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Top Bar Management KPIs You Need to Watch

Posted by Sculpture Hospitality on May 31, 2017 12:08:36 PM

In Bar Management

Introducing a new menu or running a new promotion can help reduce sitting inventory and increase sales, but how do you know just how successful your efforts have been? It is important to identify and use Key Performance Indicators to measure whether you are getting the most out of your time and money.

Bars and restaurants have a different set of KPIs than most businesses. Here is what you should be measuring (Top Bar Management KPIs) and how you can use this information to make improvements:


Keeping an accurate inventory will allow you to see how quickly your stock of beer, wine, and spirits moves off the shelves. With this knowledge, you can make smarter purchasing decisions that will help you avoid wasting money on items that simply don't sell.

You need to decide on a KPI that best reflects the goals of your specific bar. As a general rule, you should have an inventory turnover rate of 4-8 weeks. New inventory management tools can make this process of keeping records and making informed decisions faster and easier than ever.


Kitchen and bar labor is another area that should be measured against certain KPIs.  Keeping track of labor hours and comparing those numbers to profits can give you a sense of productivity. You might find that staff members are spending a disproportionate amount of time on certain tasks or that your bar is understaffed.

This information will allow you to create more efficient processes and move staff around as necessary. Not only will you see an increase in profitability, you may also find that your workers are less stressed and a lot happier.

You may also want to closely track how often employees are significantly late for work or call in sick. While you can always call in a replacement or ask someone to stay past the end of their shift, these practices are sustainable in the face of frequent absences. If you can identify trends, you can work with certain employees to help them succeed at work or make the decision to permanently replace problem employees.

Staff Turnover

Bars and restaurants have a much higher staff turnover rate those most industries. While this is simply part of the business, you can work to reduce turnover, which will also reduce recruiting and training costs. If you create a pleasant work environment that includes opportunities for employee growth and offers performance-based rewards, you will cultivate a loyal staff. This is an excellent way to cut down on costs and measure the health of your establishment.

Linen, Glassware, Etc.

Do you provide your employees with uniforms? Do you use linen tablecloths? Do you find that you are constantly having to purchase more glassware, plates, and bartending tools?

This is one area that is often overlooked by managers. Even relatively small costs can begin to add up over time. Look for ways to reduce these costs and make sure that you aren't losing money when it comes to purchasing supplies and other necessities.

Once you take a closer look at your KPIs and see how your bar or restaurant actually stacks up, you may be surprised to see how new efforts have paid off and how old habits have turned into sources of inefficiencies. When you set KPIs and actively track your efforts, you can begin to understand where there is room for improvement. Without this data, you are effectively taking a shot in the dark and hoping for the best. 

Are you ready to talk to us about your bar inventory?