1. Copyright Bar Prophets 2010 Successful Beverage Management — Proven Strategies for the On-Premise Operator NOVEMBER 2010 Presented By: JACK ROBERTIELLO Beverage Writer/Former Editor of Cheers Magazine, Drinks Ink ROBERT PLOTKIN Author/Beverage Management Consultant, BarMedia

2. MODULE THREE: SIX WAYS TO INCREASE SALES IN A DOWN ECONOMY

3. Copyright Bar Prophets 2010 Taking The High Road — Premium Spirits Yield Larger Margins Despite the Recession, on-premise sales of premium spirits continue to increase Prevailing attitude in U.S. — life’s too short to drink cheap booze

4. Copyright Bar Prophets 2010 Taking The High Road — Premium Spirits Yield Larger Margins Consumers now have higher expectations about the quality of their drinks Consumer Research: 84% said cocktails made with premium spirits taste better Consumers said they expect to pay an additional $2.80 for a branded cocktail

5. Copyright Bar Prophets 2010 $.67 drink cost ÷ $4.50 sales price = 14.9% cost percentage Taking The High Road — Premium Spirits Yield Larger Margins Margarita made with WELL Tequila 1 ¼ oz. Pepe Lopez Tequila$.34 ½ oz. Triple Sec+ $.12 3 oz. sweet ‘n’ sour+ $.21 Drink Cost= $.67 Call Brands Deliver Bigger Profits $4.50 sales price - $.67 drink cost = $3.83 gross profit

6. Copyright Bar Prophets 2010 Taking The High Road — Premium Spirits Yield Larger Margins Margarita made with PREMIUM Tequila 1 ¼ oz. El Jimador Reposado$.65 ½ oz. Triple Sec+ $.12 3 oz. sweet ‘n’ sour+ $.21 Drink Cost= $.98 Call Brands Deliver Bigger Profits $.98 drink cost ÷ $6.00 sales price = 16.3% cost percentage $6.00 sales price - $.98 drink cost = $5.02 gross profit

7. Copyright Bar Prophets 2010 Taking The High Road — Premium Spirits Yield Larger Margins Margarita made with SUPER-PREMIUM Tequila 1 ¼ oz. Herradurra Reposado$1.50 ½ oz. Triple Sec+ $.12 3 oz. sweet ‘n’ sour+ $.21 Drink Cost= $1.83 Call Brands Deliver Bigger Profits $ 1.83 drink cost ÷ $7.50 sales price = 24.4% cost percentage $7.50 sales price - $1.83 drink cost = $5.67 gross profit

8. Copyright Bar Prophets 2010 Getting More Bang From The Most Important Bottles In The House Well liquor is used in more drinks than any other type of spirits Brands featured in the well significantly impact profitability

9. Copyright Bar Prophets 2010 Getting More Bang From The Most Important Bottles In The House Selection criteria — featured brands need to conform to concept and clientele The bar’s price structure is based on the well

10. Copyright Bar Prophets 2010 Getting More Bang From The Most Important Bottles In The House Often featured at operations with a predominantly price-conscious clientele Advantages — low cost per ounce and relatively low carrying cost Disadvantages — low quality, no brand recognition, heightened liability Pouring Brands

11. Copyright Bar Prophets 2010 Brand Name Liter Cost Cost Per Ounce Castillo Rum$ 6.15$.18 Gilbeys Vodka$ 6.24$.18 Early Times Bourbon$ 6.77$.20 Gilbeys Gin$ 8.00$.24 Old Smuggler Scotch$ 8.39$.25 Pepe Lopez Gold Tequila$10.47$.27 Average Liter Cost$ 7.42$.22 Example of a Pouring Brands Well Getting More Bang From The Most Important Bottles In The House

12. Copyright Bar Prophets 2010 Average Well Cost = $.22/ounce Average Portion Cost (1.25 oz) = $.28 Drink Price Cost Percentage Gross Profit $3.00 9.3%$2.72 $3.50 8.0%$3.22 $4.00 7.0%$3.72 $4.50 6.2%$4.22 $5.00 5.6%$4.72 Getting More Bang From The Most Important Bottles In The House Profit Potential — Pouring Brands

13. Copyright Bar Prophets 2010 Best suited for a value-conscious clientele or brand-conscious clientele Advantages — moderate cost per oz, high quality, enhanced brand recognition Disadvantages — elevated cost per ounce, slightly higher carrying costs Getting More Bang From The Most Important Bottles In The House Premium Brands

