2. Introduction :
BAR is a retail business establishment that serves alcoholic Beverages, such as
beer, wine, liquor, cocktails and other beverages such as mineral water and soft
drinks and often sell snack foods such as chips or peanuts, for consumption on
premises.
Some types of bars, such as pubs, may also serve food from a restaurant menu.
The term "bar" also refers to the countertop and area where drinks are served.
Bars provide stools or chairs that are placed at tables or counters for their
patrons. Bars that offer entertainment or live music are often referred to as
music bars, live venues, or nightclubs. Types of bars range from inexpensive to
elegant places of entertainment often accompanying restaurants for dining
3. BAR….
Bartender works like host of the bar. A good bartender should have
thorough knowledge about beverages, he should be friendly and he
should have good sense of humor.
4. Types of Bar
Mini bar: Its usually a small refrigerator with a stock of liquor, soda, water and ice.
Dispense bar: Any bar situated within a F & B service area that dispenses wine, spirits, cocktails, or
any other alcoholic drink which are to be served to customers consuming meal or using a lounge
area.
Mocktail bar: A bar which has a specialty of serving mocktails only.
Swim bar: Bar usually situated at the swimming pool in a hotel.
Mobile bar: A compact movable bar, but with a limited stocks of beverages on offer.
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6. PARTS/SECTIONS OF A BAR
A bar is made up of three parts: the front bar, the back bar, and the
under bar.
The Front Bar. The front bar is the customer area, where drinks are ordered and
served.
The Back bar. The back bar has a dual function: as a decorative display area and as a
hard-working storage space. It speaks volumes about a bar operation. It conveys an
image of the establishment and showcases the kinds of beverages a patron can
expect to be served there. It stimulates conversation, displays the wares, and can be
used to post information, including prices, drink specials, the bar’s logo, funny signs,
flyers etc.
The under bar . It is where most of the equipment and supplies for the products
being sold are arranged compactly and efficiently, to facilitate speed of service.
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7. Planning of Bar
There are certain essentials necessary in planning of bar. These factors should
be given prime consideration while planning for a bar.
Sitting Area- A major factor. The position chosen should achieve the greatest possible sales. Sufficient
area or space is needed to work and move about. There should be a minimum of 1 m ( 3’3”) from the
back of the counter to the storage shelves and display cabinets at the rear of the bar.
Layout- Careful consideration must be given in the initial planning, to the layout of the bar. Adequate
storage must be provided (shelves, cupboards, racks) for all the stock required and equipment listed.
Everything should be easily to hand so that the bar staff doesn’t haven to move about more than
necessary to provide quick and efficient service.
Plumbing and power- cold and hot running water is essential for cleaning of glassware. Power is
required for cooling trays, refrigerators and ice making machines
Safety and hygiene- Materials used in the make-up of bar should be hygienic and safe. Non slip
flooring is one of them. Bar top should be hard wearing, easy to wipe and without sharp edges.
Height of bar top should be of appropriate height (app. 1 m) and depth (app. 20”).
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14. Bar Stock Maintenance
Tracking inventory, purchases and sales figures provides vital information
that can make or break the bar. Use the data gather to control costs, guide
purchasing and maintain profitability. These factors come into play when
one calculate beverage cost and its percentage of retail price.
15. There are many benefits for having specific procedures for
the control and recording of stock and beverages in
bar premises.
Operating a regular and rigorous system of stock taking
and beverage control within your bar will help you to;
Control costs,
Achieve profit margins acceptable for the success of the business
Help you to identify problem areas in relation all the products, stocks,
beverages etc. of your bar business.
16. Like food controlling, beverage controlling is also done in operational
phase. There are five main states in the operational control.
These are:
Purchasing
Receiving
Storing & issuing
Production/preparing
Selling
17. PURCHASING….
The purchasing of beverages should be undertaken by the purchasing
manager together with such expert as the food & beverage manager, bar
manager & the head cellar man. As beverages will frequently contribute more
to profits than food, and as they require considerably fewer staff to process
them into a finished product to the customer. It is important to bear in mind,
when purchasing beverages is that expensive products or products with
pretty labels do not necessary indicate or guarantee superior quality.
18. PURCHASING….
With beverage purchasing the following points are generally noticeable:
There are fewer & often restricted sources of supply.
The high value of beverage purchases.
Free advice & assistance with purchasing are given by the wine & spirit trade.
Quality factors are difficult to evaluate & require special training to identify them. This
means setting up or attending tasting sessions several times a year.
There are far fewer standard purchasing units than for food.
