Copyright Bar Prophets 2010 Successful Beverage Management — Proven Strategies for the On-Premise Operator APRIL 2010 Presented By: JACK ROBERTIELLO Beverage Writer/Former Editor of Cheers Magazine, Drinks Ink ROBERT PLOTKIN Author/Beverage Management Consultant, BarMedia
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Successful Beverage Management — Proven Strategies for the On-Premise Operator
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Copyright Bar Prophets 2010
Successful Beverage Management —
Proven Strategies for the On-Premise Operator
APRIL 2010
Presented By:
JACK ROBERTIELLOBeverage Writer/Former Editor of Cheers Magazine, Drinks Ink
ROBERT PLOTKIN
Author/Beverage Management Consultant, BarMedia
MODULE THREE:SIX WAYS TO INCREASE SALES IN A
DOWN ECONOMY
Copyright Bar Prophets 2010
Taking The High Road — Premium Spirits Yield Larger Margins
• Despite the Recession, on-premise sales of premium spirits continue to increase
• Prevailing attitude in U.S. — life’s too short to drink cheap booze
Copyright Bar Prophets 2010
Taking The High Road — Premium Spirits Yield Larger Margins
• Consumers now have higher expectations about the quality of their drinks
• Consumer Research: 84% said cocktails made with premium spirits taste better
• Consumers said they expect to pay an additional $2.80 for a branded cocktail
• 14% of consumers switched from ordering the house Margarita to branded a Margarita
Menu Test #2 — Added Romance Copy
Copyright Bar Prophets 2010
Bar Menus — Increasing Their Capacity To Drive Sales
Source: NextLevel Marketing 2009
36%
31%
33%
28% 30% 32% 34% 36% 38%
Ultra-premium
Top Shelf
House
Margarita Menu
House MargaritaCuervo Gold Tequila, triple sec and sweet and sour mix.
Top Shelf MargaritaSauza Hornitos Reposado Tequila, Cointreau Orange Liqueur and premium margarita mix served frozen or on the rocks.
Ultra-Premium, MargaritaOur distinctive, hand-shaken ultimate Margarita made with Patron Silver 100 Agave Tequila, Cointreau, and fresh squeezed lime juice served straight up or on the rocks.
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Bar Menus — Increasing Their Capacity To Drive Sales
• Only 5% of consumers were affected by the higher price of ultra-premium Margarita
• The switched from the ultra-premium to the premium Margarita
Menu Test #3 — With Added Romance Copy and Drink Prices
Copyright Bar Prophets 2010
Bar Menus — Increasing Their Capacity To Drive Sales
Source: NextLevel Marketing 2009
31%
36%
33%
28% 30% 32% 34% 36% 38%
Ultra-premium
Top Shelf
House
Margarita Menu
House Margarita $6.00Cuervo Gold Tequila, triple sec and sweet and sour mix.
Top Shelf Margarita $7.00Sauza Hornitos Reposado Tequila, Cointreau Orange Liqueur and premium margarita mix served frozen or on the rocks.
Ultra-Premium, Margarita $8.00Our distinctive, hand-shaken ultimate Margarita made with Patron Silver 100 Agave Tequila, Cointreau, and fresh squeezed lime juice served straight up or on the rocks.
Copyright Bar Prophets 2010
• Consumers prefer stand-along bar menus • They want descriptions of the drinks they’re
ordering• They want to know how the drinks will look
and how much it will cost
Bar Menus — Increasing Their Capacity To Drive Sales
Summary of Menu Testing
Copyright Bar Prophets 2010
• Staff Training and Education — What Your Staff Doesn’t Know Can Cost You
• Training/education yields high ROI in form of increased staff competency
Investing In Your Sales Force — Helping Your Staff Help You
Copyright Bar Prophets 2010
• Education — product knowledge/credibility pivotal to selling premium spirits
• Training — ensuring core competency - pouring, prices, mixology
• Challenge your bartenders to expand their professional skills/cross-training
Investing In Your Sales Force — Helping Your Staff Help You
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• Suggestive selling techniques — helping the clientele make informed decisions
• Three sales tactics — how many brands to suggest?
