A bar assessment is analysis of Gross Profit on a regular basis, also a check of liquor useage and a check of revenue in the tills. This is a method that you, as a Bar Owner can keep a track of money (your money) that may not be going through the Tills.

Example of "Drink-Up Bar" WHAT GP ARE YOU GETTING?

A realistic Hotel/Tavern bar turnover is 65%. Depending where you are in the world this can vary.

Bar example turnover

        $10000 per week x 65% GP                      = $6500

        $10000 per week x 56% GP                         = $5600

Loss per week $900          Loss per annum     $46,800

         $15000 per week x 65% GP                        = $9750

         $15000 per week x 56% GP                        = $8400

Loss per week $1350          Loss per annum        $70,200

A number of distinctive type bars such as café Bars, Cocktail Bars etc will be returning a lot higher than 65%.

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Why are you in the Bar Business?

The majority of bar owners are in business for two reasons, enjoyment and profit. Experience tells us one rarely comes witout the other. Now more than ever you need a lean operation to give you the desired result.

Staff

The wine and liquor sales operation is an area where numerous opportunities fo abuse by bar staff exist. Methods of staff theft in this area vary from manipulating the dispensing equipment, diluing or replacing stock to shortchanging customers or outright theft out of the Till.

The knowledge that controls exist and are used tends to discourage dishonesty on the part of employees.

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About the Author

My wife and I entered into the Hotel Industry in 1988 leasing our Pub from one of the Brewery Giants. They taught us a need to have controls in place to keep an eye on cash, stock and staff.

You work hard and you dont need somebody pilfering from you. So with help from the Brewery we started doing liquor assessments manually. That means drawing up a large page with a row for every product and several columns across the page Opening Stock, Goods In, Closing Stock etc etc. It was a major to do as was very time consuming but worth it.

In our second Hotel where we had 17 staff I discovered a Personal Computer and a Lotus programe that made the job so much easier.

Other bar owners then discovered what I was doing, and requested help. This snowballed and became a full time occupation. I was doing Liquor Assessments for other Bar owners on a contractual basis. This required me to go to their premises either weekly or fortnightly, count the bar stock, go through a number of processes to tell them what I assessed that thay sold in the assessment period and we then compared it against what they actually did get in their Tills.

There have been some huge variances with lots of missing money and these have been drastically reduced as a result of regular assessments.

You are never sure how valuable just the act of counting stock regurlary is, let alone doing the full assessment. What I mean is, if staff see that you are counting and controlling your stock I am very sure they will think twice about stealing off you.

During the period 1991 - 2006 I have Contracted to around 60 Publicans and Restaurant owners doing their assessments for them on a regular weekly or fortnighly basis so feel I have a good understanding of how Assessments work. I taught a number of these Owners to do Assessments for themselves.

The computer software has changed to Excel which makes keying in Information easier.

Warm regards                                                

Carl Lucas