There is an established standard of product. Many items like minerals, spirit etc. will
have a standard that will not vary over the years & items such as a well-known wine
from an established shipper will be of a standard for a specific year, whereas with food
items may be purchased in different forms such as fresh, chilled, frozen, canned etc.
The price of alcoholic beverages does not fluctuate to the extent that food prices do.
19. PURCHASING….
There are five main sources of supply that can be used for purchasing beverages & it is
most likely that a purchasing manager would use at least two of them.
Wine Shipper
Wholesaler
Beverage Manufacturer
Cash & Carry
Auctions
Purchase Specification :
Purchase specifications for beverages are much simpler to write & under are stand than purchase
specifications for food. The reason is that beverages are sold & purchased by the brand name
label of the product, each having a consistent quality & quantity standard of content for each
selling unit.
20. RECEIVING
The objective of receiving is :
The quantity of beverages delivered matches that which has been ordered.
The quality inspection is simple, but again requires a through and methodical approach. It involves
such things as :
checking the brand name and label on each items the alcohol proof, the vintage and shipper, against the
delivery note and the purchase order.
The price stated on delivery note are in accordance with the negotiated price shown on the purchase
order form.
When the quantity or quality or both of the beverages delivered is not in accordance with the purchase
order or an item is omitted from the order, that a request for credit note is raised by the receiving clerk
or cellar man.
An accurate record is made in the goods received book recording details of the delivery.
An accurate record is kept of all chargeable empties delivered and returned.
Deliveries of beverages are timetabled with the suppliers often to an afternoon when received and
cellar staff is normally not so busy and the receiving area is free from other deliveries.
21. Storing and Issuing….
once beverages are received they must be removed immediately to the cellar and a tight
control maintained at all times. The storage of beverages is ideally separated into five areas
as follows:
The main storage area for spirits & red wine held at a dry place & the temperature of
the place should be 55º-60ºF (13-16ºC). This area is also used for the general collection
& preparation of orders for the various bars & the storage of keg beers.
A refrigerated area of 50˚F (10˚c) for the storage of white & sparkling wine.
If the turnover of the keg beer is slow then it should be stored in a refrigerated area of
43˚-47˚F( 6˚-8˚C)
Bottle beer & soft drinks are stored at a temperature of 55˚F(13˚C)
Empty bottles, kegs & crates are stored in a totally separated area.
22. Alcoholic beverages are stored inside the cellar on shelves or racks
according to the standard bottle code/bin list.
The objective for preparing a standard bottle code/bin list is to eliminate
the confusion of bottle sizes, spelling of names & different brands & to
establish an appropriate starting point for the control of beverages.
23. Cellar Inward Book…
Date Beverages Invoice Bin
No.
Bottle Halves Other
sites
8.2.09
8.2.09
9.2.09
12.2.09
12.2.09
Port
Sherry
Chardonnay
Pinot Grigio
Famous grouse
12534
9321
53911
5354
5355
505
550
288
195
192
24
36
12
48
12
-
-
-
-
-
-
-
-
-
-
This provides accurate reference to all beverages coming into the
cellar & posting data for the cellar man’s bin cards. Whenever
necessary it is a useful check against the perpetual beverage
inventory ledger held in the food & beverage control or accounts
office.
24. BIN CARD
Bin Card
Bin No. : 423 Size: Bottle
Size : White horse whisky
Date Received
Issued to Bar
Balance
A B C D Total
5.2.09
7.2.09
9.2.09
12
-
24
-
2
2
2
1
4
1
-
4
3
-
1
6
3
11
6
3
16
These are provided for each
individual type of beverage held in
stock & record all deliveries &
issues made, the cards being fixed
on the shelves or racks against each
beverage, the bin card numbers
referring to the same bin numbers as
the wine list & originating from the
same bottle code list.
25. BEVERGAE PERPETUAL INVENTORY LEDGER
BEVERAGE PERPETUAL INVENTORY LEDGER
Bin no. : 130 Type: Chablis(w.wine) Size: Bottle
Date
Purchase record Perpetual Inventory
supplier No. Unit
cost
Total
Amt.
Date opening
inventry
Total
purchase
Total
Avlb.
