Successful Bar Secrets

Bar Management Tips & Strategies

  • Home
  • Bartender Resources
    • Bar Job Interview Tips
      • 20 Tips To Help You Get A Bar Job Without Experience
      • Four Reasons Why Bar Managers Reject Applications… And How You Can Avoid Them
      • How To Gain The Advantage Over Other Bar Job Applications
      • How To Prepare A ‘Stand Out’ Resume
      • Tips For Performing Above Expectations On A Bar Job Trial
      • How To Get Bar Work While Traveling
    • 25 Smart Ways To Make Better Tips
    • Qualities Of A Strong Bartender
      • How To Be A Really Great Bartender
      • Basic Bartending Terminology & Procedures
    • Basic Drink And Cocktail Recipes
    • What You Need To Know If You Want To Work In A Cocktail Bar
  • Bar Management Strategy
    • Strategic Foundations For A Profitable Bar
      • Qualities Of A Successful Bar
      • Qualities Of A Successful Bar Manager
    • How To Make More Money From Private Functions At Your Bar Or Restaurant
    • How To Promote Financial Efficiencies Throughout Your Bar Or Restaurant
    • How To Run An Efficient Bar Shift
    • Optimising The Internal Culture Of Your Bar Or Restaurant For Greater Profitability
  • Bar Operations
    • Use Systematic Procedures To Improve Productivity In Your Bar
    • How To Systematically Improve Service Standards In Your Bar
    • Human Resources In Hospitality: A Six Step Process For Effective Staff Induction & Management
    • KPIs For Measuring The Performance Of Your Bar Or Restaurant
    • How To Use Planning & Staff Meetings To Increase Productivity & Profitability In Your Bar
    • Components Of A Bar Or Restaurant Operations Manual
  • Venue Marketing
    • The Ultimate Guide To Marketing Your Bar Or Restaurant
    • How To Boost The Reputation Of Your Bar Or Restaurant
    • How To Improve Customer Perception Of Your Bar Or Restaurant
    • The 7 Elements Of An Award Winning Bar
    • Using Email Marketing To Promote Your Bar Or Restaurant
    • Website Features All Hospitality Venues Must Have
  • Social Media Strategy
    • Using Social Media To Promote Your Bar Or Restaurant
    • How To Attract Social Media Influencers To Your Bar Or Restaurant
    • 6 Alternative Ways Social Media Media Is Used In Hospitality
  • Quick Tips
    • 16 Tips For Reducing Theft, Wastage And Spillage In Your Bar
    • 19 Tips For Increasing Your Bar’s Revenue And Profitability
    • 21 Marketing Tips For Your Bar Or Restaurant
    • 24 Tips For Increasing The Productivity Of Your Bar Staff
    • 32 Tips For Increasing Customer Service Standards In Your Bar
    • 33 Tips For Managing Bar Staff And Other Management Tips

KPIs For Measuring The Performance Of Your Bar Or Restaurant

It’s important to track and measure the performance of your venue and the systems by which it operates.

It’ll probably seem like an easy task: just watch and see how busy your venue is, and how well your team performs right? However:

  • How will you know if you need to cut back on wage costs? (you may not realise that you have the ability to cut back)
  • How will you know if you should promote a slow moving product?
  • How will you know which nights of the week sells the most of a certain product?
  • How will you know if a certain number of products are always appearing in your spillage register?
  • How will you know which beer has the highest profit margin (and therefore should be promoted, to make the most profit)?
  • How will you know if a profitability based system is not working as well as you planned?

The answer:

Set up systems to track and measure your establishment’s ‘key performance indicators’ (KPIs).

Use any resource available to record costs, income, sales etc. – Basically any major indicator of your bar’s performance. Your overall profitability will benefit greatly if you have the capacity to make informed business decisions – tracking your KPIs will allow you to do this. Tracking and measuring will allow you to optimize your profitability, productivity and customer service procedures.

If you don’t have any kind of tracking setup already, I suggest brainstorming KPI’s that are relevant to the performance of your establishment – you don’t want to realise six months down the track that you have been tracking a variable that makes no sense or reflection of the health of your trading. You don’t want to track too many KPIs either – you’ll end up stuck in front of a computer for far too long.

Tracking and measuring ‘Key Performance Indicators’ will allow you to monitor essential factors including your team’s productivity performance and overall profitability, and make educated business decisions to improve these elements accordingly.

Examples of ‘Key Performance Indicator’ tracking systems are:

  • Wage percentages (the cost of wages compared to your venue’s food/beverage income)
  • Food vs. Drink average spend per head on any given night of the week
  • Entertainment costs
  • Gross profit-margin tracking
  • Wastage/Promotional account expenditure

For those of you who have advanced Point Of Sale and Inventory systems, I suggest you use them to your advantage. You POS system probably cost a small fortune – it makes sense to squeeze every penny worth of profitability out of it. If you are unsure of how to use your POS’s reporting abilities, contact your POS support representative and arrange a training session. If your system allows, you’ll be able to print advanced sales reports which will allow you to analyse sales data and tailor your marketing and promotions accordingly. If your POS system has an invoicing function, make sure this is running smoothly so you can track your stock efficiently (and illuminate any causes for concern, like theft or wastage issues) and also be sure to track profit margins and other similar sales statistics.

Use your POS system’s reporting functionality to its fullest. It probably cost a small fortune to purchase and install, so it makes sense to squeeze as much information out of it as possible.

BAR MANAGEMENT STRATEGY

  • The 7 Elements Of An Award Winning Bar
  • How To Make More Money From Private Functions At Your Bar Or Restaurant
  • Qualities Of A Strong Bartender
  • KPIs For Measuring The Performance Of Your Bar Or Restaurant
  • Optimising The Internal Culture Of Your Bar Or Restaurant For Greater Profitability
  • Qualities Of A Successful Bar
  • How To Promote Financial Efficiencies Throughout Your Bar Or Restaurant
  • Strategic Foundations For A Profitable Bar
  • Qualities Of A Successful Bar Manager

ADVERTISEMENT

ADVERTISEMENT

ABOUT SUCCESSFUL BAR SECRETS

  • About Successful Bar Secrets
  • Terms And Conditions
  • Privacy Policy

Copyright © 2023 · Successful Bar Secrets