Bar and pub culture in India has seen tremendous growth over the years. In 2014, the market value of pubs, bars and lounges amounted to about 100 billion Indian rupees and was estimated to reach 160 billion Indian rupees in 2020. It is a lucrative industry to foray into as an aspiring restaurant owner. However, bar management comes with its challenges, from figuring out how to boost your sales to managing your staff.
But don’t worry, we have got you covered.
8 Practical Strategies For Bar Management
1. Understanding The Market
One of the most critical aspects of any business is developing an understanding of the market and its target audience. The bar business is no different. The first step is recognizing your potential customers and their likes for efficient bar management. Ask yourself: what makes you different from your competition? You can develop unique bar decor, signature drinks and menu to differentiate your bar from the competition.
2. Menu And Signature Cocktails
Updating the menu as per the customer demand and trends is another excellent strategy of competent bar management. You can update your menu seasonally to keep things fresh for your regular customers and entice new ones.
Creating your cocktails is an excellent way to drive up your revenue, as you can price them higher than other beverages. Having signature cocktails on your menu can add to the uniqueness of your establishment and make your bar more appealing to the customers. While making your signature cocktails, you need to consider your target demographic. Depending on the theme of your bar, the crowd you cater to and if any event you are hosting, the bar menu can be updated.
3. Keeping Track Of Inventory
You need to check your inventory regularly. You can track your bar napkins, bar glasses and straws every week, while you should count your liquor stock daily. The better you know about your drink orders and consumption, the better you can manage their prices and purchase. Daily inventory also helps you find out if your sales are not matching up to the stock so that you can take appropriate action. It is crucial to develop a system and stick to it for consistency and reliance.
4. Use Essential Equipment
It is critical to measure your drinks to serve them to your customers. You can use multiple tools to measure your drinks. For example, use measured liquid pourers that help approximate portions. Essential cocktail tools are essential in any bar. You can teach your bartenders to use peg measurers to make cocktails as it prevents the outpouring of drinks. While outpouring drinks may not seem like a big deal, measuring liquor can save you a lot of money in the long run, thus putting itself on the list of top strategies for effective bar management.
Along with that, the bar kitchen would also need equipment and cold storage to store liquor, food and other ingredients. Buying and maintaining one helps in the long run in reducing wastage and managing inventory. Another great tool for managing bar customers is Petpooja’s waiter calling device which informs the bar staff about when and which customer needs assistance.
5. Organizing Events And Happy Hours
People don’t come to bars only for drinks but also for the atmosphere and the experience. Organizing events and holding regular happy hours is remarkable to draw customers in. As the world is transitioning to offline mode, people are looking for places to enjoy in-person events. Organizing events like trivia nights, open mics and karaoke nights can promote your bar to a new crowd and diversify your revenue stream. Events also help you build a loyal customer base.
Your happy hour menu can offer discounts on high-profit margin items to maximize your profits. Holding regular happy hours is another excellent way to publicize your bar and get customers to come in during slower hours of the day. Happy hours are also a perfect way to experiment with new items and understand your crowd.
6. Employing The Right Bar Staff
For effective bar management, hiring the right staff and training them well cannot be emphasized enough. Your bar staff is going to make the first impression on your customers. Employees with a good work ethic and enthusiastic attitude can attract more crowds and amplify your revenue.
Training your bar staff is fundamental for your bar business. Your bartender should know how to use different tools to make a drink, and your wait staff should realize how to handle an unpleasant situation with customers under the influence of alcohol. Another significant way to boost profits is to teach your team to upsell. Upselling means the staff suggests that customers try a specific high-value item or add it to their order.
7. Employee Meetings and Employee Relations
Conducting weekly meetings with your employees to strategize and understand their concerns is imperative for efficient bar management. If your team feels included in the process, it will boost their morale and approach towards their work. You can also take this time to educate your staff on new policies and procedures. These meetings are also an effective way to build relations and team. Building a relationship with your staff is essential for any business to run successfully. Offering staff bonuses, employee benefits and anonymous suggestion boxes are other substantial ways to strengthen this relationship.
8. Investing In A Smart POS System
A Point of Sale (POS) System is for any restaurant to manage all its operations efficiently so that the managers can focus on growing their brand. POS systems automate your inventory management and billing process, simplify your reporting, and many other things. As the world is transitioning and adapting to the high-end world of technology, investing in a sound POS system is a must for any bar. An exemplary POS system will automate the work and ease the bar management process for you and your staff.
We hope this blog helps you in managing your bar. Don’t forget to follow us on Instagram and subscribe to our newsletter.