In part one of this article, we touched on four common mistakes that can take a big chunk out of beverage profits. Now, we are back with part two, to cover the remaining six mistakes in our list of ten. Let’s not waste any time in getting down to it!
At first, you might think like staying on the light side of staffing would help profits, since you would be cutting down on your payroll expense. Unfortunately, that’s not usually how it works out. Instead, you may see your profits reduced as a result of various factors. For one thing, you might not be able to keep up with the rush, so customers may go elsewhere. Even if they do stay, your staff may struggle to keep up, meaning they’ll make mistakes along the way which eat into profits. Be sure to adequately staff your establishment so you can offer the service customers expect.
In a bar, the focus tends to be on liquor inventory and the cost of the alcohol – both what it costs the bar to purchase, and what the customer has to pay for the drink. But what about the non-alcohol parts of the drink, like juices or energy drinks? Those can be quite costly and should always be considered when setting up pricing. We mentioned in part one of this article how garnishes can take away from your profits if you aren’t careful, and the non-alcoholic parts of the drink can do the same thing.
A good pour spout will help to prevent spillage, and spillage equals lost profits. Not only do you need to make sure to use good pour spouts, but you also need to maintain the condition of those spouts over time in order to get the best possible performance.
Don’t fall into the trap of just assuming that your invoice is staying the same from order to order. Always review what you are being charged so you can either adjust your prices or shop around for a better deal. It doesn’t actually take that long to review an invoice and doing so can save you from making costly mistakes.
It’s fine to run specials, and doing so can generate interest in your establishment, but make sure these specials aren’t just a way to lose money. If you run ultra-low-cost specials, it’s almost certain you are going to run a loss, and you probably won’t be attracting the right kind of customers, anyway. As a better plan, look to run specials which target your premium products, that way you are starting from a high price point and can afford a discount while still coming out ahead.
Your staff needs to be clear in the understanding that all waste should be carefully tracked. Spilling a drink is the same as serving it to a customer in that the inventory is gone forever, and it needs to be accounted for. By tracking spillage, it will be possible to identify areas that should be improved to cut back on loss in this area.
And there you have it! Thanks for stopping by to read about the ten common mistakes that can take a big chunk out of beverage profits. Check back next month for our next article!