14. Copyright Bar Prophets 2010 Well Liquors — The Most Important Bottles in the House Example of a Premium Brands Well Brand Name Liter Costs Cost Per Ounce Ballantines Scotch$11.60$.34 Old Forester 86º Bourbon$11.93$.35 Finlandia Vodka$12.10$.36 Appleton Dark Rum$12.75$.38 Cuervo Especial Tequila$14.77$.44 Beefeater London Dry Gin$19.02$.56 Average Liter Cost$13.70$.40 (+ $.18/oz)

15. Copyright Bar Prophets 2010 Average Well Cost = $.40/ounce Average Portion Cost (1.25 oz) = $.50 Drink Price Cost Percentage Gross Profit $3.5014.3%$3.00 $4.0012.5%$3.50 $4.5011.1%$4.00 $5.0010.0%$4.50 $5.50 9.1%$5.00 Getting More Bang From The Most Important Bottles In The House Profit Potential Premium Brands Well

16. Copyright Bar Prophets 2010 Getting More Bang From The Most Important Bottles In The House Profit Comparison Drink Price Cost Percentage Gross Profit Pouring Brands$4.00 7.0%$3.72 Premium Brands$4.0012.5%$3.50

17. Copyright Bar Prophets 2010 Getting More Bang From The Most Important Bottles In The House Profit Comparison Drink Price Cost Percentage Gross Profit Pouring Brands$4.00 7.0%$3.72 Premium Brands$4.25 11.7%$3.75

18. Copyright Bar Prophets 2010 Merchandising For Success — Increasing The Impact of Your Backbar The backbar is your most effective marketing device It’s essential the backbar is stocked with the right product mix

19. Copyright Bar Prophets 2010 Reassess status of underperforming products — those that take 4+ months to deplete Drop dead stock — products that take longer than 9 months to deplete Drop duplicate flavors or repetitive styles Merchandising For Success — Increasing The Impact of Your Backbar

20. Copyright Bar Prophets 2010 Reducing inventory levels frees working capital & lessens exposure to loss Concentric merchandising — bestselling products positioned in center of backbar Merchandising For Success — Increasing The Impact of Your Backbar

21. Copyright Bar Prophets 2010 Vertically extend each category of spirits with at least one above-premium brand Adopt a marketing position — horizontally expand a select category of spirits Dedicate a portion of the bar’s marketing to that spirit Merchandising For Success — Increasing The Impact of Your Backbar

22. Copyright Bar Prophets 2010 Guests typically spend 2 minutes with food menus; 20 seconds with bar menu Essential your bar menu is well-conceived and easy to read in dim lighting Bar Menus — Increasing Their Capacity To Drive Sales

23. Copyright Bar Prophets 2010 Roll-out three separate menus; each with different specialty drinks Rotate the menus every two months and track the sales results Bestselling drinks should then be combined in one menu Bar Menus — Increasing Their Capacity To Drive Sales Conduct Your Own Market Research

24. Copyright Bar Prophets 2010 88% of consumers read the drink menus at full-service bars and restaurants 68% surveyed said the bar menu is the most significant choice influencer 58% of the consumers want the bar menu on the table at all times Bar Menus — Increasing Their Capacity To Drive Sales What Consumer Research Reveals

25. Copyright Bar Prophets 2010 81% of the consumers want drink prices listed on the menu 68% said they wanted to be able to read descriptions of the drinks 41% responded that they prefer seeing pictures of the drinks Bar Menus — Increasing Their Capacity To Drive Sales What Consumer Research Reveals

26. Copyright Bar Prophets 2010 Functional descriptions only include mention of the ingredients in a drink Consumers were presented a Margarita menu with only functional descriptions 47% of consumers ordered the house, 31% top-shelf, 22% the ultra-premium Bar Menus — Increasing Their Capacity To Drive Sales Menu Test #1 — Functional Descriptions Only

27. Copyright Bar Prophets 2010 Bar Menus — Increasing Their Capacity To Drive Sales Source: NextLevel Marketing 2009 Margarita Menu House Margarita Cuervo Gold Tequila, triple sec and sweet and sour mix. Top Shelf Margarita Sauza Hornitos Tequila, Cointreau and margarita mix. Ultra-Premium, Margarita Patron Silver Tequila, Cointreau, and margarita mix.

