Double-Dip Again… into what!

Since 2008 the GFC has weighed heavily across the globe – the hospitality industry being a microcosm of what happens in the real world, is probably one of the greatest mirrors to see how an industry has coped with profound cost challenges.

Every business should by now have looked into every corner, front ‘n’ back and in between of house, to search and implement elusive efficiencies, cost savings and system improvements to get the “biggest bang” from every buck…

Question…. what happens if you own or manage a bar, restaurant or club etc and suddenly are hit (hopefully not) with a double-dip recession?

What do you do when all reasonable steps to become a leaner and more customer responsive business have been successfully implemented?  What do you do?  How can you double-dip again when you’ve already dipped?

Frankly one MUST re-focus again as some of the biggest savings and improvements are still to be discovered…. there’re just well hidden!  You just need to know where to look.

One under explored area we’ve consistency found to yield MASSIVE cost savings is the way a business pours alcohol.

Every innocent over-pour, spill, drop, leak, heavy handed over-serve and free shot(s) of “liquid gold” quickly adds up.

The good news is there’s some very inexpensive, yet simple ways to pull back these large costs and turn them back into savings or PROFITS.

In markets such as the US, with proper pour control together and management systems in place, we’ve seen savings on average of between $0.05 – $0.15 cents (at cost) on EVERY shot of alcohol served.

In Canada and Australia potential savings are far larger given that the high costs of alcohol in these markets are at least 50-100% higher.

Imagine if you serve 2000 shots of alcohol a week and you can save 5,10 or 15 cents per shot, would that not translate into savings (at cost) of to $5000, $10000 and $15000 per annum.

The potential lesson here is don’t wait for another economic catastrophe to happen… start now to re-evaluate every aspect of your business… you’ll be amazed what you’ll find and then surprised by how much money can still be saved.

 

What makes really great bar tools?

Over the years I have witnessed incredible yet passionate exchanges between bartenders who stridently assert why their “so and so” is better than a “this or that”.

The touchstones which are oft repeated   It feels good, it does the job well, it’s quality, it’s easy to use, it saves time, uses less energy, it saves money, it looks cool, it’s an antique, its soooo special, it’s a gift, it was free… seems to cover the majority of comments I’ve heard over the last ten years.

Gotta love the guy who last year posted the following comment onto our uber website “…..I wish to be buried with my ………(uber bar tool)”

I know this post  is completely over the top, but it does effectively communicate  the love and affection this or bartenders in general have for their bar tool(s) of choice.

Colours, fads, materials come into and out of fashion but if the truth be known, it’s ultimately what really works and feels good for YOU; to get the job done, quickly, comfortably, efficiently, professionally is what only counts here. All the rest let’s leave for heated discussion over beautifully crafted cocktails.. anyone up for a drink?

“To Dream or Not to Dream…. that is the question”

To Dream or Not To Dream

Ever thought that you can design the “next” world beating bartool?

Well we’ll love to help you find your way with some healpful tips.

1. RESEARCH
2. MARKET EVALUATION
3. PROTECT YOUR IDEA

Now, if you’re still unfazed and prepared to invest some serious $s into bringing the “light” of your idea into day, there’s more that needs to be done.

Of course if you cannot be bothered and passionately believe you have the next “uber” bar tool design in your head… then discuss it with us first … you never know.

Warning:  Do not send us pictures, diagrams, schematics just email a brief written outline of the idea describing the category of tool you’re thinking about and why you think it’s a world beater… if we agree  we’ll  advise you and call for a formal submission.

And in case you’re thinking that we’ve run out of new ideas… no we haven’t… just like to help passionate people connect to their dreams!

To Dream or Not to Dream…. that is the question

To dream or not to dream...

Ever thought that you can design the “next” world beating bartool?

Well we’ll love to help you find your way with some helpful tips.

A.      RESEARCH
B.      MARKET EVALUATION
C.      PROTECT YOUR IDEA

Now, if you’re still unfazed and prepared to invest some serious $s into bringing the “light” of your idea into day, there’s more that needs to be done.

Of course if you cannot be bothered and passionately believe you have the next “uber” bar tool design in your head… then discuss it with us first … you never know.

Warning:  Do not send us pictures, diagrams, schematics just email a brief written outline of the idea describing the category of tool you’re thinking about and why you think it’s a world beater… if we agree  we’ll  advise you and call for a formal  submission.

And in case you’re thinking that we’ve run out of new ideas… no we haven’t… just like to help passionate people connect to their dreams!

michael@uberbaratools.com

Why are bartenders always blamed for theft?

Why are bartenders always blamed for theft?

Is all so easy!

A recent international survey on a myriad of computerised liquor control systems seemed to all focus on one highly offensive and disturbing issue – Bartender theft!

Frankly it seems  distasteful,  not to mention downright insulting, to target an entire profession as being THE only culprit, when looking at an industry wide issue of alcohol loss.

It’s the old canard: “it’s  you not me”  that neatly packages management’s need to assign blame without  proper investigation!

Let me say this, yes there is a  small percentage of problem bartenders , however l submit one just cannot use the one brush to tar ALL… just as we don’t  blame all politicians, judges and police by the actions of a few.

