APR 2007 

  

  

  

See Barmetrix Beer - a reality!_____________________ 

Content today:  

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MESSAGE FROM THE DIRECTOR

 

Dear Colleagues,

 

I was sitting with a cold ale at the Beach Hotel in Byron Bay last week (which bytheway has reportedly just sold for a whopping 65m…) and I got to thinking about the importance of keeping a relaxed perspective on life and business – and how important it is not to let the little stuff get to you.

 

The urgency and immediacy that drives the hospitality business often pulls us into a very reactive mode of living & working – with some days seeming as though they were just one emergency after another.

 

It is all too easy to find ourselves (over) reacting to situations, and allowing external situations to dictate how we feel. Our emotions are often kicked into gear by often trivial circumstances – and this doesn’t do us any favours in the eyes of our staff. Our staff are looking for owners and managers that seem calm and in control – even if they’re not!

 

Let’s face it, the only thing you can truly control is yourself and your reactions – everything else has some other variable involved in it. Conversely, the only thing we can truly give up/ away is control by pretending it was someone or something else that was responsible for how we feel. We hand over control every time when we allow external situations to dictate how we feel and this then leaves us feeling tired, frustrated and not at peace with ourselves or others.

 

By allowing the everyday ups and downs of running a business to affect us emotionally, we eventually cause everyone to suffer; you, your staff, the business and even your family and friends - no one looks up to or respects someone who seems to be in a constant state of panic/ emotional turmoil! Staying calm and keeping an eye on the big picture is the key to providing a consistent, professional and aspirational role model for your team.

 

Yes, my insight this month relates to the “quality of calm” – as being relaxed and in control of your reactions is an indispensable trait of high quality leaders. How are you going with this? Maybe you need a break in Byron too!

 

The first step toward success is taken when you refuse to be a captive of the environment in which you first find yourself - Mark Caine

 

Now sit back, relax and enjoy the newsletter,

 

Cheers!

 

Jason Jelicich

Director

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BARMETRIX TOP TEN TIPS for Minimising Unintentional Variance

 

If you have been a subscriber to this newssheet for any length of time (or ever managed a bar!), by now you will know that  stock to sales variance is a major industry issue - and one that Barmetrix in particular has devoted a lot of time to studying, understanding and solving. 

 *Barmetrix research, average stock to sales variance of >1000 hotels in Australia, Canada and the USA

Stock to sales variance is stock, (be it beer, wine, spirits, red bull, bottled water etc etc), that goes missing when you have recorded no wastage, sales or promo for it. 

 

Sometimes, as in the case of spirits for example, we may not even know that it has gone missing - simply that GP and return is down. 

 

And even then - if a large amount of loss coincides with a rush of sales on your high margin items, even GP can be unreliable!  

 

After auditing 1000's of bars around the world, Barmetrix has discovered that the average bar loses 10% of all stock they purchase to sell.  It may not sound like much, until you consider that is also the average profit margin! 

 

But before you go blaming thieves - consider what stock control companies (people who rely on you fearing your own staff) won't tell you:  80% of all variance is UNINTENTIONAL.

 

So even honest bartenders contribute to the 10% shrinkage seen in all bars. 

 

How can you fix it?  Of course, we will always recommend getting Barmetrix in to help as the first step, but below are our top 10 tips to get you started on the path to eliminating UNINTENTIONAL variance (a process we take our own clients through).

 

  1. Educate ALL staff on how variance occurs and how costly the problem is

Most staff are oblivious to the cause and are unaware of how costly this problem is. Education must be increased before you can hope for the problem to decrease. The topic should be raised regularly at staff meetings.

 

  1. Conduct extensive pouring lessons for all new staff. This should include spirits, draught beer and wine

Experienced or new to the trade, you must train everyone on the methods and volumes for pouring at your venue.  You wouldn’t have a chef start in your kitchen before a thorough explanation of portion control.

 

  1. Let your staff know where they stand

Penalise poor stock reports (eg no staff drinks if variance is X%) and reward good reports (eg 3 consecutive reports warrants pizza and beer after a busy shift). Remember: if they don’t know, they don’t care!

 

  1. Make key bartenders privy to stock reports

Ask them to explain certain variances. You may find they help you to get to the root of the problem and become much more profit conscious.

 

  1. Periodically spot-check bars immediately after last guest leaves at the end of the day

Nothing shakes up a bar team like a spot-check while they are breaking down the bar.

 

  1. Pour test bartenders every shift

Venues that do this consistently have the lowest variance possible.  The process must be seamless, fun and competitive.  Barmetrix has created a software program for just this purpose.

 

  1. Record all bar wastage on paper

This may sound like strange advice from a company that produces software but it works. The simple act of writing out mistakes is incentive to be more cautious.

