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

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

Controlling Food Inventory to Generate Maximum Profits

Posted by Nick Kaoukis on Fri, Apr, 29, 2011 @ 10:04 AM
By Douglas R. Brown
Atlantic Publishing

Part 5: Purchasing and Ordering--Procedures and Practices

Purchasing and Orderingfood purchasing

What exactly is the difference? Purchasing is setting the policy on which suppliers, brands, grades and varieties of products will be ordered. These are your standardized purchase specifications; the specifics of how items are delivered, paid for and returned. These specifications are negotiated between management and distributors. Basically, purchasing is what you order and from whom. Ordering, then, is simply the act of contacting the suppliers and notifying them of the quantity you require. This is a simpler, lower-level task. Here are the basics:

  • Develop a purchasing program. Once menus have been created that meet your customers' satisfaction and your profit needs, develop a purchasing program that ensures your profit margins.
  • An efficient purchasing program incorporates: Standard purchase specifications based on standard­ized recipes, and standardized yields and portion control that allow for accurate costs based on portions actually served.
  • Keep in mind: Purchasing more than you need usually results in poor portioning, excess spoilage, waste and theft. Not buying enough can mean paying retail prices, or using a more expensive substitute.
  • Purchasing procedures. These procedures should include creating written purchasing specifications for every product and selecting good, reliable purveyors. Your purchasing procedures should do three things:
  1. Allow you to purchase the required items at prices that meet your food cost goals.
  2. Maintain control over your existing inventory.
  3. Establish a set of procedures to be sure that you receive quality product at the best price.
  • Purchasing responsibility. Either take on the purchasing yourself or assign a specific employee to do it. Make sure that this person keeps current with ever-changing food prices.
  • Price checks for different vendors. Sometimes you may find that one vendor is less expensive than another for a while, and then this may shift. Keep current with competing vendors' prices.

Purchasing Specifications

By creating purchasing specifications, you can control which items you purchase and you can maintain product consistency. This information is extremely important if you have more than one person that does ordering in your operation. You need to record the following basic information:

  • Purchasing specifications. They state the exact requirements for the amount and quality of items purchased. These specifications should include:
  1.  
    1. Product name
    2. Quantity to be purchased (designated with correct unit such as pounds, can size, etc.)
    3. Indication of grade, if applicable
    4. Unit by which prices are quoted
    5. What the product will be used to produce
  • Meats. Meats should be inspected by the USDA or
    other appropriate agency. The parts or packaging
    should carry a federal or state inspection stamp.
  • Eggs. Eggs should have a USDA grade; frozen and
    dried eggs should be pasteurized.
  • Shellfish. Shellfish should be purchased from
    suppliers that appear on public health service Food
    and Drug Administration lists of Certified Shellfish
    Shippers or on lists of state-approved sources. The
    control tags must be available if live shellfish are
    used.
  • Introduce a record sheet. Make it readily available for all your employees. They need to be sure that they're ordering the correct items in the correct amounts. You're also more likely to attain your desired food cost by keeping these records and maintaining purchasing controls. Keeping your food cost down will help you to maximize profits from your menu prices. The following form illustrates an example of a purchasing specification form:

Purchasing Specification Form

 

 

This article is an excerpt from the Food Service Professional Guide to Controlling Restaurant & Food Service Food Costs, authored by Douglas R. Brown, published by Atlantic Publishing Company. This excerpt has been reprinted with permission of the publisher. To purchase this book go to:

Atlantic Publishing Company 
Amazon.com

Topics: inventory, Restaurant Inventory, food inventory, Control, Hospitality, inventory schedule, inventory counting, controling costs, purchasing, inventory control