elegant decor or a unique ambience. Even sipping a beer in a visually exciting place seems more interesting and fun than staying at home. Lights, colors, and artwork can easily create ambience on a small budget.

 

 

This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company
Amazon.com

Topics: Bar trends, NightClub Management, bar business, Nightclub Consulting, opening a bar, bar design

Bar Management Tips: Making Each Customer Count

Posted by Nick Kaoukis on Thu, Sep, 06, 2012 @ 10:09 AM
By Douglas Robert Brown
Atlantic Publishing
 

Bar CustomersYour market and competitor research will likely reveal that most bars that are successful pay a lot of attention to customers. In fact, great service is one of the surest ways of drawing repeat customers. To draw more patrons to your bar on a regular basis, you do not have to spend a lot of money. However, you do have to think like a customer; you will likely notice a few things that need to change at your establishment:

  • Waiting lines. If there's a line outside the door, all it takes is a little creativity to either bring the line inside or disguise it on the outside. Remember, those people waiting outside are probably thirsty and they'd be more than happy to do their waiting in a courtyard area, at a temporary bar, or in a cordoned-off outside area where drinking is permitted. Of those who are prepared to brave the line, most will do so gladly if they know they can be inside within 30 minutes. Also, it's simple to change waiting-time perceptions by making that wait a little more comfortable or entertaining.
  • Parking can be a big hassle in many venues. If there tends to be a traffic jam outside your venue, consider installing a valet service on busy nights or posting a staff member outside to direct patrons to parking around the back or down the road. Signs pointing to parking areas also help.
  • Offer creative extras. Whether it is free hand massages, glow sticks, or a live band outside, making the outside dazzling will make people all the more eager to see the inside of the bar.
  • Think about your TV screens and sound system in relation to your waiting area. Can waiting people catch a glimpse of the big game? Can they hear the music inside? These things will keep a waiting person keen on staying around, whereas a blank brick wall and a disinterested bouncer isn't inviting to anyone.
  • Keep clientele informed. If there's a wait for a table, set up an electronic sign indicating how long their expected wait will be. Add to this anything you can think of that will make their wait more entertaining—sports scores, trivia questions, coming events. It might be a little more work, but if you can keep just five people from leaving, it'll be worth it. 
  • Freebies and incentives. Offer your waiting patrons a little something extra and they won't just "not mind" waiting, they'll do so gladly. Coupons to be used on a later date are a good option.
  • Create a waiting area if you know that there tends to be a wait to get into the bar. This can include comfy chairs or an outside patio where customers can wait and sit. This is a great way to make sure that customers do not get tired and leave.
  • It doesn't have to be expensive. Giving your waiting customers something to do doesn't have to be expensive, high-tech, or take up your employees' valuable time. Consider offering free reading material in your waiting area or even Internet access.
  • Act first. A long wait doesn't seem quite so long when a staff member keeps you informed on how long your table will take. Don't wait for the customer to ask you; go out and tell the customer.
  • Make your bar irresistible. Why will some bar patrons wait forty-five minutes to get into a bar instead of giving up and going elsewhere? They have a sense of urgency to get inside. Whether you are offering a hot live act, celebrities, or some other enticement, make sure it is worth the wait
  • Offer free appetizers to waiting patrons. A tray with a nice selection of different foods from your menu can actually be a great advertisement and may even generate increased food sales.
  • Supply your customers with pagers. Offering waiting customers a pager to notify them when their table is ready is a great alternative to the usual "public address" announcement or a yell over the crowd. When a table becomes available, your host simply dials the waiting customer's number, and wherever they are in the building (or outside), they know that their table is ready. 
  • Build suspense. If it appears as though there is something really exciting going on in your bar, people will be willing to wait to get inside.
  • Make sure waits are fair. Patrons who have been waiting for a whilewill get rightfully angry if it appears as though the staff are letting in people who are paying extra or who are simply "flirtier." Make sure that your security staff respect the queue and try to get everyone inside in an orderly and fair manner.
  • Keep your customers informed. Be honest. If there'll be a half-hour wait, don't tell them it will be a fifteen-minute wait and hope they don't walk out. Similarly, ensure your staff keeps them updated on the wait so they know they haven't been forgotten. Small things like this make a big difference in the eyes of a waiting customer.