From experience when faced with an inventory/stock discrepancy at the end of a period, a rational scientific process must first be used to truly assess what’s really happening before jumping the gun and laying blame!.

Areas for almost immediate investigation, but rarely explored or even understood, include:

1.    An analysis of management/ control systems, as well general bar process.
2.    Cheap, highly inaccurate measuring devices/jiggers used for portion control.
3.    Cheap, badly made generic liquor pour spouts which continuously leak.

So if and when faced with any inventory issues, stay calm, be methodical, as the answer you seek may not be so obvious requiring far deeper investigation.

Accusing bartenders is so easy – but should it be proven that it’s really the poor quality serving tools used behind the bar  which are creating the bulk of the problems, then what’s the message being sent to your bar staff and more importantly how will this effect “team spirit”!

Is Quality the new green

Is Quality the New Green in Your Bar

Recently  much thought and energy has gone into “greening” the bar in order to help  reduce  carbon foot prints.
As a result, the hospitality industry has placed great emphasis into design and the materials used to enable the “greening process”,  however there is still  one major component missing in this picture.  Quality!

Why less is less? 

We have been fixated on “reducing the cost” of products. The recent GFC has added  even more pressure on manufacturers and re-sellers  to produce the same products for less money.
It would appear that the  consequence  of lowering price is a proportionate lowering of  product which increases product failure with  increasing replacement rates the ultimate result.  A classic Catch 22 scenario!
All the fancy dancing has actually increased rather than reduced the nett carbon footprint… as recurring purchasing offsets any upfront improvements.

 Why not a consumable? 

We have been tricked by a false sense of economy..why should the tools used to assist, prepare, serve and facilitate a bar process as an example, be widely considered a consumable or disposable product/cost?… the answer l believe  lies in the need for these products to be  constantly replaced ..just like lime, cordials, napkins, ice, water,orange juice olives etc.  Glassware, pourers, or general barware are really investment costs in a process and not the end process in itself whose primary purpose is a served cocktail.
By thinking that bar tools are consumable items, lowers our expectation of results/quality. This idea needs to change from one of disposables, to one of quality as quality barware helps facilitate improved accuracy, performance and consistency…

Oh well…   When poor quality bar products break, go missing etc… the thought process goes like this ..”oh well, need to buy more of product X,Y and Z, they’re only cheap who cares anyway!”   Maybe you should!

Quality is the investment in Less…  Less is more in the long run. Whilst we understand that alcohol is a consumable consider your bar tools then as the  investment to protect your alcohol. The extra dollars outlaid in upfront costs is marginal compared with several years down the track when your tools are still in use in your bar; I’m sure the pain of price will be forgotten.
Investing in better quality tools  will help green your bar not only in terms of the environment, but your bottom line as well.

Surely that’s a big win!!!!!

How metrics can screw your business – the inconsistent model – A 20% Cost of Goods could destroy your Business

Are you pouring money away using incorrect metrics?

The cocktail business is all about getting the recipe right; the precise combination of spirits and mixers to get a consistent, pleasing result.

What happens when you run your business by using the wrong metrics to gauge success/profitability, even though on face value the “formula” may seem correct?

It’s a widely held belief in North America and perhaps other countries that a bar’s spirits operating costs (cost of goods sold…COGs) should be around 20%… if we assume for a brief moment that this calculation is correct what happens then, if 20% is your bar’s figures BUT you’re charging higher than average industry prices for the drinks and cocktails sold?

Recently in a US eastern seaboard city, we visited one unit of a group of national restaurant/bars – after spending time watching their pouring process, we soon realized they were losing a massive amount in over-pouring and leakage of alcohol! Speaking to that bar’s Ops(ooops) Manager the question was asked: “ what do your pour costs run out at?  The answer with a large smile – “19-20%”! i.e. read we ain’t got a problem!

How could this be possible I thought, when we could see/guess at very best that their alcohol wastage/over-pouring was running somewhere over 40%; how was it then possible to still have a COGs of only 20%?

The answer:  the $10 – $15 per cocktail/drink charged and the low relative purchase cost of inventory on a per shot served basis.

On reflection this seemed to make perfect sense; running a highly efficient operation, with little wastage/over pouring and charging higher prices for cocktails should translate into far lower average COGs UNLESS of course there’s an extra-ordinarily high loss/wastage rate. Given the above example with the right tools, training and processes, this bar’s alcohol COGs should be somewhere between 5-8% at worst not the 19-20% reported. Imagine translated into a yearly value what this actual loss translates into.

The CFO of the above company had dictated an industry standard 19-20% COGs as the gauge to run the metrics/due diligence/profitability/ bonus/reward structure… however little is truly understood about measuring true costs with real results (CONTRIBUTION MARGIN). You cannot readily see you have a massive problem when the true results are disappearing in abnormal profits generated from high sell prices and very low inventory costs!

Imagine the difference to the above business if the metrics used for due diligence purposes was altered to say 5% not 20% would the Ops Manager/CFO in the above organisation be smiling or possibly walking the pavement together looking for jobs with another company with a 20% spirit COGs!

