how do you keep inventory in a bar

5 Tips For A Smooth And Accurate Bar Inventory Process

• 1) Keep Your Bar Inventory Low There’s no reason to keep a whole year’s worth of inventory on hand. It’s an added expense your business doesn’t need. Most successful bar owners recommend maintaining a 15% inventory. ...
• 2) Arrange Inventory Records To Reflect Your Storage Method ...
• 3) Set A Consistent Inventory Period ...
• 4) Conduct Your Bar Inventory The Same Way Every Time ...
• 5) Train Your Team ...

Full Answer

How to take care of your bar inventory?

You should also train your staff properly and experiment with your process. Take your bar inventory consistently. You should do it on the same day, whether it's done weekly, bi-weekly, or monthly. In addition to when, pay attention to how and where. Make sure your inventory is taken in the same way each time:

How do you measure remaining inventory in a bar?

Just “eyeball” the level of liquid and record the number on your bar inventory sheet. Weighing the bottles and their contents gives you a more precise measure of your remaining inventory. Many inventory apps come with their own scale to make this process even easier.

How do you ensure Regular inventories in your business?

Training your staff and ensuring regular inventories Even if you implement a robust inventory system, you’ll need to train your staff on using it. To make sure the process is done consistently (which is the hardest part) select a few team members that will share responsibility.

What is bar inventory in inventory management?

Bar Inventory Fundamentally, taking bar inventory is the process of counting everything you have in stock twice. Then you use those numbers to calculate how much product you used during that time, which is your inventory usage. That number, in turn, allows you to calculate a whole host of other useful metrics.

How often should you do inventories?

Why is low inventory important?

Why create a log with all spillages and recipe mistakes?

How to estimate quantities in open bottles?

How to make sure a process is done consistently?

What is usage in business?

Is inventory a tedious process?

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How do you maintain inventory in a bar?

Here are five things an effective inventory management system can do when you first open a bar.Reduce drink shortages. ... Optimize alcohol order size and purchasing frequency. ... Avoid rush orders. ... Reduce waste at your bar. ... Increase profit.

How do you keep inventory on liquor?

How do you take liquor inventory?Use a spreadsheet or inventory software. ... Start at the front bar. ... Record other places where you keep alcohol. ... Note how much liquid is in each bottle. ... Add up your totals.

How often should a bar do inventory?

every 2 weeksHow often should you do bar inventory? The most efficient bars and restaurants do bar inventory every 2 weeks. Some bars even do inventory weekly to maximize their benefits from the inventory process. You can determine the proper frequency for your bar based on its performance and size.

Why do bars do inventory?

Once you have your inventory calculated and you can see it alongside your sales numbers thanks to your bar POS system, you can use it to calculate pour cost, make better pricing decisions, and to identify which products are the best sellers and which are the most profitable.

How do bartenders keep track of drinks?

Bar POS systems help staff focus on what keeps people in the seats – friendly, fast service – while making sure orders get poured and empty kegs get changed. The POS system remembers the details for a bartender, so they can continue to charm the customers and earn their tips.

What is the best way to keep inventory?

The best way to keep track of inventory is with an easy-to-use, robust inventory management software system. With inventory management software, you can get real-time alerts, add meaningful pictures to your inventory list, and utilize barcodes and QR codes to automate otherwise tedious, error-prone processes.

What is bar checklist?

What is a Bar Checklist? A bar checklist is used to ensure that bar operation procedures are followed on a regular basis. This tool can be used by bar managers and waitstaff as a guide when preparing for, during, and after operations.

What day do bars make the most money?

Thanksgiving Eve Is Traditionally the Busiest Bar Night of the Year.

How do you effectively manage a bar?

How to succeed as a bar managerLook for upselling opportunities.Make VIPs feel special.Keep guests engaged while they wait.Stay on top of local regulations.Optimize seating.Organize events.Share tips equitably.Implement tiered inventory.More items...•

What are the 4 basic reasons for keeping an inventory?

