Behind Bars: Controlling Liquor, Beer and Wine Losses
While food cost is generally more significant than alcohol, we usually see greater attention devoted to controlling the alcoholic beverage side of the operation. Liquor, beer and wine are typically stored in locked rooms, and beverage usage is monitored with cameras behind bars, transfer requests, broken bottle tracking, more frequent inventories and better receiving practices.
In one case, we had a client from Mexico with a chain of restaurants in our training class and he was monitoring his bars from our location in Scottsdale. When I looked at what he was doing, he actually had not only the bartender on camera, but the tickets were displayed on the screen as well each time the bartender rang up drinks. He indicated he could compare the drinks the bartender made with what he charged to confirm accuracy. He could also monitor the portioning. If he saw anything out of the ordinary, he called the bartender directly and pointed it out. Obviously, the bartender was far more careful to do things correctly given this level of supervision! He also indicated he could record this activity and view it any time, so he didn't have to constantly monitor the bar.
The various approaches to beverage control are numerous, but there is one set of processes that can generally be improved. How is the liquor storeroom controlled? And how are wine bottles controlled? Our approach is to set up liquor storerooms and wine cellars as cost centers - just like a profit center would be but without sales. Instead, storeroom usage is determined solely by purchases, transfers and inventory. In this way, perpetual inventory can be monitored in real time, allowing the operator to know exactly how much of each item should be in the storeroom at any time.
In the old days, perpetual inventories were maintained using a card system where each inventory item was on its own card, and running counts were kept after every transaction. Typically found in warehouse operations, managers could take spot inventories of any given item to check if the right number was in stock. Today, this is done using software. The math is simple:
Beginning inventory + Purchases + Transfers in - Transfers out = Current inventory level
If wine is stored in a display cellar and sold by the bottle, and wine bottles are removed by servers or managers as guests order them, the formula would also include a subtraction for sales. While there could also be a locked storeroom for wine which is controlled as mentioned above and transferred to the display cellar, sales are gathered for wine bottles removed from the display cellar from POS systems on a daily basis and used to calculate perpetual inventory. This can be a tedious process to run manually, but software is available to handle integration between POS and inventory systems as well.
Many higher-end operations have extensive wine inventories. Losses of wine can significantly impact beverage costs, but even more so beverage profits. Some of our clients maintain multi-million dollar wine inventories. Margins on wine, typically marked up 2-3 times are much higher per bottle than margins for any given drink or entree. Tight control of wine using perpetual inventory, especially in cases where wine is not locked up and accessible during service hours is the best way to prevent losses.
While controlling beverage usage on the front end is a focus of operators, controlling it on the back end is typically not as strong. Moving to a perpetual inventory with a real time checking approach closes the loop. Frequent physical inventory is also advisable as opposed to typical monthly inventories, but that can be quite time consuming and is therefore not as typical. Using scanning mobile devices solves that problem, reducing labor, and eliminating identification errors. Inventory times can be reduced by 50-70% using these devices. They also eliminate printing forms, counting the wrong item and then entering the inventory into a system. The inventory data is then immediately available. With the right system, this information can also be used to compare actual usage with perpetual calculations to identify any discrepancies.
The combination of real-time storeroom perpetual inventory control, mobile devices and variance reporting has been shown to significantly reduce beverage costs. And like the client with stores in Mexico who was able to reduce front-of-house variances, these controls deal with back-of-house issues. While most operators do well on the front, with these improvements the back can end up behind bars as well!
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 Development News
Updated FMP-NG Software
We have recently updated our FOOD-TRAK Mobile Partner software, which will be released this month and automatically be downloaded to the devices when you log in. We have added a download progress indicator, last inventory quantities, use of the % wildcard for searches, and a notification regarding the number of paused forms on the device. More enhancements are coming so stay tuned!
Enhanced Production Planning and Scheduling Feature
We are continuing work on version 6.2, scheduled for release next quarter. In addition to dozens of small enhancements and major speed improvements, we have added a number of new enhancements to the production planning functions of the system. These new features are found in the Catering, Production and Menu Planning Module (CPM). Clients interested in automated production schedules will love the new capabilities. In addition to a new look for the production form, we now include sections for pre-production planning including the ability to scale templates to accommodate customer projections, and room to enter on hand values that decrease planned production to the quantity actually needed for production. When completed, pre-production forms are used to generate production requirements by station, along with instructions associated with any recipe to be produced at that station. Once production takes place, the forms can be updated with actual production quantities including waste and leftovers. These values are entered in the post production section of the data entry form, and used by the system to automatically generate waste reports, perpetual inventory and usage variances.
