By
uncovering and eliminating hidden shrinkage—despite a
pour cost that might look pretty good—this bonanza
could be yours.“ Shrinkage” refers to the amount of
alcohol lost in your bar due to overpouring, misringing,
theft, and waste. A 2000 study conducted by Bevinco, for
the California Restaurant Association found that almost
every restaurant bar has too much shrinkage; the average
loss is more than 20 percent—one drink in five.
The
good news is that if you tighten up your controls, you
can increase your sales and decrease your costs without
bringing in any new customers.
High
Shrinkage Factors
Most operators have a hard time believing that they
could be living with losses of this magnitude without
knowing it. And that is the main reason these problems
persist. The difficulty is not exactly denial but rather
that shrinkage has traditionally been “controlled”
by carefully monitoring pour cost. This approach is not
only inadequate; it actually works to hide shrinkage
problems.
A
pour cost of 20 percent sounds impressive, but not if it
should have been 17 percent. You have to calculate your
ideal or theoretical pour cost, which will vary
depending on all kinds of factors such as the price of
your drinks, your pour sizes, and, notably, your sales
mix.
Every
drink you sell has a different pour cost. Some, such as
a vodka and tonic, might be as low as 10 percent, while
others, such as a super premium vodka martini, are
usually well over 30 percent. Some months you will sell
more vodka tonics, and your pour cost will go down.
Other months you will sell more super premium-based
cocktails, and your pour cost will go up. So why do most
operators target the same, static pour cost every month?
Furthermore, these pour-cost swings do not tell you
anything at all about shrinkage levels.
Heavy
Pour Habit
Another
reason for 20 percent shrinkage is simple: virtually all
bartenders over pour. Since they think that a larger
pour is going to lead to a larger tip and tipping makes
up the lion’s share of their income, almost every
drink is over portioned. An extra half-ounce might not
sound like a big deal, but 500 overpours is equivalent
to giving away150-plus drinks.
Although
it sounds counterintuitive, over pouring usually results
in lower sales. The reason is that most customers are
going to consume drinks only until they reach a
“comfort level.” That level depends on the
circumstances. For example, if I have to drive home, I
stop ordering when I get the first little buzz from the
alcohol. That is usually on my third drink. But if my
first two drinks are over poured, I will feel the buzz
before I order the third drink, and the bar loses a
sale.
A
profit increase of $4,000 to $10,000 a month is
certainly a good incentive to take a careful look at
your bar’s profitability, but where should you start?
Here are some tips:
- Understand
that a “good” pour cost may not necessarily be
all that good.
- Calculate
your ideal or theoretical pour cost every week. You
should be within 1/2 of 1 percent of your ideal. For
example, if your ideal pour cost is 18 percent, your
actual pour cost should be 18.5 percent or less.
- Don’t
assume that your bartenders know how to pour spirits
and draft beer correctly. Purchase a spirits
pour-training device and test staff frequently;
invite your beer vendor to run a draft-pouring
seminar for your bartenders.
- Hold
your bar staff accountable by matching your
inventory depletion to your sales reports. Start by
counting your beer and wine bottles every week and
comparing them to your sales tapes.
- Consider
hiring an alcohol-auditing company to help you audit
draft beer and spirits. They will weigh all tapped
kegs and open liquor bottles to compare with your
sales. Your increased profits will pay their fee
many times over.
Article
provided by: bevinco.com |
