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Controlling Beverage Sales




Tuesday, September 13, 2011   BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales   Slide 1 / 22
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
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
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
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
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
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
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
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
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
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
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
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
Unacceptable work practices
1. 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
Unacceptable work practices
7. 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
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
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
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
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
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
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
Questions
                      
                    Comments
Tuesday, September 13, 2011   BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales   Slide 22 / 22

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Controlling beverage sales

  • 1. Controlling Beverage Sales Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 1 / 22
  • 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. 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. Unacceptable work practices 1. 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. Unacceptable work practices 7. 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. 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. 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. 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. 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. 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. 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. Questions  Comments Tuesday, September 13, 2011 BAC-5132 Food and Beverage Management-II-Controlling Beverage Sales Slide 22 / 22