Expert Advice on Hospitality Topics

Inventory Control: Safeguarding Against Theft

Posted by Nick Kaoukis on Wed, Jun, 08, 2011 @ 09:06 AM
By Chris Parry
Atlantic Publishing


Part 2: Common Excuses for Theft

TheftWhy do they do it? Your bar is a good place to work; you're a decent boss - you pay above-average wages - why does your staff feel the need to break the law? Put simply, human nature is to take something for nothing when the chance arises. An informed bar manager is in a far better position to fight losses from theft.

  • Greed. Theft isn't always about needing a little
    something extra to pay the bills; some employees
    just plain old enjoy beating the system. The
    thrill of getting a sneaky ten bucks is far more
    important to these people than the actual dollar
    value.
  • Rationalizing criminal behavior. "I didn't think
    it was hurting anybody," is a terrible excuse, but
    you'll hear it again and again. A little fiddle here
    and there is seen, in some employees' minds, as not doing anyone any harm.
  • Tip boosting. Some employees feel that if a customer isn't doing his or her part by leaving a reasonable tip, then turnabouts is fair play. Tips make up a significant part of any bartender's pay, and when the tips are low, they try to make up the difference in other ways.
  • Resentment. People don't always take orders, or discipline, well and sometimes members of staff who feel "picked on" will strike out by "getting even" with the manager or the venue that they feel has wronged them.
  • "It was there." Human beings can be impulsive creatures, and sometimes leaving the opportunity for a staff member to defraud the system is all the person in question needs to kick into action: "I don't know what came over me!"
 

 

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: inventory managers, liquor theft, managing liquor inventory cost, bar business, Bar Management, bar control

Inventory Control: Safeguarding Against Theft

Posted by Nick Kaoukis on Mon, Jun, 06, 2011 @ 09:06 AM
By Chris Parry
Atlantic Publishing


Part 1: Scams to Watch For
inventory control
Employees can very easily fall into a habit  their employers, and if you're not careful, you can be caught out for thousands of dollars, not to mention disgruntled customers. Keep an eye out for these 14 favorites:


