3rd Semester

Subject

Bar Management
 BAR
Bar is a licensed establishment serving alcoholic and non alcoholic beverage to
walk-in and room guests

TYPES OF BAR
• Public Bar
• Dispense Bar Or Service Bar

TYPES OF LICENSE
• On Shop
(Cocktail Bar, Dispense Bar, Temporary License (For Banquets)

• Off Shop

AREA OF A BAR

• Generally 15 – 20 % Area Is Allocated For The Bar And The Bar Is Always Located
In A Convinient Position Of The Hotel .
• 15-18 Sq .Ft Is Required Per Person .
• Mostly Situated Near The Foyer Of The Hotel.
 PARTS OF BAR
• Front Bar

• Under Bar

• Back Bar

Front Bar Consists Of

• Bar Counter- Formica , Wood, Granite And Heat Resistant Glass Is Used For The
Counter Top.

•Leg Rail
• Ladies Hand Bag Rail

• Arm Rest (Rounded Off For Comfort)

• Height Of The Front Bar Is 4 Feet.

• Width Of The Bar Counter Is 16- 18 Inches.

• The Height Of The Bar Stools Are Ranging From 2 Feet – 3 Feet.

• Counter Mounted Uncorking Device And Service Bar Rail Can Be Installed On The
Counter Of The Bar

Under Bar

• Under Bar Is The Work Station(work Area ) Of The Bartender.

• Under Bar Consists Of The Following Equipments.

• (Sinks, Underbars And Back Bar Refrigerators, Pop Door Chillers ,Beer Engine
With Draught Beer Tap, Fountain Bar Mixers ,Cobra For Dispensing Premixes,
Mechanical Liquor Dispensing System, Drip Trays, Blenders, Electric Glass
Washers,& Bar Mats

• Other Equipments –Cash Register(epos)

Back Bar

• The Area Between The Front Bar And Back Bar Is 3 Feet Access Aisle For The
Bartender

• The Back Bar Liquor Display Constitutes The Back Bar .

• Often Mirrors Are Placed In The Back Bar Counter In Order To Increase The
Virtual Space.

• Cowboys Often Used To Sit In The Bar And Spot Their Enemies With The Help Of
The Mirror Placed In The Back Bar.

Bar Die

• Separates The Front Bar From The Back Bar Acts As Partition.
Free Pour

The Dispensing Of Alcoholic Beverages Without Using Any Measuring Devices .

Generally There Is Pour Spout Attached To The Mouth Of The Bottle & The
Bartender Pours The Liquor With The Help Of A Measuring Count

One Should Be Careful To Prevent Wastage .

Modern Bar Layout
Modern Bar Layout
Modern Bar Layout
 BAR HIERARCHY

Food and beverage manager

Assistant F&B manager Bar manager

Assistant bar manager

Team Leader / Supervisor/Senior Captain (Bartender)

Waiter(sommelier)

Trainee
 THE IDEAL BAR LAYOUT

Bar and counter display

Area and size

Area required per person is 15 sq. ft. Bar Counter area is 15 to 20% of the total
area of the Bar.

Legal Requirements
It is necessary to secure complete information from the excise authorities or from
an architect skilled in bar-layout.

Location
In a hotel the bar should be at an ideal place-as close to the door as possible. It
should have an attractive exterior

Working Convenience
One should keep a supply of the most popular drinks nearest to the main serving
points. The correct type of glasses where they are most needed.
Advertising Value
One should display most prominently the drink that one particularly wish to sell.

The Bar Counter: The part of the counter facing the customer should have an
attractive finish
selection the factors to be considered are:
1. Resistance to dampness, stains and burning marks.
2. Should have attractive design
3. Easy to clean.

Lighting
The part that lighting plays in the creation of atmosphere can hardly be over-
emphasised. The utmost care should be taken to ensure that lighting does not:

(i) Affect the colour Of drinks;

(ii) Play tricks with the make-up of ladies;
(iii) Present a bad uncomfortable light.

 Flowers
If flowers are used they must be fresh and well-arranged. Artificial flowers are not
recommended.
 Bar Equipment
Knowing the fact that the bar will be in constant view of the customer, it needs
to be equipped with good quality tools and equipment.
Equipment selected should be good in appearance and easy to clean. For this
reason preference is given to the stainless steel variety.

List of Equipment

Large mixing glass

Metal shakers
Boston Shake for flips, noggs, which require extensive shaking.
Hawthorne Strainer,
Cocktail mixie (For bulk preparation)
Muddler sticks
Fruit knives and boards
Ice Crusher
Ice Picks
Ice Scoops
Ice Shaver
Bottle openers
Ice Tongs
Fine strainers for fruit juice
Small funnels
Corkscrews
Fruit Squeezer
Nutmeg-grater
Glasses
Bar Spoons
Glass-washing machine
Sinks
Cruet Sets
Dusters, glass cloths
Cocktail sticks
 BAR TERMS
Mixing
When using a cocktail shaker there is one golden rule to remember. Always put
the ice in the shaker first, and the liquor last. This is to ensure that all ingredients
are properly chilled by the ice when they are poured over the ice, and by adding
the liquor last you reduce the chance of dilution.

Stirring
A drink that is stirred instead of shaken will retain its clarity and be free of ice
chips. When stirring a cocktail you should stir it enough to mix the ingredients, but
not stir it too much. If you stir too much the ice will begin to dilute the liquor. A
drink containing carbonated beverage(s) should be stirred gently and briefly to
retain the sparkle.

Shaking
Instead of stirring, you can shake the drink. This will mix the ingredients more
than stirring, but will also result in a less clear drink.
Drinks that contain ingredients that are hard to mix, such as cream,
fruit juices and eggs, should be shaken vigorously to ensure that the ingredients
has been well mixed.
Blending
Use an electric blender to mix fresh fruit, liquor, juices and ice instead of using a
shaker. Not too popular everywhere, but perfect
for making frozen cocktails or to blend ingredients that are other wise impossible
to mix.

Floating
The purpose of floating is to keep each ingredients in the drink in separate layers
that do not mix with the others. This will create a drink with separate layers, and
this is why floating often is referred to as layering. The easiest way to float one
liquor on top of another is to use a demitasse spoon, holding it over or in the
glass and slowly trickle the ingredient over the back of the spoon.

Muddling
Muddling is a simple mashing technique for grinding herbs, such as mint, smooth
in the bottom of a glass.

