By Elizabeth GodsmarkAtlantic Publishing
Part 4 of 4: Trim Liquor Costs
Liquor prices don't vary a great deal from one wholesaler to another. Packaging and size also tend to be fairly consistent. So, what can you do about reducing liquor costs in your operation? The answer is quite a lot! It's a misconception in the liquor trade that your options are limited when it comes to selling liquor. Consider the following opportunities:
- Bulk buys. Purchase staple liquors, such as whiskey, gin, vodka, brandy, rum and other popular spirits (e.g., fruit brandies) in bulk. They have a long shelf life and you know you can sell them within a reasonable period of time.
- Trends. Stay ahead of consumption trends. Respond quickly. For example, the current trend in the United States is toward "light" spirits such as 80-and 86-proof whiskies, instead of 100-proof (50 percent alcohol) bonded whiskies. Wholesalers, too, are keen to promote these alternatives.
- Distilled spirits. Their shelf life is exceptionally long. Buy distilled whenever possible, and minimize wastage.
- Well liquors. Which well liquors you choose can really make a difference in reducing costs. But don't buy at any price and compromise on quality.Your reputation is at stake. Customers often judge an establishment by the quality of its well liquor.
- Call liquors. Increase margins on call liquors (brand names). Guests who ask for Gordon's gin or Jack Daniel's whiskey, for example, are loyal to the brand and will probably not question the price.
This article is an excerpt from the Food Service Professional Guide to Controlling Liquor Wine & Beverage Costs, authored by Elizabeth Godsmark, 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:
Hotel Inventory,
Liquor Inventory savings,
alcohol cost
By Elizabeth GodsmarkAtlantic Publishing
Part 3 of 4: Cocktails--Reduce Costs While 
Increasing Customer Satisfaction
Cocktails are good for profits, and cocktail hour can be serious, big business. The customer feel-good factor is crucial. This can be achieved at no extra cost. Imagination is free.
- Well brands. Reduce costs by sticking to well brands for cocktails. Don't pour away your profits by using premium brands in cocktail recipes.
- Premium brands. Your establishment might be the sort of outlet that can make big profits out of selling premium brands. If so, use premium or middle-grade ingredients in your cocktails. Take every opportunity to advertise that fact. Emblazon quality brand names across your menus. Also, speak to your suppliers - they may be interested in offering you reduced rates in exchange for some free advertising.
- Signature drinks. Use your imagination and create something really special. Above all, a signature drink must look special. Choose unusual colors. Use different garnishes, such as asparagus, pepperoncini, jumbo shrimp, crab claw or scallions. Stand out from the crowd.
- "Stirred, not shaken." Don't shake mixed drinks that contain carbonated ingredients, particularly if those components are clear liquids. The bubbles will go flat, and the liquids will become cloudy. Stir instead.
- Presentation. Dare to be different. How about serving Chambord on the side for a Meltdown Raspberry Margarita? Let customers pour the liqueur portion themselves. As the liqueur blends into the drink, it will release wonderful aromatic raspberry flavors. It will also look visually stunning. Guests will think, "value."
- Champagne. Many recipes use champagne as a base ingredient. Once opened, a bottle of champagne or sparkling wine becomes a liability, because the bubbles are short-lived. Buy a bottle sealer specifically designed to cope with this problem. Ensure that bartenders know how to use it. You can't afford champagne wastage.
- Ice. Choose a cocktail station that has a deeper-than-average ice bin (up to 15 inches, maximum capacity). Put a divider through the middle of the bin and use it for storing both crushed and cubed ice. When the bar is busy, hanging around waiting for ice supplies costs money.
- Speed. Reposition liquor, wine and soda guns directly above the cocktail station. The soda gun should be placed on the left-hand side of the station, so that the bartender's right hand is free to hold a liquor bottle at the same time. A bartender using both hands is working at top speed and maximum efficiency.
- Perceived value. Improve customer perception of value and quality by increasing the high-cost portion of the cocktail. Up the liquor content to two ounces. Guests will feel they are getting real value for their money; you know this is good for profits.
