In such a volatile industry, revenue is especially important to bars and restaurants. Profit and revenue are the ultimate goal for any business, but the margins of the restaurant industry are so small that it becomes vitally important to maximize profit and revenue whenever possible. Shrinkage rates are about 20% on average in bars in the US, and that can leave a mark on the revenue numbers of any sized bar. The maximization of profit and shrinkage numbers can lead to huge success.
Most restaurants expect about 20-30% of their revenue to come from liquor sales. Due to the nature of cost, operators can charge more (comparatively) for cocktails than for food items. With the cost of bottles and the other ingredients, to get money back cocktails need to be a little more pricey than something like french fries. High cost on cocktails though, means potential loss hits harder. You lose on two levels, both in lost money and loss in what money you could have made. Your restaurant can take this 20-30% number much farther though, as there are many factors and operational issues that can be tweaked to make more from every bottle of liquor in your storage room.
The best way to minimize shrinkage and maximize profits is lowering your COGS (Cost of Goods Sold) and pour costs. Pour cost loss can be difficult to track and find the root cause for. Seeing as the current, popular way of taking inventory is in a weekly snapshot, there’s countless variables that can lead to shrinkage or money loss, and leave you guessing as to how or when it occurred. Did it happen throughout the course of a busy week? Or all at once in a bad shift? These answers may be unclear if you don’t have real time tracking of pours from each bottle. Accurate inventory counting is the best way to keep your pour costs low.
Dealing with COGS can be slightly more difficult. Your COGS are the cost to produce your product. Your bar needs to get every drop out of your inventory of bottles to maximize your profit numbers. By getting your COGS numbers down, you save money on waste, and make money on the extra couple of cocktails you get out of each bottle. So, what else is out there that solves all of the above issues?
Centered on a wireless liquor pour spout, The BarMinder System tracks every bottle from when it enters the establishment until it goes into the trash. By combining data from the spouts about every drop being poured with real-time counts of every bottle in storage, BarMinder lets you never have to count another bottle of liquor. Ever. Just slap a sticker to the neck of the bottle, check it into the system and your complete inventory and usage is provided to you on the hub in your location or anywhere in the world on your phone.
No more incorrect counts, no more hours wasted on counting bottles. You and your staff can focus on caring for customers and BarMinder will let you know when there’s something that can be done to make more money. Reduce shrinkage, reduce overhead and make more money with BarMinder.