Liquor Inventory Case Study #6

The figure below shows the first page from a liquor inventory audit we completed for a client which has been using our bar inventory system for over two years. The client holds the Colorado franchise for a well known restaurant chain. Currently their two Colorado locations use our speed count pro bar inventory system to complete weekly liquor inventory. The table in the top left of the figure below breaks down key statistics for the major liquor inventory product categories. Draft beer forms the majority of their bar business accounting for 59% of sales. Having poured 2,067 beers in 6 days, only 4 servings were missing. This shows the power of the information our bar inventory system produces. The “Accountability trend during last 5 cycles” graph on the right shows that this high level of performance has been consistently achieved over the past five audit cycles. The bar graphs below named “Liquor cost trend during last 5 cycles” and “Average drinks per week poured during past 5 cycle” also demonstrate an important point: As product mix and volume change from week to week, using the detailed information in our reports allows their managers to isolate how liquor inventory shrinkage affects their liquor cost. In the most recent cycle Accountability was 100% and the performance gap of just 0.3% ensured their liquor cost was really as low as it could be (19.5% in this case). Achieving this level of consistency requires work to use the numbers effectively to improve performance which is the basis of our bar inventory system. Item 3 in the variance table shows Red Bull which is missing 8 cans. If you were missing $11.83 in Red Bull every 6 days, over a year you have lost almost $700. Does your bar inventory system produce this quality of information?

bar inventory systems
bar inventory systems
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Posted in Bar Liquor inventory case studies