For restaurants and bars looking to increase profits, draft beer is an excellent option. Draft beer is fresher and more flavorful than bottled beer and gives customers something they cannot get from their local liquor store. While alcohol sales can be an excellent way to increase profitability, beverage costs must be controlled if you wish to succeed in the draft beer industry.
In order for a business to be profitable they must know exactly what inventory they have, how much it cost them and at what rate they use it. Beverage costs reflect a business’s control systems, management skill level and the value provided to customers. Failing to implement an effective inventory control system places a business’s bottom line in serious jeopardy.
Even though industry standards offer a general outline for profit margins, it’s a little more difficult to figure out the perfect number for each bar/customer combination. Even something as simple as changing the glassware that draft beer is served in can affect the amount of profit earned.
When it comes to draft beer you must consider the associated direct as well as indirect costs. There’s the keg of beer itself, the cost of refrigeration, beer tap costs, the gas to propel the beer, waste and spoilage.
Most bars maintain approximately 20% shrinkage. However, employee theft could represent as much as 45% of annual inventory loss. Employee negligence and error can represent an additional 20-25% lost inventory. That adds up to a lot of lost profits.
The first step to reducing loss and maximizing profits is to have a quality draft beer system that is properly installed, balanced and maintained. A draft beer system that is out of balance produces excessive foam. A system that is improperly installed creates foaming that leads to over-pours. And a poorly maintained system costs the retailer lost profits from foaming, over-pouring and loss of customers as the quality of the beer declines.
A quality draft beer metering system ensures that you get the most out of your inventory. It works by improving employee performance and accountability while increasing profits and reducing loss.
West Coast Beverage, Inc. offers the Auper draft beer metering system. This state of the art system provides you with the information necessary to monitor staff performance when pouring, serving and ringing up draft beer. This allows you to maintain exceptional standards and increase your bottom line.
For more information about controlling pour costs please contact us today.