This article is an excerpt from the Food Service Professional Guide to Controlling Liquor Wine & Beverage Costs, authored by Elizabeth Godsmark, 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:
liquor inventory timing,
restaurant trends,
liquor products
By Elizabeth GodsmarkAtlantic Publishing
Part 2 of 4: Make the Right Choice of Wines
Choice of wine is a very individual matter. There are no rights and wrongs. It is important, however, to pander to customer preferences. Whether you run a bar, restaurant, club or specialized wine bar, you must purchase wine according to the demands of your clientele. If you get it right, profits will soar. But, if you choose wines that aren't a hit with your customers, you end up pouring your profits, as well as the unsold wine, down the drain.
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Competition. Look at the competition. Keep up to date with which wines are moving well. Read trade journals and publications, such as the "California Wine Growers Institute," to learn more about current trends, or consult the California Association of Wine Grape Growers: 555 University Avenue, Suite 250, Sacramento, CA 95825; www.cawg.org.
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Regularly review the wine list. Be ruthless - if a wine is slow-moving, remove it from the list.
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Get ahead of the crowd. Introduce wines from up-and-coming wine regions. Suggestions include: New Zealand Riesling, Gewurztraminer and Sauvignon Blanc for whites, and South African Pinot Noir or Merlot for reds.
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Storage. Wine is a vulnerable product. One of the most effective ways of reducing costs and avoiding waste is to store wine in the correct environment (temperature, light and ventilation are particularly important). See www.storing-wine.com for handy tips on storing wine.
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Opened bottles. Establish par levels for each wine stocked behind the bar. Only open as many bottles as you need for one shift. All wines, particularly whites and cheaper house reds, become oxidized and deteriorate quickly once opened. A useful tip is not to pull the cork completely out of the bottle. If a cork is only partly pulled, the wine remains sealed, preventing oxygen from entering the bottle.
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Cost controls on empty bottles. Count empty wine bottles at the end of each shift. This practice makes sure that bartenders aren't overpouring. For example: you use six 1.5 liter bottles of wine during a shift; your standard portion for wine is 5 ounces; then sales for 60 to 61 glasses should show up on the register tape.
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Discount premium wines. Discounting premium wines results in a higher potential for profits. It also gives bartenders the opportunity to up-sell customers from standard house wines. This plan works well with "special buys" and wholesaler promotions.
This article is an excerpt from the Food Service Professional Guide to Controlling Liquor Wine & Beverage Costs, authored by Elizabeth Godsmark, 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:
wine inventory,
red wine,
wine list,
white wine
By Elizabeth GodsmarkAtlantic Publishing
Part 1 of 4: Develop a Successful Beer Program
Beer is a major seller in most bars, clubs and liquor outlets; it accounts for a hefty percentage of sales. Draft beer is particularly popular. It can prove a lucrative area of any beverage operation, if you get it right. It is estimated that wastage, spillage, excess foam, overpouring, poor quality, theft, giveaways and other draft-beer-related problems can drain your operation of an amazing 20 percent of inventory. Never underestimate the scope for cost reductions in this area!
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Promotions. Beer is a perishable product. As draft beer expires quickly, always consider discounting draft beer before bottled beer.
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Computer-controlled draft beer technology. A good control system is essential. The best type of control is a flow meter attached to each tap. If your usage is over two kegs per week, then you could justify the installation of an electronic device that counts fractions of an ounce.
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Foam head. Control the size of the head and really make an impact on cost reductions. A good head of foam is essential, but it is up to you to control the depth of the foam. For example, in a 16-ounce glass, a half-inch head of foam yields around 136 glasses of draft per keg, whereas a one-inch head yields up to 152 glasses per keg. Add up the difference! Train all bartenders to achieve one-inch heads of foam.
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Stop selling beer in pitchers. Pitchers sell at a lower profit margin than beer by the glass. Although pitchers are a better deal for customers, they do little for your profitability. You're far better off selling four glasses of draft than one pitcher of beer.
This article is an excerpt from the Food Service Professional Guide to Controlling Liquor Wine & Beverage Costs, authored by Elizabeth Godsmark, 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:
Draft Beer,
beer inventory,
Beer stock
By Elizabeth GodsmarkAtlantic Publishing DRINK MIXESJust because mixes aren't a drink's main ingredients, one shouldn't ignore their impact upon your operation's profitability. There is considerable scope for trimming costs in this area. Despite being sold in small portions, drink mixes have a high overall sales volume; it is also predictable and consistent. Review the range of drink mixes used in your establishment. It all helps to reduce costs.
