1. Chapter 17 Beverage Sales Control
Principles of Food, Beverage, and Labour Cost Controls,
Canadian Edition

2. 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.

3. 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

4. Optimize Number of Sales
Reasons People Patronize Beverage Establishments
Socialize
Conduct business
Eating
Seeking entertainment
Killing time

5. 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

6. 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

7. 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

8. 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

9. 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

10. Copyright
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