The key to running a successful bar business in a way that it achieves maximum profitability is through great inventory management. This is a process that requires professionalism, diligence and plenty of practice. As a bar owner you need to invest in both the personnel and technology that will make this process effective.
Here are 5 cost effective ways to improve your bar’s inventory management.
#1 You must have proper knowledge of your customers
Inventory management in a bar is all about having the right stock in place and monitoring how it is consumed. Therefore having the proper knowledge of your customers will aide in this in that you get to know in advance the type of drinks to stock and how your customers prefer it being served to them. This way, you can be able to plan in advance how to manage this stock as well as make future projections on stocking.
#2 You must have the right mix in your stock
Depending on the type of bar you are running and the type of customers you are targeting, you must always ensure that you have the right mix of drinks in stock. These will include the right mix of the high and low end drinks as well as the ingredients that your mixologist will require to make your customers’ favorite cocktails. You must never run out of key ingredients required for cocktails.
#3 Always account for the waste
It’s inevitable that when dealing with drinks there will always be waste. It’s for this reason that you should always make it a point to account for this waste so that you can know how much it is affecting your bottom line therefore figure out ways to reduce on the waste.
#4 Figure out how much is being lost to theft
The sad part about running a bar business is that your staff will always find ways to steal from you.It’s actually an inevitable reality. It’s therefore recommended as you focus on plugging the gaps that allow for theft, you should be able to also figure out how much is lost to theft so that you can cost it. This is a very important component of being able to manage your inventory properly.
#5 Tie the inventory management with the revenue
Many a times the person managing the inventory doesn’t get to understand how it impacts the revenue of the business and this is precisely why they may be tempted to steal every now and then. However when the person clearly sees the link and gets to understand how that part of the business works, they are likely to start taking it more seriously because they will understand the implications of not doing so.
Be sure to apply this in your inventory management and you will definitely notice the positive impact it will have on your business’ bottom line.
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