Estimating your profit increase tracking draft beer sales
Step 1: Calculate your actual pour cost percentage
Example:
- Weekly draft beer sales average => $4000
- Average weekly keg purchases =>10 kegs
- $80 purchase price per keg => $800 weekly cost.
- A half barrel keg contains 1984 Oz => $80/1984 => 4 cents per Oz.
ACTUAL POUR COST => $800/$4000 X 100 = 20%
Step 2: Calculate your target pour cost
Intercept a beer served by a bartender as normally served in your venue.
Measure the amount served with a graduated container.
- Quantity measured => 16 Oz.
- Cost per pint => 16 Oz. X 4 cents => 64 cents
- Selling price per pint => $4
Targets pour cost => $0.64/$4.00 X 100 = 16%
Step 3: Apply the new pour cost percentage to the actual beer keg purchases
- $800/16% => $5000 in sales
- Difference => $1000 per week
Step 4: Evaluating your potential for profit increase
- Difference in pour cost => 4%
- $1000/$4 per pint = 250 pints
- 250 Pints X 16 Oz = 4000 Oz
- 4000 Oz./1984 Oz. = 2 kegs per week of beer purchased in excess.
- Shrinkage = $160 per week.
- A percentage of this shrinkage is caused by the staff that deliberately and/or inadvertently did not ring in sales.
- If you apply a conservative 30% with 70% in waste, you potential for profit increase is $300 weekly plus 70% in beer cost recovered $112 => $412 weekly
- If you reached 75% of your target by controlling your draft beer sales you would increase your profits by $1339 monthly.
Copyright Auper Electronic Controls Inc 2015
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