28. Copyright Bar Prophets 2010 Bar Menus — Increasing Their Capacity To Drive Sales Adding romance drink copy to menus drives significant drink trade-up 14% of consumers switched from ordering the house Margarita to a branded Margarita Menu Test #2 — Added Romance Copy

29. Copyright Bar Prophets 2010 Bar Menus — Increasing Their Capacity To Drive Sales Source: NextLevel Marketing 2009 Margarita Menu House Margarita Cuervo Gold Tequila, triple sec and sweet and sour mix. Top Shelf Margarita Sauza Hornitos Reposado Tequila, Cointreau Orange Liqueur and premium margarita mix served frozen or on the rocks. Ultra-Premium, Margarita Our distinctive, hand-shaken ultimate Margarita made with Patron Silver 100 Agave Tequila, Cointreau, and fresh squeezed lime juice served straight up or on the rocks.

30. Copyright Bar Prophets 2010 Bar Menus — Increasing Their Capacity To Drive Sales Only 5% of consumers were affected by the higher price of ultra-premium Margarita They switched from the ultra-premium to the premium Margarita Menu Test #3 — With Added Romance Copy and Drink Prices

31. Copyright Bar Prophets 2010 Bar Menus — Increasing Their Capacity To Drive Sales Source: NextLevel Marketing 2009 Margarita Menu House Margarita $6.00 Cuervo Gold Tequila, triple sec and sweet and sour mix. Top Shelf Margarita $7.00 Sauza Hornitos Reposado Tequila, Cointreau Orange Liqueur and premium margarita mix served frozen or on the rocks. Ultra-Premium, Margarita $8.00 Our distinctive, hand-shaken ultimate Margarita made with Patron Silver 100 Agave Tequila, Cointreau, and fresh squeezed lime juice served straight up or on the rocks.

32. Copyright Bar Prophets 2010 Consumers prefer stand-along bar menus They want descriptions of the drinks they’re ordering They want to know how the drinks will look and how much it will cost Bar Menus — Increasing Their Capacity To Drive Sales Summary of Menu Testing

33. Copyright Bar Prophets 2010 Staff Training and Education — What Your Staff Doesn’t Know Can Cost You Training/education yields high ROI in form of increased staff competency Investing In Your Sales Force — Helping Your Staff Help You

34. Copyright Bar Prophets 2010 Education — product knowledge/credibility pivotal to selling premium spirits Training — ensuring core competency - pouring, prices, mixology Challenge your bartenders to expand their professional skills/cross-training Investing In Your Sales Force — Helping Your Staff Help You

35. Copyright Bar Prophets 2010 Suggestive selling techniques — helping the clientele make informed decisions Three sales tactics — how many brands to suggest? Investing In Your Sales Force — Helping Your Staff Help You

36. Copyright Bar Prophets 2010 Americans are increasingly likely to not consume alcohol when entertaining However, few non-alcoholic programs are successful or noteworthy Most have little staff buy-in and don’t capture interest of clientele Leveraging Beverage Trends — Taking Advantage of Latest Intel Alcohol-Free Marketing — Risk-Free Profits in a.08 Universe

37. Copyright Bar Prophets 2010 High production value — muddling, handshaking and floats High perceived value — specialty glassware (16-18 oz. volume) Feature intriguing ingredients and unusual taste combinations Value Priced — avoid any appearance of price gouging Leveraging Beverage Trends — Taking Advantage of Latest Intel Success Formula — Alcohol-Free Specialties

38. Copyright Bar Prophets 2010 Locally produced, micro-distilled spirits surging in sales Organic spirits gaining traction with consumers New Latin spirits on the rise — cachaça, pisco and mezcal Return to prominence — rye, gin and absinthe Unqiue cordials and amaros — St-Germain, Canton and Hum Leveraging Beverage Trends — Taking Advantage of Latest Intel Hot Spirit Trends

39. Copyright Bar Prophets 2010 Leveraging Beverage Trends — Taking Advantage of Latest Intel As they say — “It’s more fun to eat in the bar than drink in the dining room” Cross-promoting food and beverages increase sales and defrays high food costs Practical benefits to clientele eating food while drinking Ensure bartenders familiar with food menu and trained on proper food service Cross-Promoting Food and Beverages

40. Copyright Bar Prophets 2010 Don’t offer your clientele the same uninspired drinks as the competitors Enhanced mixology adds panache and perceived value without adding cost Leveraging Beverage Trends — Taking Advantage of Latest Intel Exceeding Guests’ Drink Expectations

