Expert Advice on Hospitality Topics

Outfitting Your Bar to Achieve Maximum Profitability

Posted by John Cammalleri on Tue, Dec, 06, 2011 @ 11:12 AM
By Chris Parry
Atlantic Publishing
 

Part 3 of 3: Streamlining Service Areas

underbar layoutWhen you design your service area, it's important to realize that every step a bartender takes in the serving of a drink is costing you money and making your customers impatient. Where does your staff need to walk to get a clean glass? How far from there to the ice bins and then to the spirit dispenser? And where are your soda guns in relation to the bottles? Is the cash register yet another trip away from the customer? Even if your bartender has to take only four or five steps between each of these posts, consider how far that means your bartender has to walk in the course of serving 500 drinks a night! This is bad enough for a solo bartender, but when two or three people are working behind the same bar and sharing facilities, it can be an unproductive nightmare.

  • Most bartenders are right-handed. With this in mind, your bar setup should allow your staff to pick up glasses with their left hands and bottles with their right, so that the drink creation process is at its most productive. If your bottles are on the left and glasses on the right, your people will do a lot of crisscrossing back and forth, resulting in more time taken to prepare a drink - and a lot more breakage and spillage.
  • Consider your customers. If they're lined up three deep to get a drink, and the bar staff need to take extra steps for every drink, each of those customers doesn't just wait longer for his or her own order, but for every order ahead as well. These people are lining up to give your business money - the last thing you should do is make it difficult for them to do so.
  • Low-cost equipment. If you can't afford to equip your bar with brand-new reach-in refriger­ators, there is another low-cost alternative. Consider keeping a sink full of ice directly beneath the bar top. Have three or four dozen high-turnover bottled beers in the sink at all times. Your staff can refill the "Bud bins" from refrigerated stock whenever there's a slowdown in customer traffic, thereby saving dozens of unnecessary trips to the fridge every hour, not to mention giving your customers faster service.
  • Pre-made mixes. To save time during their busiest periods, many bars pre-make cocktail mixes. While this is a good plan, be sure not to have these pre-made mixes sitting out in plain view. Ensure your staff don't refill them in the public eye. If your bottom line dictates that you have to use tequila from Peoria, it's best not to advertise the fact when you're charging eight bucks a drink.

The Under-Bar

Your under-bar is the engine of your bar area. If it's designed well, your staff can get from order to delivery in seconds. If it's poorly designed and dys­functional, your customers and staff could spend a good portion of the night stuck in bar traffic.

  • Focus on the customer. Employee interaction is the key. The under-bar area should contain everything your staff needs to fill 80 percent of their drink orders without moving a step away from the customer. If your staff aren't able to engage your customers in steady conversation as they're filling their orders, you're not only putting your staff through more work than they need, but you're also making your customers wait too long.
  • Bar layout. If your staff can work more effectively within a smaller area of the bar, you will be able to fit more staff behind that bar during peak periods, ensuring faster service and higher productivity. Take a fresh look at the bar area and consider what changes you can make to improve productivity.
  • Streamline your workstation. Many bar-fitting companies sell sink units that include speed racks, jockey boxes, ice sinks and more. They can also replace aged fittings with a minimum of fuss and expense. This will give your staff a compact, efficient workstation from which to maximize their time and effort. Prices vary, but when you consider the time, labor and customer tolerance savings, it's a purchase that will pay for itself many times over. BigTray (www.bigtray.com) can sell you this kind of equipment online or over the phone at 1-800-BIG-TRAY

 

 

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 inventory, Bar staff, bar efficiency, bar profitability, bar, NightClub Management, bar supplies, bar business, Bar Management, Bar products, opening a bar, bar design, Increasing Profits

Outfitting Your Bar to Achieve Maximum Profitability

Posted by John Cammalleri on Thu, Oct, 27, 2011 @ 17:10 PM
By Chris Parry
Atlantic Publishing
 

Part 2 of 3: Design Your Bar With the Customer in Mind

 Consider Customer Comfort

Bar DesignHave you ever sat under a blue neon light for an hour? While neon decor might look great when a bar is packed to capacity and the music is pumping, when business is slow it's like a power drill closing in on the center of your forehead. Certainly your customers should be impressed by your decor, but will the very look that draws them in end up driving them away early? Consider the following:

  • Invest in comfortable seating. Wooden barstools may look fine, and are usually very cheap to purchase and maintain, but are they likely to give your patrons buttock cramps after an hour? Try padded seating. Make sure the customers can move their seats to suit with a minimum of fuss - never have barstools and tables bolted to the floor.
  • Consider installing booths. Replace those cheap tables. If you want your customers to stay all night, give them the kind of seats that will make them too comfortable to leave. Customers tend to settle into booths, especially if a venue is crowded. If your drink servers are attentive and food is available, a group in a booth is all the more likely to settle in until closing. Remember, a shaky table is very easy to walk away from.
  • A comfortable bar surface keeps your clientele happy. Make sure your customers can lean on the bar and get comfy without getting cold elbows. This is much more likely if your bar surface is wood than if it's stainless steel or marble.
  • Lighting. Your lighting does more than just keep people from bumping into one another - it sets a mood. If you've inherited a system of overhead fluorescent lights or neon, consider getting a lighting specialist to give you suggestions on potential improvements. It won't cost as much as you think. Generally a quote is free.

Color Schemes Influence Buyer Behavior

Have you ever wondered why fast-food outlets almost always follow the same color scheme? The McDonald's decor and logo are yellow and red, as are those of Taco Bell and Burger King; KFC's are red and white, just like Pizza Hut, Wendy's and Jack in the Box. Coincidence? Not quite. Research has shown that certain colors promote cravings in consumers. When an establishment is decked out in reds and yellows, customers tend to experience feelings of hunger, not to mention an inability to settle down and relax. It's believed that those colors will cause a moderately hungry person to order a little more than he or she needs. They also will prompt customers to move on quickly once their money is spent. Blues and greens, on the other hand, promote relaxation, serenity and even lethargy amongst customers, which might be the better option for an establishment like a bar, where you're looking to keep your clientele seated for the long haul. How can you utilize these colors to quietly "persuade" your customers to buy, buy and buy?

  • Menus and food areas. A red and yellow color scheme on your tabletop menus or food area signage may cause your patrons to develop a stronger urge to order food, yet not be so over­ whelming as to chase them out the door.
  • Bar decor. Some hardy potted plants, maybe a few palms and a little pastel color on your walls may help your bar promote a feeling of island- like serenity in your customers, compelling them to relax a little - and stay.
  • External decor. Your signage and building front are supposed to draw people in. But does your frontage inspire the desire to party? Or does it drive people to the KFC down the street?
  • Staff uniforms. Do the colors of your employees' uniforms say to your customers, "Welcome, stay a while," or "I'm busy, what do you want?" Your staff uniforms are an important part of your overall decor. Your decisions about their design can radically change the atmosphere of your establishment.

 

 

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: nightclubs, bar efficiency, bar, NightClub Management, bar supplies, bar business, Bar Management, Bar products, bar design

Outfitting Your Bar to Achieve Maximum Profitability

Posted by John Cammalleri on Fri, Oct, 21, 2011 @ 10:10 AM
By Chris Parry
Atlantic Publishing
 

Part 1 of 3: Bar Design

bar designThe way your bar operates depends on many factors, one of the most important being the "machinery" of the bar. Sometimes, no matter how efficient your staff, the bar just isn't set up to allow maximum productivi­ty. Avoid that happening to your bar.

  • Form over function? Think hard about potential consequences before spending too much money on interior design. Of course, how a bar is perceived aesthetically is very important. But, don't put aesthetics above function. It could radically hurt your business. Before starting on the renovations, stop and think about how they will affect your staff and the duties they have to fulfill.
  • Cramped working areas reduce productivity. Make sure the new bar has enough room for bartenders and glass collectors to move about freely.
  • Storage space. Is there enough storage space behind your bar to ensure your stock doesn't run dry three times a night? Consider extra fridge space or even bins full of ice for fast- selling bottled beer products.
  • Is the bar decor comfortable, attractive and easy to clean? Not only does clutter look bad; it can reduce productivity.
  • Comfort. Are your seats and tables the sort of quality furnishing that will keep a customer happily seated throughout the evening? A little more money spent on customer comfort will translate into dollars over the bar.