  • The substitute. An employee buys his own bottle of a fast-moving spirit, brings it in at the start of the shift, and over the course of the night substitutes his own for the bar's bottle. Every time he sells a shot of this product, he then simply pockets the money, thus earning a large profit on his own alcohol while your stock stands still. While these people are not thieving your stock per se, they're thieving your business, so ensure you stamp or mark all of your spirit and liqueur bottles; check the empties regularly, and keep employee bags away from the bar and stockroom areas.
  • The short-pour. Your bartender short-pours every shot of a particular fast-selling spirit by between 25 and 50 percent, keeps note of how many shots she's sold from the bottle and when she's sold the number of shots that usually come from the bottle, she pockets the money from the remaining shots. Make sure that you check register receipts against the bottles used, and if possible, you use a computer-controlled pouring system, to take the opportunity to scam out of the employee's hands.
  • The "00."   Some registers can be opened with the press of just one button or from entering in a total of $0.00. Unbeknownst to some bar operators, this is the number-one means of rip-offs by staff. A customer buys a beer and gives the bartender a fiver. "Keep the change," says the customer as he walks off, so the employee hits the "register open" button, puts in the five-dollar bill and takes out five dollars in coins and singles for his or her pocket or tip jar. How do you avoid this scam? Remove that button. Your cash register provider can do this with no problem at all, and if a customer needs change in the future, your bartender simply asks him to wait for another sale to take place. Or even better, provide change machines.
  • Bogus breakage. Oops! A full vodka bottle hits the floor and the bar loses, big time. But did it really hit the floor? You might have a breakage bucket in which your staff are to put any broken bottles to show that they actually broke, but how do you know that the contents weren't poured into a hip flask beforehand? Or worse, that the contents were sold and the proceeds pocketed? The answer is simple: start a "you break it, you pay for it" rule. Of course, you don't need to enforce this rule if you don't think people are taking advantage, but it will stop the thieves.
  • Wasted waste. 'The beer lines were a little gassy today." Well, that might explain the two gallons of beer waste in the drip trays - but does it really? Pocketing the money for a draft beer and pouring a glass of water into the drip tray is an age-old scam and very hard to detect. Make sure your staff keep measurements of any beer waste and keep track of who wastes what. In time, any trends should become apparent, and even if certain staff members aren't crooked, you'll be able to tell very easily if they need lessons at pouring beer.
  • The backhander. Your security staff might not feel that taking ten bucks to let someone into the front of the line is wrong, but at the end of the night, when the person who paid that ten bucks has to go home because she's out of cash, it's your potential bottom line that suffers. To combat this, simply ask someone you know to go to the door and offer a kickback to jump the line. If the kickback is accepted, you need a new security guard.
  • The over-charger. Your bartender either rings up a price higher than what you've set for a drink or charges regular prices but rings up "Happy Hour" prices, pocketing the difference. To combat this, ensure that cash register tapes are changed at the end of every shift and the bartender explains any "Happy Hour" discounts. Likewise, ensure that all drink prices are posted clearly for your customers so that they can identify an overcharge.
  • The over-pourer. This bartender simply pours more than he or she needs to and hopes for a hefty tip. Keep an eye on your inventory, and this one should be easy to spot.
  • Rounding up rounds. Bartenders tally up a round of drinks as a "total price," rather than as separate items. This makes it easier to inflate that price without it being noticed by the customers. They then pocket the difference when they ring it up. To combat this possibility, keep drink prices clearly posted behind the bar or on table menus.
  • The "soft" scam. Your bartender simply neglects to charge for the mixer component of a drink, thus peeling a small bonus for every mixed drink he or she sells. This should be easy to spot if you check register ribbons, but if you don't, your staff can make a fortune.
  • The "padded" tab. When your customers run a tab, the bartender pencils in an inflated total, takes the money from the customer, then later erases it, replacing it with a correct total.
    Removing pencils from behind the bar and telling your staff that they must use pens is the best way to fight this one.
  • The substituted cash register tape. This ingenious little plan involves the bartender leasing a cash register just like yours and bringing in his or her own prepared cash register tape, substituting it for the real tape and pocketing the cash difference. Essentially, if you keep bartenders from "Z"ing their own tapes, you'll prevent this from being possible.
  • The refund. This is a simple, small-time scam where the bartender claims that a discrepancy in his or her takings was refunded to a customer for money lost in faulty vending machines or gaming equipment. Have any customer seeking a refund fill in a small claim form, with phone number and ID details included, and this shouldn't be an issue. Most customers won't mind doing this if they have a legitimate refund claim.
  • The jigger switch. The bartender brings in his or her own shot glass that seems identical to your normal barware, but is actually smaller. After several short measures, the bartender can start pocketing money without the inventory showing a shortage. Fight this by clearly marking your pouring measures and doing regular checks of your bar equipment.

 

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: liquor inventory, Bar inventory, liquor theft, bar business, Bar Management, bar control, inventory counting, inventory control

Managing a Bar: Drinking On The Job: Dont Do It!!!

Posted by Nick Kaoukis on Thu, Jun, 02, 2011 @ 16:06 PM

BAR MANAGEMENT
by Bob Johnson

Part 3NoDrinking andDriving

Charley is on my mind everyday.  He was a bartender who worked at a place where I was a regular customer. Charley was allowed, and encouraged, to drink with the customers.  He was my friend and I did everything I could to get him to stop drinking at work.  “It doesn’t matter what they allow you to do, Charley, stop the drinking!” I would say.   “You shouldn’t have to be told.  Professional bartenders don’t drink while working—ever!”  

Professional managers don’t drink while working either.  But if the managers are drinking, don’t you think every staff member is drinking?  Of course they are. 

Managers set the tone.  Managers lead by example. Charley had quite a bit of Patron one night, and then mixed it with a few Jagerbombs.  He didn’t make it home that night—nor did the family of four he crashed into on their way to early morning mass.  He fell asleep at the wheel from the drinking and crossed over the center line.  The case is pending, but a massive lawsuit has been brought against the owner, investors and managers of the club where Charley worked.  You see, the owner and managers encouraged their people to drink while working.  It’s good for business, they rationalized. 

