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Second Quarter 2016 & Third Quarter 2015
Bar Edition
Overview
Beer: includes bottled and draft
Liquor: includes all liquor products including open liquor (assumed
30% cost)
...
Time Frames
•Second Quarter 2016
• 1st of April – 17th of June
•67 Days of Business
•Third Quarter of 2015
•1st of July – ...
Alcohol and Beverage Comparison
Items 2016 Daily AVG 2015 Daily AVG Diff % Change
Beer 6194.28 92.45194 6403.89 69.6075 22...
%Change: Beer: +28.4% Liquor: +26% Non Alc: -2.29% Wine: +53%
* Wine Units in GL
%Change : Beer: +33% Liquor: +33% Non Alc: -7% Wine: +62%
Average Profit Per Drink (Q2.2016)
Beer Liquor Non-Alcoholic Wine*
$4.43 $7.31 $2.86 $7.65
*GL, BTL, .5 BTL all averaged t...
Overview Summary
On Any given day wine accounts for 40% of total bar profits
Followed by liquor @ 35%
Beer @ 17%
And n...
Wine
ALSO KNOWN AS HOW THE BAR MAKES MONEY
Wine Overview
Highest average profit per glass @ $7.65
Most frequently sold alcoholic beverage on average @ 29
glasses p...
*BTL, .5 BTL and GL reduce to GL counts*Data labels refer to customer cost per glass
Wine Profit
by Varietal
 Price per glass doesn’t
greatly impact sales
 Fairly even distribution
between white and red
wi...
Profits by Volume Sales
AVG Profit per GL per
Bottle
AVG Profit per GL per
.5 BTL
AVG Profit per Glass
$6.57 $7.08 $8.42
*...
Wine Summary
There may be an upper limit for price point for customers (i.e.
Zinfandel Sales down perhaps due to Seghesio...
Liquor
WHERE CRAFT IS KING
Liquor
Second highest average profit per drink @ $7.31
Second highest average volume in sales @ 25 per day
Second highe...
Craft vs Convention
Craft Cocktail AVG Profit Per Drink Conventional Cocktail AVG Profit Per Drink
$8.33 $5.70
*Craft cock...
Cocktail-Other: -7% Craft Cocktail: +51%
Comparing Off
Menu Cocktail
Profits
Increase in Scotch
and after dinner
drinks
Preference for
cheaper vodka and
whiskey ...
Craft Cocktail
Trends
Prickly Pear
continues to dominate
despite being $12
Perceived ‘sweetness’
may influence
customer ...
Liquor Summary
Open liquor a black hole in cost/profit
Sweeter craft cocktails preferred
Craft cocktail much higher pro...
Beer
NOTHING TO DRAUGHT ABOUT
Beer Overview
Third top seller @ 21 Beers per day
Third top average per drink profits @ $4.43
Third top average sales p...
Comparing Draft
and Bottled
Beer sales up
primarily through
draft
Draft beer accounts
for 72% of Beer
profits
Bottled: +...
Beer Sales Volume
Common practice to
charge equal amount
for draft or bottle beer
when it’s a craft beer
$1 increase in ...
Beer Summary
Third top seller but with substantially lower profit margin compared
to wine and liquor
Draft preferred to ...
Non-Alc
COFFEE OR TEA?
Non-Alcoholic Drinks Overview
Lowest average profit per drink @ $2.86
Lowest average volume of sales @ 16 units per day
...
After Thoughts
Wine is biggest profit portion of bar; local and familiar varietals sell
best
Craft cocktail is a higher ...
Second Quarter 2016 & Third Quarter 2015
Second Quarter 2016 & Third Quarter 2015
Second Quarter 2016 & Third Quarter 2015
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Second Quarter 2016 & Third Quarter 2015

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Second Quarter 2016 & Third Quarter 2015