Frosting
To frost a glass, first dip it in water and then put it in the freezer for half an hour
or so. Also note that metal and silver mugs and cups will frost better than glasses.
 BAR FRAUDS
Bartender brings in his own bottle and pockets cash from the sale
Pour less than shot to cover "give away" liquor costs
Claim a returned drink - Extra drink is sold and cash is pocketed
Returned bottle of wine - Wine is credited on inventory, bartender sells wine by
the glass, pockets cash
Undercharge customers or free liquor in hope of large tip
Re-Using register drink receipts
Bartender exchanges drinks to cooks for dinners
Adding water (diluting) liquor to get more shots out of it
Pocketing the cash
Using lower priced liquor and charging for call brands
Receiving kickbacks from liquor distributors
Charging customer regular prices, ringing happy hour prices
Complimentary cocktail or wine coupons from hotel rooms sold by maids to
bartender which can use in place of cash
Giving free drinks to employees in exchange for higher tips
Not pouring liquor into blended drinks to cover high pour costs
Under-reporting of sales
Bringing in a pair of work shoes, wearing boots. Put liquor bottle in boots and
walk out with it.
Keeping Cash
Re-using empty bottles to get new inventory out of store room without
suspicion
Pouring wine by the glass and ringing in a bottle sale
Using jiggers brought in from home that all smaller than standard pour, with
the same objective as above
Substituting a house brand for a premium brand, and pocketing the difference
Overcharging the number of drinks served to a group of customers who are
running up a tab to be paid later
Claiming a fictitious robbery
Re-pouring customer wine leftover in bottles (e.g., banquet wine) to other
customers by the glass
 Free drinks to local merchants in exchange for merchandise
Making juice or coffee drinks with little or no liquor
Picking up excess customer change on bar
Free drinks to the cooks in exchange for food
Inflate ending inventory values by filling empty liquor bottles with water and
counting as full
 OPENING AND CLOSING DUTIES: BAR OPERATIONS

Opening Duties

STEPS KEY POINTS REASONS

Keys Pick up keys from reception Security reasons

Mise en place Set up Bar Efficient Service

Slice fresh fruit Garniture
Squeeze juice For service
Place juice in stainless steel containers Keep drink cool

Accompaniments Olives and nuts in proper containers Convenience

Glassware In glass racks or glass shelves From wash up area

Bottles Wipe bottles & set them Remove dust and dirt

Refrigerators Check interiors Standards of hygiene

 Closing Duties

STEPS KEY POINTS REASONS

Fresh fruit Place in refrigerator For preservation

Garbage disposal Remove from bar Sanitary purposes

Equipment Wash and dry all equipment Hygiene

Counters and surfaces Clean thoroughly all surfaces Hygiene

Dirty linen Return to laundry For cleaning

Locking up Check all doors/pass keys to reception For security

 Basic Bar Garnish
• Cheeries
• Olives
• Cocktail Onion
• Orange
• Lime/Lemon (Slice, Peel, Rind, Wedge)
• Mint
• Pineapple
• Apple
Basic Bar Groceries
• Salt
• Pepper
• Cubbed Sugar
• Caster Sugar (White / Brown)
• Cloves
• Nutmeg
• Eggs
• Cream
• Coconut Milk
• Fruit Juices
 JOB TITLLE- BARTENDER
REPORTS TO- SENIOR BARTENDER

• JOB SUMMARY-
• responsible for the day to day running of the bar :standards of hygiene &
reporting of defective machinery.

• DUTIES-
-organizing the service in the bar area & operating in an efficient & hygienic
manner
-maintaining the bar stocks in good order
-handing over the operation in the next shift in a state of preparedness
-leaving the bar secure at the end of the day

QUALITIES
• Good appearance
• Sense of responsibilities
• Honest & reliable

QUALIFICATION
• A good general knowledge
• Hotel school graduate / hotel experience
 How To Keep The Area Clean

Steps Key Points Reasons

1. Runners A) Runners To Be Laid Across A) To Absorb Spilt

Liquid Working Surfaces.
B) Change Frequently B) Hygiene.

2. Bottles A) Empty Bottles To Be Crated Till Full A) For Easy Clearance

Then Removed

3. Refuse A) Fruit Skins/ A) Hygiene

Garbage To Be Placed In Appropriate
Containers And Removed When Full.

4. Juices A) Acidity From Spilt Juice Causes A) Safety And Hygiene

Bacteria And Corrosion. Care To
Be Taken While Cleaning
 Liquor License

A liquor license is a permit given by the state excise department to those who wish to sell
alcoholic beverages at a certain place. This license is issued only after close scrutiny to all the
details of the license holder because selling liquor without a license is an offence under
various state laws.

Why is liquor license required?

The phenomenon of the consumption of alcohol is not only among the rich class of the
society, but even the middle class and the poor youth consume it more at a higher extent.
The factors which trigger them are the easy availability, weak implementation of laws etc. To
ostensibly mitigate the wrongful sale of liquor licenses provide for a checking a mechanism.

It is unlawful for any person to manufacture, distribute or selling toxicating liquor without a
state license issued by the state supervisor of the division alcohol and tobacco control.

Therefore, to maintain the health and the state of peace & order in the country, there is a
requirement to regulate the selling of liquor and hence a liquor license is necessary.
 Types of Liquor
There are two types of liquor available in the Indian market.

Indian Made Foreign Liquor (IMFL):

It refers to ‘Hard Liquor‘ manufactured in the country.

Imported Foreign Liquor (IFL):

This refers to the liquors which are produced outside of India and later on imported to
India. IFL is usually expensive than the IMFL.

Types of Liquor License

Different types of licenses are issued by each state government. An individual or company
can seek the grant of following licenses:
Grant of L-1 License:

For Wholesale Supply of Indian Liquor The government every year formulates policies for
grant of this license in pursuance of which it is granted to the wholesale supply of Indian
liquor.
It is granted to Company or a society or a partnership firm or proprietorship firm having
licensed manufacturing units (distillery / brewery /winery/bottling plant).

Procedure for application of this license:

The govt. invites applications by issuing a public notice in a leading newspaper and on the
official website of the government.

The prime job of L-1 Licensee is to supply liquor to the holders of Licenses of L-6, L7, L-9, L-
10, L-12, L-13, L-14, L-15, L-16, L-17, L-18, L-19, L-20, L-21, L-28, L-29 and other liquor
licenses in the National Capital Territory of Delhi.

The holder of L-1 license has to comply with all the terms and conditions mentioned in the
license contract.
Grant of L-6 License:

For Retail Vendors L-6 License is issued to the retail vendors of Indian liquor/beer which is
granted to selected undertakings of Delhi government.
In regard to premises for such liquor shop, proposals are invited by selected and approved
corporations. The grant of this license by the excise commissioner is given only after looking
into the suitability of such premises.

