Our desire to belly-up to a bar and relax is as old as the hills.
And it’s not stopping any time soon.
Increase Bar Profits with Analysis
The first step to achieving bar profitability is to get a handle on your bar’s costs. There are four major cost figures that you’ll need to be able to calculate before beginning your journey to maximum profits. These costs arecost of goods sold,prime cost,liquor cost, andfood cost。
Cost of goods sold (COGS) is one of the most important figures for any business owner and is a valuablerestaurant KPI。从本质上讲，这是所有出售产品的企业成本。在餐厅或酒吧中，出售的商品成本将是用于制造食品或饮料的所有食材和材料的成本。
This simple formula is:
Beginning Inventory + Received Inventory - Ending Inventory = COGS
Prime cost is used by business owners to set goals and optimize profits. Prime cost is the sum of cost of goods sold and labor costs. Since it is the total spend on materials and开销费用, it essentially accounts for all costs of operating your bar within a given time period. Once you calculate this number, you can divide it by total sales to help determine your profit margin.
The formula is:
At a drink level, pour cost is how much a drink’s ingredients cost divided by how much the drink is sold for.
It's what percentage of the drink's sale price you're eating to create the drink.
Your pour cost is how much inventory you’re using—in dollars—divided by how much of that inventory you’re selling. The average pour cost for a bar is between 18% and 24%. Most bar operators consider 20% a good goal.
Liquor cost, beer cost, and wine cost all differ.
The formula is:
Pour Cost = Inventory Usage ($) / Total Sales ($)
Seán’s Bar sells an Aperol Spritz for $6.25, and, over the last month, they sold 160 of them. First, we need tocalculate inventory usage肖恩的酒吧的Aperol喷在美元。, will show us how many dollars worth of Aperol Spritz ingredients Seán’s Bar used during that time frame. We discover that the inventory usage rate in dollars for one month of Aperol, Prosecco, and soda water, was $300. Math tells us that the total revenue for Aperol Spritz that month was $1,000.
Pour Cost = Inventory Usage ($) / Total Sales ($)
Pour Cost = $300 / $1000
That means it costs Seán’s Bar 30% of the price of an Aperol Spritz to make it.That's weak from a bar profitability standpoint. They’re only making 70% profit on their Aperol Spritzes.
To get the pour cost for the entire bar, Seán’s Bar will have to do this for every. item. they sell. Agood bar managerneeds to know how to find and monitor this cost.
If you run a restaurant or a bar that also sells food, food cost is just as important to monitor as pour cost. Food has a much lower profit margin than alcohol and is subject to more waste.
Food cost is how much a dish’s ingredients cost divided by how much the dish is sold for.It's what percentage of the dish's sale price you're eating to create the dish.
The average food cost is between 28% and 35%.
Just like pour cost, this formula is nice and simple.
How to Make a Bar Profitable
Get Your Pricing Right
A bar or restaurant that doesn’t optimize its prices will struggle to grow. A big part of pour cost is how much you’re selling drinks for. That leaves one half of the pour cost equation under your direct and immediate control.
Let’s look at two ways bars can improve their drink pricing strategies to chip away at pour cost.
The first is pricing based on pour cost, and the second is knowing when to adjust drink prices.
Price Drinks to Achieve Target Pour Cost
A lot of bars do it backwards. They set drink prices then observe the pour costs. The right way to do it is set a target pour cost first then price the drink to achieve it. Here’s a formula to help you do it:
Drink Price ($) = Ingredient Cost ($) / Target Pour Cost (%)
But let’s not be greedy … yet. Let’s price our Aperol Spritz with a target 20% pour cost. As we know, we’ve got a $300 inventory usage rate and 160 units sold. That's a total ingredient cost of $1.88.
Drink Price = $1.88 / 0.20
饮料价格= $ 9.40
Know When to Adjust Drink Prices
Drink prices also depend on four other things. First, look at how popular a drink is and what you can charge for it. Then consider how much work it takes to make the drink and other indirect bar operating costs.