And Charley?  He survived the crash (the drinker usually does).  But his life is over.  Charley has to be sedated everyday to stop the crying.  He can’t eat.  He can’t do anything.  He was once a really good guy, but today he can’t live with himself for what he did to those innocent people on their way to church. They’re gone.So go ahead bartenders, managers, servers, security persons,  keep drinking at your place of work.  It’s not your investment or your liability.  Somebody else owns the club, so what do you care?!  

Yeah!  Party down!  Continue to show the ultimate disrespect to your owner.  Do something for him that could possibly bankrupt his entire investment and land him in jail. Go get yourself another shot of Patron, Mr. Manager!  Do a shot with your bartender!  Yeah!  Follow it up with a Jagerbomb or two!  Yeah!  You’re the life of the part now, aren’t you? 

I wish you knew my friend Charley. 

Topics: Bar staff, Bar Management, hospitality jobs, bar control

Managing a Bar: Drinking On The Job: Dont Do It!!!

Posted by Nick Kaoukis on Mon, May, 30, 2011 @ 11:05 AM

BAR MANAGEMENT
by Bob Johnson

Part 2Drinking on the Job

When you, Mr. Owner, hired a bartender or manager, did you include the consumption of beverage alcohol as part of the job?  Of course you didn’t.  So why would you allow it?   If a bartender or manager chooses to consume a bever age alcohol product for their personal consumption while working, they’re stealing from you!  It’s grounds for immediate termination.  It’s no different than working at Wal-Mart and helping yourself to a few DVDs or a pack of gum and not paying for it.  It’s called “shoplifting” and people go to jail for stealing company property. I have too many bartender friends who got into the habit of having a couple of drinks while working.  The customer buys the bartender a drink, and the bartender gladly accepts.  Now the bartender is up to “quite a few” every day.  Then the bar tender nds himself “having to have a few” on their days off.  Then they have to have several drinks a day just to “balance out.”  

This is called addiction. It’s called alcoholism, and they’ve got a problem they’re going to have to battle the rest of their life.  As the owner or general manager, are you encouraging these people to have drinks at work?  If so, you may be the one responsible for this person’s alcoholism.Alcohol is for the customer to consume, not the bartender or other staff members.  Bartenders simply prepare it and serve it—that’s it!  Why can’t bartenders or servers simply accept a non-alcoholic beverage, like a Red Bull, Frappuccino, cup of coffee, bottle of water, Coke, etc.?  Why does it have to be a drink containing beverage alcohol? Police don’t drink alcohol while working, bankers don’t drink alcohol while working, retail clerks don’t drink alcohol while working, emergency room personnel don’t drink alcohol while working, sports teams don’t drink alcoholwhile working, so why do bartenders and managers feel they’re entitled to consumealcohol while they’re working? It’s stupid, it’s unprofessional, it’s self-serving and in many states, it’s illegal (and  it should be illegal in all states).

Topics: Bar staff, Bar drinks, Bar Management, bar control

A Successful Bar Begins With a Quality Staff

Posted by Nick Kaoukis on Thu, May, 26, 2011 @ 09:05 AM
By Chris Parry
Atlantic Publishing

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Part 1: Hiring the Best Possible Staff

Finding the Right People

A successful bar operation depends on people more than anything--the people coming into your bar and the people behind it. How you treat your staff, how you find them, how you train them and how they work are keys factor in hospitality success. Many bar managers find that one of the most difficult tasks in their job is finding the right people to join their staff. If you want the best possible employees (and you shouldn't want anything less), these rules might assist you in your search:

  • Headhunt. If you want simply to fill a handful of roster slots with physically able bodies, classified ads may be a fine option. Classified ads will certainly bring you applicants. However, the best hospitality people are generally not unemployed; they're already working for your competition. Take a look around the better local establish­ments. If you see someone worth headhunting, make him or her an offer.
  • Ask your existing staff. They can be a great source of new staff; they usually know plenty of industry colleagues that would be a nice fit in your bar, and though you don't want to form "cliques," a personal reference from someone you respect sure as heck beats a cattle call.
  • Offer a finder's fee.  If someone working for you brings in a new employee that stays with you past a probationary period, a $75 bonus will get your existing people thinking hard about staffing possibilities.
  • Keep applications on file! If someone walks in the door and asks for a job when none has been advertised, you can bet they already know and like your establishment and truly want to work there. Motivated souls such as these make prime pickings, so don't disregard their applications - keep them and get in touch when you need to.
  • Time is money. Don't waste too much of it by interviewing everyone who applies to you. If an applicant isn't to your initial liking, thank him or her for the application and move on to someone who is.
  • The need to earn. It's traditionally thought that the more stabilizing factors there are in a person's life, such as being a student, having a mortgage or being married with children, the less likely that person will be to leave suddenly or jeopardize his or her job through tardiness.
  • What are you looking for exactly? Different roles require different skills. While not every position requires abundant experience, every position does require a mix of stability, intelli­gence, personality, honesty and a willingness to work. If an inexperienced applicant shows these qualities, look past any lack of skills and make an investment in a quality human being with training.
  • Every employee is a reflection of your corporate personality. It's important that employees view every customer as a potential friend, not an irritation. Certain people can light up a room with a smile, and if you can find two or three of those people, your customers will be back.
  • Never interview an applicant who has just made his or her application. Let him or her show enthusiasm when you call about an interview at a later date. If the applicant can't make it or doesn't show up, you're better off without.
  • Ask the right questions. If you want to be sure you have all the information you require from each person, put together a list of questions in advance. This will allow you to get comfortable, focus on the answers and stay on target.
  • Don't be afraid to ask for a demonstration. If a prospective bartender has trouble uncorking a bottle of wine or mixing a good martini, it's better that you find out ahead of time.

How Do You Test for Honesty

Dishonest employees are not always going to make themselves obvious. Sometimes the person with the biggest smile has something even bigger to hide. When hiring your staff, how can you go about discovering who is to be trusted and who should be shown the doors?

  • Background check. This might seem a draconian tactic to determine if your potential employees are who they say they are. You can run a check on your prospective staff online through an outfit like US Search (www.ussearch.com), who will take the person's details and run a check on credentials for only $59.95 - $99.95 for a criminal background check. The results of these searches can, in most cases, be e-mailed to you within 24 hours, with full details taking up to seven days.
  • References. Thorough checking of all references is a must, especially for a person interviewing for a position of trust. Call every company listed on the employee's resume and be sure to ask the correct questions: Why did the person leave? How long was she there? What position did he hold? Would the company gladly take him back if given the opportunity?
  • Credit check. If prospective employees will be in a position where they're exposed to a large amount of money, it may be prudent to run a credit check before you employ them.
  • Sometimes the simplest approach is the best. Why not just ask potential employees if they've ever taken something that wasn't theirs? Watch their body language when you ask the question. Do they blush? Do they avert their eyes? Do they fidget? Do they nod their head, as they say "no"?

 

 

 

 

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, bar business, Bar Management, bar control

Drinking On The Job: Dont Do It!!!

Posted by Nick Kaoukis on Mon, May, 16, 2011 @ 10:05 AM

BAR MANAGEMENT
by Bob JohnsonDrinking at your bar

PART 1

If you are an owner or general manager who allows your staff to consume beverage alcohol during the scope of their employment—i.e., “drinking on the job”—you ought to be taken outside and shot!  Okay, that may be an exaggeration.  But when you carefully examine this issue, allowing your staff to drink on the job is the ultimate act of stupidity,

irresponsibility, and disrespect for the welfare of your employees and your business.  Owners and managers must protect their business from potential lawsuits, and allowing your employees to drink while they work leaves you wide open.  You’re taking the chance of losing it all.  So why would anyone put themselves in this position?              