Grant of L-3/L-5 Licences:

For Hotels The govt. grants these licenses to hotels which are holding star classification and
also the approval from Tourism Department of Govt. of India which is considered necessary
for grant of License in form L-3.
L-3 license empowers the hotel for service of foreign liquor to the residents in their rooms.
These hotels can also seek separate License in form L-5 for serving the liquor in exclusive bars
and the restaurants in the hotel premises.

Grant of L-19 License:

For Clubs L-19 license is granted to a club registered with the Registrar of Firms/Registrar of
Cooperative Societies for service of foreign liquor to its members. It is subject to the
provisions of Punjab Excise Act, 1914 as extended to the National Capital Territory of Delhi
Grant of L-49a License:

Marriages, Parties Etc This license can be obtained on payment of Rs. 3,000/- for service
of liquor in any party, function, marriage etc. at a specific premises anywhere excluding
public parks subject to the following conditions: -

•The area should be away from public view.

•Liquor should be served to adults as per the age specified by the state.
•Liquor should be procured from authorized source.
Bar management As Career
 Bar Management

Bar management involves operating and running an

establishment that serves alcoholic beverages.

If you're in charge of managing a bar, you'll need to oversee a

variety of staff members, such as bouncers, bartenders and
servers.

Entertainment is an important part of bar management as well.

Potential entertainment options include televised sports games

and live events featuring bands and comedians.

If a bar serves food, a bar manager also might have to make
menu selections and supervise the bar's kitchen.
If you want to be a bar manager, you can work your way
up from other roles in a food service establishment.

You might start out as a server who takes and delivers

orders, a chef who cooks food, a bartender who serves
drinks or even a bouncer who helps keep the bar orderly
and safe.

Once you have been promoted to the position of bar

manager, you oversee the general operations of the bar.

You must handle customer complaints, take inventory for

the bar and ensure that staff members properly fulfill their
job duties.
Social Responsibility
 Responsibility In Today's Alcohol Market

What is Social Responsibility?

As someone working in a company that is involved in the

production, marketing or sale of alcohol it is important that
you understand what is meant by the term ‘social
responsibility’.

In relation to alcohol, the term is generally used to define

the actions taken by industry to produce, market or sell
alcohol in a way that promotes sensible consumption and in
no way promotes alcohol misuse.
This is important because alcohol, whilst it is
perfectly compatible with a healthy lifestyle when
consumed in moderation, can have serious negative
health and social consequences if consumed
irresponsibly.

Your company may have a social responsibility

policy which sets out its commitments in this area.
 Why have a social responsibility policy?
The Government and health community recognise that although
industry has a role to play, it is up to the individual consumer who
chooses to drink to enjoy alcohol in a responsible manner.

Not only is there a moral imperative for businesses to act

responsibly, but there are also sound commercial reasons for
doing so

 Supporting industry self-regulation and promoting responsible

consumption may help to enhance your reputation as a
respectable business

Promoting regular yet moderate consumption helps to ensure a

sustainable long term business
Promoting responsible consumption helps to build the
‘premium’ nature of brands, and promotes long term
consumer loyalty

Supporting industry self-regulation helps to preserve

long term trading freedoms

Working for a responsible and ethical company may help

to motivate staff

Alcohol misuse damage the reputation of the alcohol

drinks industry as a whole

By acting responsibly, industry will increasingly be seen

in a positive light by the ethical shareholder lobby
Some useful things to remember to enjoy a safe and
enjoyable night:

Know what a unit is and how many are in your drink

Make sure you understand the Government’s Sensible Drinking

Message and how it relates to you

Avoid top-ups so you can keep track of your unit intake

Consider alternating your drinks with water to stay refreshed

Consider eating before or whilst drinking which can slow alcohol

absorption

Think about how you’re going to get home before you leave home –
grab a cab or designate a driver
Responsible Service of Alcohol
Getting drunk and drunken behaviour is viewed to be a common and
sometimes expected part of the drinking experience in today’s society.
Creating support and expectations for licensed settings that encourage
sensible drinking through the responsible service of alcohol is one
strategy to assist in reducing alcohol-related problems on and off licensed
premises.

There are laws in relation to serving alcohol. A licensee, manager or

employee (whether in paid employment or as a volunteer) are required to
comply with these laws:

It is an offence to permit drunkenness on the premises.

It is an offence to serve alcohol to drunk people.

It is an offence to serve alcohol to anyone under 18 years-of-age.

It is an offence to allow people who are violent, quarrelsome, disorderly

or behaving indecently on licensed premises.
 How can an employee do responsible service of alcohol?

Understand that bar staff have legal responsibilities to

refuse service to those that appear to be drunk.

If working behind a bar (whether paid or as a volunteer),

ensure that you adhere to the laws in relation to responsible
service of alcohol.

Ensure that you do not obtain or attempt to obtain

alcohol for consumption by a drunken person as this is an
offence under the Liquor Control Act.
Refuse to help a drunken person in obtaining or
consuming alcohol as doing this is an offence under the
Liquor Control Act.

Understand that in addition to the standard responsible

service laws, each licensed venue has its own
characteristics and may have additional legal requirements
or restrictions with regard to the sale of alcohol.

Look after your friends. If they seem to be getting drunk

get them to slow their drinking and offer them non-
alcoholic drinks. Remember this would assist in preventing
them from being removed from a venue for drunkenness
or being refused entry.
 Risks to Staff & Business

Drunk customers are more difficult to deal with

More mess to clear up (spillages, breakages, vomit, etc.)

More disorder, issues may escalate into aggression and

violence more quickly

Staff more at risk for harm

Increased costs to premises of replacing fixtures and

fittings
Increased staffing costs – need more staff to deal with
disorder, likely to have a higher staff turnover

Premises gets a reputation that in turn attracts more

rowdy people and puts better behaved customers off

Extra visits from the police, which puts license at risk

Risks to Customers

Drunk customers are more at risk than sober individuals

when returning home, whether driving, walking or using
public transport - as they are most vulnerable to attacks or
having an accident.
Health Concern
As people drink alcohol, you can see how their behaviour
starts to change.

People become a little louder and more confident as they lose their
inhibitions

Some people may start to slur their words

Some may start to be unsteady on their feet

Other senses will start to be affected, including vision, causing

difficulty in judging distances

If a drunk person continues drinking, it can have very serious

effects. Automatic functions start to be affected (heart, lungs). This is
known as alcohol poisoning and causes a person to lose
consciousness.
An unconscious person can choke to death on his or her own
vomit.

A person can also die from acute alcohol poisoning – from having
too much alcohol in the bloodstream.

It is important to know the early symptoms of intoxication and to

refuse to serve such customers well before they become obviously
drunk.

As alcohol worsens the physical and mental functioning, the more
individuals drink, the less likely they are to be able to make
decisions about their own well being.