The Front Bar

Your front bar is your first line of attack in the fight to keep a customer coming back for more. When looking for ways to impress your clientele, remember that the impression this bar leaves on your patrons is of paramount importance. Consider these issues and make sure the design of your front bar works as well as it can:

  • Customer interaction is vital. Is your bar top too wide? Is the music too loud for a customer's order to be heard over a crowd? Does it inhibit your staff from being able to engage in friendly chat with your clientele? Interaction with your customers is crucial if you're going to turn one- off customers into regulars.
  • Be wary of mirrors. Mirrors may give a momentary illusion of more space, but they also fog up and smear an hour after they're cleaned. Mirrors might look good initially, but their maintenance does cost you money. Consider replacing them with artwork, memorabilia, menu boards, or something else that will draw people in. Don't just fill a space.
  • Appearances count. Do you have bits of paper stuck to the walls which might contain important information for your staff but look terrible to the customers? Make sure that any staff notices are out of your customers' eye line.
  • Design a bottle display with enough space to add to your inventory easily. A good selection of wines, beers, spirits and liqueurs is an essential part of a popular bar operation. You should always be looking to introduce your customers to something new.
  • Stock requisitions. Is there enough room on your bottle display to accommodate two bottles of each brand? When one bottle runs out, you don't want your staff to have to dig around a stock room for a replacement. Talk to a bar fitter about improving your bottle display. Add capacity. A small expense now can bring you future benefits.
  • Make it easy for your customers to see what you have on tap. Can your customers see what draft beers you have without craning their necks? Do patrons have to ask the bartender what's on offer every few minutes? If you watch the bar staff closely, you'll see that they spend a lot of time telling customers what beers you stock. Solve the problem by adding a small draft beer menu to each table and another on the wall behind the bar. Have the menus professionally prepared so that they add to, rather than detract from, your bar's appearance.
  • Is your entire inventory on display? Are your fridges in plain view? Floor fridges make access difficult for your staff. They also hide your product lines from your customers. Consider changing the setup behind your bar so that most of your fridge space is in clear view.

 

 

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 efficiency, bar profitability, NightClub Management, bar supplies, Bar Management, opening a bar, bar design

Safeguard Bar Profits by Identifying and Preventing Bookkeeper Theft

Posted by John Cammalleri on Tue, Oct, 11, 2011 @ 09:10 AM
By Elizabeth Godsmark
Atlantic Publishing
 

accountingAccounting (bookkeeping) theft is a major concern within the beverage industry. From falsifying daily inventory records to complicated auditing abuse, this area of theft is often the most difficult to detect. Sometimes, it is the managers themselves who are behind the scams. Owners need to be aware of the following possibilities:

  • Sales records - falsifying daily sales records and stealing the difference between recorded and actual cash received.
  • Inflating overtime - adding overtime or extra hours to payroll records in order to increase wages.
  • Discounts - recording higher-than-actual discounts when reimbursement checks from credit card companies are deposited.
  • Forging signatures - making checks payable to oneself, then forging signatures or using signed blank checks, then destroying paid checks returned from the bank.
  • Falsifying bank statement reconciliations - overrecording deposits that have not been recorded, underrecording outstanding checks or even deliberately miscalculating reconciliation worksheets with the intention of covering cash shortages.
  • Overpaying suppliers' invoices - then converting the suppliers' refund check for personal use.
  • Resubmitting invoices - duplicating requests for payment and splitting the difference with dishonest suppliers.
  • Dummy companies - setting up "dummy" companies and using them to submit invoices for payment.
  • "Padding" the payroll - issuing checks for fictitious members of staff or employees who no longer work for the company.

 

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: inventory managers, Bar inventory, liquor purchasing, Bar Management, alcohol cost, inventory control

Safeguard Bar Profits: Introduce Basic Theft-Reduction Procedures

Posted by John Cammalleri on Mon, Oct, 03, 2011 @ 11:10 AM
By Elizabeth Godsmark
Atlantic Publishing
 

 

Safeguard Liquor AssetsTheft reduction policies and procedures are no good unless they are strictly enforced. Employees must be made clearly aware of the dire consequences of flouting house rules. There can be no gray areas. New members of staff should be asked to sign a confirmation that they have read the rules and fully understand the implications.

