1. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Brief History of Alcoholic Beverages There is evidence of more than 100 bars in the ruins of Pompeii (a community of 20,000 people destroyed in the 1 st Century AD). Alcoholic beverages were used for medical treatments as late as the 1800’s. Taverns have been an integral part of society from the beginning of recorded history. By 1900, there were numerous saloons even in very small towns throughout the United States. Prohibition laws were passed in 1919 and lasted until 1933; it was illegal to manufacture, sell, transport and import alcoholic beverages in the United States. Since 1933, states, counties, towns and precincts control the sale and usage of alcoholic beverages. OH – 12.1

2. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Physiological Effects of Alcohol After consumption, alcohol passes from the stomach to the small intestine and is then absorbed into the blood and transported throughout the body In small amounts, alcohol reduces inhibitions. As amounts increase, speech becomes slurred and motor skills are impaired A BAC of.08 -.10% (depending upon the state) meets the definition of legal intoxication A BAC of.30 -.40% can cause death OH – 12.2

3. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Responsibilities of Those Who Hold Liquor Licenses Responsibilities relate to: What is sold Where it is sold When it is sold How it is sold To whom it is sold In what quantity it is sold OH – 12.3

4. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Principles of Wine Selection 1.Select wines that complement the food served in the restaurant. 2.Select wines that are modestly priced in relation to the menu prices, but consider some higher-priced wines for guests who prefer a higher quality. 3.Select popular wines that can be sold by the glass. 4.Include light and dry red wines when the menu features beef. 5.Include full-bodied dry red wines when the menu features game and game birds. 6.Include dry wines when the menu features poultry, pork, veal or seafood. OH – 12.4

5. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 More Principles of Wine Selection 7.Include semi-sweet or sweet wines to complement dessert and at all times in the meal for those who simply prefer them. 8.Include sweet reds and sweet whites when choosing wines for dessert. 9.Include one sparking (carbonated) wine with dessert or at any time during the meal. 10.Select wines that are available in quantities consistent with the anticipated sales volume. 11.The guest’s preference for any wine with any food at any time during the meal is a better “rule” than those dictated by a specific food/wine affinity. OH – 12.5

6. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Common Mixers Used in Bar Operations Cola, diet cola Tonic water Ginger ale Soda water Collins mix Bitter lemon mix Lemon-lime soda Bloody-Mary mix Lime juice Sour mix Light (half/half) cream OH – 12.6

7. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Common Garnishes Used in Bar Operations Lemons Oranges Limes Cherries Cocktail onions Bloody-Mary ingredients (Tabasco sauce, Worcestershire sauce, horseradish, celery stalks, salt/pepper) Coarse salt Sugar Nutmeg Bitters Grenadine OH – 12.7

8. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Beverage Purchasing Questions What bar and beverage products and supplies are needed? In what quantities are these products needed? What is the desired quality level of the products to be served? Who will consistently supply this merchandise at the best possible prices and at the most favorable terms? How frequently should orders be placed? Who will place the orders? OH – 12.8

9. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Wine and Food Pairings OH – 12.9 Wine TypeServe With Red Wines Cabernets and Red BordeauxLamb roasts and lamb chops, all cuts of beef steak, roast duck, goose MerlotBeef and lamb roasts, venison, sirloin steaks, grilled or roast chicken Pinot NoirRoast chicken, rabbit, duck, grilled salmon, grilled tuna ShirazGrilled or roast beef, game meats, BBQ, pizza SangioveseRoast pork, roast chicken, pastas, grilled vegetables, Italian sausages, pizza White Zinfandel/White MerlotSeafood salads, pastas, grilled chicken, grilled pork loin, Mexican food

10. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 More Wine and Food Pairings OH – 12.10 Wine TypeServe With White Wines ChardonnaySole, halibut, cod, scallops, lobster, roast chicken, pasta with seafood or chicken White RieslingRoasted pork, chicken, veal, smoked salmon, pate of all types, sushi Sauvignon BlancFish, shrimp, calamari, fresh oysters, sashimi Pinot GrigioPastas, grilled chicken and shrimp, veal Sparkling (Champagne)Caviar, fresh oysters, sushi, sashimi, lobster

11. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Principles for Storage of Alcoholic Beverages Restrict access to storage areas to the fewest possible number of staff members. Keep all beverage storage areas locked. Minimize the quantity of products stored at the bar. (Areas should be lockable and hold the minimum number of items required for service during a shift) Require that a manager (or second employee) be responsible for product issues to bartenders during the shift. Utilize a perpetual inventory system that allows management to know, at any time, the quantity of product which should be and is available in the beverage inventory. OH – 12.11

12. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Storage Principles to Maximize Quality: Beer Store keg beer between 36 o F and 38 o F (2.2 o C – 3.3 o C). Store canned and bottled beer at 70 o F (21.1 o C) or lower; rotate stock as it is delivered. Expiration (pull dates) on beer products should be carefully monitored. OH – 12.12

13. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Storage Principles to Maximize Quality: Wine Store bottled wine on its side. Store red wines at temperatures between 50 o F and 70 o F (10 o C – 21.1 o C) and, if at all possible, at cellar temperature. Store white and sparking wines in refrigerators if they are to be used within a few months of purchase or at 50 o F – 70 o F (10 o C – 21.1 o C) if they are to be held longer. Avoid excessive light, humidity and heat in wine storage areas. OH – 12.13

14. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Storage Principles to Maximize Quality: Spirits Store spirits in clean, dry and well-ventilated storage areas. Store sealed cases with date of receipt marked on the case to allow for easy rotation. Store individual bottles with date of receipt upright on shelving that allows for easy rotation. Avoid excessive heat in dry storage areas. OH – 12.14

15. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Sample Beverage Issue Requisition OH – 12.15 ProductNumber of BottlesBottle SizeBottle CostTotal Cost (1)(2)(3)(4)(5) Bar Gin2 750 ML8.7517.50 Bar Rum2 750 ML7.7515.50 Jack Daniels1750 ML12.50 Totals 17------ 173.50 Shift: Date: Beverage Outlet: Completed by: Issued by: Authorized by: Received by:

16. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Reasons to Maintain an Accurate Record of Beverages in Inventory To reduce theft opportunities To permit easy determination of product age/quality To determine additional quantities, if any, of product to order To quickly assess product usage rates To supply data for accounting purposes OH – 12.16

17. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Sample Physical Inventory Form OH – 12.17 Date of Inventory: Taken By: ProductPurchase Unit Units in Storage Purchase CostTotal Cost (1)(2)(3)(4)(5)

18. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Beverage Costs at Various Drink Sizes: Liter Bottle Cost of $15.00 OH – 12.18 Drink Size (1) Number of Drinks per Liter Bottle (2) Cost of Alcohol per Drink* (3) Selling Price (4) Total Revenue** (5) Alcohol Cost Percent*** (6) 1.0 oz.33.8$0.444$5.00$169.00 8.88% 1 ¼ oz.27.0$0.556$5.00$135.0011.11% 1 ½ oz.22.5$0.667$5.00$112.5013.33% 1 ¾ oz.19.3$0.778$5.00$ 96.5015.54% 2. 0 oz.16.9$0.888$5.00$ 84.5017.75% * $15.00 (Bottle cost) ÷ Number of drinks per bottle (column 2) ** Number of drinks per bottle (column 2) x selling price ($5.00 in column 4) *** Cost of alcohol per drink (column 3) ÷ selling price ($5.00 in column 4)

19. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 Advantages to Automated Beverage Production Better assurance that drinks will be charged to the guest ordering them Less opportunity for bartenders to give away drinks Increased ability to control beverage products and associated revenues The elimination (reduction) of over- or under- pouring Reduced spillage The elimination (reduction) of drink pricing errors Accurate record keeping of all products sold OH – 12.19

20. Restaurant Operations Management: Principles and Practices© 2006 Pearson Education, Inc. Ninemeier/HayesUpper Saddle River, NJ 07458 More Advantages to Automated Beverage Production Reduced incidence of bartender production errors Less required supervision of bartenders Lower and more consistent product costs Reduced costs per product ounce when purchasing (because liquor may be purchased in larger containers) Reduced liability potential resulting from failure to control the amount of alcohol in each drink OH – 12.20