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Owning and running a bar can be a challenge. Regardless of experience, there is always going to be a hurdle to overcome, especially in such a competitive space. One of the biggest challenges in any hospitality business is money management. In order to achieve maximum profit, bar owners need to calculate their losses and make analytical decisions. In this article, we’ll explore how bar owners can stop losing money and maximize their profits. Most importantly, secure the operation and minimize loss with a Bar Liability Insurance program.
Financial reports are a bar owner’s top insight into the innerworkings of the business. To analyze how much money the bar has lost daily, evaluate the hours worked by all employees, how much the business sold, and total customer turnover. To address each, POS Sector recommends the following:
- Make a projection of sales and earnings on a monthly basis and set realistic business goals.
- Make better organization of staff and minimize staff costs.
- Identify guests’ favorite items from the menu and make changes in the offer as well as the change of prices for certain menu items for better sales results.
Theft in a bar is a major contributor to lost money. The most common types of theft include unauthorized drinking by bartenders and giving out free drinks to friends and family without permission. To prevent this, ensure bartenders are logging in each drink order, printed tickets are tracked in an organized fashion, and that there are penalties for taking or giving unauthorized drinks.
Choose a quality yet affordable supplier.
Before choosing a supplier, make a list of the best-selling items in the bar. Compare prices from different vendors and choose the one with best offer on the basis of targeted items. Even a very small difference in the purchase price can cause huge changes in the profit for a longer period.
About Mavon Insurance
Completely protecting a bar or tavern can be a challenge. At Mavon Insurance, we offer specialized coverages to meet the customized needs of niche markets such as bars and taverns. We offer comprehensive solutions to address these insurance needs, including Property Insurance, Business Interruption, Food Contamination, Workers’ Compensation, and many more. For more information, or to become an agent with us, we invite you to contact us today at (877) 426-2866.