  • Prohibit bartenders from totaling the cash at the end of their shifts. This policy also protects honest bar staff.
  • Prohibit bartenders from both on- and off-duty drinking. Off-duty drinking leads to fellow bar staff overpouring, giving away free drinks or undercharging.
  • Prohibit bartenders from taking part in physical inventory counts. Ideally this should be a management-only function.
  • Bartenders should not be involved in ordering, receiving or issuing inventory. Again, this should be a management-only function.
  • Security. Enforce security procedures for all liquor, wine, beer, spirits and any other high-value inventory. Also, only key personnel should have access to the storeroom.
  • Require bartenders to record post-shift bar par readings. This refers to the number of bottles behind the bar at any given time. Bartenders should take a bar par reading at the end of the night shift.
  • Prohibit bartenders from recording more than one transaction per drink ticket. If bartenders are allowed to use a "running" ticket, they can easily neglect to record all the drinks they have actually sold.
  • Enforce voiding procedures. Bartenders should request managerial approval before continuing with a void. 

 

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, Bar inventory, bar inventory levels, liquor theft, bar theft, Bar Management, bar control, inventory counting, inventory control

Insider Theft Can Have a Major Effect on Bar Profits

Posted by Nick Kaoukis on Tue, Sep, 27, 2011 @ 15:09 PM
By Elizabeth Godsmark
Atlantic Publishing
 

bartender theftThis is an alarming fact: most types of beverage operations lose a crippling percentage of profits through insider theft. The vast majority of employees in the beverage industry are honest and hardworking; it is the small minority of staff that can ruin your business through dishonesty. Insider theft can often escalate if there are weaknesses in the following general areas of the operation:

  • Lack of supervision. Theft from behind the bar, storeroom or storage areas is a major problem. Curb losses by increasing supervision, either in person or by means of strategically positioned security cameras.
  • Proprietor attitude. Don't make matters worse by treating all employees with suspicion. Get the honest staff on your side.
  • Weak management. Unfortunately, some beverage managers compound the issue of insider theft by turning a "blind eye" and simply increasing prices to cover "shrinkage." Owners need to question unwarranted price rises.
  • Pouring costs A common danger area. These costs need to be carefully monitored, especially in relation to bartender productivity.
  • Inventory records. This is one of the easiest areas for dishonest employees to "fiddle the books." Tighten up your record keeping. Never leave inventory control to one person. Double-check.
  • End-of-shift cash count. Another prime target area for insider theft. Never let a bartender reconcile the cash in the register at the end of his or her shift.

 

Bartender Theft: Top Ten Ploys

Controlling theft behind the majority of bars is no mean task; eliminating it altogether is virtually impossible. Temptation is a fine thing, and unfortunate­ly, the opportunity for bartender theft is overwhelming. However, in the interests of long-term survival, you have no choice but to tackle the problem head on. Be wary of the following top-ten common ploys:

  • Open theft. A bartender pours a drink, doesn't ring the cash register and puts the cash in a "holding" place, such as the tip jar.
  • Overcharging. Bartender pockets the difference. A variation is to charge regular prices but ring up "Happy Hour" prices and, again, pocket the difference.
  • Ringing "00" on the cash register. The bartender simply steals the value of the drink.
  • Overpouring. Bartender hopes to get a heavy tip.
  • Underpouring. Bartender keeps a mental note of the number of half measures poured throughout the evening and then thieves the equivalent value in drinks, gives them away or drinks them him-or herself.
  • Rounds of drinks. Bartender rings up for a "round" rather than separate items. It makes it easier to inflate the overall price of a round of drinks, particularly if guests are unfamiliar with individual prices.
  • Shortchanging. Common variations include: counting aloud while handing the customer less money, distracting the customer by sliding the change along the bar, and giving change for lower -denomination bills (while keeping the difference).
  • "Soft" inventory. Bartender neglects to charge for the mixer component of a drink.
  • Substitution - bringing in own liquor. This is often done with vodka because it is odorless and looks like water. Dilution is another similar ploy.
  • Padding the tab. The bartender pencils in an inflated total and later erases it, replacing it with the correct total. Warning! Ban pencils from behind the bar.

 

Less Common (But Equally Damaging) Employee Theft

The more experienced the dishonest employee, the better equipped he or she is to manipulate the system. Thieving members of staff are quick to detect exactly how much an owner really understands about the business. In the beverage industry, take nothing for granted. Alert yourself to the following, somewhat extreme, possibilities.

