Bar Management 101: The Basics, Employee Issues, and Working with Distributors

Bartenders, are you considering advancing into bar management? Starting at $20,000 to $30,000 plus bonuses, bar management does not require a degree in Hospitality Management. However, a few courses in management and accounting will not hurt.

Applicants for a bar management position, fresh out of college, may find themselves working their way up. Savvy bar owners look for bar managers that have hands-on experience. Promoting from within is the best option because of familiarity. An experienced, honest lead bartender with an eye for detail, great people skills, and personal drive can be molded into excellent bar manager.

Bar management entails a wide range of responsibilities. Typically, bar managers handle daily details their employers prefer not to. Duties range from the general, like opening and closing the doors, to the intricate, as accounting and payroll. The more a bar manager can do for their employer the better. Here is bar management 101: the basics, employee issues, and working with distributors.

Bar Management Basics

Managing a bar comes with responsibility. The biggest is the money. Due to the volume of cash dealt with on a daily basis, a bar manager must be trustworthy. A trusted bar manager can handle setting up tills along with calculating cash ins, outs, spills, comps, and inventory.

Cash in is the amount of money in the till at the end of the night. This amount includes cash, checks, and credit/debit receipts and is minus the original till and any cash outs or payouts. The original till is the amount of money in the register at opening.

Depending on an employer's preference, and the size of the establishment, cash outs or payouts are normally money drawn for tips and can be accounted for from credit/debit slips, checks, or tabs. Payouts may also come from any unexpected expenses incurred during a shift that require the bartender to draw money from the register. These are usually indicated by a receipt or bill of sale in the drawer.

Payouts for miscellaneous items are better handled by keeping a petty cash fund. This fund should be kept separate from the till. The fund should be enough to cover miscellaneous costs such as fruits, basic mixers, or even money for the jukebox to liven up the bar.

Spills and comps are often considered the same, as they are both not paid for. Spills are drinks that were either literally spilled or not made to customer satisfaction. Comps are free or complimentary drinks. Mainly clubs comp a drink to birthday, anniversary, or regular guests as a gesture of good will. It is good practice and generates repeat business.

Calculating inventory is dependent upon knowing output volume. Determining how much stock should be maintained is something every bar manager should know. Maintaining a record of sales, counting boxes of beer stocked, and recording liquor levels should give a manager accurate knowledge of how much supply you need.

Remember that your inventory is not limited to liquor and beer. Keep in mind mixers, garnishes, napkins, glassware and any other items your bar uses are a part of the inventory. A smooth operating bar relies on well-maintained stock and supplies.

Employee Issues: Theft

Theft is huge in the bar business. Honestly, dealing with a high volume of cash is tempting. Bartenders that steal from the bar, or your customers, should be watched for and terminated.

Bartenders should be trained to count their till and petty cash upon taking over the bar. This should be done in the presence of management. Any shortages or overages of the original till should be addressed immediately.

Stuffing the till with extra money can test a bartender's honesty. A good rule of thumb, an honest bartender will note excess and rectify it. The cash drawer becomes the responsibility of the bartender once it has been verified. To avoid any conflict, the bartender should be the sole person allowed access to the drawer once they take possession of it. The bartender is responsible for petty cash and till shortages.

Determining theft can be tricky. Bar managers should be observant, listen to, and possibly enlist, customers' help, and calculate shortages efficiently. Some bartenders use methods from the obvious as marking a tab or napkin to the obscure as stashing matches, making pencil marks on counters, or scuffing the floor to record their take of the till.

Registers have a no sale (n/s) option to open the drawer for change. When bartenders open the drawer for change, they may be taking money for their pocket. Hence a high number of n/s rings on the register, along with a shortage or a number of spills or comps should be looked into.

Bartenders abusing spills and comps tick off drinks, charge the customer, and pocket the money. Bartenders with a high number of spills should be watched to determine if there is theft involved.

Customers that run tabs make good targets for thieves. Some bartenders will "pad" tabs with an extra drink or two that was never served. Padding a tab is simple. Bartenders maintain two records of a tab. They charge for the padded tab and turn in the real tab.

After they complete the transaction, they re-ring the bill and mark for an over-ring if necessary. The overage is pocketed. This method does not work with credit/debit tabs if the customer pays the exact amount. However, a customer that rounds up totals for a cash back instances can be marked.

