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Controlling Beverage SalesTuesday, September 13, 2011   BAC-5132 Food and Beverage Management-II-Controlling Beverage Sale...
Recap of the Previous session• Explain the difference between the  different Simple ingredient mark up  methods.• What are...
KCM of the Session• List and explain the 3 goals of beverage  sales control.• Describe specific steps that bar managers  u...
Scope•   The objectives of Beverage sales control.•   Optimizing the Number of Beverage sales.•   Maximization of Profits....
The Objectives of Beverage Sales              Control• Optimizing the number of sales.• Maximizing profit.• Controlling Re...
Optimizing the # of Beverage Sales• Engaging in activities that will increase the  number of customers to a desired level....
Customers Patronize bars for:• Five main reasons for Customers to   Patronize Bars:1. Socializing.2. Conducting Business.3...
Maximizing Profits• Two methods largely applied in  maximization of revenue leading to  maximization of profits are:• Esta...
Maximizing Profits• Beverage Ingredients costs are lower than  food ingredients costs.• Beverage Labor cost is much lower ...
Influencing Customer selections• What is important is selling a drink with a  higher contribution margin:• The above is do...
Some Exotic names•   Absolut trouble•   Almond cocktail.•   Bahama Mama•   Banana Sunrise•   Bermuda Bouquet•   Bills Trop...
Controlling revenue• Consists of those activities established to  ensure that each sale to a customer  results in appropri...
Controlling revenue• In manual and electronic practices the  bartender is responsible for virtually all  jobs:1. Taking or...
Unacceptable work practices1. Working with Cash drawer open:2. Under-ringing sales either as No Sale or   as an amount les...
Unacceptable work practices7. Diluting bottle contents.8. Bringing one’s own bottle into the bar.9. Charging for drinks no...
Guests Checks and Control• There are the following types of Bars of  course this is a concept which will take  some time t...
Bars without guest checks• Largely run by owners.• If the bartender and owner are  independent the bar tender is responsib...
Bars using Guest Checks• Use of numbered checks.• In manual systems its time consuming.• Systems adopted as an option:1. P...
Features of an automated system• Automated Bar has both an electronic  sales terminal and a computerized  dispensing devic...
Features of an automated system• A perpetual inventory is maintained by the  system.• The advantages are that right quanti...
Disadvantages of an automated               system• Some cannot accommodate recipes of  customers who have varying recipes...
Questions                                          CommentsTuesday, September 13, 2011   BAC-5132 Food and Beverage Manag...
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Controlling beverage sales

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  1. 1. Controlling Beverage SalesTuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 1 / 22
  2. 2. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 2 / 22
  3. 3. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 3 / 22
  4. 4. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 4 / 22
  5. 5. The Objectives of Beverage Sales Control• Optimizing the number of sales.• Maximizing profit.• Controlling Revenue Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 5 / 22
  6. 6. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 6 / 22
  7. 7. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 7 / 22
  8. 8. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 8 / 22
  9. 9. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 9 / 22
  10. 10. 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 Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 10 / 22
  11. 11. Some Exotic names• Absolut trouble• Almond cocktail.• Bahama Mama• Banana Sunrise• Bermuda Bouquet• Bills Tropical Destination• Caribbean smuggler• Firewall• Dragon slayer Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 11 / 22
  12. 12. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 12 / 22
  13. 13. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 13 / 22
  14. 14. Unacceptable work practices1. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 14 / 22
  15. 15. Unacceptable work practices7. Diluting bottle contents.8. Bringing one’s own bottle into the bar.9. Charging for drinks not served.10.Drinking on the Job. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 15 / 22
  16. 16. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 16 / 22
  17. 17. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 17 / 22
  18. 18. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 18 / 22
  19. 19. 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 Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 19 / 22
  20. 20. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 20 / 22
  21. 21. 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. Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 21 / 22
  22. 22. Questions  CommentsTuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 22 / 22
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