This is why it is up to the server to decide who has had enough to

drink, not the drinking customer.
 When Drinking The Same Amount Of Alcohol:

Women are more affected than Men

A Small person is more affected than a Big person

A Person who has empty stomach is more affected than

a Person who has eaten a big meal

 A Person who drinks rarely will appear more affected

than a Person who drinks regularly
Drinking and Driving

There is no dispute that alcohol affects a person’s ability to

drive

Many people ask, “How much can I safely drink and still
drive?”

It is impossible to say that a certain number of grams of

alcohol or a certain number of drinks will ensure your driving is
safe

The amount of alcohol in your blood depends on age, sex,

what you’ve eaten and many more factors. This means it is
impossible to predict the exact effect and therefore the only
truly “safe” level is not to drink alcohol at all when driving.
Sobering Up

Ask anyone how to sober up or get rid of the alcohol from

the body, and people give a variety of answers. However,
most of this advice is incorrect and some can cause more
harm. Let us look at a few:

Drink coffee (wrong) - coffee contains caffeine (which is a

stimulant) and mixing it with alcohol (which is a
depressant) can have harmful side effects

Drink water (wrong) – although this may help rehydrate

the body, drinking water has no effect on getting rid of the
alcohol.
Be sick / vomit (wrong) – this will only get rid of the
alcohol in the stomach and, as alcohol is quickly absorbed
into the bloodstream, this won’t help.

Stop drinking and wait (RIGHT) - there is nothing you

can do but wait for your liver to process the alcohol out of
your body. It takes around 20 minutes from when you first
start drinking for the liver to start to process alcohol out
of the body. The liver then processes this alcohol at a
steady rate of around 8g per hour.

The best way to avoid drunkenness is for individuals to

“pace” themselves - that is, drink at a rate no faster than
the body can break down the alcohol.
Alcohol & Lifestyle

Drinking tends to be associated with good times

like parties, events and celebrations

If consumed in moderation, at the right time and

place, alcohol can be compatible with a healthy
lifestyle.

People who tend to drink too much, either binge

drinking or over consuming, are at greater risk of
developing health and other problems
Binge Drinking

Drinking too much in a single session.

The precise definition varies around the world

It is defined as 5 or more drinks for a man and 4

or more drinks for a woman in a single session

Excessive Consumption

Drinking too much over a period of time.

 Bar Manager
It’s a bar manager’s job to keep a bar operating smoothly, and this
includes overseeing all operations concerned with the bar.

This means the bar manager must schedule employees’ hours, make
sure there are adequate staff on each shift, and they may also be
required to plan functions and events.

A bar manager also has to regularly review the inventory and ensure
that there are sufficient supplies, re-order where necessary, and must
manage the money and make sure there is an adequate supply of
cash.
It’s their responsibility to make sure the bar meets all health and
safety requirements, and is kept clean and neat.

A bar manager must know the local, state, and federal regulations
concerning the sale and distribution of alcohol.
Additional duties can include interviewing potential
staff, and conducting regular performance reviews on
current staff.

It may be necessary to train staff working at the bar, and

this may include security staff and waiting staff as well as
bartenders.

Anyone wishing to become a bar manager must have

extremely strong communication skills and definitely has
to be a team player. It’s necessary to have a neat and
clean appearance as the job is customer facing
 Unit III

Bar Management

The role of the bar manager

Bar layout
Basic Bar Arrangements
Bar equipment and tools
Bar Sanitation
Stock taking and stock control Procurement and suppliers
Preventing theft and Frauds
Managing conflict and violence in bars
Latest trends in Bar Management
 STOCK TAKING
&
STOCK CONTROL
 STOCK CONTROL
The primary objectives of stock control are:

1. To eliminate over-stocking, resulting in too-great a tie up of capital

losses due to obsolescence, depreciation and increased storage costs.

2. To eliminate under-stocking, with its consequent, adverse effect on

service and in this connection to afford an adequate follow-up on
delivery promises.

3. To ensure that each item delivered from stock is properly accounted

for and that pilferage and wastage, if they exist, are discovered at an
early stage.

4. To ascertain the quantity of any item in stock and its price at any time.

5. To give easy reference to the prices previously paid for items, so that
orders may be placed as advantageously as possible.
 STOCK CONTROL METHODS (MANAGEMENT TOOLS)

1. Set Par Levels - Inventory management should be made easier by

setting ―par levels for each product. Par levels are the minimum
amount of product that must be on hand at all times. Whenever the
inventory stock dips below the predetermined levels, a purchase
order should be placed for immediate replenishment of the stock.

2. First-In First-Out (FIFO) ―First-in, first-out is an important principle

of inventory management. It means that the oldest stock (first-in)
gets sold first (first-out), not the newest stock. This is particularly
important for perishable products so that it doesn‘t end up with
unsellable spoilage.

3. Manage Relationships – It is important to have a good relationship

with suppliers. That way they‘ll be more willing to work to solve
problems. A good relationship isn‘t just about being friendly. It‘s also
about good communication.
4. Contingency Planning - A lot of issues can pop up related to inventory
management. These types of problems can cripple unprepared
businesses. A successful entrepreneur should always figure out the risk
areas and also prepare their contingency plans.

5. Regular Auditing - Regular reconciliation is vital. In most cases, it is

done with the help of physical inventory, spot checking and cycle
counting.

6. Prioritize With ABC - Some products need more attention than others.
Separate out products that require a lot of attention from those that
don‘t and categorize them as follows:
A - high-value products with a low frequency of sales
B - moderate value products with a moderate frequency of sales
C - low-value products with a high frequency of sales

7. Accurate Forecasting - A huge part of good inventory management

comes down to accurately predicting demand.
 INTRODUCTION TO STOCK-TAKING
In order to find out whether any organization is making a
profit or a loss, it is always advised to draw up Trading and
Profit and Loss accounts periodically. The basic motto behind
drawing up these accounts is to find out the value of all
goods in hand. This process of evaluation of goods in hand is
called as stock-taking. Although stock records are kept, it is
still necessary to do stock-taking, that is the physical
checking of all stocks on hand. Stock-taking involves the
listing of every single item of stock with the quantities held,
after which the items have be to individually priced and
valued. There are three main kinds of stock-taking:
 Annual Stock-taking
 Perpetual inventory
 Periodic stock-taking
 IMPORTANCE OF STOCK-TAKING

Whichever method of stock-taking is used, there

are several reasons for its importance.

1.It serves as a check on the book figures shown in

the books of account.

2.It can assist in the detection of pilferage and

shrinkage.

3.It will show up slow moving lines.