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 FOOD-TRAK University
Training Packages & Schedule
FUNdamentals Package: Our most popular course! Train from virtually anywhere. Now offered in person in Scottsdale or online, the 4-day FUNdamentals training course is designed for convenient distance learning and is led by a live instructor with complete training guides. Working on your own computer workstation and the latest version of FOOD-TRAK, your instructor will take you through a series of lectures explaining the "how to" functionality of each process, followed by practice exercises outlined in the comprehensive training manual. This "real world" foodservice operation approach prepares you to return to your place of business with a clear path and the knowledge to meet your goals, control costs and maximize cash flow using your FOOD-TRAK System.
The Fundamentals course was created to teach clients how to operate and maintain an effective food and beverage database while practicing inventory techniques and methods, forecasting, ordering and procurement approaches that help drive cost savings to your bottom line.
 Crash Course Package: This 6.5 hour online course is provided over 2 half-days. It provides a jump-start on system utilization and is ideal for both new and existing staff that doesn't require as much time as the FUNdamentals class. Topics covered include inventory and purchasing as well as their correlating standard reports. The curriculum is designed to give students the essential knowledge of the basic functions needed use the system effectively for routine tasks. The Crash Course includes one hour of customized Advisory Services training to cover or supplement any additional FOOD-TRAK topics of interest. Mark your calendar for our upcoming training dates!
Comprehensive Recipe Construction Package: Offered online, this 1.5 day course focuses on clients who want to build recipes that can be used for costing, production and menu plans, catering and ideal use calculations. Ideal for culinary staff, this package provides much more depth in recipe construction for costing and ideal use purposes than the 2 hour recipe course offered through FOOD-TRAK University. Learn how to include choices (sides, salad dressing, etc.), substitutions, and even condiments or complimentary bread in recipe construction. Create accurate buffet recipes, production and menu plans, catering menu recipes and even recipes structured for integration to your POS system if desired. If you need accurate recipe costs and margins, are interested in determining your ideal food cost and finding inventory variances by item, automating production scheduling or even running perpetual inventories, this course is for you!
April 9-10, 2024 Crash Course
April 16-19, 2024 FUNdamentals
April 24-25, 2024 Comprehensive Recipe Construction
May 8-9, 2024 Crash Course
May 13-16, 2024 FUNdamentals
May 21-22, 2024 Comprehensive Recipe Construction
June 5-6, 2024 Crash Course
June 11-14, 2024 FUNdamentals
June 17-18, 2024 Comprehensive Recipe Construction
July 10-11, 2024 Crash Course
July 15-18, 2024 FUNdamentals
July 24-25, 2024 Comprehensive Recipe Construction
August 7-8, 2024 Crash Course
August 13-16, 2024 FUNdamentals
August 21-22, 2024 Comprehensive Recipe Construction
September 10-11, 2024 Crash Course
September 16-19, 2024 FUNdamentals
September 23-24, 2024 Comprehensive Recipe Construction
October 7-8, 2024 Crash Course
October 16-17, 2024 Comprehensive Recipe Construction
October 22-25, 2024 FUNdamentals
November 6-7, 2024 Crash Course
November 13-14, 2024 Comprehensive Recipe Construction
November 18-21, 2024 FUNdamentals
December 5-6, 2024 Crash Course
December 9-12, 2024 FUNdamentals
December 16-17, 2024 Comprehensive Recipe Construction
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 Trainer's Tip
Site Cleanup Function
There are several benefits to running FOOD-TRAK's Site Cleanup function. From a technical standpoint it can eliminate some situations which might lead clients to create a support ticket. Our best practice suggestion is to schedule Site Cleanup to run monthly as preventative maintenance, as well as run it before creating a Support Center ticket. Here is a screen capture showing the suggested options.
Another benefit of the Site Cleanup function is the Site Cleanup report which provides notification of unusual situations. Depending on which checkboxes are selected the notifications may include a list of purchased items with no inventory location assignment, items with a zero cost, or a list of items not counted within a location over a specified time. This last option even allows for automatic removal of these items' inventory location assignments to save time maintaining the database.
Try running Site Cleanup with different options to see what data interests you. To get there from the Main Menu...Admin>Site>Site Cleanup icon. You'll find the Site Cleanup report in the Tasks List.
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Welcome New Clients!
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McCormick Place Convention Center, Chicago
With over 2.6 million square feet of exhibit space, McCormick Place is the largest and most flexible use convention center in North America. Located on Chicago's lakefront minutes from downtown. |
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Nashville International Airport - BNA
Nashville International Airport serves as a gateway to Music City and beyond. BNA generated more than $8.1 billion in total economic impact, supported more than 76,000 jobs in the region. Expansion programs, entitled "BNA Vision" and "New Horizons" are overhauling and expanding much of the airport for the near future.
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Indian Wells Tennis Garden
Located 15 miles Southeast of Palm Springs in the resort community of Indian Wells, CA. It is one of the world's most revered and critically-acclaimed sports and entertainment venues. The state-of-the-art facility is a year-round tennis club home to the world's largest tennis tournament - the BNP Paribas Open.
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Trainer's Tip
