Liquor Inventory Case Study #1

The image below is the first page of one of our liquor inventory performance reports after working with a new client for two months. The ‘Accountability trend’ graph on the top right of the figure below shows how Accountability increased after the client began using our liquor inventory system. This particular client is a fast casual pizza restaurant in downtown Denver. They do relatively small liquor sales however we were able to significantly improve the profitability of their bar. During the initial audit we discovered that just 67% of the product being used was being accounted for (their Accountability score). This is one of the poorer starting scores we’ve seen and the result was a liquor cost which was way too high. After the initial liquor inventory audit, we presented at a staff meeting and right afterwards two of the bar staff quit. By working together with the client, after 3 more audits their Accountability score was up to 90% and their liquor cost had fallen by more than 12%. The reduction in missing liquor inventory product was worth $960 per month and the true cost to their bottom line is at least two times this amount (due to increased liquor sales). On the following audit, Accountability dropped off a little to 86% which shows the continuing challenges of using the information we provide clients to best effect. Almost two years later, we are still working with them and during the last liquor inventory audit their Accountability was strong at 92% and their liquor cost was almost 20% lower than when we began working together. Over the same period they have also increased their liquor sales by almost 50%. It’s exciting to us to be involved in the success of stories of our clients helping them use their liquor inventory as a tool to improve their businesses.

liquor inventory
liquor inventory
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Posted in Bar Liquor inventory case studies