Bar Closing
invntry
A B C D TOTAL
5.2.9
9.2.9
-
12.9.9
Smith
Smith
-
Smith
36
36
-
72
3.20
3.20
-
3.20
115.20
115.20
-
230
5.2.9
9.2.9
10.2.9
12.9.9
12
30
14
10
36
36
-
72
48
66
14
82
2
2
2
2
4
2
2
4
12
48
-
48
-
-
-
-
-
-
-
-
18
52
4
54
30
14
10
28
26. BEVERGAE PERPETUAL INVENTORY
LEDGER
This master ledger, which is prepared in the control or accounts office,
consist of cards prepared for, each individual type of beverage held in
stock. The purpose is to keep a daily records of any purchases of the
separate types of beverages & of the quantities issued from the cellar to
each individual bar or other area & to record a perpetual inventory balance
for each item. The information is obtained from the suppliers’ delivery
notes or invoices and the daily beverage requisition notes from the
different bars. When the physical stock taking of the cellar is undertaken,
the physical stock take figures should match to those in the perpetual
inventory ledger.
28. Cellar Control Book..
This provides records of all daily deliveries to the cellar & the daily issues
of each beverage from the cellar to the various bars & should cross check
with the entries on the bin card & the perpetual inventory ledger held in
the food control or accounts office.
29. ULLAGE & BREAKAGE :
It is necessary for any ullages & breakages to be recorded
on a standard form, together with an explanation &
countersigned by a member of the food & beverage
management department.
The term ‘ULLAGE’ is used to cover all substandard
beverages which cannot be served to the guest (i.e.-
bottle of wine with faulty cork, flat beer, unfit beer kegs
etc.), which whenever possible, would be returned to the
supplier for replacement. Breakages of bottled beverage
usually occur by mishandling by cellar & bar staff.
30. Issuing of Beverage..
Issuing of beverages should take place at set times during the day & only against a requisition
note signed by an authorized person.(for example. Head barman, banqueting head waiter
etc.).
Ideally when requisition is a large one it should be handed in several hours before the items
are required to allow the cellar staff plenty of time to assemble the order together.
Requisition notes are usually made in duplicate, one copy being retained by the cellar man so
that entries can be made to the cellar records & then it is passed to the control or accounts
office, while the second copy is retained by the bar.
The pricing of issues for beverages is different from food, two prices are recorded, the cost
price & the selling price. The cost price is recorded to credit the cellar account & for trading
account & balance sheet purposes. The selling price is recorded for control purposes to
measure the sale potential of selling outlet using the basic formula:
(Opening stock + purchases) - closing stock = total beverages consumed.
Total beverages consumed = total revenue
31. Stocktaking Beverages..
The main objectives of stocktaking are:
To determine the total value of all beverage held in stock. This will indicate if too much
is held in stock.
To compare the actual value of beverages held in the cellar at a specific time with the
book value of the stock which will have been calculated with the simple formula:
Value of opening stock + purchases during period – requisition during the same period =
value of closing stock For Cellar
Value of opening stock + received from the cellar during period - cost of the beverage sold =
value of closing stock For Bar
To identify slow moving items.
To compare beverage usage at cost with beverage sales in order to calculate beverage
gross profit.
32. To determine pilferage & check security & control system.
To determine the rate of stock turnover.
Turnover rate = cost of beverage sold for a period ÷ average inventory for the
(cost) period
Average inventory = opening inventory + closing inventory ÷ 2
Generally accepted monthly turnover rate for spirits & beers are
respectively 1∙5 & 2∙0.
The stocktaking should be undertaken by F&B control staff & member of
F&B management team.
33. A physical inventory of the cellar is taken after the close of business on the last day of the month.
The number of bottles of each item in stock is counted, & the value of each is determined by means
of one of five methods of inventory valuation if the purchase price different for the same item
Actual purchase price method,
First in first out method,
Weight average,
Latest purchase price method,
Last – in first out method.
When the value of each item is known, these values are added and this value will be closing stock for that
particular month. Because the closing stock for any period is opening stock of the following period that’s why to
know the opening stock for that particular month, we need to know the closing stock of the previous month of
calculate the value of beverages issued to the bar, we will use the following formula:-
34. Opening beverage stock + beverage purchases during
That particular month = total available for sale for that month.
Total available for sale that month – closing stock of that month = value of beverage
issued the bar.
It is not necessary that, all beverages issued to the bar in that month, bar has sold all the
beverages during that month itself. That’s why, we have to calculate the bar inventory
differential.
To calculate the cost of beverages consumed in that month, we must consider bar
inventory differential.
At first, we have to take physical inventory of the bar at the close of business on the
last day of the month. Then cost calculate of the closing stock is done.
35. From the previous month’s closing stock will be opening stock of that particular month.
Then following formula can be used for calculating the cost of beverages consumed.
(Value of beverages issued to the bar + opening stock of the bar) – closing stock of the
bar(value) = cost of beverages consumed.
After calculating cost of beverages consumed any particular, we can calculate beverages
cost percentage by using the following formula:-
Beverages cost % = beverages cost / beverages sales.