It may be common practice in many bars, nightclubs and adult nightclubs for bartenders, managers and entertainers to drink alcoholic beverages while on the job.  But as bar management expert Bob Johnson suggests, it could be the worst mistake these people could make — and could put you out of business up there with …duh-h-h-h-h-h.  Does the fate of your business really come down to how much the employees can slug away for you?

Ethyl alcohol affects judgment and impairs one’s ability to rationalize or perform a function that requires effective interpretation or quick reaction.  “Misreading” a situation is commonplace for anyone consuming beverage alcohol, regardless of the amount consumed.  Counting money, making a judgment call, responding to a pressure situation or settling a disturbance can only be done with a clear mind.  Beverage alcohol is not a “performance enhancer”!

Legally, if there are damages or injury to a third party and you were involved in the situation in any way—and it was known that you were under the influence of alcohol at the time—your company and you have no reasonable defense.  You just lost the case! You probably don’t have enough money to defend yourself in this kind of situation.

Medically, if there is injury to you while on the clock and you have consumed beverage alcohol in any quantity, worker ’s compensation will not pay for your medical treatment.  You’re on your own. Because you work in a heavily scrutinized industry, management and staff must never be under the influence of beverage alcohol when confronted by a representative of local law enforcement or a governmental agency performing a routine assignment that wants to ask questions.

Topics: Bar staff, NightClub Management, Bar Management

Human Resources and Owning your Bar

Posted by Nick Kaoukis on Thu, Apr, 14, 2011 @ 13:04 PM

ARE YOU REALLY READY TO OWN AND OPERATETO OWN AND OPERATE A BAR

 

Part 3:Bar working

HUMAN RESOURCES

Human resources is the single most important function in the bar business, yet remains the overlooked, misunderstood, and taken for granted. If the bar manager is responsible for the hiring of staff, then he must have the ability to hire the right kind of people. He must know where to get them, what to look for on an application, and what questions to ask during the interview.  It is necessary to describe what the specific job requires. For example: Bartenders must have the ability to give attention and recognition (the primary reason a customer returns to a particular bar—it’s not the drink!); they must be willing to take direction (the more experienced the bartender, for example, the harder it is to break them of their habits of doing things “their way”); and most importantly they must have a personality! They have to look alive, happy, and think of themselves as “show people,” constantly entertaining.

They must be honest and never succumb to the temptation of drinking while they work. A bar manager who drinks while on shift, or allows his bartenders to imbibe with customers, is not professional and doesn’t know what he’s doing (potential for law suits, uncontrolled environment, no workers comp protection if injured on the job, etc.). He is inviting problems. No job I know of allows workers to drink beverage alcohol while working.

The ultimate success or failure of your bar will be determined by those you hire. How well they do their job with cash and product, the frame of mind they are in when doing their job, and how they directly interact and impress each customer they serve directly affects your bar’s sales, profitability, and the length of time you will stay on as the bar manager.

Do you have a bartender’s manual, cocktail server’s manual, bar back manual, orientation manual, training manuals for all positions, etc., that describes exactly how you want everything done? Do you have the writing skills to create these manuals if need be? Have you documented your house rules about eating, smoking, free drinks, break privileges, payday, schedule posting, dating, using the company telephone, cell phone policy, personal belongings, accidents on the job, switching shifts, cashing checks, when to be at work, serving minors, serving visibly intoxicated people, gambling, holidays, illegal drugs on the property, “to-go” drinks, being on the property when off duty, etc.? You must paint a picture for everyone to follow so that your policies are consistent and there is no misinterpretation. Every rule you could possibly make has to be documented, so you can say, “It’s in the book!”

