Expert Advice on Hospitality Topics

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

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

A Great Cocktail Server

Posted by Nick Kaoukis on Wed, Jun, 22, 2011 @ 12:06 PM

BAR MANAGEMENT
by Bob JohnsonBar, nightclub server

In an adult nightclub, cocktail servers are required to do much more than simply take orders and hand out drinks. According to bar management ex pert Bob Johnson, there are several nuances that, if employed correctly, can turn a good cocktail server into a great one.
 
In part two of this two-part series, Johnson  provides servers with detailed information on how to  properly handle  house and serving policies, while  offering dentitions on some common drink ordering  phrases.
 

Part 1:

How important are servers?

 
The server is the main person that interacts with the customer during their visit to your club.  Being a good server is perhaps the most difficult job in the bar business.  It requires many skills, a mature attitude and a great personality.  You should reconsider the ago old adult entertainment theory of turning a cocktail server into a dancer.  A cocktail server who can easily converse with customers, gives great service, remembers names, remembers drinks and shows personality is more effective on the poor than being a dancer on stage. Plus, they are more accessible than a dancer.  The following  article  provides  detailed information for cocktail servers on how to properly  administer  house and serving policies,  and includes  dentitions on some common  drink ordering  phrase s.  Being a good cocktail server  means more than just taking orders and bringing drinks; hope fully, this article will help de ne their roles in a  successful adult nightclub.

Topics: Bar staff, Bar trends, NightClub Management, Nightclub Consulting, Drink Recipes

A Successful Bar Begins With a Quality Staff

Posted by Nick Kaoukis on Mon, Jun, 20, 2011 @ 10:06 AM

By Chris Parry
Atlantic Publishing


Part 2: Do Bartenders Create Regulars?

bartenderA bar business is not, as many people think, a service industry. Of course, it's part service industry, but it's also very important not to forget that it's also an entertainment industry. Do your bartenders entertain your customers while they are serving them?

 

  • Every customer is an asset to your business. Just as you wouldn't throw chairs and tables away after one use, so too should you do everything in your power to make sure that every customer comes back again and again. Your staff must know that this is your goal. They must realize that they're the front-line weapons in the battle for customer retention.
  • Customer needs. Every staff member, from host to bartender to manager, should be able to handle any customer's needs. If a hostess walks past a table that obviously needs clearing without lifting a finger, how do you think that will leave those customers feeling about the service standard in your bar?
  • People seated at the bar. They should be treated like old friends by your bar staff, at least when they first sit down. But just as it's important to engage customers in conversation when they're happy to talk, it's also important to leave them alone when they don't. A good bartender reads the client's mood.
  • Flair bartending is all the rage. Bartenders who consider their job to be more than a temporary source of income see themselves as the next Tom Cruise in the movie Cocktail. While putting on a show for the customers is a great way to entertain them, putting on a bad show is not. If your staff want to sling bottles and glasses around the bar in style, make sure they work within their limitations and save the practicing for after-hours.
  • Staff incentives. Some bar operators give incentives to their bar staff to stay around after their shifts and get to know the customers. Discounted drinks and food are not only a relatively cost-effective way to have your staff spend their free time at work, but these methods also help convince them to bring their own friends and turn your bar into their regular watering hole.

 

 

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, alcohol, Bar trends, NightClub Management, Bar Management, Nightclub trends, opening a bar, hospitality jobs, liquor

A Successful Bar Begins With a Quality Staff

Posted by Nick Kaoukis on Wed, Jun, 15, 2011 @ 10:06 AM
By Chris Parry
Atlantic Publishing


Part 1: Recruiting a Security Staff

securityKnowing when and how to recruit security staff is an important part of any popular bar operation. Should you hire your own or deal with a security firm? If you hire your own people, what rules do you set for them? How do you avoid getting sued if someone is removed forcibly? Many venues utilize outside security firms to provide security on busy nights, and most do so as a means of simplifying their security needs and reducing liability issues. But an outside contractor doesn't always make things easier:
  • Outside contractors. This means you don't need to concern yourself with compensation, holidays, sick days, wages, etc. However, it also means that your level of control over the standard and selection of those who work at your venue is reduced. Also, with security firms costing more per hour than individual contractors or staff, your bottom line can suffer. Consider hiring one or two of your own staff who you can use on regularly busy nights and filling in any gaps with contractors that may come up.
  • In-house employees. While harder to find, train, and do background checks on, they are usually more loyal and tend to stay longer than contractors. If you want to have complete control over how your security behaves, how they deal with customers and their loyalty to the company, there can be no better way to work than to simply employ the best people you can find.
  • Security personnel. Hiring security and calling them independent contractors to avoid liability and payroll taxes is a tactic some bar operators employ to make the process simpler and cheaper. But this can bring more problems than it solves. If your security "contractor" does injure someone when removing him or her from the premises, are you confident that your "contractor" won't claim she is an employee? Do you need that kind of a fight?
  • Rules. Security guards need ironclad rules of engagement that dictate what they can and cannot do. Ensure that rules are in place that every security employee knows and signs. So, if there is a liability problem down the road, you can point out that your rules were broken and that you were not in any way negligent in your duty of care to the client.
  • ALWAYS do a background check on your potential security staff. It may cost a little and extend the hiring process, but if you don't want a 300-pound cocaine addict to be throwing your customers around a back alley, you'll want to make sure you're not hiring any 300-pound cocaine addicts.
  • Attorney involvement. Talk to your lawyer about drawing up any and all papers you'll need to ensure that your organization is completely covered and doing everything it can to ensure your security staff behave responsibly. Spending a hundred bucks today on legal fees can save you thousands down the road. Similarly, check with your insurance company to confirm your legal liability responsibilities to your security staff.
  • Subcontracting security staff is a legitimate means of filling a need. This works if you really don't have the time to micromanage your security concerns, or to fill in during times when your regular staff is unavailable or inadequate in number. You can subcontract individuals as long as you give them a Form 1099 for any cash paid over the $600 mark; this will, in turn, keep your workers' compensation bill down.
  • Equip your security staff for their job. Spotting fake IDs isn't always easy. If you have 200 people waiting to go through your door, your security staff can't spend five minutes with every person, but there are tools available that can help. An electronic ID-checking unit will read the magnetic strip on any state driver license, verify that the license is valid, and display the holder's exact age - not to mention point out if the document is a fake or has been tampered with. These systems are small, inexpensive to purchase and limit the chance that your staff will let in an underage drinker. Talk to Intelli-Check (www.intellicheck.com) by calling 800 444-9542.

 

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, NightClub Management, bar business, Bar Management, Nightclub Consulting, opening a bar, bar control, Control, inventory 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

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

All posts