 

  1. Streamline your POS system to make keys easy to find

Countless mistakes get made and drinks fail to get rung up when the bar is 3 deep on a poorly configured POS system.  The best way to ensure that it is optimised is to have management regularly work an hour on the bar at peak periods.

 

  1. Etch wine glasses with your logo to mark volume.

This is becoming a very popular way to control wine costs and it works. It also bails bartenders out when punters ask you to “top it up a little”. (See next month's issue for a feature article on this in more depth)

 

10.   Periodically check spirit bottles in recycle bin to ensure they are fully drained.

 

Losing 10-20mls each bottle can add up to major losses over the month.  Pull out a few bottles that are not quite drained and make the point.

 

So there you have it.  Even implementing these 10 simple steps will be enough to drive an improvement in your venue.  (A tailpiece to the research stats - although the industry average variance is 10%.... Barmetrix clients average below 2%!  Give us a call if you are interested doing the same for your venue)

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WELCOMING NEW FRIENDS

 

Barmetrix Sydney is proud to welcome new clients the Bourbon, Dolphin Hotel and the Warren View Hotel, all of the Icon Group, on board!  The Icon venues will be working with Senior Account Manager, Roger Truman, to strengthen their leading position in the Sydney market.

 

We are also proud to welcome Keystone venue, the Australian Heritage Hotel who has partnered with Senior Account Manager Gary Lord.

 

We at Barmetrix are excited to have such quality venues join with us, and we look forward to assisting you to take your businesses further!

 

Barmetrix Sydney would also like to extend a warm welcome to new team members Garry Millburn and Richard Price.  Garry and Richard have joined our Inventory Control team and are fast making a strong impression on both their employers and their clients! Please say hello when you see them in your venue!

 

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OUR HERO - IS IT YOU?

 

Looking for the kind of recognition and exposure that only comes from being held up as hero to 4,000 industry peers? 
 
If you are, then maybe you'd like to submit yourself, or someone you know, as the subject for the next Our Heroes section of this Newssheet.
 
Our Heroes honours those in our industry who achieve outstanding results in their business and are leading the game in terms of profitable, professional operators.
 
The purpose of the recognition, besides encouraging more top performance, is to provide an opportunity for all operators to learn from the best about what contributes to their success.
 
You can make your submission by emailing joel@barmetrix.com with the subject heading "Our Heroes".
 

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BARMETRIX BEER A REALITY!

 The Barmetrix Beer! Courtesy of the good people at Brewtopia

Ever answered your door to a courier and just felt glad to be alive??

 

That's how I felt today when I received a package from Brewtopia.  I don't think the poor courier had ever received such a warm reception!

 

After our story last month on customising Brewtopia's lager and selling it as your own house beer (with their professionally designed labels etc etc), the lovely Jo McHugh contacted us to say that Brewtopia would like to take our fictitious mock up and make Barmetrix Beer a reality, promptly sending around a case.  Are there any sweeter words in the english language than free beer?

 

Unlike our own feeble attempts at design, the in house Brewtopia team produced a very worthy label - although perhaps most credit for a job well done should go to their brewers! 

 

Having seen how the process works (and had further opportunity to sample same) I have no hesitation in recommending it again to you.  Particularly in light of their latest offer...

 

Besides bottled beer, you may remember that Brewtopia also offer a range of customised wines, and bottled water.

 

Putting aside the great margins, have you considered that bottled water is also a great way to market your business outside of the venue? 

 

Water bottles are one of the few receptacles that people are willing to keep and reuse, which means your brand is out and walking around town, and your customers have already paid you good money for the privilege!

 

I hear you saying - Joel, as tickled as I am that you are enjoying free beer - and as great an idea as branded water sounds - why are you telling me this?  We have no space for new products, especially pallets full of minimum-order-untested-products!  Well, Brewtopia are extending an offer to all readers of this newssheet - no artwork fee, no minimum order - and if it doesn't sell, you don't pay.  With those conditions, you needn't even drop your current supplier. Whether you order a case to test the selling power, or stoke your own ego, we say - give it a go.

 
Contact Brewtopia direct by calling Jo McHugh on (02) 9808 2637 or emailing jmchugh@brewtopia.com.au

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READY-AIM-HIRE Part 1

by Angus Winchester and Sean Finter

 Job Interview! Image courtesy of www.the-saudi.net

 

This 2 part article is aimed primarily at bar managers hiring bartenders, but contains useful tips for hiring just about any position

 

All managers need to think of each of his or her staff as an investment. An intricate piece of a puzzle. In our business this is the most important investment that one can make.