(Beverages sales amount can be obtained from monthly financial report)
# Adjustment to the beverages cost:-
Happy hour/ offer
Complimentary drink.
36. Because it is impossible to provide a complete set of inventory figures to illustrate
each of the five methods of assigning values, the discussion is restricted to only
one item in the stores inventory:
No. 10 cans of fruit cocktail.
Inventory records for the month of May reveal the following:
Opening inventory on the 1st of the month: 10 cans @ $5.90 = $59.00
Purchased on the 7th of the month: 24 cans @ $6.10 = $146.40
Purchased on the 15th of the month: 24 cans @ $6.30 = $151.20
Purchased on the 26th of the month: 12 cans @ $6.20 = $74.40
37. A physical inventory on the 31st of the month showed that 20 cans
remained in stock. From this information, one can deduce that 50 cans
were consumed during the month, as follows:
Opening Inventory 10 cans + Purchases during the month 60 cans = Total
available 70 cans -- Closing inventory 20 cans (number of units still
available) = Units consumed 50 cans (number of units no longer available)
Because both the value of the opening inventory ($59.00) and the value of
the purchases ($372.00) are known, one can add the two values to
determine the value of the total number of units available—$ 431.00. It
should be obvious that one can determine the value of the units
consumed only by determining the value of the units in the closing
inventory and then subtracting it from the value of the total available.
38. Actual Purchase Price Method :
Perhaps the most reasonable unit value to assign to the items in the
closing inventory is their actual purchase price (actual purchase price
method). However, this can be done only if those prices are marked on the
units. If the cans of fruit cocktail are marked with actual purchase prices,
totaling their value is obviously a simple clerical job, requiring nothing
more complex than addition. Assuming the cans are marked with the
purchase prices indicated in the following list, the value of the 20 cans is
determined as follows:
4 @ $5.90 = $ 23.60
12 @ 6.20 =$74.40
4 @ 6.30 =$25.20
20 =$123.20
39. First IN First Out Method..
An alternative procedure is to assume that stock has been rotated properly
during the period, so that the units consumed were the first to be placed
on the shelf. In that case, those remaining on the shelf are those most
recently purchased (first-in, first-out method). To establish the value for
the units in closing inventory using this method, it is necessary to know
that the latest purchase on the 26th of the month was for 12 cans and that
the next previous purchase on the 15th was for 24 cans. With that
information available, it is possible to determine the value of the 20 cans
as:
12 @ $6.20 =$ 74.40
8 @ 6.30 =$ 50.40
20 = $124.80
40. Weighted Avg. Purchase Price
Method..
If there is no assurance that stock has been properly rotated and if large
quantities of goods are involved, the weighted average purchase price method
offers a reasonable alternative. One can determine a weighted average
purchase price by multiplying the number of units in the opening inventory
and in each subsequent purchase by their specific purchase prices, adding
these values to determine a grand total for all units together, and then dividing
this grand total by the total number of units.
By following this procedure, the weighted average value of one unit can be
determined by dividing 70 units into the $431.00 total value. The result is a
weighted average value of $6.16. Using that figure, the value of the closing
inventory is
20 @ $6.16 _ $123.20
41. Latest Purchase Price Method
A simpler, faster, and more widely used approach is to use the latest
purchase price method for valuing the closing inventory. A justification for
this approach is that if it were necessary to replace the remaining cans, the
cost of replacement at the present moment would likely be the latest price
at which the items were purchased. If this method is followed, as it
frequently is in the food and beverage business, the value of the closing
inventory of this item will be
20 @ $6.20 _ $124.00
42. Last in First Out Method..
In certain special circumstances (when tax rates or inflation rates are
particularly high, for example), management may choose to minimize
profits on financial statements in order to decrease income taxes. To
minimize profits, one might seek to maximize cost by minimizing the value
of closing inventory. Doing this in periods of rising prices is easy: One
merely values the units in the closing inventory by using the earliest
purchase prices (last-in, first-out method). If this method is used, the value
of the 20 cans will be
10 @ $5.90 =$ 59.00
10 @ 6.10 =$61.00
20 = $120.00
43. Attempt the numerical ….
Content Rate Amount
Opening Stock 25 Bottle 2000/- 50,000
Purchase of 20 Bottle (7th of month) 2200/- 44,000
Purchase of 50 Bottle (20th of month) 2600/- 1,30,000
Purchase of 12 Bottle (27th of Month) 2800/- 33,600
Stock left : 43 Bottle.
