The Beverage Cycle

Purchase

Beverage
Control Receiving

The Beverage
Service Storing &
Sequence Cycle Issuing

Service Methods Inventory

Production Methods
 Purchasing
Aims to purchase the best quality
at the lowest price
What to buy depends on quality of
pouring and well brands.
Also, purchasing should offer a
wide enough range to satisfy the
target market.
Where to buy is governed by laws
of the state and structure of the
market.
 Purchasing
How much to buy is established by
deciding the par stock for each bar.
Maximum and minimum stock levels
and reorder points are laid down.
When and how often to buy depends on
the volume business, size of inventory
schedules of suppliers, specials and
offers and variables such as holidays.
What to pay is typically fixed by law and
prices are the same in all bonded
warehouses.
 Beverage Suppliers
 Wine shippers
 Wholesalers eg. M/s Brindco Sales,
M/s TT&G Trading Pvt Ltd
 Beverage manufacturers eg. United
Distilleries, United Breweries, Bacardi
Martin India Ltd, McDowell & Co,
Baramati Grape Industries,
Champagne Indage Ltd, Grover
Vineyards Ltd.
 For all imported beverages, purchase
orders are raised via central purchase.
 Purchase Specifications
Sets down in writing the standard of a
product for a specific use by an
establishment.
Then used by the purchasing manager
to inform suppliers and used when
negotiating price
Specifications much simpler for
beverage than food as beverages are sold
by brand name label (own quality) and
in standard size
Price is the only factor which is not
constant
 Receiving of Beverages
Due to value accuracy is important with
 quantity received and that ordered
 quality sent is what was requested
(brands, case sizes and vintages)
 prices as quoted (check extensions;
invoice total = no. of units X unit cost)
 if returns are sent a credit note is
raised
 records in goods received book
 returned empties etc (kegs)
Important to schedule deliveries to when
suited to the establishment for thorough
checking.
 Storage and Issuing
Require appropriate
storage/refrigeration and tight level of
control
Refrigerated area for the storage of white
and sparkling wines (5.8 oC)
Refrigerated area for the storage of kegs
(sent directly to the bar)
Area for the storage of bottle and
packaged beverages held at a constant
temperature (13)
Separate area for the storage of crates/
boxes/ empty beer and soft drinks
bottles and kegs
 Storage and Issuing
Beverages usually bin listed or
coded (kardex) as a system of
perpetual inventory.
Issuing of beverages is usually
done at select times of the day, for
greater control and to allow staff
time to prepare orders.
Beverage requisition is required,
and a system of one for one is
followed.
 Storage and Issuing
Due to the high value of the beverage
products, sufficient records must be
kept
 Goods received (cellar inwards)
 Bin cards (Kardex)
 Cellar control book: daily deliveries
and issues from cellar
 Beverages perpetual inventory ledger
 Ullages and breakages
 In Maurya each bottle is also stamped
with an identifying sticker for better
control.
 Beverage inventory
Objectives
 Determine value of all beverages in
stock
 To compare the actual value of
beverages held with the book value
(cross check)
 Identify the value of slow moving and
non moving items
 Compare beverage usage with
beverage sales to calculate gross profit
 To deter pilfering and check security
and control systems
 To determine rate of stock turnover
 Physical inventory
It is done monthly in Maurya.
A complete count of all bottles and
kegs by persons, who do not buy or
handle liquor on the job.
At least two people should do the
job together.
The liquor in the bar is also part of
the inventory and is counted daily.
 Perpetual inventory
A continuous process of compiling
daily from invoices and daily
requisitions.
It is maintained by kardex system
– a separate card for each item.
Further a stock report can be
reported by the computer at any
moment.
A combination of these two
inventory methods is virtually fool
proof.
 Inventory management
Stock levels may be determined by using
past sales data.
M = W (T + L) + S
M = Maximum stock
W = Average usage rate
T = Review period
L = Lead time
S = Safety stock (buffer)
Inventory turn over = purchases for the period
average inventory
 Beverage Production Methods
Degree of preparation varies,
generally non-alcoholic which take
more time
Raw beverages (coffee, tea, hot
chocolate etc), require preparation
time
Semi-prepared (cordials, cocktails)
not ready to serve, need some
preparation
Fully prepared - require no
preparation
Range should suit establishment
 Beverage Service Methods
Self-service Waiter Service
 Cafeteria  Counter or bar
 Bar service  Table service
 Banquet service
 Vending
 Room and
 Room Service
lounge service
 Buffet  Drive-in service
 Take away  Coffee carts
 Liqueur trolleys
 Basic Steps in Bar Control
ORDER FORM (PURCHASE/STORES)

WHOLESALE WINE AND SPIRIT DEALER

BEVERAGE STORES

GOODS RECEIVED RETURN

CELLAR STOCK REGISTER (COMPUTERIZED)& KARDEX

ISSUE AGAINST REQUISITIONS (L3 AND L5)

BARS MAINTAIN PAR STOCKS, BY WEEKLY REQUISITIONS

DAILY CONSUMPTION SHEETS

BAR STOCK BOOKS

 Beverage Production Control
Simpler task than for food as beverage
often secondary to food and product
generally non-perishable.
Areas that need to be considered
Volume forecasting (use sales history)
Standard yields - accurate to
calculate as there is no wastage
Standard recipes
Standard portion sizes (auto
dispensing systems)
Beverage Service Sequence
 Beverage Controlling
Report on the actual and the potential
sales and costs of each beverage outlet.
Strict controls necessary to avoid theft
and fraud
Several methods can be used
 Bar cost system
 Par stock or bottle system
 Potential sales value system
 Inventory or ounce system
 Function bar system
Beverage Control - terminology
Beverage cost - cost of beverage in
prepared drink
Beverage cost percentage - cost of
beverages sold as a percentage of
sales
Gross profit - sales minus the cost
Potential beverage cost or sales -
what would be achieved under
ideal circumstances