 

The right staff encourages repeat business and maintains profitability. A poorly chosen staff can create a bad impression regardless of the amount of promotions, advertising, décor and design or other unique services offered. Although it is important to remember that although you can train someone to tend bar it is nearly impossible to train friendly disposition and attitude. But how can you tell this from a walk in interview or in the flood of applications that follow a help wanted ad… read on…

 

 

  1. Recruitment: ALWAYS BE RECRUITING, The biggest mistake operators make is to begin recruiting the day they NEED somebody to start. Firstly ask your best staff if they know anyone who could fill the post. They have a good understanding of the job and may well mix with other bartenders (or bartender hopefuls). Secondly advertise the job in the window or similar area as people who socialize in your bar may well have a good understanding of the style of the place. You can  also go the conventional route advertise in the press but make sure the wording of the ad mimics the type of staff you are looking for and explains the role clearly – if you are looking for cool lively people then a cool and lively ad is required. Finally, hand out 5 cards a week to likely prospects that you meet in your travels

 

  1. ‘Standard’ application forms: forget using CVs or resumes. This will allow clear comparison of applicants and also let you get the answers to the questions that you want answered. Also it means you do not have to plough through reams of CVs that have been primped, air-brushed and organised away from you. Be creative in the questions you ask for example, “Why is our bar the place that you most want to work?”, “Are you an applicant AND a customer?”, “If so, tell us why you love to visit?”, “What are the two things that you will bring to the team that our bar needs?”, etc 

 

  1. Gauge Experience/skill level: You need to decide what experience you need if, any at all. Not having a structured induction and on going training program (a big mistake) really limits your options. If that is your current situation then alongside the standard application form try using a standard test, based around the requirements of the job that will help sort out the wheat from the chaff. Questions like: What are the ingredients in a Daiquiri including garnish? In what order would you make the following drinks while working dispense? These will quickly give you an idea of whether the applicant has relevant experience for your bar and also indicate how much training will be required. Another school of thought is that experience is not always a good thing (often just a lot of bad habits deeply entrenched). A solid management/bar team can teach just about anyone how to make a perfect round of drinks in 90 seconds but would always struggle trying to teach the art of making a lasting positive impression on a guest. Giving someone a chance to work at your venue with little to no experience can create a lot of loyalty and goodwill. You need to be up front that they will have to truly and energetically commit to your training program (which should be given to them on paper prior to  being hired).

 

  1. Pre-qualifying: All applications should be “pre-qualified” face to face through the 5 minute chat your duty manager had when accepting the application (be the company that ALWAYS make time to accept an application). Your manager on duty must do the original “screen” to see if this person fits the general mold, etc Make it a policy to interview regularly (eg. the first Wednesday of each month) and in clusters of say 2 hours. When you call an applicant for an interview do your own quick screen at the time consisting of 5 predetermined questions (eg. How long do you hope to be employed with us?, What is your university schedule like? Etc) If they pass the test, have them in for a 20 minute interview. Anyone who does not make the cut should be mailed a “Thanks but no thanks” letter (using a standard template) signed by senior management thanking them for taking the time to apply. There is nothing worse than applying and getting no response. It sends a terrible message. Remember that an applicant is a potential customer and you do not want people talking about you for all of the wrong reasons.

 Tips  5 -  7 will be included in next month's issue when this article continues.

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TRIVIA - GRAPE EXPECTATIONS

 Magellan.  Serious about Sherry.

 

Grape growing is the largest food industry in the world. There are more than 60 species and 8000 varieties of grapes, and they can all be used to make wine.

 

As Magellan prepared to sail around the world in 1519, he spent more on Sherry than on weapons

 

The average number of grapes it takes to make a bottle of wine is 600

 

 

The pressure in a bottle of champagne is about 90psi (pounds per square inch). That's roughly three times the pressure in your car tyres.

 

 

There are on average 49 million bubbles in a bottle of champagne.

 

Besides making red wine, grape skins are also used in the production of the grade stamp on meat.

 

Recurring themes on Champagne:
 

"My only regret in life is that I did not drink more Champagne."

John Maynard Keynes, British economist, (1883-1946)

 

"Three are the things I shall never attain--Envy, content and sufficient champagne."
Dorothy Parker, American writer and humorist, (1893-1967)

  

"You can have too much champagne to drink but you can never have enough."
Elmer Rice, American playwright, (1892-1967)

 

 "Too much of anything is bad, but too much Champagne is just right."
Mark Twain, American author, (1835-1910)

Barmetrix Pty Ltd Suite 4, 144-146 Cathedral St. Woolloomooloo NSW 2011 T: 02 9357 3666 F: 02 9357 4666
E:info@barmetrix.com www.barmetrix.com

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