Four very good reasons to hold inventoryExpecting the unexpected. By far the greatest adversary any inventory manager is expected to overcome is fluctuating consumer demand. ... A time to buy and a time to buy more inventory. ... Capitalizing on low cost offers. ... Putting on bottom-line body armor.

How much does a bar spend on inventory?

4. Inventory. The startup inventory for your bar will cost an average of $6,000. In addition to purchasing beer, wine, and liquor, you'll also need other bar essentials like mixers and blending equipment.

How does stock the bar work?

A stock-the-bar shower is a co-ed wedding shower where the couple is given bottles of booze or barware to fill their bar cart and toast to their engagement. While bridal showers have been around for centuries, stock-the-bar parties are a modern twist on this classic tradition.

How often should you do liquor inventory?

every two weeksWell-run bars are counting inventory at least every two weeks, and a weekly schedule is typically ideal in order to maximize benefits you receive from the inventory process.

What are the 4 ways of storage of liqueur?

6 tips to store your spirits1 Store all bottles away from light. ... 2 Find the right temperature. ... 3 Some bottles do better in the fridge. ... 4 Seal the bottle properly. ... 5 Store spirits upright. ... 6 Put it into a smaller bottle.

How do you keep track of alcohol?

DrinkControl tracks your alcohol intake in glasses, bottles or cans and converts them into standard units of alcohol. App lets you know when you go over the limit set by moderate drinking guidelines, and how much money you've spent and calories consumed with your drinks.

How do you calculate inventory cost of alcohol?

Liquor Cost Formula(Beginning Inventory + Purchases – Ending Inventory) / Sales = Pour Cost/Liquor Cost or COGS i.e. your product usage. Liquor Cost Formula In Action. ... BI (Beginning Inventory) = $1,906. ... P (Purchases) = $6,398. ... EI (Ending Inventory) = $2,425. ... Sales (Liquor Sales) = $23,000. ... WATCH THE FULL VIDEO BELOW!

What is bar inventory?

Bar Inventory Basics. Fundamentally, taking bar inventory is the process of counting everything you have in stock twice. Then you use those numbers to calculate how much product you used during that time, which is your inventory usage. That number, in turn, allows you to calculate a whole host of other useful metrics.

Why do bar inventory software?

Bar inventory software records inventory far more accurately. Because it automated everything. The benefits of that have a ripple effect: all of the figures you get from taking inventory, like pour cost, liquor variance, and par levels, are all as accurate as possible as well.

How many bottles are in a par level?

Par Level Inventory = 16 bottles. 16 bottles is your par level inventory. That means this winehas an average inventory usage rate of 16 bottles per month over a 3-month time frame. It also means that 16 bottles is the safest minimum number of wine bottles to keep on hand per month.

How to calculate liquor cost?

To calculate liquor cost, take that product’s inventory usage in dollars and divide by that product’s total sales.

How often should I take inventory of my bar?

Take your bar inventory consistently. You should do it on the same day, whether it's done wekkly, bi-weekly, or monthly.

What is the last touchpoint between your inventory and its fate?

Your staff is the last touchpoint between your inventory and its fate. Loss or profit. Training staff on the rule of tenths, how to identify shrinkage, and your bar's beverage inventory management processes will help in a big way.

Why is inventory usage important?

It’s the beating heart of every successful beverage inventory system. Because it shows you how much of an item you’re selling.

How to take inventory of bar?

The general idea behind physically taking bar inventory is that you count all the stuff you have. Then, in a little while, you count it again. The first time you count, it’s the starting inventory number. And the second, the ending inventory number.

What is bar inventory?

At its most basic, taking bar inventory is the process of counting everything you have twice. Then, you figure out how much of it you used over that period of time. That's known as calculating inventory usage.

What are the three metrics that use inventory usage that affect bar profitability?

There are three metrics that use inventory usage that affect bar profitability. Variance, pour costs, and par levels.

