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Subject: Re: rookie bar manager needs help with liqour cost!!!!
From: Josh
Posted: Tue Feb 10. 2009, 01:26 UTC
Followup to: "rookie bar manager needs help with liqour cost!!!!"  by rookiemanager  (Mon Feb 9. 2009, 23:09 UTC)
Here's one of my previous posts on bar costs:

[Josh] Re: Pour costs & pricing

To be able to calculate your costs, you need two systems in place:

1 - Some way to track sales and useage (typically a POS). Most modern POS 
systems allow you to setup "recipes", so each time a sale is rung in, a 
certain amount of each ingredient that went into it is accounted for.

2 - Consistent inventory taken in regular intervals (weekly is ideal). Since 
you know how much useage you should have had (this is your theoretical) you 
compare your previous inventory to your most recent, add in any deliveries of 
new product and calculate what you've actually used. The difference between 
the Theoretical use and Actual is called your Variance. If your variance is 
1-2% you're doing allright (I've worked in bars where the goal variance was 
.5%).

Keeping proper track of your liquor is a lot of work - which is my most places 
don't do it, and why they lose money not make it.


-- 
Cheers! - Josh @ BarSim
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