Customers are your mainstay in the bar business. If you treat them better than other bars would, you are ensured repeat business. Customers love to feel like VIPs, and the more patrons you make feel like this, the more business you will have. Share these tips with your staff to ensure they treat every customer as through he or she were a star.

 

This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company
Amazon.com

Topics: Technology, bar profitability, NightClub Management, bar supplies, bar business, Bar Management, Nightclub Consulting, opening a bar, bar location, Hospitality, Bar Promotion

Bar Management Tips: Fill a Local Need

Posted by Nick Kaoukis on Mon, Aug, 27, 2012 @ 08:08 AM
By Douglas Robert Brown
Atlantic Publishing
 

busy barThere are many bars that go out of business each year. This is because the market for new bars is a challenging one. If you are in an area that has new bars opening all the time and a clientele who is always seeking the latest thrill, you need to work extra hard to ensure that your establishment stays exciting enough. There are many small details that can mean the difference between a bar that is merely surviving and one that is prospering beautifully. In this chapter, you will learn the small details that can push your success higher than ever. Not all of these tips are expensive. Many take only ingenuity and some effort, but the results can be spectacular!

Distinguishing Your Bar from Others

One of the first steps to ensuring that your bar is a success for a long time to come is to look around and make sure that you are offering value in the local area. Most of your business will be from people who can easily drive, walk, take a cab, or ride a bus to your bar. These same patrons will have the choice of many other bars in the area. There are a few ways to make sure that they select your bar:

Research the competition. Take the time to sit in every competing bar. After you order your drink, take notes: Who frequents these bars? Older patrons? Younger patrons? Yuppies? Tradespeople? What sort of bar is it? How much do they charge? What does the bar look like? What are the drinks and food offered? What are the promotions? What kind of entertainment is offered? How busy are they and on which night are they busiest? What are they doing wrong? What are they doing right?

Consider lower prices. If your competitors' prices are high, consider lowering yours. It will often get people to try your establishment for the first time. Your service and the quality of your bar will decide whether
they return.

Service. If your bar is known as the friendliest bar in town while your competitors tend to slack on service, you will make a profit. If your competition is already offering great service, you have to make your service stellar in order to compete.

Focus on what the competition is doing wrong. If you notice something that the competition is doing wrong, make sure that your bar is doing that same thing right. It will encourage patrons to see your bar as the local establishment that offers more.

Set your hours to take advantage of times when your competition is not available. If the competition stops food service early, think about extending your food service hours. Being able to provide something that the competition cannot or is not willing to provide is a great way to make sure that you lure in new regulars.

Do you know what the local patrons want? If you do not ask them and conduct regular market research, you have little hope of knowing the very things that will draw patrons to your bar.

Look at the bars that are succeeding elsewhere. What works in other cities and towns may work in yours. Pay special attention to the types of bars that are doing well in areas similar to your own (in towns or cities with the same demographics). These bars may have hit on an idea that may work well in your area as well.

Special promotions. Avoid using your best ideas and resources trying to compete on someone else's strongest night. Offer special promotions and discounts on nights when other bars are not offering anything. It will help lure in customers looking for something great on a slower night.

Remember, if you can offer something special, you are more likely to get more customers. It pays to make the extra effort to find out what is needed in your area—and then supply that need. Customers will flock to you.