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Fresh orange juice. It is worth investing in a good commercial juicer for orange juice. A handy tip is to rinse oranges under hot water before placing them in the juicer - the juice yield will be higher.
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From scratch drink mixes. Preparing a whole range of drink mixes from scratch is too time-consuming, and all too often, results in inconsistent quality. You're better off buying ready-made mixes. Test samples of mixes before making a decision. Prepared mixes can vary considerably in taste and quality.
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Cut garnish costs. Your choice of garnishes to accompany drink mixes can, quite literally, eat into your profits. Bartenders are notorious for nibbling olives, cherries, pineapple wedges, chocolate shavings, peppermint sticks, pretzels, etc. Remove temptation. Store garnishes in airtight containers in a cooler, away from temptation. Also, establish par levels for fruit garnishes and only prepare enough for one shift.
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Unusual juices. Use single-portion 6-ounce cans for less-frequently-served juices. Trade higher cost for reduced wastage, time saving and convenience.
BOOST PROFITS BY CHOOSING THE RIGHT DRINK RECIPES
The recipes you choose to feature on your drinks menu must do more than satisfy customer requirements. Plan carefully; a lot of thought needs to go also into keeping costs down, while at the same time maintaining a fine reputation for quality and imagination. This is no mean task, but the following simple suggestions may help:
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Communicate your recipe preparation techniques. Add a brief description about your unique preparation techniques underneath each recipe on the drinks menu. Tempt your customers to try "something different." The secret lies in your method of communication, rather than in the actual recipes themselves.
- Highballs. Although highballs can be served in a variety of different-sized glasses, the ideal size for maximum efficiency and controlling costs is a 9-ounce glass. It accommodates the exact proportions for a standard highball recipe. The glass looks full to capacity; the customer is happy. Also, you know that the portions of ingredients are correct.
- Recipes on napkins. Dare to be different. Get some recipes you want to promote printed on napkins. It's different, and it's a good marketing tool. It also channels customers into ordering the recipes that you want them to buy. Choose the "special" recipes on the basis of higher profit margins, but promote them as "added value" recipes.
- Mobile mini-bar. As well as serving recipe drinks from the main bar, introduce a mini-bar on wheels. Get a bartender to wheel it around, selling "taster recipes" at promotional prices. The spontaneity of this approach is excellent for generating extra income.
This article is an excerpt from the Food Service Professional Guide to Controlling Liquor Wine & Beverage Costs, authored by Elizabeth Godsmark, 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:
Bar Management,
drink recipe,
Drink Recipes
By Elizabeth GodsmarkAtlantic Publishing
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.
This article is an excerpt from the Food Service Professional Guide to Controlling Liquor Wine & Beverage Costs, authored by Elizabeth Godsmark, 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:
liquor inventory,
well liquor,
liquor products
By Elizabeth GodsmarkAtlantic Publishing 
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.
This article is an excerpt from the Food Service Professional Guide to Controlling Liquor Wine & Beverage Costs, authored by Elizabeth Godsmark, 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:
Bar inventory,
bar supplies,
hotel supplies
By Elizabeth GodsmarkAtlantic Publishing
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.
This article is an excerpt from the Food Service Professional Guide to Controlling Liquor Wine & Beverage Costs, authored by Elizabeth Godsmark, 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:
Bar inventory,
alcohol,
Bar trends,
Bar drinks
By Chris ParryAtlantic Publishing
Vending Machines Pay!
Your kitchen can't stay open all night long and when it closes, it will do you well to have a means for your customers to fill a hole in their stomachs. A vending machine will not only do just that, it can also supply everything from condoms to cologne, antacids to breath mints. In fact, if there's a need for it, you can bet there's a vending machine to fill that need. Check your local yellow pages for vending suppliers near you.
- Respond to customer requirements. People go to bars for three reasons: to drink, have fun and meet people. That last reason might make you want to consider fitting your club with a condom machine. One of these machines in the women's and men's restrooms can bring you a great source of income, especially on busy nights. Offering other bathroom essentials, like cologne, lip balm, women's essentials and aspirin, can add further profitability to your operation.
