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

2. Learning Objectives 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. Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 2

3. Goals of Sales Control Optimize number of sales 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 Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 3

4. Optimize Number of Sales Reasons People Patronize Beverage Establishments 1.Socialize 2.Conduct business 3.Eating 4.Seeking entertainment 5.Killing time Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 4

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 Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 5

6. Maximizing Profit Establishing drink prices that will maximize gross profit Ingredient and labour normally lower than food Additional overhead Entertainment Influencing customers’ selections 1.Training servers to up-sell (suggestive selling) 2.Featuring and promoting specialty drinks 3.Preparing carefully designed beverage menus Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 6

7. Controlling Revenue Unacceptable Bartender Work Habits 1.Working with an open cash drawer 2.Under-ringing sales 3.Overcharging customers 4.Undercharging customers 5.Overpouring 6.Underpouring 7.Diluting bottle contents 8.Bringing one’s own bottle into the bar 9.Charging for drinks not served 10.Drinking on the job Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 7

8. Controlling Revenue Ensuring sales revenue is recorded properly Precheque system Record drinks as ordered and accumulate Automated bar Alcohol will not flow until recorded Computer terminal All orders must be entered into POS before serving the client Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 8

9. Key Terms Automated bar, p. 457 Beverage sales control, p. 446 Dram shop laws, p. 449 Market segment, p. 449 Optimizing the number of sales, p. 447 Precheque system, p. 455 Revenue control, p. 453 Up-selling, p. 452 Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 9

10. Copyright Principles of Food, Beverage, and Labour Cost Controls, Second Canadian Edition 10