The bottom line if you run a multi unit bar business selling product at above industry standard prices and your units run a 20% COGs- you have a massive issue of wastage and over-pouring!

Don’t laugh because you do and it’s surprising how many senior people in the know…don’t understand…because they run on misunderstood metrics.

Imagine: What your ‘real’ COGs figure could be if over-pouring & wastage were reduced to 10%? It is very do-able!

Looking forward to receiving your comments.

High Volume Bars – Long lives, Short orders Part 1

Waiting in line

Each year so many new bars open (as well as close).

So much time and effort is placed on design, ambiance, a great back bar or menu etc etc. yet, no one, from what I can see looks at the cost of long queues of patrons being under served, whilst waiting  to get a drink.

The worst case I recall was waiting over 30 minutes in a famous New Orleans bar to get a few drinks. Of course this was totally unacceptable. Imagine for a moment the consequences to that bar’s long-term profitability?

Recently on a visit to Disneyland I was impressed with guest management, i.e. the ingenious ways Disney use to reduce guest waiting times to get on a ride, be served food or drink. Now this organization is totally focused on ensuring their guests experiences are maximized and in so doing increasing or maximizing guest spend.

So, what to do? Now of course it’s too inexpensive to completely reconfigure a bars setup – however in saying that what else can be done? I believe ultimately the answer is using smart enabling technology as well as good old fashioned human interaction to solve the problem – these do not have to break the bank either: in a down economy imagine if your bar could increase turn over by 20 – 30 % per year… so the incentives are great are they not!

1.     Smart phones

2.     Wrist bands

3.     A new back, back bar

4.     Promote bar backs into front backs

5.     Electronic order station

Part 2 of this blog will appear shortly and will provide greater drill down

When East meets West

When East meets West

The desire to bring classic Japanese bartending technique to Western bars is slowly transforming many upmarket cocktails establishments in selective parts of the world.

Ice cracking, picking and chiselling make for great entertainment as well as improved cocktail quality through the use of larger pieces of ice to reduce drink dilution.  A practical demonstration of this can be seen on our Facebook and YouTube sites with Benjamin Schiller of Boka, in Chicago USA, taking us through a process. View here

The fascination with technique and applying it to a wider cultural application has many benefits for non-western bars including enhanced profitability.

In an era of “experiences” whether through reality TV/web based programs, consumers now crave to be entertained as much as they need being served – emotional connection through the power of ritual, adds a rich dimension to a dinking or eating-out experience.

Yes one can make a so and so at home, but you can’t necessarily serve it up with the same pizzazz, that an experienced bartender can.

The addition to a Mixologist’s repertoire of chisels and picks comes another level of complexity; safety or risk management.

Icepicks and ice chisels, if not correctly used are a litany of potential accidents and incidents with management needing to supervise staff’s strict adherence to safety standards to minimise potential risk, and therefore, loss. Remember a careless slip of the hand could potentially end a career!

As a thought, insurance policies need to be checked to ensure that one has the correct coverage in place.

At UberBarTools™ we encourage ritual and of course bar theatre – however, like any other business process, due diligence should be maintained.

When it Pours it Drains Money

When it pours it drains money

How many times have we been in or around bars and seen bartenders applying their trade only to be amazed  to  see how much alcohol is either leaking around the bottle top where the pour spout is fitted or when jiggers are used, turning into a veritable Niagara Falls of nonstop rivers of alcohol.

Alcohol is liquid gold or “moving money” since the GFC, more and more bars are starting to look seriously at these issues as the consequences both direct and indirect are  devastating on the bottom line.

DIRECT COSTS:

1.     Over-pouring

• Up to 1/3 the volume of a standard serve of alcohol is over-poured when using badly designed and made  generic pour spouts, due to poor flow volume control

• Click here to check out what over-pouring costs your venue / bar via “The Cost Calculator”.

2.     Leakage

• Based on the Chinese water torture principal every drop eventually drives you crazy or broke..leakage even drop by drop  adds up over the course of a year

3.     Lack of control / lack of consistency

• Lack of flow control, due to manufacturing inconsistency or bad design makes it easy to over-pour, and in many instances requires reinvestment in balancing cocktails to taste as they should.

INDIRECT COSTS:

1.     The guest that doesn’t order the next cocktail because the first one didn’t taste good

2.     As above, except the guest swaps to a bottled product alternative ie, beer, wine RTD which generally sells for less money than a mixed drink or cocktail.

3.     And the last one, the silent killer, continually replacing/buying cheap pour spouts due to breakage.  Question:, when you add up the cost many times a year of replacing badly made pour spouts how cheap are your cheap pour spouts?

When confronted with the “draining” pour spout scenario, management has a series of minor investments options to save the day.

An option increasingly used by venues throughout the world, considerate of profitability and consistency issues, are our internationally acclaimed ProFlow™ speed pourer. Whilst ProFlow™ is a premium priced product with an upfront investment cost, over a number of weeks in most cases, these costs are returned in increased savings. Measured over 2 years which is the period that a ProFlow™ is warranted against breakage, leakage and rusting when used in accordance with our care instructions, the savings turn in significant amounts of money.