WHY DRAFT BEER NEEDS TIGHT INVENTORY CONTROL
What is the BevChek beer inventory control system? Today I’ll discuss why bar owners need draft beer inventory control and how BevChek improves bar profits.
Do you ever lie in bed wondering about the profitability of your bar’s draft beer? You should be making money hand-over-fist. You follow industry news and read what others are boasting. Why aren’t you among that group? In this post I’ll discuss how BevChek helps improve draft beer profits.
SOBERING INSIDER INFORMATION ABOUT BAR OWNER LOSSES
According to a recent audit of 326 bars, 87.5% were found to exceed the state allowance for shrinkage. Ultimately, this means you can be billed for thousands of dollars for sales tax, penalties and interest in a state liquor commission audit. The report revealed the subject bars lose 15-25% of their draft beer. The author verified these results are consistent for over 20 years in more than 1,000 bars and 5,000 audits / inventories of his own! Bar owners can combat this problem through effective inventory control.
THE ENTIRE PROCESS - INVENTORY MANAGEMENT AND SALES MANAGEMENT
On average, 50% of draft beer loss is at retail value. In other words, owners are missing bottom-line dollars without proper sales management. It’s not just inventory management, but also sales management! This is what my good friend, Chuck Diebel, CPA, refers to as “The entire process.”
HOW IS DRAFT BEER INVENTORIED?
There are two types of inventory methods that monitor draft beer inventory. Weighing (the only scientific service) is exclusively provided by BevInco dealers. I believe this is the only reliable approach to inventory management. BevInco now takes it a step further, with the introduction of BevChek.
WHAT IS BEVCHECK BEER INVENTORY SERVICE?
BevChek is a flow meter system which monitors the amount of product dispensed by each faucet. The obscure hardware, installed at each tap, captures real-time pouring through BevChek’s proprietary technology. Designed for the hospitality industry, BevChek provides owners with product sales information from their POS terminals:
- Track product sales, inventory usage and variance in real time.
- System reports:
- Usage and variance in ounces and pour sizes.
- Losses measured in dollars at cost and dollars at retail value.
- Monitor “After Hours” pouring.
- Alerts sent (via email or messaged to mobile phones) whenever pouring exceeds the normal threshold.
HOW DO BAR OWNERS BENEFIT FROM BEVCHEK ?
The BevChek software monitors draft beer system performance 24 x 7:
- BevChek flow meters measure the volume of every drink poured.
- All data is sent to the BevChek servers in real time.
- The POS interface enables beverage sales data at all on-premise terminals.
- BevChek provides each bar owner with an exclusive online account.
- Owners login to their BevChek account using any web-enabled device.
- A series of graphing tools enables bar owners to check real-time sales data and keg inventory.
Sample reports can be downloaded below.
BARTENDER AND PRODUCT STATISTICS AT YOUR FINGERTIPS!
HOW MUCH DOES BEVCHECK COST?
Firstly, the local BevInco dealers will provide a free, no-obligation draft beer audit. No equipment is required at this time. To commit to the BevChek program:
- A one-time charge of $1,000 and $100 per tap (up to 70 faucets). For example, a 20-faucet system will result in a one-time charge of $3,000.
- An ongoing monthly charge of $175.
For bar owners selling 10 or more kegs per month, the BevChek is one of the finest services a bar owner could have.
HOW DOES BEER TEMPERATURE AFFECT PROFITABILITY?
Optimal draft beer profits hinges not only on inventory method, but also the serving temperature. As I’ve written, the ideal temperature for serving beer is between 38°F (3°C). When the temperature rises above 38°F, the CO2 transitions from a gas to a liquid, thereby inducing excessive foam. In short, draft beer served above 38°F makes the profits go down the drain. The GREAT news about BevChek is that it monitors keg temperature in real time (ref. above screenshot).
Draft beer needs to be served at 38°F at the faucet for any hope of maximizing its profitability. Therefore, draft beer should be stored in its own walk-in cooler (WIC). This minimizes the number of times the door is opened and closed.
Optimize your draft beer inventory to its fullest potential with BevChek and sleep peacefully knowing you are maximizing your draft beer profits!
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