Investing In Your Sales Force — Helping Your Staff Help You
Copyright Bar Prophets 2010
• Americans are increasingly likely to not consume alcohol when entertaining
• However, few non-alcoholic programs are successful or noteworthy
• Most have little staff buy-in and don’t capture interest of clientele
Leveraging Beverage Trends — Taking Advantage of Latest Intel
Alcohol-Free Marketing — Risk-Free Profits in a .08 Universe
Copyright Bar Prophets 2010
• High production value — muddling, handshaking and floats
• High perceived value — specialty glassware (16-18 oz. volume)
• Feature intriguing ingredients and unusual taste combinations
• Value Priced — avoid any appearance of price gouging
Leveraging Beverage Trends — Taking Advantage of Latest Intel
Success Formula — Alcohol-Free Specialties
Copyright Bar Prophets 2010
• Locally produced, micro-distilled spirits surging in sales
• Organic spirits gaining traction with consumers• New Latin spirits on the rise — cachaça, pisco
and mezcal• Return to prominence — rye, gin and absinthe• Unqiue cordials and amaros — St-Germain,
Canton and Hum
Leveraging Beverage Trends — Taking Advantage of Latest Intel
Hot Spirit Trends
Copyright Bar Prophets 2010
Leveraging Beverage Trends — Taking Advantage of Latest Intel
• As they say — “It’s more fun to eat in the bar than drink in the dining room”
• Cross-promoting food and beverages increase sales and defrays high food costs
• Practical benefits to clientele eating food while drinking
• Ensure bartenders familiar with food menu and trained on proper food service
Cross-Promoting Food and Beverages
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• Don’t offer your clientele the same uninspired drinks as the competitors
• Enhanced mixology adds panache and perceived value without adding cost
Leveraging Beverage Trends — Taking Advantage of Latest Intel
Exceeding Guests’ Drink Expectations
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Technique Matters — Production Value Sells• Handshaking a cocktail communicates
freshness and quality to your guests• Thoroughly mixes ingredients and chills
drink to serving temperature• Vigorously handshaking cocktails is an
underappreciated mixing technique• Adds water; softens the cocktail and
melds spirits and modifiers
Leveraging Beverage Trends — Taking Advantage of Latest Intel
Copyright Bar Prophets 2010
Technique Matters — Production Value Sells
• Muddling is a high production value technique• It does for a cocktail what high-def does for
television• Muddling injects cocktails with vibrant flavors• Muddling fresh ingredients into cocktails requires
double-straining
Leveraging Beverage Trends — Taking Advantage of Latest Intel
MODULE FOUR:PRIORITIZED PROFIT ASSESSMENT
Copyright Bar Prophets 2010
Answer #1 — 0 pointsAnswer #2 — 5 points
Answer #3 — 10 points
Assessing Your Operation’s Areas of Strength and Weakness
Scoring:
Copyright Bar Prophets 2010
Section score of 45-50 = ExcellentSection score of 35-40 = Very Good Section score of 25-30 = Average
Section score of 0-20 = Below Average
Assessing Your Operation’s Areas of Strength and Weakness
Section Scoring:
Copyright Bar Prophets 2010
180 - 200 points = Excellent You’re a seasoned pro with a finger firmly on the pulse
140 - 175 points = Very Good When it come to the bar, not much gets past you
100 - 135 points = Average Indicates significant room for improvement
0 - 95 points = Below Average You’re leaving too much money on the table
Assessing Your Operation’s Areas of Strength and Weakness
Total Score Four Sections:
Copyright Bar Prophets 2010
• Step One: Sequence sections from lowest score (1st) to highest (4th)
• Step Two: Within each section, sequence responses from lowest score to highest
• Step Three: Your areas of weakness now top the lists within each of the four sections
Assessing Your Operation’s Areas of Strength and Weakness
Creating a Business Action Plan
Copyright Bar Prophets 2010
#1 — Identify in what order you will address the areas of weakness
#2 — Identify who in the business will be responsible for initiating changes
#3 — Assign a date as to when the initiatives are to be implemented
#4 — Track each set of initiatives to ensure progress is being made
Assessing Your Operation’s Areas of Strength and Weakness
Creating a Business Action Plan
Copyright Bar Prophets 2010
Successful Beverage Management —
Proven Strategies for the On-Premise Operator
JACK ROBERTIELLOBeverage writer/former editor of Cheers Magazine