What is the first count of inventory?

This number defines your current amount of inventory and will be vital with your calculations going forward. That's why it's so important that you get the most accurate count. Otherwise, your next count may be inconsistent and show that you have used more or less liquor than you actually have. This can cause issues with ordering more alcohol and will ultimately hurt your bottom line.

How often do liquor programs take inventory?

And shoot for going through this process every two weeks. Though, as we stated earlier, some beverage programs take their liquor inventory every month. Longer than that and you're missing out on the chance to react to sales patterns and optimize for profitability.

How to measure liquor inventory?

To gauge levels, visualize each bottle divided in 10 parts. That's how to measure liquor bottles for inventory. Then have them estimate how many tenths of the bottle is still left. If the bottle is half full, they’ll record 0.5. If the bottle is 9/10ths full, they’ll record 0.9.

Where to start a bar?

You’ll typically want to start at the front bar. Then move on to any back bars, beer coolers, wine room, and liquor storage areas. But it all depends on the bar layout design. Do whatever makes sense for your space. But make sure you know exactly where all your stuff is and in what order you’ll be counting it.

Where should inventory be on the bar?

Your inventory sheet should match your storage method so you can go down the line — from right to left or left to right and bottom to top or top to bottom on the bar — during the counting process.

What is counting product in a bar?

Counting product during your bar inventory process is more than just tallying bottles. It requires either estimating or determining accurately how much product is left in the container.

How to count points in a bottle?

The point count method involves dividing each bottle into tenths from 1.0 (full) to 0.1 (almost empty). Don’t take this literally and draw hash marks on all your pretty bottles. Just “eyeball” the level of liquid and record the number on your bar inventory sheet.

Why weigh bottles?

Weighing the bottles and their contents gives you a more precise measure of your remaining inventory. Many inventory apps come with their own scale to make this process even easier.

Do you have to do bar inventory?

You don’t have to conduct the bar inventory yourself every time. Train your team members to make the count so they can see what goes on behind the scenes of your business.

Do you need to reinvent the wheel to do bar inventory?

If you conduct your bar inventory with pen and paper or an Excel spreadsheet and it’s working well for you, then, by all means, keep doing what you’re doing. There’s no need to reinvent the wheel.

Is bar inventory time consuming?

Many managers feel that bar inventory is a complex, time-consuming process that doesn’t serve any real purpose. Done right, though, it can reveal a great deal about how your business is running and keep your bar on the road to profitability and success. In this article, the experts at Sling tell you how to take inventory in just four steps ...

Why is inventory tracking important in bar?

Inventory tracking is especially important for bars, where frequent spills and free drinks can hurt your profitability.

What is bar inventory software?

You can work towards automating the process with a bar inventory software or inventory spreadsheet integrated in your bar point of sale system. This system can help you count, manage, and value your inventory in an all-in-one platform that can connect with your accounting, order and track inventory accurately, and set your price points wisely.

Is it hard to take inventory manually?

Taking inventory manually can be tedious – entering numbers into a spreadsheet takes time away from other things if you do it yourself. If you hand it off to an employee, make sure it’s someone you trust and is well trained on the process.

Can bar software help with liquor inventory?

While there is bar software that can help with the bar inventory management process, it’s best to understand the basics of how this is normally handled with pen-and-paper. Even if you plan on using restaurant inventory software, having a deep understanding of how liquor inventory is done will help you make better purchasing decisions.

How to manage bar inventory?

Managing a bar inventory by hand involves manually recording inventory data into a spreadsheet, and then physically counting and measuring your bar’s stock. If you’re a new bar manager, you might be feeling overwhelmed with all the new responsibilities, so here are a few tips that will help you;

What is in bar inventory?

Have it in mind that the inventory in your bar will include the whole list of liquor and other stocked products you offer to your customers. This list would mainly include any beer, sodas, juices, wine or other beverages that are listed on your menu.

