Back to Basics: Take control
Let me throw a phrase at you: stock control. Are you falling asleep yet? It doesn't exactly fill the heart with excitement.
But right now, when the dynamics of the trade are changing so violently - falling numbers of customers, falling beer sales, high duty rates, tough business conditions - poor stock control is inexcusable. It is like climbing up a mountain blindfolded and then tying your hands behind your back, just to make things more interesting.
Can there be anything more frustrating for a licensee who works their guts out only to discover that stock is going missing? And that can either be through poor organisation, poor standards back of house, poor equipment, or even staff helping themselves.
Either way it plays hell with your bottom line.
Anthony Ciavarella, managing director of bar consultants Barmetrix, says the problem of variance (i.e. the amount of unaccounted for stock in your books) is simply not being acknowledged by a large number of pubs and bars in the trade.
"There are pubs out there that simply have no idea how much product is disappearing out of the door unaccounted for," he says.
He adds that on average 15 per cent of a pub's stock will end up unaccounted for. In this time of economic uncertainty when all the advice is to batten down the hatches, this is hugely worrying.
Anthony says it is hardly surprising. "It is something that people just assume will be kept under control. But if you think about it so many licensees and barstaff are first-timers in the trade, and they have not been trained fully," he points out.
"They won't know about things like the importance of cellar quality. If your cellar is warm, you will kill quality and waste a huge amount of product. I had a client recently who had to return 16 casks of beer for that reason.
"Essentially you just need to tighten up everything back of house."
Here Anthony sets out Barmetrix's 12 keys steps to reduce variance in pubs - to keep a tighter control on stock and wastage.
1. Ensure back-of-house is brightly-lit, tidy and organised
If you keep the back of house clean and tidy then your staff will treat the area with respect. A good working environment makes it easier to monitor stock and keep it all neatly lined. You won't misplace stock and start over-ordering.
2. Eliminate all dead stock
If you have any stock that has either gone off or more likely that you are no longer listing, do not store it. Just get rid of it.
3. Minimise your product lines and cocktail lists
A lot of bars I deal with do not have trained cocktail barstaff and yet they still stock anything up to 16 rum brands.
There is really no need for that. Six is more than enough and it will help you keep track of stock lines and will help with consistency and quality of serve.
4. Ensure you are always in control when receiving goods
In essence whoever is responsible for the stock needs to be there at every delivery.
It allows you to monitor things effectively. Once the stock has been signed for it is no longer the supplier's responsibility.
It falls to the licensee. And you have very little come back if there is a problem or a shortfall.
5. Record all wastage and staff drinks in writing
It will be easier to keep track if there are written records.
6. Spot-check three items at least twice a week immediately after closing, selecting items according to your latest variance report
If there aren't any obvious problem lines in your stock then go back to basics. I always use bottled beers as an example with clients. I think there is no excuse for having problems with stock control with bottled beers. You just need to make sure your staff are well-organised and refilling the fridges often to ensure it continues to look good for customers.
7. Conduct regular staff training and evaluation at least every three months
We do training in things like basic speed and efficiency. It sounds obvious but the quicker you serve the more you will sell.It is also key that your staff have good knowledge about all product lines.
8. Lock your stock down when it is not in use
Do not tempt cleaners, traders or any visitors.
9. Identify and clearly illustrate your 'rules and regulations' for staff, both verbally and in writing
These should be pretty standard rules - like a staff handbook. So while including information on policies such as dress and lateness, it will also include the policy on wastage.
It is difficult to hold people to account if they have not been made aware of the rules beforehand. Run your bar in a professional manner.
10. Do pour tests with your staff before every shift
This really applies to bars that use free pour for their spirits. It comes back to training again. If staff cannot free pour accurately they should not be doing it. It will only contribute to more waste.
Teach your staff to pour pints consistently - train them to get the right head and to hit that mark every time. That will save on wastage and improve consistency.
11. Get the best variance reporting possible
Barmetrix provides equipment like electric scales which can pick up a variance in the weight of bottles of spirits for example - if one shot is missing and unaccounted for, it can pick it up. But also update your books religiously - your delivery notes, your wastage notes.
12. Communicate to all staff the information provided by your stocktakers
Make sure you share all of your information with your staff. You need to get them onside and involved. You do not want the controls you put in place to come over as a witch hunt. n