 STOCK TAKING PROCEDURES
The procedure for stock-taking will vary with the
size of the premises but a typical procedure might
be as follows:

1. Two of the staff who can be taken as

responsible work together.
2. One calls out the description, quantity and any
remarks about the goods. The other does the
recording.
3. Care must be taken in recording the quantities, such
as dozens, etc.

4. Special attention must be given to slow selling lines.

5. Spot checks can be made to ensure that accuracy has

been obtained.

6. The total stock figure arrived at is entered in the stock

book and the stock sheets are filed.

7. If there are any mistakes, a re-checking of some

sections may be necessary.
 COMMON CAUSES OF MISTAKES
1. Fixtures missed while taking stock
2. Mistaken quantities on sizes e.g. 1,500ml bottles, 750ml bottles etc.
3. Faulty calculators
4. Wrong entries in the stock sheets
5. Mistakes in counting

ROTATION OF STOCK
1. Commodities sold in licensed premises are perishable and have a
shelf life/best before date. If allowed to remain in stock for any
length of time beyond the recommended shelf-life or best before
date then they may deteriorate. This is particularly true in the case
of beer both bottled and draught.
2. When selling all commodities the principle of F.I.F.O. (first
in first out) is advocated. This entire means is that all
commodities be sold in the order in which they are received
from the supplier. Though this is a simple concept to
understand and practise unless certain precautions are
taken it can easily be overlooked in a licensed premises.

3. When goods are received into the cellar, whoever is

checking in the goods should not allow new stock to be
stacked up in front of or on top of existing stock.

4. If this is done the new stock will be sent to the bar and
sold before the old stock.
5. If this practice is allowed to continue the old stock will
remain in the cellar indefinitely. Eventually it may reach the
bar after it has been in the cellar so long that it is out of
condition and out of date. Each customer served with a
bottle of beer whose condition has deteriorated is a
potential ex-customer.

6. When receiving goods in a cellar all existing stock should be

placed in front of or on top of incoming new stock.

7. When stock is requisitioned from the cellar by the

bartender, the same principle applies.

8. On the shelves in the bar new stock should be placed at the

back of existing stock ensuring sales of the latter first.
 Unit IV

The Bartender and the Art of Mixology

The Bartender in detail,

The art of Mixology A guide to Bartending,
Efficient inventory management,
Basic guidelines for setting up a bar,
Opening and closing the bar.
Techniques of Mixology,
Molecular Mixology, Families Mixology.
Bar accompaniments & garnishes.
Classical & Contemporary Cocktails and Mocktails.
 ROLE OF BARTENDER

Bartender‘s primary role is to prepare and serve drinks to

customers.

He should be able to mix and match ingredients in order to create

classic and innovative beverages in accordance to customers‘ needs
and expectations.

The purpose of this position is to interact with guests and to ensure

that they have a great experience.

Bartenders should maintain positive guest interactions while

accurately mixing and serving beverages to guests in a friendly and
efficient manner
 DUTIES AND RESPONSIBILITIES OF BARTENDER

 Interact with customers; take orders for drinks and snacks.

Plan and present bar menu.
Serve snacks and drinks to the customer.
Check identification of the guest to make sure they meet age
requirements for purchase of alcohol and tobacco products.
Mix ingredients to prepare cocktails and other drinks.
Mix drinks, cocktails and other bar beverages as ordered and
in compliance with hotel standard drink recipes.
Prepare and serve alcoholic and non-alcoholic beverages.
Arrange bottles and glasses to make attractive displays.
Assess customers‘ needs and preferences and make
recommendations
Ability to Sell or influence others for up selling and suggestive
selling.
Provide recommendations and suggestions to guest for
choosing Drinks and Snacks.
Serve customers in a friendly and helpful manner.
Keep the bar counter and work area neat and clean at all
times.
Determine when a customer has had too much alcohol and if
required refusing any further serving on a polite way.
Handle and move objects, such as glasses and bottles, using
hands and arms.
Clean up after customers and clean work area.
Clear ashtrays as and when required.
Wash glassware and utensils after each use.
Maintain a clean working area by sweeping, vacuuming,
dusting, cleaning of glass doors and windows, etc. if required
Perform physical activities such as lifting and stooping.
Maintain liquor inventory and consumption.
Collect payment for drinks served and balance all
receipts.
Handle an assigned house bank and follow all cash
handling procedures as per hotel standard.
Prepare inventory or purchase requisitions as needed
to replenish supplies.
Ensure that the assigned bar area is fully equipped
with tools and products needed for mixing beverages
and serving guests.
Stay guest focused and nurture an excellent guest
experience.
Comply with all food and beverage regulations.
 TECHNIQUES OF MIXOLOGY

Mixology can be defined as the study of skill of inventing,

preparing and serving mixed drinks or cocktails. All mixologists are
bar tenders but all bar tenders are not mixologists. A mixologists is
someone who has a passion for the art of drink making and
therefore, strives to learn not just how each individual cocktail or
mocktails made, but also why it is made in that way, garnished
with this particular commodity, and mixed using this technique
rather than another.

Different methods involved in Mixology are as follows:

 Shaking Blending
Straining Building
Stirring Layering
Muddling Flaming
SHAKING
When a drink contains eggs, fruit juices or cream, it is necessary to
shake the ingredients. Shaking is the method by which ingredients
are mixed together and chilled simultaneously. The object is to
almost freeze the drink whilst breaking down and combining the
ingredients. Normally this is done with ice cubes three-quarters of
the way full.
STRAINING
Most cocktail shakers are sold with a build-in strainer or hawthorn
strainer. When a drink calls for straining, ensure that ice cubes are
used, as crushed ice tends to clog the strainer of a standard shaker.
If indeed a drink is required shaken with crushed ice, (ie. Shirley
Temple), it is to be served unstrained.
STIRRING
Cocktails can be stirred effectively with a metal or glass rod in a
mixing glass. If ice is to be used, ice cubes should be used to prevent
dilution, and contents should be strained into a glass when the
surface of the mixing glass begins to collect condensation.
MUDDLING
To extract the most flavor from certain fresh ingredients such as
fruit or mint garnishes, the ingredient should be crushed with
the muddler on the back end of bar spoon, or with a pestle.
BLENDING
An electric blender is needed for recipes containing fruit or
other ingredients which do not break down by shaking. Blending
is an appropriate way of combining these ingredients with
others, creating a smooth ready to serve mixture. Some recipes
will call for ice to be placed in the blender, in which case suitable
amount of crushed ice should be used.
BUILDING
When building a cocktail, the ingredients are poured into the
glass in which the cocktail will be served. Usually, the ingredients
are floated on top of each other, but occasionally, a swizzle stick
is put in the glass, allowing the ingredients to be mixed.
LAYERING
To layer or float an ingredient (ie. cream, liqueurs) on top of
another, the rounded or back part of a spoon is used and it is
rested against the inside of a glass. The ingredient should be
slowly poured down into the glass. The ingredient should run
down the inside of the glass and remain seperated from the
ingredient below it. Approximate weight and density of should be
well known as lighter ingredients can then be layered on top of
heavier ones.
FLAMING
Flaming is the method by which a cocktail or liquor is set alight,
normally to enhance the flavor of a drink. Some liquors will ignite
quite easily if their proof is high. Heating a small amount of the
liquor in a spoon will cause the alcohol to collect at the top, which
can then be easily lit. This can be poured over the prepared
ingredients. Always extinguish a flaming drink before consuming it
 INVENTORIES

