Having a bar in your restaurant could mean major profits. In fact, it’s often the alcohol sales in restaurants that have the highest profit margin1. Many states have also relaxed their liquor laws amidst COVID-19, which means you can benefit from alcohol to-go, too.
However, getting to that point takes work. Operating a successful bar program is nothing like running a restaurant. At all. You will find yourself with a new set of tasks and unexpected costs that you likely did not plan for.
But do not fret. Whether you’re looking to revamp your existing bar program or add one to your restaurant, there are tools and resources available to help you easily master your bar costs.
Our team has created a Bar Profitability Guide that will help you maximize your bar program to truly benefit your operation. You’ll find information on things like managing costs, how to best manage staff, and counting usage.
So, what are you waiting for? Grab a drink and keep on reading!
Let’s Get Started
It’s time to turn your bar program into a profitable tool for your restaurant!
The first step to achieving this is fully understanding your bar’s costs. And this means understanding your cost of goods sold (COGS).
This is an important step to maximizing your bar because, it gives you insight into the total cost for you to create and serve all beverages over a specific time period. This number can then help you better understand how well your bar is doing, and potential areas where you can save additional money.
So… how exactly do you identify your cost of good sold? Check out the below graphic for an easy-to-follow formula!
Approach Things Proactively
So now that you’ve identified your cost of goods sold (COGS), you can start taking charge of your bar!
Make your life easier by approaching things proactively to get ahead of any issues.
Additionally, be sure to stay well connected with your staff. By proactively engaging with and monitoring the bar staff, you can help avoid things like over-pouring or wrong input into the POS (those double shots marked as singles add up over time). Continued reinforcement of proper procedures can help prevent these issues from occurring.
Market Yourself Well
While we all love them, happy hours are no longer a unique offering that will set your bar apart. Everyone has them, and everyone offers drink specials.
What will make your bar standout, and keep customers coming, is a strong and thorough marketing strategy.
Do you have an active digital presence? Have you listed an up-to-date drink menu? Are you engaging with customers through social media?
More and more patrons continue to scope out a location before visiting. If they see an active social media page with captivating images and easy-to-read menus, you are more likely to win them over. On top of that, the more you market yourself, the more visibility you’re giving your operation. Help people find you and give them reason to keep coming back.
Tips and Tricks for Bar Profitability
Now that you have your bar up and running and a solid customer base, leverage some tips and trips to ensure your bar stays profitable.
Making adjustments based on these tips can help you maintain bar profitability.
So, you’ve read through our Bar Profitability Guide. Congratulations – you are on your way to successfully managing a profitable bar program for your restaurant!
Still have questions? FoodBAM offers the tools and insights you need to master your bar program. FoodBAM helps you track your inventory and analyze your purchase data all in one place. Interested in learning more?
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