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In the list above the cheapest liquor happens to be Barton’s Gin, at 22¢ per shot. The most expensive by far is the super-premium Patron Tequila, at just under $2 per shot. The average price for this list is less than a dollar per shot. One of the most popular premiums is Crown Royal, which costs less than $1 per shot. Of course, there must be a profit margin, so nobody in their right mind sells Crown for $1 or $2 per shot. Generally, you will pay $4.50 to $7.50 for Crown. Patron goes for $6.00 to 9.50 per shot. Markup is thus in the 300-500% range. Of course, this is before taxes, which usually cost almost as much as the liquor itself. But this article is not about taxes – it’s about the pour. Every now and then, bar owners or managers might notice a bartender “overpouring” a drink or two. Because they may not be very good at math, they might get the impression that the bartender is “pouring out the profits” and try to tighten up. They will admonish this bartender to stop being so generous with the hooch. But are they really hurting business, and does a generous pour really cost the bar anything? A very generous bartender might overpour an average of 15% - and that’s really stretching it. Add 15% to the price per shot shown above. For all the liquors shown, it comes up to somewhere between 3 and 28 cents per drink. The cost of this overpouring represents an average of less than 3% of the final charge for the drink! Now, I’m not saying 3% is insignificant. In many cases, that is the final profit margin. But if you’re looking for a way to increase profits in your bar, look elsewhere. Bartenders who pour an honest drink for your paying customers aren’t part of your problem. They are helping you get a valuable reputation as a bar that treats its customers fairly, and believe me, it is well worth 3% to have that reputation! If you still can’t stand to see anyone at your joint pouring a better drink than your competition down the street, just close your lying eyes and raise prices a quarter per drink across the board. That will cover the overpours, even on Patron. And it will spare you the embarrassment (and loss of clientele) that comes from being known for pouring a short drink. You don’t want to be known as “the bar that makes the lousiest drinks”. That is, in the bar business, the actual “kiss of death”. So, if overgenerous bartenders aren’t pouring the profits down the drain, where are they going? How come at the end of the month all of the money is gone? Well, I can tell you the most common causes for bars not making enough profits. First and foremost is employee theft. Yes, you have a great crew. But there are a million ways to steal in the bar business, and it happens at almost every bar. Even an honest employee, if he or she feels they’re getting screwed by management, may decide to take what they feel they are owed. If you really piss someone off, you’d best just let them go – because you know what they say about paybacks. The second cause of lost profits is the owners and managers themselves comping drinks to people. I’ve seen gregarious owners buy a round for the house. Every one of those 25 people would have bought and paid for their next drink, so the owner just cancelled about $150 in sales plus tips. Way to go, Boss Man. Why don’t you do that several times a week and then wonder what happened to $30,000 in sales at the end of the year! The third leading cause of lost profits is employees comping drinks to their friends. The reason they are third is because employees don’t buy the house a round, so they usually cost less than loose-cannon owners and managers. But they still cost, and if things get out of control, it might add up to as much as $25-$50 per day in lost revenues. Comp drinks should only be used to make money, not lose money. They should never be given to freeloaders. If you’re looking for the liquor money, it is going to be found in those three areas. Therefore, a wise bar owner will take steps in all three of them: Keep a tight inventory to find and eliminate theft. When you catch them stealing, fire them immediately. Even if you have to run the bar yourself. But also recognize anything you might have done to encourage theft, because you may be partly to blame. Owners and managers should set a great example by buying and paying for their own drinks just like any customer. The first time I ever saw a bar owner pay for drinks at his own bar, I thought to myself, “this is the greatest fucking owner I’ve ever seen!” Bartenders should be allowed a certain number of comp drinks per shift. Five is a good number. Ten is too many, 2 is not enough. Whatever the number is, that’s the limit, and it should be enforced. They should know that comp drinks are to be used for the sole purpose of promoting business – not as some type of alcohol-related welfare program. If you drink at a bar that pours shitty drinks, tell the owner – they can do something about it. It will do you no good to bitch at the bartender. They are simply following orders received from on high. If you drink at a bar that pours an honest drink, let them know you notice this and appreciate it. And don’t be foolish enough to expect to always get a generous shot of liquor if the only places you go to are the ones with the cheapest prices. You’re already getting a hell of a deal, so shut up and have another – or order a double. Happy drinking, wherever you go. Gator | |||
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