Bar inventory management can be tricky. There are a lot of moving parts involved with operating a bar, and everything needs to come together nicely in time to serve your customers. If you are going to turn a profit in this competitive industry, proper inventory management is essential. Let’s take a quick look at the top ten tasks of bar inventory management.
This is where it all starts. It is essential to order the right product so you always have the inventory on hand to serve your customers. Without successfully ordering, your bar will soon develop a poor reputation for service, and it is hard to come back from such an image.
How much of each dollar you make is spent on purchasing liquor? If you don’t know this basic number, there is work to be done with your inventory management system. While the ideal cost is going to range from bar to bar, you need to have a target in mind so you can control costs properly.
Don’t take for granted that your inventory costs are going to remain static over time. Almost certainly, the price of many of the items you buy regularly is going to increase as the months and years go by. Pay attention to even small increases and look for better deals, when necessary.
The value of your inventory is very simple to track. All you need to do is multiply the amount of each product you have on hand by the price of that product. This is one of the core inventory numbers that you should monitor regularly.
Going off of the liquor cost number from earlier, you may also want to track ideal liquor cost. Basically, this is a number that is going to adjust for the amount of product that has gone missing.
The price you establish for each specific drink is going to have a lot to say about the profitability of your bar. Set prices too low and you will be missing out on income, while prices that are set too high will drive away potential return customers.
Tracking your inventory and your sales properly all starts at the point-of-sale system. It can take time to setup your POS system correctly, but the work you do upfront will pay off for years to come.
All bar owners and managers know that the bar will only be successful with a great staff. But that staff can’t only be concerned with treating the customers well – it also needs to be looking out for your interests. Provide constructive feedback and performance reviews to get the best out of your team.
Having the right amount of inventory on hand involves carrying enough to serve customers but not so much that you waste space behind the bar or in the back room. Think about streamlining your inventory to feature the products which are most popular with your customer base.
This last rule of thumb can be applied to any kind of inventory, bar or otherwise. Consistency is key, because the information you gather is only going to be relevant if it has been collected in the same way from month to month.