Why are bar owners losing so much money? There are many seemingly transparent
ways, but bartender over-pours account for significant bar financial losses!
Coming up!
Hey, Rick Uzubell again from Cabaret Design Group,
where I share my personal ideas and tips on bar design,
draught beer system design and product reviews.
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The story about bars losing money certainly
isn't a new one, but many people wouldn't believe just how much. As I mentioned
before, bar and restaurant owners are losing 20 percent of their inventory, as
reported by Chuck Deibel of BevInco Bar Services, in his 2014 'Sales Tax
Audit Brief' to the state of Ohio. The problem of shrinkage prevails in every
market and every bar can lose money unless solid management is diligently
administered. Shrinkage can occur in several ways. Of course, theft accounts
for a part of this, but over-pouring contributes significantly.
Most people will recognize this photo as that of a standard shot glass. Many may be unaware
that the standard shot glass in the U.S. is commonly available in three sizes: 1 oz.,
1.25 oz., and one and 1.50 oz.
The painted line is known as the 'Pour Line'.
Most people are unaware that filling to the bottom of the
Pour Line is the correct method -- not the top. More shocking is that most people don't
know that the thickness of the line represents one-eighth ounce of liquor,
so if you pour 27 1.25 oz. shots per bottle
at an average profit of US$3.50 and you're pouring
to the top of the line, you're losing $12 per bottle.
If you sell 12 bottles of liquor each day
and your bar is open 310 days a year, you'd be losing
nearly $45,000 a year! If you allow your bartenders
to 'free-pour', then you're most likely over-pouring by
1/4 ounce or more, which means that you would be losing nearly US$90,000 dollars of
profit each year, and this doesn't even factor for theft!
By now you may be wondering how you could
cut your losses. First, don't allow free-pouring, but to
really gain control of your bar losses and make far greater profits, bar owners
need to invest in either a professional liquor inventory
service, such as that provided by Sculpture
Hospitality, you'll be able to reduce your overall
shrinkage to 2-3 percent, across the board. You can also
invest in metered pouring equipment, such as that offered by 'Easybar' or 'Berg' and these also
offer inventory software. I covered all of this in my blog and the posts are
listed at the end of this article. Bartenders sometimes
over-pour so they can receive larger tips,
but this is flawed logic, as the patron will end-up
drinking less and leaving earlier than planned.
In the words of Jon Taffer, of 'Bar Rescue' fame, 'Drink consistency is of the utmost
importance for a successful bar.' In my opinion, consistency cannot be maintained
without controls. See you next time!
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