- A fresh blackberry mojitotakes a lot more energy to make而不是Aperol Spritz。
- A bar selling fancy cocktails across the street from the Met Gala isn’t hurting for well-to-do customers.Knowing when you can price drinks higher without turning guests off是一个超级容易的杠杆，可以提高您的酒吧利润率。
- Your mixologist created an astounding cocktail整个社区都在嗡嗡作响。在这种情况下，向客户支付9.40美元和12美元之间可能没有区别。
Beyond that, food cost and beverage costs themselves change often. Sometimes, the changes are minimal and you can afford to pay a few cents more without passing the increase along to your customers.
- If indirect costs increase, like, say, rent or other operating expenses, chances are your pricing will too.
- When you’remenu engineeringyou want the pricing to be consistent across it.
- 当竞争提高价格时。If they’re doing it and it hasn’t affected their traffic, then they’ve proven the concept. Take full advantage.
You can’t always foresee changes to a lot of the above. One thing you do have total control over, though, is who you order from and what you order.
Place Smart Orders
When ordering and receiving shipments, attention to detail and developing good relationships are big parts of keeping costs down.
According to Master Sommelier Laura Maniec:
"Operational issues like tracking shipping and receiving orders are vital for success. It’s very important to pay attention to issues like getting shipped wines you didn’t order, you need to send back, or you didn’t notice. Then you can account for every single bottle. The practice of attention to detail keeps your cost down."
You should also cultivate your relationships with distributors. The more you order from a distributor, the more likely it is that you can negotiate prices.
如果您正在使用bar inventory softwarelike BinWise Pro, you can easily see who you order from. You can also see how much you order and how often you order. That information can be used to leverage your buying power and secure lower prices (i.e., volume discounts).
Once you get all the right stuff delivered, it's time to make sure you don’t lose it. We’re talking about shrinkage.
Focus on Inventory Control
好的bar inventory managementis crucial to figuring out the variance for every product in your bar and for your bar as a whole.
With the help of bar management software, you can generate variance reports based on the types of liquor with the highest variance. You can even drill down into the locations (dining room, patio, etc.) with the biggest variance. Not knowing如何做酒吧库存isn't an excuse anymore.
Train Your Staff
Back to Master Sommelier Laura Maniec, well-known “variance hawk” in industry circles:
“If I was going to summarize being successful at the variance issue, I would say the success is not me, it’s my staff. My staff deserves the credit for being a part of the whole process of controlling the variance issue. This process has several parts. Investigating the variance and typing up a detailed report are important for increasing sales and lowering costs by paying attention to seemingly small details.”
Hire bar staffthat you know can handle the job and give them the tools they need to succeed.
- Standardized pours。It’s not easy to pour accurately every time.Training your bar staffonstandard liquor poursand标准葡萄酒倒入会做奇迹。
- The comp policy。在合理中，组成饮料可能是餐厅营销策略。您的员工只需要知道何时适当，并且可以频繁地被接受。
- Where things go。混乱的酒吧会导致大量浪费，溢出和破裂。提供准确的打开和关闭清单为了确保酒吧始终看起来最好。
- Recipes。Standardizing recipes and having staff memorize them helps decrease the drinks you can’t sell made in error or drinks with incorrect, wasteful proportions.
Strategic pricing, smart ordering, and variance management are the three most obvious ways to boost profitability because they lower pour cost. Put as much info as you can into abar operations manual因此，您的员工知道他们的期望。
A profitable drink menu is a drink menu that makes its most profitable items the most visible items and has something for everyone. Hit these two and no guest will put it down without ordering a drink.
Once you have every item’s pour cost, you’ll know which drinks make you the most money.These drinks need to be in sections of the menu that people’s eyes are drawn to。
You should also take human eye-scanning behavior into account. A lot of experts think guests read menus in a Z-shaped pattern, making the top left of a menu the most valuable real estate. If you want to dive deeper into this, we wrote a whole guide about饮料菜单工程和设计。
Offer the Most Profitable Bar Foods
- Mozzarella sticks
- Onion rings
A diverse, accessible drink menu should include:
- High-quality drinks。Make sure you have a collection of premium, super premium, and potentially top shelf spirits.