Employee Issues: Padding Tabs and Drinking

Bartenders use padding a tab as a method to get drinks for themselves or their friends. Some customers like to buy drinks for the bartender. This makes money for the bar. However the drink should be saved for after the shift is up. A drinking policy for bartenders should be established and enforced.

Bartenders' drinking behind the bar is a liability. Service falters and bartenders lose track of what they are doing. Bar managers should watch for bartenders that drink while on shift. The problem should be addressed. If it persists, the bartender should be terminated.

When bartenders pad tabs to "buy" drinks for their friends, the customer buys the drinks unknowingly. Frankly, in a bar environment it is easy to lose track of how much you are buying. Especially if a customer is buying rounds or is a part of a large party. A bartender can easily mark up a few extras for a comrade and it goes completely unnoticed.

Employee Issues: Moonlighters

Another issue to be aware of is moonlighting, where more than one job is held, it can be good or bad. Bartenders that moonlight can bring customers in or take them away. Take note of moonlighters pulling in traffic. This could be a means to increase business. Offer these bartenders more money, shifts, or incentives.

The flip side of a moonlighter is when they take business away. Newer employees could be working to bring business to their other bar. These are moles. The bar manager from the other establishment may have encouraged the bartender to take your business away or spy on your methods.

Employee Issues: Lovers

Unfortunately, bartenders have personal relationships outside of the bar. It should be encouraged and enforced that your bartender's significant other remains away from the bar during their shift. Customers like to think their bartenders are available and are often romanticized about. You do not want a jealous lover causing problems with your customers. With everything else a bar manager has to deal with, adding a bar fight to the mix only leads to disaster.

Employee Issues: Tasks and Miscellaneous

Bar managers should delegate chores to their bartenders. Depending on the type of bar, the amount of traffic it gets, and the amount of free time a bartender has, certain responsibilities should be given to the bartenders. A clean bar makes customers happy.

Cleaning tasks vary from washing glasses to wiping the bar top to basic dusting of fixtures. Stocking duties, cleaning and filtering the ice bin, and maintaining the refrigerator may need to be done by the bartender. Do not exclude preparing garnishes and mixers for shift changes.

Other issues a bar manager deals with includes excessive call-ins, tardiness, poor service, and bartenders bad mouthing customers or each other. These can be dealt with in a variety of ways, but the best method is communication. Usually, a bartender will make an effort to change if they are alerted.

Dealing with Distributors and Vendors

Distributors are your suppliers. A bar manager that can squeeze perks and specials out of the suppliers will make money for the bar. The more specials you can run, the better the sales.

Many times distributors have unadvertised specials. For instance, beer companies often give discounts for purchasing a certain number of cases. Inquire about specials often. Discounts can be filtered into lowering prices and running specials or happy hours.

Beer distributors also have promotional paraphernalia like bottle openers, cardboard and neon signs, coasters, napkins, and sometimes glassware. Developing a close relation with a beer distributor to get advertisement devices for your bar not only gives the bar atmosphere it increases sales.

Liquor distributors are an asset also. Often liquor companies like to run promotions for a new mixes. They have promotional tools for you too. The perks can range from T-shirts and hats to glassware. Do not forget to ask for signs. A good distributor will arm you with all the tools you need to sell their wares.

Restaurant and bar suppliers also run specials on glassware, barware, and napkins. Inquiring for specials lowers costs. Purchasing in bulk lowers costs. Lowering costs leads to increased profits. Profits make owners happy.

Vendors run the gamut from cigarette machines to gaming machines and pool tables. Cigarette machines are quickly being eliminated, but they are run and owned by a vender. Usually venders share a portion of the profits with the bar.

Vendors come on a scheduled day to count the incoming cash. The manager or owner should be present during the count for verification. It is good practice to change out quarters and small bills with vendors for use in the bar, as it keeps theses machines profitable and your bar stocked with plenty of change.

Vendors operate jukeboxes too. These are special and maintain ambiance for your bar when there is not a DJ or a band. The music should vary to accommodate many tastes. Consult with your bartenders and customers for requests. Your vendor should make any changes to the lineup you may require.

An organized, knowledgeable, and aware bar manager can take on any task. Knowing your basics, staying abreast with your bartenders, and maintaining a good rapport with your distributors and vendors is key. Keeping your thumb on the pulse of the bar, listening to customer feedback, and investing extra effort will keep your bar running smoothly.