Here's how to get a big drop in pouring cost

Beverage inventory management often comes down to loss prevention and driving your costs down. Often, our customers can justify the cost of AccuBar with a cost reduction of a few percentage points.

So what would it take to get a 15% to 20% drop in pouring cost? Let’s ask Dallas Boelman.

Dallas is president of Schroeder Restaurant Services, which operates five locations in South Dakota, including Poppadox and SandBar, their full-service bar/grill concepts. Poppadox has been a staple in the Sioux Falls bar scene since it opened in 1995, Dallas said, while SandBar has attracted a lot of sports fans with a variety of specialty taps, margaritas, wine and craft cocktails since it opened last March.

Their weekly AccuBar process begins with a full inventory, a check of the Profit Watch report for variances, then a double-check of counts for the variances they find. They also scan empties daily, order from the Perpetual Inventory, scan in all receiving and update pricing as needed. In other words, pretty much the basic steps of any thorough bar inventory process.

They also conduct random spot checks weekly on any problem items, as well as 15 to 20 randomly selected items.

The bars have also been an early beta tester for the AccuBar Android app, and Dallas had good things to say about that. “This has made the inventory process even faster!! It is an amazing complement to the Intermec handheld.”

One result from the Profit Watch report that I didn’t expect is that we were able to identify several items that the pricing needed to adjust to help achieve desired cost percentages.

You could almost sense Dallas cringing when asked how his current approach compares to his process before AccuBar. “Two words immediately come to mind, Painful and Barbaric. Each location manager was responsible for keeping and updating their own spreadsheet for inventory. This led to many problems: not updating pricing, not having the correct items in the spreadsheet, not having the right size of the item, miscounting.  Inventory in this system was truly a dirty word.  It was extremely time consuming in physical counting and time spent in front of the computer monitor.

“With the old system it would take up to six hours to count then enter the inventory,” he added. “With AccuBar it takes less than an hour and a half from the start of counting until reports are in hand.”

On how they managed the big drop in pouring costs, Dallas added: “We accomplished this first through the accuracy of the inventory. AccuBar also allowed us to first identify our variance issues, which we were able to show our staff in black and white. With the use of random spot checks we could identify the shifts and employees responsible for these variances.

“One result from the Profit Watch report that I didn’t expect is that we were able to identify several items that the pricing needed to adjust to help achieve desired cost percentages,” he said. “I really can’t emphasize enough how helpful it is to select a report and have the results in a matter of seconds.”