Stock of the commodities available is called as Inventory. Stocking a

bar with the right alcohol may be the first step in running a bar, but it
isn‘t enough. Proper inventory practices are important for identifying:

What is the financial performance of the bar?

What is the product variance and where the shrinkages are coming
from?
What should be the ideal par for each product?
What should be the pour cost for each product?
Which products sell and which don‘t?

The ultimate goal is to determine inventory usage for a specific period.

Many factors play a part in this process. One should know:
How much stock was available at the start of your inventory period?
How much stock is available at the end of this period?
How much stock was received during this period?
Once these numbers are obtained, the following formula may be used
to determine the inventory usage:
Usage = Opening Stock + Stock Received – Closing Stock

While taking inventories, following points should always be taken into

consideration:
It should be the same way every time; if counting from left to right,
then it should always be from left to right.
The inventory periods should be consistent i.e. weekly, bi-weekly, or
monthly. This is important for keeping the numbers consistent.
Have one person calling out the names of liquor, while another replies
with the count.
Inventory should always be taken while the bar is closed so that
product doesn‘t slip in or out during the count
Employees should be properly trained in inventory management
procedures. This includes things like keeping an eye out for theft,
accurate counting procedures, and recording significant spillage or
breakage of whole bottles.
 CONTROLLING INVENTORIES
Properly counting and controlling inventory is the critical first step to understand
the financial performance of the bar. It helps in calculating the usage of each
product individually and also allows calculating the profit during a particular
period of time. It has to be calculated by finding out the usage by category
(spirits, wine, beer), item type (tequila, vodka, whiskey), and brand (Absolut,
Smirnoff, etc) which helps in explaining overall performance of the bar.

In the next step, the results thus found should be used to identify variance,
calculate profit margins, make better purchasing decisions, and determine which
products are and are not doing well. Bar‘s inventory process should be examined
on a regular basis and the staff involved should be trained regularly with the
following points in mind:
 Estimating, or ―tenthing‖ the amount of liquid in each bottle
 Adhering to specific inventory practices
 Properly recording all counts — differentiating between bottles, kegs and case
 Identifying issues like spillage, theft, or breakage of whole bottles
 Understanding the consequences of incorrectly counted or entered inventory
Even though, inventory taking is a treacherous task and involves huge
patience and proper mindset, but it helps in betterment of the organization.
It also helps in setting up important performance parameters like
establishment of pars which is always beneficial because of:
Pars are a great way to speed up inventory total calculations, saving time.
Pars help manage and set limits for ordering inventory.

Creating a bar profitability matrix, which involves ranking each product by

pour cost and sales volume, is an easy way to identify which products should
and should not be on that order. Observing fluctuating liquor prices and
identifying the products that work are big parts of smart ordering. Some of
the important factors while ordering are:

Finalize and re-finalize the order. Take a second to scrutinize every item.
Go through the purchase and spending history. It helps in creating better
orders for next time.
Purchase should be made in such a way that it reduces ―Held Up‖.
Understand which products sell well and which don‘t.
The sales reports should be used to identify the
item price, revenue, profit percentage, and sales
volume for all products and also assist in
identification of profitability and popularity
categorization. The ones with a low pour cost (high
profitability) and high sales volume are the
winners, and the ones with a high pour cost and
low sales volume are the drinks one should get rid
off at the earliest.
 Molecular Mixology

Molecular Mixology is a special practice of mixing drinks

using the analysis and techniques found in science to
understand and experiment with cocktail ingredients on the
molecular level.

Inspired by the practice of molecular gastronomy (which

works in similar ways with food dishes) this practice has
become a popular study of many mixologists.

The purpose is to manipulate states of matter to create

new flavors, feels, textures and visuals that enhance the
drink and make the drinker's experience more interesting.
Popular techniques of molecular mixology include the
use of foams, liquid nitrogen, gels, mists, heat, solidifying
liquids, etc.

There are many bartenders and establishments

throughout the world that feature or specialize in
molecular mixology, just as there are restaurants that
specialize in molecular gastronomy.

However, the practice is sometimes touted as novel,

gimmicky and, with the absence of discretion, can be
overwhelming for some drinkers.
 Families Mixology
Champagne cocktails- Cocktails that contain champagne or any other sparkling
wine. Examples: French 75, Champagne cocktail, Mimosa, Bellini, Kir Royale, Old
Cuban.

Cobblers- Made with a dominant base liquor and a sweetening agent, such as
simple syrup, grenadine, or a liqueur; They are built in glasses, filled with crushed
ice and garnished with an abundance of fruits. Examples: Jamaican Cobbler,
Bourbon Peach Cobbler.

Swizzles- A drink composed of spirit, sugar, citrus, bitters, and crushed ice. Built in
a tall glass and swizzled with the swizzle stick until the glass is
frosted. Examples: Rum Swizzle, Sailor’s Swizzle, Queen’s Park Swizzle.

Duos and Trios- Duos are cocktails that call for two ingredients, usually a spirit and
a liqueur; Trios call for cream or a cream liqueur to be added to the
duo. Examples: Black/White Russian, Rusty nail, Godfather, Alexander,
Grasshopper.
French-Italian drinks- Cocktails that contain either sweet, dry or white
vermouth or any other vermouth relations such as
Lillet. Examples: Martini, Manhattan, Rob Roy, Vesper, Blood and Sand.

Frozen drinks- Cocktails that are blended with ice to create a slush-like
texture, most of these are fruity and exotic. Examples: Frozen Daiquiri,
Frozen Margarita, Frozen Pina Colada.

Highballs- Built in highball glasses; they call for a base spirit and are filled
up with a mixer. Examples: Pimm’s Cup, Cuba Libre, Gin and Tonic, Salty
dog, Screwdriver.

Bucks: Highbal style drinks that are topped up with either ginger beer or
ginger ale. Examples: Moscow Mule, Dark and Stormy.

