Essential Bar Management: Ordering Dynamics and Reducing Shrinkage

Among the many challenges that go into managing a bar or restaurant is dealing with shrinkage or lost product, a huge profit drainer.  According to beverage auditing companies Beverage Metrics and Stock-Taker, industry average shrinkage rates are 25 percent, and the National Restaurant Association reports that 75 percent of shrinkage is due to theft.While many restaurants and bars focus on inventory control systems to reduce shrinkage, reconsideration of ordering processes can be even more helpful. These simple tips will help you make smarter purchases that reduce shrinkage, and ultimately generate greater profits for your establishment.

Avoid Purchasing Based on Quantity Discounts     We know it can be difficult to resist a good deal. And while it might seem like quantity discounts increase overall profitability due to the potential of reducing your cost per ounce, factoring estimated shrinkage into the equation will directly counteract these cost…