  1. 1. Second Quarter 2016 & Third Quarter 2015 Bar Edition
  2. 2. Overview Beer: includes bottled and draft Liquor: includes all liquor products including open liquor (assumed 30% cost) Non-Alcoholic: Includes soda, juices, craft sodas, coffee products and teas (iced and hot) Wine: Includes all wine and corkage. Wine analyzed at per glass averages (i.e. BTL = 5 glasses, .5 BTL = 2.5 glasses)
  3. 3. Time Frames •Second Quarter 2016 • 1st of April – 17th of June •67 Days of Business •Third Quarter of 2015 •1st of July – 30th of September •92 Days of Business
  4. 4. Alcohol and Beverage Comparison Items 2016 Daily AVG 2015 Daily AVG Diff % Change Beer 6194.28 92.45194 6403.89 69.6075 22.84444 33% liquor 12701.29 189.5715 13111.37 142.5149 47.05663 33% Non Alc 3007.71 44.89119 4448.81 48.35663 -3.46544 -7% Wine 14849.99 221.6416 12505.69 135.9315 85.71019 62% * Table of bar profits by item type
  5. 5. %Change: Beer: +28.4% Liquor: +26% Non Alc: -2.29% Wine: +53% * Wine Units in GL
  6. 6. %Change : Beer: +33% Liquor: +33% Non Alc: -7% Wine: +62%
  7. 7. Average Profit Per Drink (Q2.2016) Beer Liquor Non-Alcoholic Wine* $4.43 $7.31 $2.86 $7.65 *GL, BTL, .5 BTL all averaged to per GL profit
  8. 8. Overview Summary On Any given day wine accounts for 40% of total bar profits Followed by liquor @ 35% Beer @ 17% And non alcoholic @ 8%
  9. 9. Wine ALSO KNOWN AS HOW THE BAR MAKES MONEY
  10. 10. Wine Overview Highest average profit per glass @ $7.65 Most frequently sold alcoholic beverage on average @ 29 glasses per day and highest average daily profit @ 222 62% increase in profits from last year By the Glass sales most profitable Common Varietals more frequently purchased Pattern of varietals sold largely similar between quarters
  11. 11. *BTL, .5 BTL and GL reduce to GL counts*Data labels refer to customer cost per glass
  12. 12. Wine Profit by Varietal  Price per glass doesn’t greatly impact sales  Fairly even distribution between white and red wine drinkers *Data label refers to customer price per glass
  13. 13. Profits by Volume Sales AVG Profit per GL per Bottle AVG Profit per GL per .5 BTL AVG Profit per Glass $6.57 $7.08 $8.42 *Mark up from cost is the same but rounding benefits per glass sales
  14. 14. Wine Summary There may be an upper limit for price point for customers (i.e. Zinfandel Sales down perhaps due to Seghesio price point; other retired high point wines) Varietal familiarity likely determines choice before price Perhaps more flexible in pricing for known varietals, less so with uncommon ones Qualitatively: while some customers want a foreign wine (specifically Rose and Prazzo), many Europeans request local wines. Maybe list state and region on wine list?
  15. 15. Liquor WHERE CRAFT IS KING
  16. 16. Liquor Second highest average profit per drink @ $7.31 Second highest average volume in sales @ 25 per day Second highest average daily profits @ $190 a day Prickly Pear dominates despite being $12 a cocktail Financial and Brand incentive to favor craft cocktails vs conventional cocktail
  17. 17. Craft vs Convention Craft Cocktail AVG Profit Per Drink Conventional Cocktail AVG Profit Per Drink $8.33 $5.70 *Craft cocktail order worth approximately 45% more than ordering off menu on average
  18. 18. Cocktail-Other: -7% Craft Cocktail: +51%
  19. 19. Comparing Off Menu Cocktail Profits Increase in Scotch and after dinner drinks Preference for cheaper vodka and whiskey off menu Beehive G&T similar to Sage Mojito Consider another whisky or Vodka craft cocktail with cheaper ingredients but more favorable profit margin Scotch: +75% AD: +240%
  20. 20. Craft Cocktail Trends Prickly Pear continues to dominate despite being $12 Perceived ‘sweetness’ may influence customer choice over price Craft Cocktail profit margins range from $6.50 (Walters) to $9.90 (Ancho)
  21. 21. Liquor Summary Open liquor a black hole in cost/profit Sweeter craft cocktails preferred Craft cocktail much higher profit margin than conventional When going off menu, customers prefer vodka
  22. 22. Beer NOTHING TO DRAUGHT ABOUT
  23. 23. Beer Overview Third top seller @ 21 Beers per day Third top average per drink profits @ $4.43 Third top average sales profits @ $92 per day Draft beer more popular
  24. 24. Comparing Draft and Bottled Beer sales up primarily through draft Draft beer accounts for 72% of Beer profits Bottled: +17% Draft: +40%
  25. 25. Beer Sales Volume Common practice to charge equal amount for draft or bottle beer when it’s a craft beer $1 increase in draft equals a 16% increase in average daily beer profits IPA highest bottle sales, consider IPA draft
  26. 26. Beer Summary Third top seller but with substantially lower profit margin compared to wine and liquor Draft preferred to any specific bottle by large margin Advisable to raise price of draft $1 Limits on profitability; however draft has better profit margin potential and beer cocktails may increase per beer profits
  27. 27. Non-Alc COFFEE OR TEA?
  28. 28. Non-Alcoholic Drinks Overview Lowest average profit per drink @ $2.86 Lowest average volume of sales @ 16 units per day Coffee biggest profit source, primarily after dinner drinks • Espresso, Cappuccinos popular with European crowd Sharp decline in fountain soda sales, acceptable considering higher sales of alcohol?
  29. 29. After Thoughts Wine is biggest profit portion of bar; local and familiar varietals sell best Craft cocktail is a higher profit margin to conventional; considering adding a sweet vodka or whiskey drink Draft beer accounts for majority of beer sales; considering increasing price $1 After Dinner drinks (both alcoholic and coffee) sales are increasing and good source of additional non competitive income

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