Hot drinks- Like the name suggest these are alcoholic drinks that are
served hot. Examples: Hot Toddy, Irish Coffee, Hot Buttered Rum.
Juleps- Cocktails that use mint as a flavouring agent.Examples:
Mint Julep, Southside.

Milanese drinks- A small family that uses Campari Liqueur as an

ingredient. Examples: Negroni, Valentino, Americano, Milano-Torino.

Muddled drinks- Cocktails that are made by crushing some of the

ingredients with a muddler before adding ice and
spirits. Examples: Caipirinha, Caipiroska, Old Fashioned, Sazerac, Mojito.

Punches- Made in large quantities for parties and other social gatherings.
Usially made with five ingredients and served in a punch
bowl. Examples: Fish House Punch, Artillery Punch.

Snappers- An old term used for savoury drinks that use ingredients such as
tomato juice, beef bouillon and clam juice. Examples: Bloody Mary,
Bullshot, Red Snapper.
Sours- There are many types of sours coming from different
areas of America, but in general they are cocktails that call for a
base liquor, either a lime or a lemon juice as the souring agent,
and are sweetened by a liqueur, fruit juice or just plain sugar
syrup. Examples: Daiquiri, Aviation, Whiskey Sour, Last Word,
Side Car, Cosmopolitan, Margarita.

Sparkling Sours- Sour style cocktails topped up Soda or any

other carbonated soft drink. Examples, Tom Collins, Long Island
Iced Tea, Ramos Gin Fizz.

Tropical drinks- Fruity and mainly Rum based cocktails

originating from exotic places. Examples: Mai Tai, Planters
Punch, Hurricane, Zombie, Pina Colada.
 Basic Guidelines For Setting Up A Bar

The set-up of a restaurant bar depends on your restaurant’s size, theme, and
liquor license. Some bars are service only, meaning they don't serve customers
directly; staff, instead, orders and picks up drinks for the customers. Other full-
service bars offer drinks as well as a limited or full menu. Bars may double as a
wait station, where servers can pour their fountain drinks, or it may be strictly
off limits to staff, except for the bartender.

Check Your Liquor License

Liquor licenses vary. While one license may cover all alcohol, others only cover
wine and beer. If you are only serving beer and wine, a small service bar is
more than adequate for your needs. If you plan to offer hard liquor as well as
wine and beer and are looking to expand business through bar sales, you
should plan for a full-service bar.
Also, find out if your staff needs to have any specific liquor seller training
before opening. At the least, it never hurts to have your staff trained in
responsible beverage serving, as it protects them, the restaurant and the
customer.
Figure Out How Much Space You Have
Ideally, two feet of space between bar stools is a good
rule of thumb to accommodate patrons. So if you want
eight seats at the bar, you'll need a twenty-four-foot bar.

Decide Where to Put the Bar

What sort of gathering place do you want your bar to
be? Bars placed in the front of restaurants often do
double duty as waiting areas. Bars in the center of
restaurants ease staff access during hectic dinner
rushes. Bars placed in the back of a restaurant tend to
be more intimate, away from the front-of-house hustle
and bustle.
Stock Your Bar with the Right Equipment
Having the right equipment is key to smooth service and positive experiences -
both central to great tips and return customers. Bars need their own reach in
coolers, ice bins, hygiene supplies, paper towel dispensers, liquor wells, glass
racks, wine racks, and dry storage.
Coolers should be big enough to hold bottled beer, white and blush wines, as well
as backups of juice, milk and other beverages, used to mix drinks. A restaurant bar
also needs a beer tower and a place to keep kegs cold.
You may have to run beer lines from the walk-in cooler if your bar doesn’t have
enough space for kegs. Bar floors should be covered with rubber floor mats for
employee comfort and safety.

Leaving Your Bartender Alone, Not Adrift

Bartenders are often the rock stars of any popular restaurant, but they're also
typically territorial creatures and don’t like wait staff underfoot. So while you may
need to implement rules barring wait staff from behind the bar during peak hours,
it's still important to make your bar as self-sufficient as possible. Outfit it with its
own POS system, so the bartender can take care of customer tabs right on the
spot. An integrated POS also lets the bartender send food orders to the kitchen
directly from the bar.
Set the Mood With Lighting
Lighting in the bar should be subtle. Not so dark customers can’t read
the menu, but not too bright. Recessed lighting and track lighting
with dimmer switches allow you to control the light, adjusting it for
the time of day.

Take Advantage of Freebies

Your wine and beer salesperson can outfit you with free
merchandise, like glasses, decorative mirrors, even those tacky neon
lights that hang in windows. Find out what you can get for free before
buying decorative items.
A restaurant bar offers easy profits for restaurants if they follow the
local laws and have the right insurance and training for staff. Liquor
licensing and accompanying insurance varies from state to state, as
do rules around responsible beverage training.
 CLASSIFICATION OF COCKTAIL & MIXED DRINKS

It is estimated that there are over 10 thousand mixed drinks and cocktails in use.
Iced drinks can be roughly divided into four groups

Aperitif: These stimulate the Appetite. They must, therefore, be appealing to the eye.
Broadly speaking, these drinks are usually made from wines mixed with spirit.

Cocktail: This the largest group of all, and consists of all short shaken mixed drinks. They
should contain a spirit base, colouring and flavouring ingredient or another modifying
agent

Long drinks: These are served in tall tumblers such as High Balls, or Collins glass

Stimulants: Instead of going to the doctor, if one has a hangover the bartender will
prescribe cocktails or mixed drinks. They are also described as ‘Pick me ups’.

For Cocktail & Mocktail Recipe Kindly Refer The Book

 Unit V

Service procedures and Selling Techniques

A service Orientation,
Establishing bar Standards,
Handling bar Problems and difficult customers.
Selling – Techniques and Strategies,
Special consideration in Bar Marketing, ,
Repeat Customers, Marketing Bar Operations,
Sales Profitability and Control
 Customer Service Orientation
Shows positive attitudes that indicate customers are important.
Knows what customers’ “rights” are and what expectations they
are entitled to hold in terms of customer services.
Knows what services must be provided to their customers.
Directs customers to the appropriate persons or sources to have
their problems resolved.
Knows the profiles of customers and responds to their requests in
an informed, knowledgeable and polite manner
Voluntarily responds to customers’ requirements promptly and
effectively.
Has a detailed knowledge of the services required by the specific
customer and the service standards that are required to be met to
satisfy that customer’s expectations.
Communicates with customers to determine whether any
problems exist.
Works in partnership with customers, solves their problems and
encourages their participation and acknowledges their views.
Develops and sustains productive working relationships with
internal and external customers.
Proactively engages with customers.
Is frequently in contact with customers and knows how they
evaluate the quality of services that they receive.
Deals promptly with customer’s problems to their satisfaction.
Identifies how services can be changed or improved that will
better satisfy the customer’s expectations.
Addresses conflicts or difficulties with customers before problems
escalate.
Goes out of their way to help customers, the public and others
with their difficulties or in carrying out their daily duties.
 Establishing bar Standards

When a guest enters the bar, greet his/her with a smile within two minutes.

