With a few pricing adjustments, and a slight shift in pricing strategy, most bars and restaurants could add significant profits without selling more drinks.
The good news is that there are immediate action items you can take to improve profits in your bar operation. The key is moving from an overly simplistic pricing model to a more strategic pricing model.
Read this ebook to discover some of the ways you can increase your sales and profits without having to build new business through advertising, renovations, promotions or discounts. Read more
If you are unfortunate enough to go through a sales tax audit of your bar operations, you’ll be required to pay sales tax on drinks you never sold.
Q: Are you running the right pour cost?
A: It’s not that your pour cost is wrong, you're probably working your pour cost out correctly. The problem is... What are you comparing it to? How do you know it is good? See More...
You throw on an old jacket and discover $50 in the pocket – free money! In reality, of course, that $50 is money that you earned but couldn’t enjoy because it was hidden away from you.
Employment law is dangerously complex. Managing a bar or restaurant with locations in multiple states means you have to follow different rules in different locations. The complexity is enormous and is compounded by the fact that these laws are constantly changing.
Most POS systems are marketed as solutions for inventory control, accuracy and speed of service.
Ironically, our Sculpture Hospitality analysts find during our restaurant discovery audits that most major POS systems are programmed and installed in a manner that slows down service and requires re-programming for proper inventory control and accuracy.
Not sure if you should promote your doubles, or encourage staff to stick with serving singles? The word in the field is that many of you are asking the same question. So, we decided to do some research, and discovered that the profitability of doubles is driven by multiple factors, which vary according to location, staff practices, time of year, bar pricing structure and customer habits.
Restaurant and bar managers should take an interest in helping their staff earn higher tips. Perhaps the most important reason is that your employees rely on tips to make a decent living.
Higher income means higher job satisfaction and lower turnover. Also, motivated servers do a better job up-selling - which means higher profit and revenue for your operation. Indirectly, tip levels are one measure of the degree of service at your establishment.
Finally, Robert Plotkin has noted, “when bartenders are earning sizeable amounts of gratuities, they presumably won’t be as likely to put their jobs in jeopardy by ripping off the house.”
Draft beer flow meters have become an industry hot topic. Bevchek allows an operator to match up every beer poured to the sales report, all in real-time.
Ian Foster interviews Bevchek’s Steve Anaka.
A state sales tax audit can be a devastating process that could potentially bankrupt your bar business - even if you have honestly paid all your taxes. That's because the audit calculates tax owing on all the alcohol purchased including drinks you didn't even sell (ie: stolen and over-poured drinks).
The fact is that there is no such thing as a “good pour cost” that every bar should shoot for. When a consultant or writer says that bars should shoot for a target of around 20%, they are spouting nonsense.