Liquor Shrinkage: [lik-er shring-kij] The variance between what a bartender pours and what he/she rings up to the Point-of-Sale system

Liquor shrinkage is the oldest challenge of every bar owner, because unless you are standing in the bar yourself, it is impossible to be sure that every ounce of liquor being poured actually gets rung up to your Point-of-Sale. A bartender could literally sell drinks out of your bar all night long and at the end of the shift say he sold nothing. How would you be able to tell the difference?

The only way to detect the irregularities in your bar that lead up to shrinkage is to  do inventory regularly.

The problems with inventories are that they:

• Are time consuming
• Are seldom accurate
• Don’t allow you to verify the cause or time of any irregularity
• Still allow for a number of irregularities to take place that cannot be detected by taking periodic inventory

What irregularities affect shrinkage?

• Theft
• Over and under pouring
• Sloppy workmanship
• Poor training
• Ineffective management control and monitoring
• Failing to ring up drinks
• Making the wrong, or too many, drinks
• Spillage and breakage
• Complimentary drinks
• Inability to track location of bottles
• Bartenders bringing their own bottles into inventory

How bad could it be?

Almost every available statistic assumes, because they don’t have empirical data, that shrinkage is between 20 and 30%. That means, for every dollar you should be earning, you are only recieving 70 cents!!!

It’s worse than you think!!!

The problem with this data is that nobody really knows how much shrinkage really affects bar profits. These statistics are “professional estimates”.

Empirical data collected by Suxessbar Systems over the last 3 years show that:

Restaurants with bar service have liquor shrinkage between 28% to 38% on average.

Nightclubs have a shrinkage starting at 38% and going up to 65%.

So what’s the solution?

Introducing- the Bar Management System that will make your bar profits explode while kicking shrinkage to the curb…

The Solution:

Suxessbar Systems has developed a system that allows you to:

• Establish actual inventory in seconds
• Detect 95% of all irregularities in your bar
• Get automatic performance reports
• Match actual consumption with point-of-sale data
• Get automatic notifications when to reorder stock

Your Immediate Benefits:

“How would immediately catching a handful of bad pours over a 10 minute time span impact my bar profits?”

• Speedy decision making- 24/7 reports will ratchet up your time to action- whether it be ordering more vodka or scheduling more training for your staff.
• Accuracy hurts! But not how you think… See how accurate real-time pouring and inventory stats will make shady bartenders wince and cry.
• Watch your profits swell- the formula is simple:

Instant inventory guides timely decisions leading to less shrinkage which fuels higher bar profits.

Sanity Checkup

• Save time & money – Reduce labor cost and recapture those countless hours wasted doing inventory with ordinary, non-automated  inventory systems and methods.
• Maximize your revenue – Know that you are maximizing your profits  and decreasing your costs.
• Peace of mind – Know what is going on in your bar without having to be present.
• Secure your investment – Detect 95% of a all  irregularities when they happen.
• Optimize your inventory – Minimize sunk costs by identifying dead stock and ordering what you really need when you need it.

The Formula for Greater Bar Profits

Are You Serious About Your F&B Management?

If not, don’t bother reading any further!

The next question you are probably asking yourself is, “ok sounds good, how much?” This is also when a classical salesman cringes, because should he disclose such information without underlining the client’s eminent need and establishing their value of the solution, whatever price is revealed will be a shock.

Experience of  human psychology tells us that unless it is sinful, ostentatious, or a luxury object subject to hype and lacking anything but emotional value, we tend to simp when it comes to the price.

That having been said, we at Suxessbar Systems are seasoned professionals who have committed ourselves to making you money by stemming the hemorrhaging loss of revenue in your bar. If you don’t care, or are under the false assumption that you have a handle on it, there is no reason for us to waste each other’s time.

Here are some considerations that will help you asses the value of owning a comprehensive and extremely efficient liquor inventory management & monitoring system:

• What is your monthly liquor revenue?
• How much is your assumed shrinkage percentage?
• What is  the purchase value of that shrinkage?
• What is the sales value of that shrinkage?
• How many man-hours do you invest to do inventory every month?
• How much dead stock do you have in your inventory?
• How optimized is your inventory and how much capital do you have tied up in unnecessary stock?
• What is the cost of losing customers due to watered-down drinks?

Determining Your Investment

The price of the epifani system is depends on the number of active liquor bottles you have in your bar. There is no such this as a normed bar inventory, so we have defined a Bar-Unit size as being a bar with a bottle inventory of 100 bottles. If you have a well stocked bar you are likely to have as many as 200 bottles in  your bar, which is equivalent to 2 Bar-Units.

Creating Your Suxess- Story: ROI & Payback Period