6 Steps to Increase Your Bar’s Revenue
Average bar revenue can vary greatly depending on the place itself. But there’s one thing that can surely boost bar profit margins: proper management.
If you want to know how to make a bar successful, there are a few ways to increase profit.
Make an Audit
If you dream about running a successful bar, it all starts with a plan that is revised over time. Audits have the potential to increase bar profits by 5% to 15%.
The audit should focus on one thing: efficiency. Take a look at the physical constraints and eliminate them. Question bartenders to find out the equipment they don’t have within their reach. Every station should be outfitted with all of the tools needed to run an efficient bar.
A few of the tools that you may need are:
Ergonomics should also be considered. Perhaps a bartender needs to bend down and search for a common item. Remove this wasted time with proper storage and organizational techniques.
After the initial audit plan has been carried out, you’ll want to resurvey your staff a few weeks later and see which additional changes should be made. An audit will provide you with a better overview of how the bar operates and what you can do to boost profits.
Add Premium Liquors
If average customers spend $10 on wine, but you introduce a new wine that averages $12 in sales, it will increase profit margins by 20%. Bartenders will also be willing to recommend the premium options because a higher bar tab means higher tips.
Keep a close eye on “hot” items, and include them behind the bar to boost sales. If a celebrity is introducing their own brand of Whiskey, like Conor McGregor did, you can offer his brand and boost sales while promotions are ongoing.
Market Your Specials of the Day
If you want to introduce new drinks, you need to be able to promote them properly. Specials of the day can help, and this is one way to increase sales. You may start to introduce different mixes or options, such as:
- Shooters
- Float programs
- Cocktails
- Super-premium options
Non-alcoholic beverages can also increase sales. These items often fly off the shelves, as more people are going to bars for the social aspect rather than drinking. A patron may opt for a coke or other drink because they have work in the morning.
Launch Happy Hours
Even the largest bars in the world still have their “slow” days. One simple tip to increase sales is to offer strategic happy hour specials. It is great on slow days, and it also provides the opportunity to bring in new clients. A lot of establishments are offering:
- 1 + 1 specials
- 2 + 1 specials
Some bars will also include nachos or other goodies when an entire pint is purchased. If your bar has a restaurant or sells food, you’ll be able to increase sales during “happy hours” just by discounting your drinks slightly.
Learn Common Upselling Techniques
If you know how to upsell alcohol, you’ll increase profits overnight. The goal is to train bartenders and servers to upsell to popular, high-priced items:
- When a customer is trying to decide on what wine to purchase, the server will be able to recommend mid-priced and higher-priced items.
- Another option is for servers to recommend drinks even if the customer doesn’t ask. “Would you like to try our rose tonight? It’s a flavorful blend of XYZ and is a common item on tonight’s drink menu.”
The key is to always make the customer happy, so if a customer is not interested in wine or another alcoholic drink, make sure that staff does not push them too much.
Social Media and Bar Sales
Allow your customers to tell their friends and family about your bar. One tactic is to start befriending customers and posting group photos on your bar’s social media account. The person may see the photo and share it with friends, boosting your exposure in the process.
Going digital can help, too. Offer options to reserve seating and leverage social media to get the word out about in-house parties or specials. The more you connect with customers and potential customers on social media, the more sales and profits you’ll bring in.
And don’t forget to offer free Wi-Fi. When you offer free Wi-Fi, you’re enabling customers to share your bar on social media and even leave business-generating reviews.
Bars have a lot of options to increase revenue, and the above steps will help increase sales and boost profits.
Source: https://mcdonaldpaper.com/blog/increasing-bar-revenue