For most bars, a simple greeting of “Welcome, I’m [insert name]. What can I
get you?” is perfect. If you have a specific phrase you want your staff to say,
insert it here.

Place a beverage napkin (or coaster) in front of each guest as you greet
him/her.
The napkin serves two purposes: It serves as a place to set a beverage when
you deliver it, and it notifies other bar staff that the guest has been greeted.

Connect with each guest as you take the order.

Smile and make eye contact. Be ready to answer questions about the menu
and make suggestions. Also, be ready to ask questions. If a patron wants a
draft beer, ask him what kind he likes. Hoppy? Malty? Light? Local? Knowing
the bar’s products and being able to connect them to the patron’s preferences
is key.
If you have specific items you want your employees to recommend,
make sure they know all about them. You’ll likely want them to suggest
signature items or any specials you’re currently running. You can train
employees at this step to also upsell, or sell more expensive liquors and
mixers in place of well brands.

Repeat the order back to the guest to confirm it. This step is helpful
in making sure everyone is on the same page, especially if several
different drink options are there.

Enter the drink order into the point of sale (POS) system.

Make the cocktails and drinks. Always use the standard drink recipe,
fresh ice, specified glassware, and specified garnish. This step ensures
consistency. You want each margarita or Moscow Mule to taste and
look the same.
Deliver the drink order within three minutes. If three minutes isn’t
realistic for your concept for whatever reason, substitute your
standard time here.

Drop the bill with the drinks. This step may or may not work for
your establishment. Some places require every table and every stool
to have a bill present. Others are fine with presenting the bill when
the patron is ready to leave. Decide on your plan and specify it to
your staff.

Check back within two minutes to make sure the patrons are
pleased with the drinks. Ask an open-ended question like “How is
everything?’ or “How does everything taste?” or a specific question
like “How’s that margarita?”Avoid the dreaded “Is everything okay?”
or “Is everything all right?” No one sets “okay” as the standard.
Everything is supposed to be great!
Process the payment and return with change or the credit card slip
for a signature within two minutes. No one likes to pay, so make it as
quick and painless as possible.

Give the patrons a sincere smile, thank them for coming in (using
their names if possible), and invite them to come back. Personalize
the invitation if at all possible. If they enjoyed the appetizers, let them
know they’ll be half-priced from 9 p.m. to midnight on Thursday. If
they like your draft beer selection, let them know Tuesday is INR 2
pint night. The more relevant the information is, the more likely your
guests are to act on it.

Bus, clean, and sanitize the table or bar top within five minutes of
the patron’s departure. If you’ve prebussed (removed dirty dishes and
glassware as they’re emptied) the area, this step should take you
about 30 seconds. The sooner the area is set for service, the sooner
you can start earning money from it again.
Handling bar Problems and difficult
customers
 Selling – Techniques and Strategies
& Marketing Ideas

Leverage On your Existing Customers

Offer Interesting Happy Hour Strategies

Use Upselling Techniques

Keep Your Liquor Costs under Control

Create a Marketing Plan

Social Media Marketing
Monitor Your Online Reputation
Distributing Pamphlets and Putting up Hoardings
Hosting Events

Menu Pricing

Use Innovations Such As Mixology and Bar Theatrics

Ask Your Staff To Give Suggestions

 BAR’S SALES AND PROFITABILITY

Controlling Inventory
As a bar manager or owner, tracking your bar’s numbers will help you
identify problems and know how to fix them. Properly counting and
controlling inventory is the critical first step in understanding how your bar is
doing financially.

Ordering Product
Understanding your bar’s ordering habits and purchasing history will help
you make more disciplined buying decisions when the time comes to call in
your orders.

Here are some tips that might help you make orders for a more profitable
bar:
•Finalize your order.
•Organize your invoice history
•Purchase to reduce your sitting inventory
•Understand which products sell well and which don’t
Understanding Sales Data
Improving your bar’s profitability comes down to knowing the numbers. And
without the ability to analyze those that come from your POS system, you
won’t be able to connect the dots with the rest of your beverage program.
you should be breaking down each menu item into the following sales
data:
•Number of items sold
•Popularity, as a percentage of your entire beverage program
•Item cost
•Total cost of all such items
•Item sell price
•Item profit
•Total profit of all such items
•Total revenue of all such items

Calculating Pour Costs

The pour cost is an essential benchmark for your bar’s
profitability. Monitoring and controlling a bar’s pour cost—which means
keeping it as low as possible—is the difference between a profitable bar and
a failing one.
POUR COST = INVENTORY USAGE / SALES

Pour costs can be broken down into three factors:

•The cost of a drink—How much you pay for your product directly.
•The price of a drink—How much you sell it for, which comes down to properly
pricing every drink on your menu
•Product loss—What you actually sold versus what you should have sold based
on the amount of inventory used, otherwise known as your variance

Calculating Drink Prices

Pricing a drink menu is a complex thing, and what’s included on your menu will
have a huge affect on business
Here are the things that can be considered:
•Product variation—across all categories, brands, and drink types
•Catering to your clientele and neighbourhood
•The latest industry beverage trends
•The labour involved in making each drink
•Pour cost across the menu
•Price range across the menu
Monitoring Variance
Variance, otherwise known as “shrinkage” or “lost product”, is one of the biggest
detractors from a bar’s profitability. Variance is calculated by comparing
the difference in product between the amount sold during a given period to the
amount used during this period.
You’ll never be able to eliminate variance in your bar, but there
are a few ways you can try to reduce it. These include:
•Purchasing to reduce the amount of sitting inventory you keep in stock at all
times.
•Avoiding impulse purchases based on quantity discounts. It’s usually product you
don’t need and money you don’t need to spend.
•Properly training staff. Waste, breakage, over-pouring, and theft are all
contributing factors of variance. Training staff to understand the effect of these
actions is the only way to fix them. Train staff in properly pouring drinks—use
stoppers and even measuring pour spouts if they need to—and ask them to keep
an eye out for signs of wastage, breakage, or theft in your bar.
•Closely monitoring all your numbers. If you’re properly tracking every aspect of
your beverage program, you’ll be able to identify variance. It will be easier to
watch your shrinkage levels and, in turn, find opportunities to decrease them.
The End