41. Copyright Bar Prophets 2010 Technique Matters — Production Value Sells Handshaking a cocktail communicates freshness and quality to your guests Thoroughly mixes ingredients and chills drink to serving temperature Vigorously handshaking cocktails is an underappreciated mixing technique Adds water; softens the cocktail and melds spirits and modifiers Leveraging Beverage Trends — Taking Advantage of Latest Intel

42. Copyright Bar Prophets 2010 Technique Matters — Production Value Sells Muddling is a high production value technique It does for a cocktail what high-def does for television Muddling injects cocktails with vibrant flavors Muddling fresh ingredients into cocktails requires double-straining Leveraging Beverage Trends — Taking Advantage of Latest Intel

43. MODULE FOUR: PRIORITIZED PROFIT ASSESSMENT

44. Copyright Bar Prophets 2010 Answer #1 — 0 points Answer #2 — 5 points Answer #3 — 10 points Assessing Your Operation’s Areas of Strength and Weakness Scoring:

45. Copyright Bar Prophets 2010 Section score of 45-50 = Excellent Section score of 35-40 = Very Good Section score of 25-30 = Average Section score of 0-20 = Below Average Assessing Your Operation’s Areas of Strength and Weakness Section Scoring:

46. Copyright Bar Prophets 2010 180 - 200 points = Excellent You’re a seasoned pro with a finger firmly on the pulse 140 - 175 points = Very Good When it come to the bar, not much gets past you 100 - 135 points = Average Indicates significant room for improvement 0 - 95 points = Below Average You’re leaving too much money on the table Assessing Your Operation’s Areas of Strength and Weakness Total Score Four Sections:

47. Copyright Bar Prophets 2010 Step One: Sequence sections from lowest score (1 st ) to highest (4 th ) Step Two: Within each section, sequence responses from lowest score to highest Step Three: Your areas of weakness now top the lists within each of the four sections Assessing Your Operation’s Areas of Strength and Weakness Creating a Business Action Plan

48. Copyright Bar Prophets 2010 #1 — Identify in what order you will address the areas of weakness #2 — Identify who in the business will be responsible for initiating changes #3 — Assign a date as to when the initiatives are to be implemented #4 — Track each set of initiatives to ensure progress is being made Assessing Your Operation’s Areas of Strength and Weakness Creating a Business Action Plan

49. MODULE FIVE: PRE-CERTIFICATION EXAM

50. Copyright Bar Prophets 2010 1. _________ is a semisweet anise liqueur made in Greece and Cyprus which is drier and more potent than anisette. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge Ouzo

51. Copyright Bar Prophets 2010 2. Which fortified wine is most closely associated with solera aging? a. Vermouth b. Port c. Madeira d. Sherry Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge d. Sherry

52. Copyright Bar Prophets 2010 3. _________ is a distilled spirit made from grain or potatoes and flavored principally with caraway. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge Aquavit

53. Copyright Bar Prophets 2010 4. _________ is the most widely produced type of beer in America brewed with bottom-fermenting yeasts. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge Lager

54. Copyright Bar Prophets 2010 5. While both are distilled from grapes, _______________ is typically aged in wood and has a dark, rich color; _______________ is either left unaged or aged in glass vessels to retain its clarity. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge brandy eau de vie

55. Copyright Bar Prophets 2010 6. _________ is a clear spirit, compounded by redistilling neutral grain spirits with berries and aromatics. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge Gin

56. Copyright Bar Prophets 2010 7. _________ is made in Normandy from cider apples. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge Calvados

57. Copyright Bar Prophets 2010 8. Bourbon is distilled predominantly from which grain? a. Wheat b. Rye c. Corn d. Barley Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge c. Corn

58. Copyright Bar Prophets 2010 9. Made with top-fermenting yeasts, this type of brew is typically heavy-bodied, copper-colored (or darker), high in alcohol and most closely identified with English-style beers. a. Hefeweizen b. Guinness Stout c. Ale d. Root Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge c. Ale

59. Copyright Bar Prophets 2010 10. Most closely associated with Italy, what sweet, fortified aperitif is infused with herbs, quinine and various other botanicals? a. Sherry b. Dry Vermouth c. Sweet Vermouth d. Port Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge c. Sweet Vermouth