How do you train your new hires and how do you continue training and motivating the entire staff? A bar manager should be constantly testing the entire bar staff for compliance with house recipes, glassware, garnishes and knowledge about new products and promotions.Do you evaluate your employees’ performance on 180 day intervals? Do you document an employee’s disciplinary problems and retain a copy for the personnel file with a timeframe for improvement? There are so many lawsuits these days over seemingly insignificant problems that it behooves a bar manager to do everything within his power to support his and his company’s position in court. You must have the documentation to do so. Do not become lackadaisical when terminating an employee. You must use a termination form and fill it out

Handling a termination correctly requires knowledge and experience. Many states are “employee at will,” meaning you don’t have to have a reason to fire someone. But this is being challenged nationwide, and you don’t want to be the test case for your state. Therefore—document, document, document! And always have a witness present when you are terminating someone.

You should know whether or not your employees should be allowed access to their personnel file and what they can and cannot see in their file. Do you ask medical questions about your employees? When? During the interview? (No, that’s against the law.) What about the I-9? Are there more forms that can be used to determine identity and eligibility to work besides a driver’s license and social security card? No? Are you sure? Check columns A, B, and C on the back of that form.

What information should you have in the employee’s personnel file to successfully fight an unjustified claim for unemployment compensation? In the event of an injury, do you fill out an injury report for workers’ compensation and send it to your insurance carrier within seven days? 

Do you understand the laws pertaining to the Bureau of Alcohol in your state? Do you understand why it is illegal to “marry” liquor, or why you can’t refill an empty liquor bottle with any other substance? What about the OSHA (Occupational Safety and Health Act)? What does it state? And ADA (Americans with Disabilities Act), and USERRA (Uniformed Services Employment and Reemployment Rights Act)? Do you know the laws pertaining to reporting tips, sexual harassment, the Equal Pay Act, the Tip Credit Law, and Overtime Pay Rate for Tipped Employees?

“You have to know all of the laws that pertain to the business you own and are managing. Otherwise, it can be very costly and it could land you in big legal trouble.”If you are in a state that takes a tip credit (paying less than minimum wage), have you informed your employee at the time of hire why you are taking the tip credit and what their rights are as a result? You’re breaking the law if you don’t. If you are paying less than minimum wage (taking the tip credit), do you ever penalize your employees financially for a missing check, a walk-out, being $20 short in the register, the cost of a uniform, etc.? (Nope—it’s against the law!) Can you deduct anything for meals, or the service charge for a tipped charge? Check with your state, as it varies nationally.

You get my point—there is so much to know and be aware of. As a manager, one of the most important rules is: Don’t do anything that gets your owner/business sued. So you must

WHICHEVER YOU CHOOSE TO USE, HAVING STAFF FOLLOW GUIDELINES FROM A BARTENDER’S MANUAL WILL HELP MAKE SERVICE UNIFORM.

Know the laws that pertain to the business you are managing. Otherwise, it could be very costly and land you in big trouble.Now that we have scratched the surface of human resources in the bar business and put forth some questions for you to look into, you should have a better understanding of how much there is to know—and we’ve just begun!

Topics: bartending schools, bar business, Bar Management

Running a Bar Vs Managing a Bar

Posted by Nick Kaoukis on Wed, Apr, 13, 2011 @ 12:04 PM
e-mail: "bjbarhop@aol.com, web page  
www.BobTheBarGuy.com 
 
ARE YOU REALLY READY TO OWN AND OPERATETO OWN AND OPERATE A BAR

Part 2:bartender

“The ultimate success or failure of your bar will be determined by those you hire. You must paint a picture for staff to follow so that your policies are consistent and there is no misinterpretation.”

As a bartender, you learned and practiced proficiency in bar terminology, product knowledge, mixology, tools of the trade, bar equipment, dealing with the public, cash controls, cleaning, stocking, bar organization, and the laws related to the responsible service of beverage alcohol. To be a bar manager you must continue your learning process far beyond that of a bartender, and here is where we run into a problem— learning the additional, necessary skills needed to effectively manage a bar.

A bar manager must have the knowledge and ability to directly oversee all bar operations and personnel, which includes the processes of hiring, training, evaluating, disciplining, terminating, and scheduling (human resources), and ordering, receiving, inventory controls, product cost purchasing (beverage control). Additionally, he should have the ability to properly price drinks, execute promotions, and pull a shift or two behind the bar to help out on labor costs as well as stay current with drink trends, maintain efficiency, and stay in closer touch with the staff and customers. I believe a good bar manager should work at least two shifts behind the bar every week (and never the same two days).

