Download to read offline
BAR-1.pptx
- 1.
- 2. Introduction : BARis 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 workslike 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. 4
- 5.
- 6. PARTS/SECTIONS OF ABAR 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. 6
- 7. Planning of Bar Thereare 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”). 7
- 9. Bar Equipment Main items Cocktailshakers Boston shakers Mixing glass Strainer Bar spoon Bar liquidiser/blender Drink mixer 9
- 10. Other items Assortedglasses Ice buckets and stands Wine baskets Water jugs Assorted bitters Cutting board and knife Coasters Refrigerator Cork extractor Soda syphons Sugars Sink unit Glass washing machine Spirit measures Cooling trays Bottle openers Ice crushing machine Ice pick Ice making machine •Ice making machine •Drinking straws •Cocktail sticks •Carafes •Wine and cocktail lists •Glass cloths, napkins, service cloths •Small ice buckets and tongs •Muslin and funnel •Lemon squeezing machine •Swizzle sticks •Strainer and funnel •Service salvers •Wine knife and cigar cutters •Bin 10
- 11. Food items Olives Worcestershire sauce Salt and pepper Nutmeg Angostura bitters Caster sugar Maraschino cherries Tabasco sauce Cinnamon Cloves Cube sugar Demerara sugar Eggs Mint Orange Coconut cream Cream Cucumber Lemon Lime 11
- 12.
- 13.
- 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 manybenefits 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 foodcontrolling, 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 purchasingof 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 purchasingthe 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 arefive 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 ofreceiving 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…. oncebeverages 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 beveragesare 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… DateBeverages 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 BinNo. : 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 INVENTORYLEDGER 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.
- 27. Cellar Control Book. ITEM CODE 1 ITEM 2 UNIT 3 COST 4 OPENING STOCK 5 PUR CHASES 6 SUB TOTAL 7 ISSUES 8 TOTAL ISSUES 9 RETURN 10 BOOK STOCK LEVEL 11 BALANCE BYSTOCK TAKE 12 VARIENCE 13 VALUE OF ISSUE 14 VALUE OF BALANCE 15 REMARKS 16 A B C D 01 calvados bottle 10.50 4 6 10 - - 1 - 1 - 9 9 - 10.50 90.50 - 19 Tia maria halves 4.00 14 - 14 1 1 1 1 4 - 10 10 - 16.00 40.00 - 124 pernod bottle 9.50 10 - 10 1 - 1 - 2 - 8 8 - 19.00 76.00 -
- 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 mainobjectives 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 determinepilferage & 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 physicalinventory 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 beveragestock + 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 theprevious 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 itis 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 physicalinventory 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 PriceMethod : 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 FirstOut 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. PurchasePrice 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 PriceMethod 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 FirstOut 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 productionof 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 theseabove 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 islegal 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 liquorshop 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 Thereare 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-4Licence 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: Itis 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: Wholesalevend 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.