60. Copyright Bar Prophets 2010 11. What is the name for a straight, unblended malt whisky from one distillery in Scotland? a. Cask Strength Scotch Malt Whisky b. Unblended Malt Whisky c. Single Malt Scotch Whisky d. Vatted Malt Whisky Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge c. Single Malt Scotch Whisky

61. Copyright Bar Prophets 2010 12. ___________ is a brandy made in the French province of Gascony. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge Armagnac

62. Copyright Bar Prophets 2010 13. Which of the following names is that of an American straight rye whiskey? a. Old Forester b. Old Potrero c. Old Fitzgerald d. Old Crow Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge b. Old Potrero

63. Copyright Bar Prophets 2010 14. A split bottle of wine contains ______ml or _______ ounces, which is one-quarter of a wine bottle; a half-bottle of wine contains ______ml or _______ ounces. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge 187 6.35 375 12.7

64. Copyright Bar Prophets 2010 15. This clear, spicy mint liqueur is lighter and drier than Créme de Menthe. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge Peppermint Schnapps

65. Copyright Bar Prophets 2010 16. What color is bourbon when it comes out of the still? a. Mahogany b. Amber c. Clear d. Pale gold Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge c. Clear

66. Copyright Bar Prophets 2010 17. Choose the Dutch juniper-infused spirit that is the predecessor of London Dry Gin. a. Holland Gin b. Genever or Schiedam Gin c. Amsterdam Gin d. Met Pleezier Gin Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge b. Genever or Schiedam Gin

67. Copyright Bar Prophets 2010 18. Marc and ___________ both are pomace brandies made from the remnants of the winemaking process. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge grappa

68. Copyright Bar Prophets 2010 19. This popular French framboise is made from small black raspberries, herbs and honey. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge Chambord Liqueur

69. Copyright Bar Prophets 2010 20. Rhum ___________ is distilled from fresh sugar cane juice, primarily on the French islands in the Caribbean. Successful Beverage Management — Pre-Certification Exam Section One — Product Knowledge Agricole

70. Copyright Bar Prophets 2010 21. How many ounces in a magnum? a. 33.8 oz. b. 50.4 oz. c. 32 oz. d. 64 oz. Successful Beverage Management — Pre-Certification Exam Section Two — Mixology b. 50.4 oz.

71. Copyright Bar Prophets 2010 22. List in order of most dense to lightest the following liqueurs. ____ Grand Marnier ____ Baileys Irish Cream ____ Maraschino ____ Kahlúa Successful Beverage Management — Pre-Certification Exam Section Two — Mixology

72. Copyright Bar Prophets 2010 22. List in order of most dense to lightest the following liqueurs. 1 — Kahlúa (Densest) 2 — Baileys Irish Cream 3 — Maraschino 4 — Grand Marnier (Lightest) Successful Beverage Management — Pre-Certification Exam Section Two — Mixology

73. Copyright Bar Prophets 2010 23. What does the term “straight up” mean? a. To serve a cocktail in a tall iced glass b. To handshake a cocktail in a mixing set and serve it on the rocks c. To hand shake a drink in a mixing set and serve it in a cocktail glass d. To prepare a cocktail directly into the service glass Successful Beverage Management — Pre-Certification Exam Section Two — Mixology c. To hand shake a drink in a mixing set and serve it in a cocktail glass

74. Copyright Bar Prophets 2010 24. Unless instructed otherwise, a “splash” always refers to what product? a. club soda b. lemon-lime soda c. water d. seltzer Successful Beverage Management — Pre-Certification Exam Section Two — Mixology c. water

75. Copyright Bar Prophets 2010 25. How many ounces are in a liter? a. 22.8 oz. b. 33.8 oz. c. 14.6 oz. d. 32 oz. Successful Beverage Management — Pre-Certification Exam Section Two — Mixology b. 33.8 oz.

