How can you maintain high beverage quality while controlling costs?

1 Know your costs

The first step to control your beverage costs is to know them. You need to track and analyze your beverage inventory, purchases, sales, and waste on a regular basis. This will help you identify your cost of goods sold (COGS), which is the percentage of your revenue that goes to buying the beverages. You also need to calculate your pour cost, which is the amount of money you spend on each drink you serve. A lower pour cost means a higher profit margin. You can use software tools or spreadsheets to monitor and manage your beverage costs.

3 Train your staff

The third step to control your beverage costs is to train your staff. You need to ensure that your bartenders, servers, and managers are skilled and knowledgeable about your beverages. They should be able to prepare, serve, and sell your drinks according to your standards and recipes. They should also be able to prevent and minimize waste, spillage, theft, and overpouring. You can provide regular training sessions, demonstrations, feedback, and incentives to motivate and improve your staff performance.

4 Optimize your menu

The fourth step to control your beverage costs is to optimize your menu. You need to design and update your menu to showcase your best-selling and most profitable drinks. You also need to balance your menu with a variety of options, such as signature drinks, classics, specials, and non-alcoholic drinks. You can use menu engineering techniques, such as layout, color, font, and description, to highlight and promote your drinks. You can also use upselling and cross-selling techniques, such as offering upgrades, add-ons, or pairings, to increase your average check size.

5 Reduce your waste

The fifth step to control your beverage costs is to reduce your waste. You need to implement and enforce policies and procedures to prevent and manage waste in your beverage operations. You can use portion control devices, such as jiggers, spouts, or scales, to measure and pour your drinks accurately. You can also use inventory control systems, such as par levels, reorder points, or first in first out (FIFO), to avoid overstocking or spoilage. You can also recycle or reuse your waste, such as fruit peels, coffee grounds, or wine corks, to create new products or decorations.

6 Evaluate your results

The sixth step to control your beverage costs is to evaluate your results. You need to measure and compare your actual beverage costs and sales with your budget and goals. You also need to collect and analyze feedback from your customers, staff, and suppliers. This will help you identify your strengths and weaknesses, as well as the opportunities and threats in your beverage operations. You can use key performance indicators (KPIs), such as beverage cost percentage, pour cost percentage, sales mix percentage, or customer satisfaction rate, to monitor and improve your beverage performance.