Topics: bartending schools, Bar trends, Bar Management, bar location

ARE YOU REALLY READY TO OWN AND OPERATETO OWN AND OPERATE A BAR

Posted by Nick Kaoukis on Mon, Apr, 11, 2011 @ 14:04 PM

put grand opening bar 800X800

e-mail: "bjbarhop@aol.com, web page  
www.BobTheBarGuy.com

“There Is a World of Difference Between ‘Running’ a Bar and ‘Managing’ a Bar.”

Part 1:

Many people get into the bar business thinking they are going to be great owners/ managers and will naturally be good at this line of work.

Unfortunately, in many cases, their egos will prevent this from happening. If only these people would just set their egos aside
and say, “I’m obviously a very talented individual. I could become good at owning or managing a bar, but I have to be willing to learn. I have to be willing to open my mind to the possibility that I’m wrong and to listen to other people—especially the qualified professionals.” To paraphrase from an article written by professional poker player Annie Duke, in USA Today: Commenting on why CEO’s make lousy poker players, she says, “Their egos get in the way.”

Well, most owners/managers of bars make lousy operators (and poker players) for the same reason. This is a tough realization for someone to accept, particularly someone who has risen to the top in another profession. “Don’t tell me what to do! After all, I’ve been in business for 27 years!” or, “Running a bar is not rocket science—anyone can do it!” or, “Hey, I own this joint! Who are you?!”

Well, I’m here to tell you that there is a world of difference between “running a bar” and “managing a bar.” Anyone can own or run a bar, but very few can correctly operate and manage one. Don’t kid yourself—you don’t just walk in, take over, and start
telling staff what to do. You have to know what you’re talking about. Just because you may have been successful in another business does not mean you will be successful in the bar business.

If you think owning or managing a bar is easy, continue reading. Bar management skills are learned, not inherited. I think you’ll eventually come to the profound realization that you really have to know what you’re doing. Making too many mistakes because you don’t know what you’re doing could possibly put you in jail, out of a job, and out of a lot of money.

Before anyone decides to buy a bar or take a step up to management, I suggest you put your ego aside and read the following pages about what it takes to be successful in the bar business. Trust me—this is a difficult business, and it’s not for everyone. 

MANAGEMENT
Bar manager is a skill position that requires years of careful
observation, studying, experience, and know-how; yet, its importance has long been underestimated by owners in the hospitality industry. Even hospitality management schools place little importance on the subject of bar management, often making it an elective rather than a requirement for students graduating with what is considered food and beverage proficiency. Their definition of proficiency typically centers on knowledge of wine—which is nice, but has little to do with a nightclub or bar.
    

Before a head bartender or an entry-level manager accepts the job of bar manager, they should have a complete understanding of what the job entails. And, yes, bar managers should be former
bartenders. An in-depth knowledge of professional bartending is the starting point from which one learns bar management. It’s hard to be a truly effective bar manager unless you have a complete understanding of how to tend bar. “The gift of gab,
the casualness, and the caring, friendly service a bar manager gives to his customers comes from a bartending background,” says Bob Schwenker, former General Manager of Hooligan’s Pub in Miami, Florida. “A good bar manager has the ability to
make people feel comfortable. You shouldn’t make
the progression to bar manager without being a
bartender first.”

Topics: bar business, Bar Management, hospitality jobs

How to Run a Bar?

Posted by Nick Kaoukis on Fri, Mar, 25, 2011 @ 11:03 AM
e-mail: "bjbarhop@aol.com, web page  Bar Management
www.BobTheBarGuy.com
phone number: (800) 447-4384

Every bar is different. Popular liquors are pretty much the same from bar to bar, but how it gets to the customer—the pour, the glassware, the way it’s made and garnished, and how it’s priced—can vary. So we put the same pour spouts on all the bottles and encouraged the owners to “control the pour.” No more count system (they had four different types of spouts on the liquor bottles, each one wider or faster than the other). They agreed to a controlled pour, went with a 1¼ oz. metal jigger across the board, and made it a requirement that all bartenders measure each shot of liquor. This technique will lower their portion controlrelated losses by 3 to 5%.