Why is it important to tally up your inventory?

It is also very necessary for a bar to tally up accounts every day to make sure that inventories are correct. Managing inventory by hand means manually counting your inventory regularly (monthly at a minimum) to reconcile every item and catch any discrepancies, including both simple human errors as well as theft.

Why do you need bin numbers for wine?

Bin numbers designate a location for where a specific bottle is kept. If you have a large wine and beer program, then you will want to organize your selection by assigning bin locations to each wine. This will help maintain order for liquors and will also help your staff provide timely service because they will know exactly where to find a wine when it is ordered by guests.

Why is inventory important?

It is more or less the most expensive asset to own and maintain. That’s why proper inventory management is very imperative to the success of any business. Inventories comprise of many different components, depending on the business.

How to forecast liquor sales?

For instance, you might sell more tequila on Tuesdays with your taco special and red wine in the winter months. Use historical data compared to recent sales trajectories to forecast what your liquor sales will be.

How long does it take to do an inventory count?

Depending on how large your catalogue is, inventory counts can take anywhere from a few hours to half a day (or even an entire day). So, if you’re planning to conduct an inventory count, set aside the appropriate amount of time to do so. 10. Cost Your Drinks.

Why do you take inventory while the bar is closed?

Take inventory while the bar is closed so that no product slips in or out while the count is in progress.

How to find inventory usage?

You’ll take these numbers and use the following formula to determine your inventory usage: starting inventory + received inventory – ending inventory = usage.

How to count how much liquor is in a bottle?

The easiest (and most commonly used) counting method is to visually take note of how much liquid is in each bottle, separating it into tenths. Take a look at where the line of the liquor falls, and estimate if the bottle is half full (0.5), a third full (0.3), etc.

Why is inventory important?

Inventory is important for maintaining enough liquor, of course, but it also identifies: How your bar is performing financially. What your product variance is and where your shrinkage is coming from. How to set pars for each product. What your pour cost should be for each product. Which products sell well and which don’t.

How to count alcohol bottles?

Count the bottles the way they’re positioned and , if needed, filter them alphabetically on the spreadsheet when you’re done. Include the alcohol’s type, brand, name, and bottle size. Also include a column for your bar back, storeroom, walk-in, or any other parts of the bar where alcohol is kept.

How often should you keep inventory?

Keep your inventory periods consistent (i.e. weekly, bi-weekly or monthly).

Can you use spreadsheets to take inventory?

If you’re still using spreadsheets to take inventory counts, we understand, but at least make sure it’s a spreadsheet that works for you (like this free, downloadable invent ory spreadsheet).

How often should you do inventories?

In general, the more often you do it, the more accurate results you will get. For our example, we’re going to use weekly invent ories.

Why is low inventory important?

In addition, low inventory levels will make your counting easier and faster due to having less products altogether.

Why create a log with all spillages and recipe mistakes?

Create a log with all spillages and recipe mistakes so you better understand sources of shrinkage.

How to estimate quantities in open bottles?

Tip: Use the rule of 10ths to estimate quantities in open bottles. Imagine every bottle is split into 10 equal parts. Then estimate the amount remaining and note it down on your spreadsheet. For example, if the bottle is half full, you can record 0.5 in your spreadsheet. If you have about a third left, you can include 0.3 and so on.

How to make sure a process is done consistently?

To make sure the process is done consistently (which is the hardest part) select a few team members that will share responsibility. Ideally, they should be split by departments if you have a bigger establishment (e.g. kitchen, bar, cleaning) so everyone can feel involved and engaged in the process.

What is usage in business?

Usage is the quantity of product you went through during the given period of time. In contrast to quantity sold, usage takes into account everything used, including lost product due to spillage, non-compliance or even theft.

Is inventory a tedious process?

Taking inventory is a tedious process. So it’s often neglected or non-existent in smaller establishments. Yet, it’s such an important part of operations. Among other things, taking regular and accurate inventory can help you: