Bartenders' Strategies To Offset Beer Costs And Boost Profits

Bartenders recoup money spent on buying beer through sales and tips. While food sales are the primary revenue source for most restaurants, beverage sales contribute significantly to overall profits. Alcoholic drinks have high-profit margins, and the ratio of drink-making costs to retail price is a key business metric. Bartenders may also employ various tactics to maximise profits, such as providing happy hour deals, using cheaper ingredients, and standardising cocktail recipes. Additionally, bartenders rely on tips for their livelihood, and some patrons may tip generously, especially if they are loyal customers or have received excellent service.

Offer happy hour discounts to attract new customers and increase foot traffic

Happy hour is a popular strategy for bars and restaurants to attract new customers and increase foot traffic. It can be a powerful tool for customer acquisition, as people are more likely to try a new establishment if they can get a good deal. By offering discounts during off-peak hours, bartenders can lure in new patrons and encourage larger-volume orders.

To make the most of happy hour, consider the following:

Timing is Everything

Happy hours don't have to be limited to the traditional 5-7 pm slot. You can also offer discounts later in the night, after the dinner rush, to attract customers during quieter times.

Get Creative with Themed Nights

Host themed happy hours such as "Taco Tuesday" or "Wine Down Wednesday" to attract a specific demographic and create a fun, lively atmosphere. You can also incorporate interactive activities like trivia, karaoke, or games to keep customers entertained and engaged.

Craft a Special Menu

Instead of offering the same old drinks and snacks, create a special happy hour menu with unique, shareable items. Focus on small portions and appetizers, and consider offering signature drinks or craft cocktails to impress your customers.

Offer Drink Deals

Feature a "drink of the day" for each day of the week, such as Monday Martinis or Wednesday Wine Night. You can also offer drink deals like 2-for-1 specials, which are popular with customers but remember to encourage tipping on both drinks!

Use Social Media to Your Advantage

Utilize social media platforms like Facebook, Twitter, and Instagram to promote your happy hour specials. Post eye-catching graphics and videos showcasing your themed nights and drink specials to create a buzz and encourage customers to visit.

Train Your Staff

Happy hour can be busy, so ensure your staff is well-trained and attentive. Customers don't like to wait too long for their drinks or food, so make sure your staff is quick and responsive during these peak times.

By implementing these strategies, bartenders can effectively use happy hour discounts to attract new customers and increase foot traffic to their establishments.

Provide well offerings, or house spirits, which are cheaper than premium brands

Providing well offerings or house spirits is a great way for bartenders to recoup money spent on buying beer. Well drinks and house spirits are typically cheaper than premium brands, and they can help increase the profit margin for the bar.

Well drinks are usually made with lower-quality spirits that are cheaper for the bar to purchase. These drinks may not have the same cachet as premium brands, but they can be just as tasty and enjoyable for customers. By offering well drinks, bartenders can reduce the cost of goods sold (COGS) and increase their profit margin.

House spirits are another way to offer cheaper drinks to customers. House spirits are typically less expensive brands that the bar has negotiated a good deal on. By purchasing in bulk or taking advantage of special offers, bartenders can stock up on house spirits at a lower cost, which again helps to reduce the COGS.

In addition to reducing costs, well drinks and house spirits can also increase revenue. By offering cheaper drinks, bartenders may attract more customers who are looking for a more affordable night out. This can lead to increased sales and higher revenue for the bar.

It's important to note that while well drinks and house spirits can help bartenders recoup money spent on buying beer, it's not the only factor that determines a bar's success. Other factors such as location, marketing, and customer service also play a crucial role in the profitability of a bar. However, by offering well drinks and house spirits, bartenders can certainly improve their chances of recouping their expenses and running a successful business.

Serve draft beer, which is more profitable than bottled or canned beer

Serving draft beer is a great way for bartenders to recoup money spent on buying beer. It is more profitable than bottled or canned beer due to its higher profit margins and lower cost-per-ounce.

Draft beer has a higher profit margin than bottled or canned beer, with margins as high as 80%. This is because the pour cost for draft beer is around 20%, compared to 25% for bottled beer. The pour cost is the ratio of the cost of products purchased to the revenue from products sold. A lower pour cost means that the bar is spending less on the beer and making more profit.

Draft beer also has a lower cost-per-ounce than bottled or canned beer, with cost-per-ounce being 40-45% lower. This is because draft beer is purchased in bulk, which reduces the cost per unit. Additionally, draft beer has less packaging and branding, which also reduces the cost.

To maximize the profit from draft beer, bartenders should ensure that the draft beer system is properly balanced, installed, and maintained. An improperly installed or unbalanced system can lead to excessive foam, which results in wasted beer and lost profit. Proper training and equipment maintenance can minimize waste and ensure that the maximum number of pints is sold from each keg.

Another way to increase profit is to offer different serving sizes and rotate the selection of draft beers. This allows bars to adjust prices and keep their menus fresh. Additionally, bartenders can implement a beer-friendly glass program to increase the number of servings per keg and further maximize profits.

By serving draft beer and implementing these strategies, bartenders can increase their profit margins and recoup the money spent on buying beer.

Offer special deals like shot-and-beer combos, or discounts on wine by the bottle

Offering special deals is a great way to increase sales and attract customers, and shot-and-beer combos or discounts on wine by the bottle are no exception. Here are some tips to maximize profits and recoup the money spent on buying beer:

Shot-and-Beer Combos

Shot-and-beer combos are a classic combination that can be offered at a low price point without sacrificing profitability. This is because the cost of the shot is relatively low compared to the price charged for the combo. For example, a shot of bottom-shelf liquor with a beer can be offered for around $3.50, providing a good profit margin while also being an attractive deal for customers. This type of combo is also efficient for bartenders, as it is a simple and quick drink to make, especially during busy service periods.

Discounts on Wine by the Bottle

Offering discounts on wine by the bottle can be an effective strategy, especially for low-end wines. Typically, bars aim to recoup the cost of the bottle with the first glass of wine poured, so any additional glasses poured result in pure profit. By offering a slight discount on the entire bottle, you can encourage customers to purchase more wine, increasing your sales and profitability.

Happy Hour and Special Promotions

Happy hour and special promotions are excellent ways to increase sales during slower periods. By offering temporary discounts on select beverages, you can encourage customers to try new drinks, including beer, and discover new favorites. Just be sure to strike a balance with your pricing so that you are still making an attractive profit while also drawing in customers with attractive deals.

Volume Discounts

Encouraging larger orders through volume discounts is another effective strategy. For example, you can offer reduced prices for pitchers of beer or bottle service for spirits. This can lead to increased sales and faster service, as staff can prepare and serve drinks in larger quantities.

Dynamic Pricing

Dynamic pricing involves adjusting prices based on demand. This could mean offering higher prices during peak times and lower prices during slower periods. While this strategy requires careful management, it can be an effective way to maximize profits and encourage sales during off-peak hours.

By implementing these strategies and offers, bartenders and bar owners can effectively increase sales and recoup the money spent on buying beer, all while providing attractive deals to customers.

Encourage tipping by providing excellent service and building rapport with customers

Bartenders can recoup the money they spend on beer by encouraging tipping. Providing excellent service and building rapport with customers are key to encouraging tipping. Here are some ways to achieve this:

First and foremost, it is important to cultivate a positive attitude and be proud of your work as a bartender. Customers can sense your enthusiasm and passion for your job, which can enhance their experience. Building solid relationships with customers is a great way to make them feel welcome and comfortable. Treat every customer as if they are a friend, by smiling, asking how they are doing, and being interested in their existence. This helps to build rapport and encourages customers to return.

Another way to provide excellent service is to have a thorough knowledge of the products you are selling. This includes knowing the cocktails on your menu, popular beers, wines, spirits, and any other drinks or food items you offer. By being able to describe the drinks intimately and guide customers through their selection, you will provide a memorable experience that customers will appreciate and potentially reward with a tip.

Additionally, bartenders can suggest products to customers that they think they will enjoy. This could be in the form of specials, new stock, food pairings, or exotic drinks that are unique to the bar. This not only helps the customer discover new drinks but also increases sales and improves the customer's experience.

It is also important to remember the little things that can make a big difference. For example, saying 'thanks for waiting' to customers when it's busy, remembering the names of regular customers and their favourite drinks, and offering complimentary items like antibacterial hand gel can all add to the level of service provided.

Finally, always aim to handle complaints well. Listen to the customer without interrupting, acknowledge their issue, and propose a solution. This can turn a negative experience into a positive one and create loyal customers who will rave about your service to others.

By implementing these strategies, bartenders can provide excellent service, build rapport with customers, and encourage tipping to recoup the money spent on beer.

Frequently asked questions