- Snacks.A selection of snack products can be another great earner, not just inside your bar but also outside. Chocolates, candy, chips, mints, cookies, granola bars; these snacks will keep your patrons going all night long without bothering your bar staff - or tempting them to enjoy the snacks themselves. Also, if you have some machines positioned outside your venue, they will continue selling for you even when the bar is closed!
- Water. In a nightclub, charging for glasses of water can be seen as profiteering by your customers. However, installing a bottled-water- vending machine can not only save your bartenders the time spent pouring out free water, it can also bring you in a hefty profit when patrons start to work up a sweat on the dance floor. Initiate a "bottled water only" rule when the dance floor is in operation and have your bartenders point to the vending machine whenever they're asked for water. Or have a selection of bottled waters available from the bar. You might even consider a special menu just for bottled waters. Your customers won't mind paying for it so much if they're getting the bottled product.
- Pay phones. It seems everyone these days has a cell phone, but there's still a huge need for the good old payphone. Incorporating phone card vending machines alongside a bank of pay phones is a way to double your profits on your customers' phone habits. Have them give you quarters for local calls or ten bucks for long distance. If you give your patrons options, they'll invariably choose one.
This article is an excerpt from the Food Service Professional Guide to Bar & Beverage Operation, authored by Chris Parry, 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:
bar,
NightClub Management,
bar business,
Bar Management,
Bar products,
Increasing Profits
By Chris ParryAtlantic Publishing
Getting the Most From Your Patrons
The patron walks in with $20. When the well is dry, he or she will go home (or possibly procure more) but how do you make sure you get as much of that $20 as possible? Consider the following:
- Value-add! It might cost you a buck to make a bourbon and coke and it might cost you two bucks to make a burger. Why not offer your drinkers a cut-price deal on that burger during a certain time of the night: buy two drinks, get a free burger to go with it. You're not making any money on that burger, but you are ensuring that the customer will stay in your bar while they eat it - and probably a little longer. Heck, they might even order a side of deep-fried mushrooms to go along with it.
- Make it easier to stay than go. If your staff is asking people, "Should I get you the bill?" instead of, "How about a round of coffees?" you're only giving your customers an excuse to hit the road.
- Keep the TV interesting. A big error many establishments make is that they leave a TV on but don't pay any attention to what's on it. Keep an eye on your screens and keep an even bigger eye on the TV Guide, to make sure that, if at all possible, you're giving your patrons a reason to stay: "Ooh, ER is on! Maybe I'll have another...
- Read the crowd. On any given night, your entire customer base can change radically. If you look around and find that there are a lot of young people in the place, adapt to suit that audience. Run a one-off special on tequila shots or shooters or turn on the dance-floor lights. Likewise, if a sports crowd comes in unexpectedly, get them into the swing of things by adapting to suit their needs.
- Give valued employees the power to make executive decisions. There's nothing worse, as a customer, than being told, "I don't know, the manager isn't here until later tonight..." Make sure you always have people on staff who can handle a situation and even veer away from the way things normally run, if common sense dictates it. Trust your people to make the right move.
- Cut down on your "no" answers. You might stock Diet Coke, but what about Diet 7-Up? What about veggie burgers? What about fresh-squeezed orange juice? There might not be a whole lot of demand for these products, but if you don't have them when they're asked for, you're giving your customers an excuse not to return, even if they don't make a big deal about it at the time. Don't sink money into something that won't sell, but don't go the other way and reduce what you can sell.
- Merchandise sells! A funky logo doesn't just make your venue more appealing; it sells, too. Research shows that the McDonald's logo is more recognizable to children than the cross symbol of Christianity; so it stands to reason that you could profit nicely from a logo that is "cool" enough for people to wear. T-shirts, golf shirts, baseball caps, key chains, lighters and souvenir glasses - take a tip from the Hard Rock Cafe: if sold well, merchandise can be a bigger earner than alcohol.
This article is an excerpt from the Food Service Professional Guide to Bar & Beverage Operation, authored by Chris Parry, 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:
Bar staff,
NightClub Management,
bar business,
profit,
Bar Management,
Increasing Profits
By Elizabeth Godsmark