 

 

This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company
Amazon.com

Topics: nightclubs, NightClub Management, bar business, Bar Management, Bar products, Nightclub trends, opening a bar, Increasing Profits, bar location, Bar Promotion

Myths About Managing a Bar That Could Hurt Your Business

Posted by Nick Kaoukis on Thu, Aug, 02, 2012 @ 16:08 PM
By Douglas Robert Brown
Atlantic Publishing
 

Myth: Bartending School Is Vital for a Bartender

FalseMany of the best bartenders learn most of their useful trade while at work. This is because bartending schools vary widely in quality. Some emphasize the preparation of rarely requested drinks without stressing useful skills such as bar management, customer satisfaction, and customer safety. If you are hiring a bartender, you should consider the school he or she has attended, but testing practical skills will give the best clue of how many useful skills the person has for waiting on your bar. If you are considering attending a bartending school, investigate the school to make sure that you will be taught skills such as organization and techniques of serving. A good bartending school or course will emphasize dealing with customers. Be wary of a bartending school that is more of a "drink mix" school, stressing mixing many types of drinks without teaching anything besides drink preparation. There are many of these sorts of schools out there, which claim that a bartender's greatest asset is knowing how to mix an endless variety of drinks. Learning to mix the latest drink is relatively simple once one looks up the recipe, and most patrons will order the most popular drink of the moment rather than some obscure mix. A bartender with a good grasp of people and basic bartending techniques is usually more useful than the bartender who only knows how to mix hundreds of drinks from memory but has few skills besides. In some cases, an employee with a hospitality degree is better able to handle the bar job than someone who has attended a bartender school.

 

Myth: If You Hire Experienced Employees, There Is No Need to Train Them

 You still need to train your employees to ensure that they understand what you want them to do. In cases where an employee has worked at another establishment for a while, you may actually need to provide additional training to allow the employee to get used to the way you want things done versus how they did things at their previous job.

 

Myth: Hiring Younger Serving Staff Is Best

Many bar managers mistakenly believe that hiring young female servers will help ensure a high customer loyalty. This is based on the belief that middle-aged men are the main patrons of bars, which is no longer the case. When hiring servers or other staff, you should consider experience and skill over age or physical appearance. In most states, hiring based on age or appearance is discriminatory and can lead to lawsuits.

 

Myth: The Customer Is Always Right

Bar managers want the customer to be happy enough to return and satisfied enough to recommend the establishment to others. It is never wise to argue with a customer, and if the difference of opinion is something quite small, it is better to humor the customer in order to avoid making him or her feel embarrassed. On the other hand, if the customer insists that he or she is not intoxicated and can drink more, for example, then they should be refused further drinks.

 

Myth: Security Staff Is Vital in Today's Bar

Security does add a certain peace of mind, but at many establishments, it is still the bartender who acts primarily as the security force of the bar. Where your security comes from depends on your location and bar. If you decide you do not need a separate security staff, however, make sure that the bartender or some other personnel are willing to help customers in case of an incident.

 

Myth: To Run a Successful Bar, Just Serve Great Drinks

While quality drinks are a key to bar success, many people go to bars to spend time with others. If you serve good drinks but offer exceptional atmosphere and service, you are likely to do well. In today's competitive world, great drinks alone are not enough. Bar managers need to have good financial planning and careful advertising and marketing and offer great customer service in order to be a success.

 

Myth: You Can Cut Corners to Increase Profits

Reducing costs or cutting corners (reducing the size of drinks or firing staff) is unlikely to help. Customers expect more from bars than ever before. Offering them less is unlikely to bring you the results you want. If you are just starting out, it may take months to see a profit. If you have been in business for a while, increasing customers and getting more from each customer by encouraging spending and lingering are far better strategies than downsizing in order to make a profit.

 

Myth: You Must Keep Expanding in Order to Make a Profit

Many bar managers think that in order to make a large profit, they need to dabble in everything. For this reason, many bars spend large amounts of money setting up dance floors, live acts, larger establishments, and restaurants. When you are just starting out, though, it is often best to keep things simple. Do not expand randomly, assuming that spending more money will bring in more money. Only expand after careful research and weighing the potential risks and benefits. You do not want to get into debt for a venture that is unlikely to work for your bar.

 

 

This article is an excerpt from the The Professional Bar & Beverage Managers Handbook: How to Open and Operate a Financially Successful Bar, Tavern and Nightclub, authored by Douglas Robert Brown, published by Atlantic Publishing Group. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company
Amazon.com

Topics: Bar staff, bar profitability, NightClub Management, bartenders you can trust, bar business, Bar drinks, Liquor cost, Bar products, drink recipe, liquor products