Expert Advice on Hospitality Topics

Reduce Bar Costs By Streamlining Issuing Procedures

Posted by Nick Kaoukis on Mon, Mar, 07, 2011 @ 13:03 PM
By Elizabeth Godsmark
Atlantic Publishing

Part 5 of 6: Reduce Costs By Streamlining Issuing ProceduresLiquor inventory Streamlined

Revise your existing issuing procedures. You'll be surprised at how much cost trimming you can achieve in this area. Issuing procedures are particularly vulnerable to employee theft and wastage. Establish a simple issuing procedure that focuses on reducing costs. Keep the following basic records:

  • End of shift. Bartenders need to record the name of each liquor, wine and beverage emptied during their shifts. They should also note the number of empty bottles and the size of the bottles. Make bartenders responsible for this activity. They will feel accountable.
  • Manager authorization. Managers should check empty bottles against the beverage requisition form at the end of each shift. It is much easier and more cost-effective for resolving any problems immediately than letting minor queries develop into major problems at a later date.
  • Issuing replacement stock. Either the manager or the bartender is the best person to return empty bottles and the completed requisition form to the storeroom. The person replacing the empties should check all the information on the requisition and issue replacements, bottle for bottle.
  • Breakage. It is important to account for breakage each time the requisition form is completed. Not only does it give you tighter control over cash flow, it also helps identify potential (and costly) problem areas - sooner rather than later.
  • Daily cost keeping. Calculate, on a daily basis, the total cost of inventory issued. This should be viewed as a separate management or administrative function. It provides an essential "cross-check."
  • Computerized issuing. A manual issuing procedure works well in many small establish­ ments. But, if you have the resources, opt for a computerized system. It will quickly repay your investment. For information about computerized solutions, contact:

Topics: NightClub Management, Liquor cost, inventory control