Expert Advice on Hospitality Topics

By Elizabeth Godsmark

Well liquors are probably the most important products in any successful beverage operation. Approximately 50 percent of a typical bar's liquor depletion comes from well liquor. Therefore, how you select, handle and sell these liquors is crucial to the long-term sustainability of your operation. Bear in mind the following:

• Avoid supplier "come-ons." Suppliers are always keen to off-load excess stocks of well liquor. Only succumb if you think that you can easily sell the extra volume at a significant profit.

• Quality. Consistency and quality of well liquors varies considerably. Two factors are really important when choosing which well liquors to sell: quality and cost. Select well liquors that exactly match the quality expectations of your clientele. If your customers are picky, you cannot skimp on quality. It would cost you too dearly.

• Sequence. The traditional liquor sequence (bourbon, whiskey, gin, vodka, rum, tequila), where dark liquors are separated from light liquors, isn't the most cost-effective method of sequencing your well liquor. Try the more modern approach. Alternate light and dark liquors, e.g., gin, bourbon, vodka, scotch, etc. It reduces costly wastage. Bartenders are less likely to mistake one well liquor for another.

• Well liquor grade. Match the grade of well liquor to your type of establishment. No need for costly overkill. For example, exclusive clubs may have no choice but to sell predominantly premium brands. Less image-conscious outlets can reduce costs by selling semi-premium or pouring brands.

 

A lot depends on your location. Some states have an almost monopolistic control over alcohol distribu­tion; other states operate by licensing wholesalers. You need to familiarize yourself with county and local laws. They vary considerably from state to state. So, where do you start?

• Source a supplier. Take a look at your local beverage trade publications or Yellow Pages for a list of suppliers and wholesalers. The chances are you'll need to deal with several suppliers in order to get the full range of beverages required by your establishment.

• Service.As well as competitive prices, also look for exceptional service from your suppliers. For example, do they offer "emergency" deliveries at no extra cost to their regular customers? Time out to collect extra stock involves you in extra expense.

• Visit warehouses. Before deciding, visit a few different warehouses to see how they operate. More important, do they handle their stock with care? Bear in mind that returning faulty or poor merchandise can be time-consuming and expensive. Also, customer dissatisfaction is hard to quantify.

• Beware of hidden charges for minimum orders. Choose only a supplier that does not penalize you for minimum orders.

• Pool buying. If pool buying is legal in your state, choose a supplier that will give you the biggest savings. Negotiate, but don't compromise. Get a written quotation first.

By Elizabeth Godsmark

This sector of the beverage industry, known in the trade as NABs, needs to be taken very seriously if you want to cash in on current drinking trends. More customers today (often affluent, young, career-oriented clientele with plenty of disposable income) are choosing to drink NABs. Health issues, stricter DWI laws, and maybe even image are influencing their decisions to turn to NABs. The fact remains: this trend can mean big bucks. Tap into the possibilities:

• Promotions. Which NABs are consistently popular in your establishment? Buy bulk and sell on promotion. Publicize offers that your customers just cannot resist. Use a large chalkboard, or place "in-your-face" table tents on tables and at the bar.

• Specialize. Don't bother with expensive market research. Consult your regular customers. Ask them what they'd like to see on the menu. Decide on a few in-house specialties. Profits will increase noticeably, as margins for NABs are generally higher than for alcoholic beverages.

• Bottled water. This is no passing fad. Both in the dining room and at the bar, people are choosing to alternate alcoholic drinks with bottled water. Shelf dates tend to be generous (particularly for still, noncarbonated waters), so cash in: buy in bulk for big savings.

• Added value.Serve NABs in sophisticated, unusual glasses that scream "quality"! Customers will happily pay that little bit extra for a "wow" experience.

• Don't price too low. A word of warning. To make the most of this burgeoning area of the drinks market, keep your prices in line with your estab­lishment's other alcoholic beverages. If NABs are priced too low, bartenders will be reluctant to promote them, and customers will think they're nothing special.