Boosting Bar Profits… 8 Areas for Improvement

Whether it’s wine, beer, spirits, coffee or soft-drinks, there are plenty of ways to look at the performance and profit-margins of beverage sales.

But first you need facts: if there are problems, you’ll need to examine the KPI’s to locate the cause. Could you produce these Key Performance Indicators easily? 

  • Sales per Head. Check separately for alcohol beverages and non-alcohol. It’s the perfect indicator of two things – how much your beverages appeal to your customers and how well your staff are selling. This KPI can be a good basis for a sales bonus system. 
  • Gross Profit on Individual Items. If you’re selling two bottles for the same price, but one costs $5 to buy and one costs $7, obviously you try to maximise the sales of the one with the highest margin. How do the margins on cans of Coke compare with post-mix Coke? How much post-mix gas do you use for every 1000 serves? What are the margins on mineral water poured by the glass compared to served by the bottle? How much do you really make on fresh-squeezed juice? How do you compare faster-serving bottled beer and tap beer?  

More tips here…