Find out the value of stock using following methods :
1. Latest Purchase price
2. FIFO
3. LIFO
4. Weighted Average Price
5. Actual Purchase price.
44. Control during production of the
beverages:
First step in establishing control over beverages production is to standardize the
quantities of the most costly ingredients used: the alcoholic beverages. The quantities
used by the bartender must be controlled.
# Devices for measuring standard quantities:-
There are three measuring devices commonly used by bartenders: shot glass, jiggers,
and automated dispensers.
Shot glass: - Shot glasses hold a predetermined quantity when filled to the rim. Shot glasses
are available in a number of sizes.
Jigger: - A jigger is a double ended stainless steel measuring devices, each end of which
resembles shot glasses. The two measuring devices that make up the jigger are of different
sizes- one may hold 30ml. and the other 60 ml.
The automated dispenser:- many companies have developed and successfully marketed
various automated devices for dispensing predetermined measures of liquor.
45. Except these above mentioned devices, different types of glassware’s are
used for controlling quantities.
Second step in establishing control over beverages production is to
establishing quality standards and standard procedures.
Standard recipe is the tool of establishing quality standards, every bartender
must follow the standard recipe while making cocktail and different mixed
drink.
46. Control during selling
Beverage controlling during sale can be done by using either manual
system or automatic system. The revenue control system should reduce to
a minimum any pilferage & wastage.
47. Automatic System :
In automatic system, each waiter has his own machine key.
After taking the order from the guest, waiter logs in through his machine key
& he enters the table no., no. of covers, waiter’s reference no. and order in the
system.
When waiter enters the order in the system, the system will automatically
generate BOT in the BAR.
Price of the food & beverages are preset in the system. Tax & service charge
will be automatically calculated by the system.
When the guest will request for the bill, the waiter will take the print out of the
bill in duplicate and waiter will follow the manual system.
In case, if guest wants to charge the bill to his room, then waiter takes the
signature of the guest on the bill & post the bill to the guest folio through
automated system.
48. LICENSING
License is legal document giving official permission to do something.
Licensed premises must in order to sell alcoholic beverages, obtain what is called a
Justices License. It is given by the Excise department and RBI during the Brewster
session. Brewster session is Magistrates’ session for the issue of licenses to permit trade
in alcoholic beverages. To get a license, good order must be maintained. i.e.
No drunkenness
No violence
No riotous conduct
No gaming
No flesh trading
49. "No liquor shop for consumption off the premises shall be located within a
distance of 75 metres from the following, namely:
Any industrial estate and other major construction site.
Major educational institutions
Religious Places
Hospitals and Nursing Homes with more than twenty five beds; and
Colonies of Labourers and harijans.
Recently added (by Supreme Court). …. ???
50. TYPES OF LICENSES
There are different types of licenses to sell alcoholic beverages:
1) Full on License: The full on license allows the licensee to sell all types of
alcoholic liquor for consumption on or off the premises.
2) Restricted on License:
a) L1: It is required for wholesale vend of foreign liquor.
b) L2: L-2 Licence for retail vend of foreign liquor/beer.
c) L3: Department grants licence to hotels which are holding star
classification and approval of Department of Tourism, Govt. of India
which are considered necessary for grant of Licence in form L-3. This Licence
is for service of liquor in a hotel to its residents.
51. d) L4: L-4 Licence is granted to an independent restaurant approved by
Department of Tourism, Govt. of India.
e) L5: L5 license for retail vend of foreign liquor in a bar or a bar attached to
a restaurant.
f) L19: L-19 Licence is granted for service of liquor/beer in a club.
g) L-19A: L-19A license is granted for service of Liquor/Beer at a club/mess
whose membership is exclusively for Government Servants and is not run on
commercial lines.
h) Off license: licenses authorizing the sale of alcoholic liquor for
consumption ‘off’ the premises. It includes supermarkets, departmental stores
etc.
52. i) L20: It is for sale of liquor at banquets. This license is issued in
the name of the particular person, for a particular day and time.
The venue, number of persons, type of function, brands to be
served must also be specified. Corkage is charged if the guest
brings his own liquor.
j) Occasional license: It enables the license holders to sell
alcoholic beverages at another place for specified times, eg.
Outdoor catering. Its charges vary from Rs. 1200 to Rs. 1600
depending on cities.
h) Occasional permits: It is similar to an occasional license but
may be applied for by non license holders.
53. i) L-13: Wholesale vend of country spirit.
j) L-10: Retail vend of beer ‘on’ and ‘off’ the premises.
Licensed Club: Club which is operated by individuals or a limited company as
as a commercial enterprise and alcoholic drink is sold only to the members.
Registered Club: A license to run a club normally by committee members
and the numbers own the stock of liquor, a non-profit making organization.
