You have a huge Investment in your Bar. You should protect your profits.
Regular bar assessments are necessary to protect your Investment.
Who should read this article?
Bar Owners, Bar Managers, Club Managers, Restaurant owners, Bottleshop owners.
Why the need for Bar controls
Protection of profits and controls to stop your staff stealing from you. Bar Assessments are a very powerful tool, to help you stay in control.
Just imagine that you are new at running a bar and you are not even aware of what Gross Profit you should get. Bar Gross Profits vary in different countries but say in your country they should be 65%. That means that if your turnover is $1 million (after tax) the cost of product you sell over the bar costs you $350,000 (35%) and leaves you with $650,000 (65%GP) to pay other accounts such as rent, wages, power etc.
If you didn’t know that you should get 65%, your business runs for maybe a year before you send your accounts to the accountant. The accountant takes 3 months to tell you that your GP is 55%. You have worked 15 months and lost approximately $120,000.
Your accountant may not even know that you should be getting 65% so you carry on losing approx $100,000 per annum. Take control and do a regular Stock Takes followed by an Assessment. Is it easy? – no, not at first. Get over it, as it could save you $thousands
Do you need to do it regularly? – yes, you do and it is a pain but get over it could save you $thousands. It does get easier each time.
How often do I need to do it? – Weekly or fortnightly depending on your turnover. $1m + turnover per annum should be weekly.