A “doghouse” concept was created and implemented (back-up bottles and storage area for each brand of liquor at the bar). They no longer had the operational crisis of running out of liquor at the bar on a busy night. It would never happen again.

Next, we addressed glassware. The highball glass they were using was ten ounces, their shots 1¼ ounces. This was causing the bartenders to over pour each shot in order for the drink to taste right using the correct amount of mix to liquor. This adds up over time.

I explained to the owners the importance of enforcing a drink recipe manual for their bartenders. No bartender should be allowed to make drinks their way. The house gives the bartenders the recipes for all drinks, how they’re to be made, and how they are priced. Bartenders should be routinely tested on the house drink recipes.

We then created inventory control forms for all parts of the liquor inventory. This included a Liquor Requisition form (accounting for the empty bottles at night’s end); Storeroom Perpetual form (accounting for the daily movement of liquor into and out of the storeroom);

We then created inventory control forms for all parts of the liquor inventory. This included a Liquor Requisition form (accounting for the empty bottles at night’s end); Storeroom Perpetual form (accounting for the daily movement of liquor into and out of the storeroom);

Ending Inventory Count form (the physical counting of the liquor at week’s/month’s end); Usage/Cost form (gives you an Operational Pouring Cost percentage and an Actual Pouring Cost percentage number at the end of the reporting period); and an Order form (for all liquor products by vendor). Utilizing these forms creates day-to-day accountability for the liquor inventory and a way to hold the bartenders accountable for what they do.

Of course, the draft beer program was out of control. They were using frozen mugs and pitchers, and they were wasting at least half a keg per brand because of the constant foam problem. We stopped that by simply lowering the temperature in their walk-in cooler to 36 degrees (from 42 degrees) and going to refrigerated glasses instead of frozen. I told them to call their beer distributor and have them install separate pressure regulators for each brand of beer so the internal keg pressure in each brand of draft will equal the amount of pressure coming from the CO2 canister, thereby reducing the amount of foam. Bartenders were taught to open the tap handle from the base of the tap handle, not the top, thereby reducing the pressure that creates foam on the pour.

In doing all this, the number of kegs they had to order each week was cut in half (half!). The beer companies won’t like it, but too bad. I asked them if a beer company ever volunteered to help them out with their foam problem. Of course not! Their taco bar sells a lot of draft beer, and these changes saved big bucks. [Ed. note: See page 34 for more information on draft beer management. 

The owners of this bar/restaurant were very experienced with food service, but had never worked in a bar before. They had no bar skills, yet found themselves in a position of having to make serious, daily operational calls. They hired a bartender/bar manager with 12 years of experience, but his knowledge was still limited. He said he knew a lot about the business, but my conversations with him put him in the same category as so many supposed bar managers—they’re nice people, they mean well, but they don’t know a lot! And it’s not their fault. There are no schools, to my knowledge, that teach “How to run a bar.” You learn by the seat of your pants (and by reading Bar Business Magazine). You bring something with you from the last place you worked that you think will help the new place. Usually, it’s bad habits and bad theory. Not good for the old place, not so good for the new place, either!

I could go on about the improvements we made for this client, like the changes in controlling every bottle of beer, wine, champagne, and energy drink, correcting the tip reporting, and numerous other human resource discrepancies, but I think you get the point. There is so much a qualified bar consultant can do to help you realize the profit potential of your business.

My session with these nice people lasted about five hours. In that time I estimate I put in their pocket—if they follow through with all the changes I suggested—at least an additional $90,000-$120,000 in profit per annum, and probably more.

As such, I recently had a conversation with another bar owner in Augusta, Georgia, who said to me, “We should have hired you before we opened. I know you would have saved us at least $200,000.”

So why didn’t he? 

Topics: bartending schools, NightClub Management, Bar Management