How To Take Inventory of Your Bar

Is your bar not as profitable as you want it to be? Are you constantly running out of important ingredients or supplies on a busy night?

These could be just a few of the various signs that you need to improve your bar or restaurant’s inventory control. Once you’ve identified the problem, it leads us to another important question: what comes next?

Let’s dive into the why and how of inventory management for bars.

Why Bar Inventory is Important

There are a lot of ways that a consistent inventory system can help your bar run more smoothly and, ultimately, become more profitable.

First, tracking inventory can help you track inventory variance or shrinkage, i.e., the difference between the amount of product used and the amount sold. Given the price of liquor, losing or wasting even a little inventory can be expensive. When your bartenders are aware that you regularly track inventory, it discourages them from committing theft, whether that means taking whole bottles, pouring themselves a free shot, or pocketing the payment from a few orders. Even without these larger issues, inventory can help you determine if your servers overpour, point to ingredients that you’re losing to spoilage, and give you the information you need to tighten up your margins.

Inventory practices can also help you to ensure that you never run out of supplies on a busy night. Over time, you can use inventory trends to set pars – minimum amounts of a product or ingredient that you need to stock to ensure you don’t run out. You can then use those numbers to guide your purchase orders. You can curb both under and over-stocking because you’ll know what’s just right.

Finally, having hard data on inventory usage will help you make better business decisions overall. Are you pricing your cocktails correctly? What drinks are the most profitable? Is a certain type of liquor worth purchasing? What kinds of specials create more business? All of these questions can be answered definitively if you keep inventory. Without it, you’re just guessing.

How to Implement a Bar Inventory Tracking System

Well, first, any inventory management system is better than none, so pick one of the many options that are out there and get started.

That said, we don’t recommend a paper system when there are so many electronic options that can streamline the process. Software platforms have features that can help you avoid unnecessary mistakes. For example, some systems can send orders to your vendors automatically to keep your stock balanced.

The most important thing is to be consistent in your inventory method and schedule. Measure and track things the same way every time. Count in the same order. Time your inventory-taking consistently in terms of time and day of the week, and do it when the bar is closed to avoid any confusion.

Bar inventory optimization won’t happen overnight. It can take time for you to find the most effective and efficient inventory practices, and the process will get easier and more habitual the longer you stick with it. Be patient, and don’t give up before

Tips for Bar or Restaurant Inventory Management

For best results, there are a few practices you should put in place as you spin up your inventory-taking routine.

Conduct Regular Inventory Audits

It may be tempting to make inventory an annual or semiannual event, but in order to get the full benefits of restaurant inventory control, you need to take inventory on a regular basis, much more frequently.

Develop More Effective Storage and Organization

If your products and supplies lack organization, then you’re going to have a less efficient bar and a terrible time doing inventory. Improving the organization both behind the bar and in the storage room will keep things orderly during operations and audits.

Behind the bar, every ingredient should have a place, which will make the daily workflow more efficient. You can organize your back room by keeping similar items together, but make sure high-volume items are easy to reach for restocking during peak hours.

Be Smart in Staff Choices

When selecting who will help with inventory, be smart about who you pick. First, don’t use inventory duty as a punishment. Choose individuals who are suited for such a detail-oriented job and use teams of two for strategic redundancy. Each partner can do their own count and then double-check any discrepancies.

Set SMART Goals

Once you’ve got an inventory management routine, you need to make it worthwhile by setting goals for improvements before the next inventory.

Make them SMART: Specific, Measurable, Achievable, Relevant, and Time-Bound.

Strategies for Reducing Spoilage and Shrinkage

You’ve started regular inventory and discovered significant variance between what’s used and what’s sold. Now what?

Ask Your Ground Troops

Your boots-on-the-ground employees are the best source of answers for the causes of any variance. Obviously, you need to take what they say with a grain of salt – if the problem is theft, they probably won’t admit it – but they might have important information that will help you reduce your shrinkage.

Moving forward, create a system for documenting spills, spoilages, and other notable losses. Keep in mind that if you actively punish reported errors, staff won’t stop making mistakes – they’ll simply stop reporting them. Be constructive and thoughtful in your efforts to avoid repeated losses.

Implement Portion Control Measures

The amount of variance that comes from a lack of portion control is hard to measure but easy to fix! Start requiring the use of a jigger or pour spout to control cocktail portions.

Store to Avoid Spoilage

Organize and store your inventory to prevent spoilage, with the oldest stock being the most accessible. This isn’t the easiest or fastest way to complete delivery intake, but it will ensure increased efficiency for the business overall.

Save by Buying in Bulk (TIPS Training Style)

Measured pours aren’t the only skill your bartenders need to ensure the success of your business, and bar supplies aren’t the only thing you can buy in bulk!

Our TIPS Passports offer bulk discounts on skills-based training that promotes the responsible service and sale of alcohol. TIPS training can help you meet local regulatory requirements, earn discounts on your insurance premiums, mitigate ABC violations, and serve as a “reasonable efforts defense” in a third-party liquor liability lawsuit.

In addition to bulk discounts on these popular and effective courses, TIPS Passports come with a tailor-made LMS with flexible integrations, manager tools to help you monitor progress and create reports, dedicated support for onboarding, set-up, and management, and more.

Enroll today!