How to Lower the Beverage Cost And Increase Profit?

Running a bar is exciting and full of opportunities. It is an excellent choice of business for people that are enthusiast about beverages and love sharing their passion with people. A bar is a dream business for a lot of people but it is not a cheap business. If you want to run a successful bar then you will have to come up with strategies to control beverage cost.

Here are a few useful tips for lowering the cost of beverages and earn good profit.

Keeping The Equipment Functional:

It is important that you take good care of the beverage collection. It is not easy to run a place without proper tools. A bar needs to make sure that the equipment it uses is in perfect condition. It will prevent them from breaking down. It will save you from facing beverage waste.

Make sure that the wine chillers, beer coolers, commercial ice machine, etc. are in perfect working condition. The routine checkups are effective in making sure that the equipment keeps on working efficiently. Keeping a waste log also helps in keeping a track of the inventory. You can lower the beverage cost by buying in bulk and keeping it is safely stored so it is ready to serve.

Control Beverage Cost With POS:

A point of sale system (POS) is an excellent tool for improving the bar service and lowering the cost. Make sure that the system you install is properly set up otherwise it will not be able to do much. The system should be set up for efficiency, speed, and data collection. It can offer a lot of valuable data that you can use to invest in the right beverages and improve sales. It will give you an idea about the consumer’s habits.

Consistent Serving Sizes:

It is important that you practice consistency when it comes to serving the beverages. Consistency will lower the beverage cost but also allows you to offer customer satisfaction. Each wine should have the same amount of wine. Decide whether you are going to pour five or six ounces and stick by that decision. Using the right glassware is helpful in keeping the servings consistent.

Keeping Storage Area Organized:

A cluttered storage area is not going to be helpful and it will end up increasing the beverage cost. When the storage area is cluttered and disorganized then it will have a negative impact on the service. You will lose clients as you make wait because you are unable to find the beverages in clutter.

It is hard to do inventory when there is no organization in the storage area and you are likely to over-order. It will also make it difficult to rotate the stock and some beverages may expire as they are left in some corner.

Efficient Inventory Management:

Poor inventory management can increase the beverage cost so you have to establish an efficient system. Use technology and trained people to keep up with the inventory so you do not make any costly mistakes. Always make time to compare purchase orders with the invoices.