No matter how well you think your business is in control of its bar inventory, there’s always something you could be doing better. Especially since bar inventory requires many moving parts—consistent inventory counts, calculations that give you insights into overall business performance, your team to record data accurately, and a range of back-end processes.
And the better you count and manage your inventory, the more profitable your business will be.
With that in mind, Sculpture Hospitality, makers of a mobile application for bar/restaurant inventory, recently took a look at five signs that your bar might have an underlying inventory problem.
High Pour Costs
One of the most important metrics of the profitability of your bar is your pour cost. Pour cost gives insight into business costs and the profitability of each drink, and it helps you to determine at what price you should set your menu items.
Yet many bar owners have no idea what their pour cost should be. There is no "right" pour cost as it depends entirely on the type of bar that you run. For example, a nightclub needs to run a significantly lower pour cost percentage than a sports bar because a nightclub may only be open for a few hours a few times a week.
The best way to get an idea of your pour costs is to gain an understanding of those of some of your competitors in the same industry category as your business. If you have high pour costs compared to other similar businesses, it’s most likely a sign you have a bar inventory problem.