Controlling beverage sales

Controlling Beverage Sales

Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 1 / 22

Recap of the Previous session

• Explain the difference between the different Simple ingredient mark up methods.

• What are the basis used in most subjective pricing methods?

• List the varying factors that may apply in the specific prime costs method.


KCM of the Session

• List and explain the 3 goals of beverage sales control.

• Describe specific steps that bar managers use to attract particular market segments.

• Explain 2 methods used to maximize profits in beverage operations.

• Name 10 unacceptable work practices which contravene standards operating procedures.


Scope

• The objectives of Beverage sales control.

• Optimizing the Number of Beverage sales.

• Maximization of Profits.

• Controlling revenue

• Guest Check control.

• Using automated systems.

• Key terms of the chapter.


The Objectives of Beverage Sales Control

• Optimizing the number of sales.

• Maximizing profit.

• Controlling Revenue


Optimizing the # of Beverage Sales

• Engaging in activities that will increase the number of customers to a desired level.

• Why people patronize an establishment?

• Main motivational factor is to consume alcoholic beverages.


Customers Patronize bars for:

• Five main reasons for Customers to Patronize Bars:

1. Socializing.

2. Conducting Business.

3. Eating.

4. Seeking entertainment.

5. Killing time.


Maximizing Profits

• Two methods largely applied in maximization of revenue leading to maximization of profits are:

• Establishing drink prices that will maximize gross profit.

• Influencing customer selections.


Maximizing Profits

• Beverage Ingredients costs are lower than food ingredients costs.

• Beverage Labor cost is much lower than food.

• Beverage Overhead costs like Occupancy, Insurance, Licenses and entertainment are some major considerations.

• Call brands are higher priced than pouring.


Influencing Customer selections

• What is important is selling a drink with a higher contribution margin:

• The above is done in the following ways:

1. Training servers to up sell.

2. Featuring and promoting specialty drinks.

3. Preparing carefully designed beverage menus


Some Exotic names

• Absolut trouble• Almond cocktail.• Bahama Mama• Banana Sunrise• Bermuda Bouquet• Bills Tropical Destination• Caribbean smuggler• Firewall • Dragon slayer


Controlling revenue

• Consists of those activities established to ensure that each sale to a customer results in appropriate revenue to the operation:

• Keeping a check on work practices.

• The level of activity in a restaurant needs to be checked before additional staff is used like cashiers.


Controlling revenue

• In manual and electronic practices the bartender is responsible for virtually all jobs:

1. Taking orders.

2. Filling them out.

3. Recording sales.

4. Collecting cash.

5. Signatures on charge vouchers.


Unacceptable work practices

1. Working with Cash drawer open:

2. Under-ringing sales either as No Sale or as an amount less than the actual sale.

3. Over charging the customers but ringing the correct amounts in the register.

4. Under charging the customers.

5. Over Pouring.

6. Under pouring.


Unacceptable work practices

7. Diluting bottle contents.

8. Bringing one’s own bottle into the bar.

9. Charging for drinks not served.

10.Drinking on the Job.


Guests Checks and Control

• There are the following types of Bars of course this is a concept which will take some time to be introduced in India.

• Bars without Guest Checks

• Bars with guest Checks.


Bars without guest checks

• Largely run by owners.• If the bartender and owner are

independent the bar tender is responsible and accountable for all activities.

• The owner has to keep a strict vigil on the employees.

• The owner has to induct the bartender in the standard operating procedure that needs to be followed.


Bars using Guest Checks

• Use of numbered checks.

• In manual systems its time consuming.

• Systems adopted as an option:

1. Pre-check system.

2. Automated system.

3. Other types of computerized systems.


Features of an automated system

• Automated Bar has both an electronic sales terminal and a computerized dispensing device for dispensing beverages.

• Some times also known as a cocktail tower.

• In many places a control spout is attached to the bottle which is an electronic console


Features of an automated system

• A perpetual inventory is maintained by the system.

• The advantages are that right quantities and proportions of mixed drinks in pouring are compromised.

• The standardized portions of drinks are maintained.

• Spillage and pilferage is minimized and acts of excessive costs are limited.


Disadvantages of an automated system

• Some cannot accommodate recipes of customers who have varying recipes for the same mixed drink as the drinks are programmed.

• Traditional bartending has a negative impact on many customers especially those who hail from the countryside and are in the city.


Questions

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