  • Reusing closed tabs. The bartender appears to ring up the drink price but, in actual fact, only halfway enters the tab into the register. He or she then hits "0" to give the impression of ringing it in.
  • Over-ringing. When the customer isn't looking, the thief over-rings an amount on the tab and then re-rings the tab for less than the amount charged.
  • "Paid outs." The bartender claims that the money was refunded for various reasons, such as faulty cigarette machines.
  • Jigger substitution. The bartender brings in his own shot glass that looks identical to the official jigger but is actually smaller. Several short measures over a shift add up
  • Changing shifts. It is easy for the thief to make, serve and collect several drinks during a busy "hand-over" period.
  • Deliberate mistakes. Drinks are then returned and resold or given to a friend.
  • Breaking empty bottles and pretending they were full. Full bottles are then requisitioned to replace the "broken" empty bottles.
  • Substituting water in the drip tray. The bartender pretends he or she had to waste a pint to clear the lines and then pockets the difference.

     

    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 levels, bar business, Bar Management, Reducing Costs, bar control, Control

Drink Recipes and Their Impact on Cost Reductions and Profitability

Posted by Nick Kaoukis on Tue, Sep, 06, 2011 @ 11:09 AM
drink recipesBy Elizabeth Godsmark
Atlantic Publishing
 
DRINK MIXES
Just 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.
  • 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.

  • 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.

  • 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.

  • 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:
  • 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

Augmenting Your Bar's Profits Through Vending Machines

Posted by Nick Kaoukis on Mon, Jul, 25, 2011 @ 11:07 AM
By Chris Parry
Atlantic Publishing
 

Vending Machines Pay!Vending Machine

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

Bar Management Tips: How You Can Extract More From Your Customers

Posted by John Cammalleri on Wed, Jul, 20, 2011 @ 11:07 AM
By Chris Parry
Atlantic Publishing
 

Getting the Most From Your PatronsBar Management

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

Making the Most of Your Liquor: Extracting an Extra Ounce of Profit

Posted by Nick Kaoukis on Mon, Jul, 18, 2011 @ 11:07 AM
By Chris Parry
Atlantic Publishing
 

Upsizing is EssentialSaving on every ounce of alcohol

When you go to the movies, quite often you can buy a double-sized popcorn for only $0.75 more than the $3.50 regular size. This would seem to be an astonishing bonus for the customer, so why does the cinema operator push this "up-sizing" so hard? Quite simply, because they're selling about $0.04 worth of popcorn for that extra $0.75. That second portion might not bring as large a profit margin as the first, but it's still profit. Your drinks run the same way - if you can get another buck out of a customer selling a drink that costs you $0.45 to prepare, it's worth doing.

  • Consider the cost per ounce of your well spirits. Let's assume you're using El Cheapo brand tequila at a base cost of $7.54 a liter. That would mean that an ounce of that spirit is costing your establishment $0.22, while a more-expensive brand of tequila, let's say Cuervo for the sake of this example, might come at a base cost of $14 per liter, or $0.41 per shot. Common thinking might lead you to say that by using the cheaper tequila you're saving yourself $0.19 on every drink sold. But, if you consider the alternative of up-selling the more expensive spirit for an extra $0.80 or so, you're actually making an extra $0.61 profit on every up-sized drink.

  • Offer your customers a discount to spend more than they planned. This works in other areas, too. Turning a single into a double for an additional dollar, or selling half-price burgers with every shot of a specific brand of spirit, brings you more money per order, while bringing your customers added value. Your profit margin might not be as high, but you'll be extracting more money from your customers than they might otherwise have spent - a definite win-win.

  • Up-selling. Most bar customers will bring out more money than they initially want to spend -just in case - especially those that don't have easy access to it through ATM machines and credit cards, so it's imperative that your staff don't let those customers walk out the door having spent less than they planned. Incentives for up-selling are commonplace in the theater and fast-food industries, so why not offer your staff an incentive to up-sell and watch your better staff earn a few extra dollars while earning you hundreds?

  • Incentives. For example, if a member of your staff engages someone in conversation and discovers they're looking for somewhere to hold a private function, birthday party, girls' night out - any large gathering of people - there's certainly no harm in making it worth their while to bring that prospective client to you. Twenty dollars here, $50 there - even a percentage of the bar take - if you offer the incentives, you'll be surprised how far people will go to bring you new business.

 

 

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: NightClub Management, bar business, Bar drinks, Bar Management, Liquor cost, alcohol cost