- Not-so-high quality drinks。Well and call liquors are necessary not only for the customers who prefer it, but to lower your cocktails’ pour cost.
- Signature cocktails。This is what impresses people. The Nimble Bar Co.提出了5个鸡尾酒家庭that “influence the creation of 99% of all great cocktails.” The Negroni, Sidecar, Old Fashioned, Sour, and Collins. Getting a handle on and experimenting with these will give any signature cocktail a credible, time-tested foundation.
- Seasonal offerings。Few things are as affected by season as the drinks people seek out. Why?Narrative psychologystates that people operate by creating meaning out of life’s events. Summer? That means it’s time for Sangria. Fall? That means it’s time for a Ginger Moscow Mule. Seasons give us a reason to drink a certain drink, and to us, that’s reason enough. It also allows a bar to run a timely LTO (seeLTO meaning）并增加利润。
- 玻璃杯葡萄酒。跳上wine industrytrain! There are few things in the bar world more profitable than sellingwine by the glass。And people love the chance to taste wines without investing in a bottle (which is why setting the rightcorkage feeis important). Though awine bottle price也不是懒散的。这是双赢！
Your menu is in place. Great! The heavy lifting is done. But to push your sales over the edge, you need a human touch. Your staff should be upselling.
Train Staff to Upsell
您的菜单上充满了饮料，价格低。现在已经参加比赛了。最后一步是确保您的酒吧工作人员知道如何推销drinks. Here are some great tips to get you started:
- Make sure your staff know everything on the menu。Not just the drinks, but the ingredients, and some facts about the ingredients. One time a bartender told me lychee trees can grow up to 40 feet. Connection made, I immediately ordered the lychee martini. Being knowledgeable about the product is one of the most importantbartender duties。
- Use scripts。Of course, some well-placed adjectives can’t hurt. To make drinks sound as attractive as possible, go over some talking points for the drinks you’re pushing that evening.
- Recommend pairings。If you have a kitchen, channel your innerwine expertand come up with at least one drink pairing for everything on the menu.
- Focus and set goals。Having staff focus on selling or upselling a specific drink makes it easy for them to get into a rhythm and sound natural. It can be a drink of the night that everyone is pushing, or each staff member can choose their own drink to highlight.
Market Your Business
做对了，您的酒吧营销为客户提供了出现的理由和住宿的理由。以及您的酒吧利润率飙升的原因。这是最重要的酒吧经理职责as it greatly affects the bottom line. Here are some tips to get ‘em there early and keep ‘em there late:
- Have at least one special every day。大多数人立即问“什么是特价？”不要让他们失望！如果您缺乏创意，不用担心，请使用我们的happy hour ideasorbar promotion ideas开始。只要确保你知道what is happy hourand the best欢乐时光时间。
- Make it easy to find your bar’s hours, menu, and specials online。You don’t have to go full-throttle on a social media campaign, just get your information out there. Send your menus to online menu providers like Menupages and Google My Business, and make sure your Facebook page and website have everything discoverable.
- Host pop-up restaurants。If you don’t serve food, this is a unique way to offer guests great food. It also supports local businesses and attracts a whole new network of people.
- Have a rotating schedule of events in your bar。Cult movie screenings, live music, trivia. Plan a few events per week for a month. Then create a calendar for the month, put it online, and print it out and hang it in your bar’s restrooms. Seriously.
- 在线广告你的酒吧。Both Facebook Ads and Google Ads can target based on geographic location. On slow nights, surface an ad with your drink special to people nearby.
- Sports!Sports! Sports! There is no denying the popularity of watching sports in a bar, from watering holes to fancier spots. If you have a TV, pencil in a night to put a game on and offer an associated special.
You Are the Next Great Barkeep
弄清并降低成本并增加收入是提高酒吧利润率的方法。不要只是尝试通过提供低价来削减成本bar manager salary。The proper leader can take charge and keep profits flowing. To help you get to the profit land quicker, look into bar inventory software like BinWise Pro and learn如何管理餐厅业务的成本and avoid being a part of the high餐厅失败率。
注册免费演示, hear exactly how, and become the next great barkeep in a line stretching back a thousand years.