76. Copyright Bar Prophets 2010 26. What will pouring club soda into an empty glass reveal? a. Bubble streams on the inside of the glass means it is clean b. Bubble streams on the inside of the glass means it is dirty c. Bubble will clean the glass so it can be used even if it was dirty d. Bubble streams on the inside of the glass mean the soda is properly charged Successful Beverage Management — Pre-Certification Exam Section Two — Mixology

77. Copyright Bar Prophets 2010 26. What will pouring club soda into an empty glass reveal? a. Bubble streams on the inside of the glass means it is clean b. Bubble streams on the inside of the glass means it is dirty c. Bubble will clean the glass so it can be used even if it was dirty d. Bubble streams on the inside of the glass mean the soda is properly charged Successful Beverage Management — Pre-Certification Exam Section Two — Mixology

78. Copyright Bar Prophets 2010 27. Which of the following ingredient pairs will not make a suitable replacement for basic simple syrup. a. Water and agave syrup b. Water and Demerara syrup c. Water and honey d. Water and corn starch Successful Beverage Management — Pre-Certification Exam Section Two — Mixology d. Water and corn starch

79. Copyright Bar Prophets 2010 28. What cocktail is made with gin, Maraschino liqueur and lemon juice? Successful Beverage Management — Pre-Certification Exam Section Two — Mixology Aviation Cocktail

80. Copyright Bar Prophets 2010 29. In what order you would pour the ingredients for a Margarita in your mixing cup? a. 1-ice 2-sweet and sour 3-tequila 4-triple sec b. 1-sweet and sour 2-tequila 3-triple sec 4-ice c. 1-tequila 2-triple sec 3-sweet and sour 4-ice d. 1-sweet and sour 2-triple sec 3-tequila 4-ice Successful Beverage Management — Pre-Certification Exam Section Two — Mixology d. 1-sweet and sour 2-triple sec 3-tequila 4-ice

81. Copyright Bar Prophets 2010 30. What will a perpetual inventory system reveal about product depletion? a. Perpetual inventory system is used to track liquor used in comp drinks. b. The frequency at which products are depleted from the liquor room indicates theft. c. The rate products are requisitioned from the liquor room to the bar(s) closely corresponds to their actual depletion rate. d. The perpetual inventory system reveals nothing about product depletion. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations c. The rate products are requisitioned from the liquor room to the bar(s) closely corresponds to their actual depletion rate.

82. Copyright Bar Prophets 2010 31. How will the perpetual inventory system deter theft? a. The first entry in the perpetual inventory will indicate how many bottles of each product has been used. b. The last entry on ledger indicates how many bottles have been stolen. c. The last entry in the perpetual inventory will indicate how many bottles of each product should be on the liquor room shelves. d. The last entry in the perpetual inventory will indicate how many bottles have been used. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations c. The last entry in the perpetual inventory will indicate how many bottles of each product should be on the liquor room shelves.

83. Copyright Bar Prophets 2010 32. How will bar par deter internal theft? a. Bar par utilizes surveillance cameras behind the bar. b. Bar par will not deter internal theft c. The bar par will indicate how many bottles were used during a shift. d. The bar par indicates how many of each product are supposed to be behind the bar. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations d. The bar par indicates how many of each product are supposed to be behind the bar.

84. Copyright Bar Prophets 2010 33. What is the importance of tracking the cost of a bar’s spillage, complimentary drinks and transfers? a. These costs are considered negligible and therefore not factored into pour cost. b. These costs are factored into deriving an accurate cost of goods sold figure for the bar. c. These costs are factored into deriving the number of drinks sold per inventory period. d. These costs are factored into deriving gross beverage sales. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

85. Copyright Bar Prophets 2010 33. What is the importance of tracking the cost of a bar’s spillage, complimentary drinks and transfers? a. These costs are considered negligible and therefore not factored into pour cost. b. These costs are factored into deriving an accurate cost of goods sold figure for the bar. c. These costs are factored into deriving the number of drinks sold per inventory period. d. These costs are factored into deriving gross beverage sales. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

86. Copyright Bar Prophets 2010 34. What is the purpose behind taking a physical audit of the inventory? a. A physical audit of the inventory is used to determine bartender sales productivity. b. A physical audit is used to determine cash till overages or shortages. c. A physical audit is used to verify the accuracy of liquor deliveries. d. A physical audit of the inventory is used to determine cost of goods sold. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

87. Copyright Bar Prophets 2010 34. What is the purpose behind taking a physical audit of the inventory? a. A physical audit of the inventory is used to determine bartender sales productivity. b. A physical audit is used to determine cash till overages or shortages. c. A physical audit is used to verify the accuracy of liquor deliveries. d. A physical audit of the inventory is used to determine cost of goods sold. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

88. Copyright Bar Prophets 2010 35. What does bar productivity measure? a. Bar productivity measures a bartender’s speed of service. b. Bar productivity measures the operation’s sales mix percentages c. Bar productivity measures pour cost on a per shift basis. d. Bar productivity tracks and analyzes a bartender’s sales per hour. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

