Take Inventory Frequently
Ok, maybe taking inventory isn’t unique, but being able to take accurate inventory in roughly 15 minutes is. (You can with our app) Fast inventory is a big deal because you’ll take inventory more frequently. And frequent inventory is a big deal because it reduces shrinkage and gives you good data that you can use when making important business decisions such as establishing pars, setting drink prices, etc.
Establishing par, the minimum amount of each product kept in stock, is fundamental to running a profitable bar. Not only does the correct par level ensure that you never run out of stock, it also ensures that you’re not keeping too much inventory on hand.
Par levels often vary throughout the year so they should be reviewed regularly.
After using our app for six months, bars, on average, see a 7% pour cost reduction. That’s an increased profit of $35,000/year for bars with annual sales of $500k and $70,000/year
for bars with annual sales of $1 million.
Here’s how we do it:
The right drink prices maximize a bar’s profit. This post will explain exactly how to determine those prices.
First, choose a target pour cost.
There is no universal “good pour cost.” The 20% figure is thrown around a lot, but determining pour cost depends on too many variables to plug in 20% and think you’re maximizing profit. Pour cost is influenced by:
If you’re reading this you’re probably well aware that calculating inventory usage and cost are one of the most important things you can do to run a profitable bar. They are the basis for establishing pars, calculating pour costs, and setting drink prices.
Here’s how to calculate usage: