Chapter 17 Beverage Sales Control Principles of Food, Beverage, and Labour Cost Controls, Canadian Edition
Learning Objectives After reading this chapter, you should be able to: 17.1 List and explain the three goals of beverage sales control. 17.2 Identify five reasons given by customers for patronizing establishments that serve drinks. 17.3 Describe two methods that can be used to maximize profits in beverage operations. 17.4 Identify and describe two important factors normally taken into account when establishing beverage sales prices. 17.5 List and describe 10 work practices considered unacceptable at bars because they inhibit the ability of bar managers to institute effective revenue control. 17.6 Describe the essential features of a precheque system.
Goals of Sales Control Optimize number of sales Maximizing profit attract a sufficient number of customers Maximizing profit obtain the maximum gross profit from customers Revenue control all of the revenue resulting from sales is realized
Optimize Number of Sales Reasons People Patronize Beverage Establishments Socialize Conduct business Eating Seeking entertainment Killing time
Important Chapter Items Market segment: Subgroup of potential patrons with similar characteristics Laws: Review legislation, regarding liability serving alcohol Laws: Review permitted promotions “Happy Hour” Automated bar: Computerized device for dispensing beverages and simultaneously registering sales
Maximizing Profit Establishing drink prices that will maximize gross profit Ingredient and labour normally lower than food Additional overhead Entertainment Influencing customers’ selections Training servers to up-sell (suggestive selling) Featuring and promoting specialty drinks Preparing carefully designed beverage menus
Controlling Revenue Unacceptable Bartender Work Habits Working with an open cash drawer Under-ringing sales Overcharging customers Undercharging customers Overpouring Underpouring Diluting bottle contents Bringing one’s own bottle into the bar Charging for drinks not served Drinking on the job
Controlling Revenue Ensuring sales revenue is recorded properly Precheque system Record drinks as order and accumulate Automated bar Alcohol will not flow until recorded Computer terminal All orders must be entered into POS before serving the client
Key Terms Automated bar, p. 455 Beverage sales control, p. 444 Dram shop laws, p. 448 Market segment, p. 447 Optimizing the number of sales, p. 445 Precheque system, p. 454 Revenue control, p. 451 Up-selling, p. 450
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