89. Copyright Bar Prophets 2010 35. What does bar productivity measure? a. Bar productivity measures a bartender’s speed of service. b. Bar productivity measures the operation’s sales mix percentages c. Bar productivity measures pour cost on a per shift basis. d. Bar productivity tracks and analyzes a bartender’s sales per hour. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

90. Copyright Bar Prophets 2010 36. What does an excessive labor cost signify? a. High labor costs means you’re getting optimum benefit from your labor dollars. b. High labor cost indicates the operation is spending more on payroll than sales warrant. c. A high labor cost indicates your pour cost is too low for the sales collected. d. A high labor cost indicates your pour cost is too high for the sales collected. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

91. Copyright Bar Prophets 2010 36. What does an excessive labor cost signify? a. High labor costs means you’re getting optimum benefit from your labor dollars. b. High labor cost indicates the operation is spending more on payroll than sales warrant. c. A high labor cost indicates your pour cost is too low for the sales collected. d. A high labor cost indicates your pour cost is too high for the sales collected. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

92. Copyright Bar Prophets 2010 37. What are the operational problems associated with a prohibitively low labor cost? a. A prohibitively low labor cost indicates under-staffing and possible lost sales. b. A prohibitively low labor cost indicates that payroll and beverage sales are in line. c. A prohibitively low labor cost indicates over-staffing. d. A prohibitively low labor cost indicates that beverage sales are too low. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

93. Copyright Bar Prophets 2010 37. What are the operational problems associated with a prohibitively low labor cost? a. A prohibitively low labor cost indicates under-staffing and possible lost sales. b. A prohibitively low labor cost indicates that payroll and beverage sales are in line. c. A prohibitively low labor cost indicates over-staffing. d. A prohibitively low labor cost indicates that beverage sales are too low. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

94. Copyright Bar Prophets 2010 38. Why is the pour cost for liquor calculated separately from beer and wine? a. The pour cost for liquor, beer and wine should be calculated jointly to have relevance. b. The cost percentages for liquor, beer and wine are not subject to analysis. c. The pour cost for liquor, beer and wine can only be calculated separately. d. The various products sell at different cost percentages and must be calculated separately. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations d. The various products sell at different cost percentages and must be calculated separately.

95. Copyright Bar Prophets 2010 39. What does liquor pour cost reveal? a. Liquor pour cost indicates the relationship between liters sold and liters purchased. b. Liquor pour cost indicates the relationship between cost of sales and gross profit margin. c. Liquor pour cost indicates the relationship between cost of goods sold and liquor sales. d. Liquor pour cost indicates the relationship between gross sales and payroll costs. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

96. Copyright Bar Prophets 2010 39. What does liquor pour cost reveal? a. Liquor pour cost indicates the relationship between liters sold and liters purchased. b. Liquor pour cost indicates the relationship between cost of sales and gross profit margin. c. Liquor pour cost indicates the relationship between cost of goods sold and liquor sales. d. Liquor pour cost indicates the relationship between gross sales and payroll costs. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

97. Copyright Bar Prophets 2010 40. How does portion cost impact drink pricing? a. Portion cost is the cost of goods sold per serving, so it doesn’t impact drink pricing. b. The higher the portion cost, the lower the sales price must be to yield a viable margin. c. The higher the portion cost, the higher the sales price must be to yield a viable margin. d. Portion cost only impacts the amount of sales tax charged on a drink, not its sales price. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

98. Copyright Bar Prophets 2010 40. How does portion cost impact drink pricing? a. Portion cost is the cost of goods sold per serving, so it doesn’t impact drink pricing. b. The higher the portion cost, the lower the sales price must be to yield a viable margin. c. The higher the portion cost, the higher the sales price must be to yield a viable margin. d. Portion cost only impacts the amount of sales tax charged on a drink, not its sales price. Successful Beverage Management — Pre-Certification Exam Section Three — Beverage Operations

99. Copyright Bar Prophets 2010 Successful Beverage Management — Proven Strategies for the On-Premise Operator JACK ROBERTIELLO Beverage writer/former editor of Cheers Magazine Drinks Ink Brooklyn NY 917.439.8467 applejak@earthlink.net drinksink.blogspot.com ROBERT PLOTKIN Author/beverage management consultant BarMedia Tucson AZ 520.747.8131 robert@barmedia.com barmedia.combarmedia.com/barprofits.combarprofits.com AMERICANcocktails.com