Cleaning house in your Bar

Cleaning House is required when you have employees running their own business inside yours. This is extremely common and has a domino effect in terms of your customer base, cost and sales which are major contributing factors for bars going out of business.

Example: Let’s call your bartender Tom. Tom is a very popular guy and has a large number of friends that frequent your bar. He provides excellent service with very generous pours and even free drinks. His friend’s tips are generous and Tom even pockets sales differences for drinks he miss-rang. Pouring premium drinks and ringing well and pocking the difference. Some call this arrangement a “click” because all parties know what’s going on and all benefit from this arrangement- except the owner. Tom is running his own business and may even have other employees working for him who are also in the "CLICK".
Life is good for Tom , though the owner is still managing to stay in business, he/she is clueless to this arrangement.

The Domino effect:

The customer base that are in this “click” are well taken care of in terms of customer service and cheap heavy drinks. New unknown customers in your establishment are neglected and are provided poor customer service as employees in the "click" are more focused on their friends and their own internal business. As a result, these new customers fail to return. Ask yourself, why does a customer prefer one bar over the other? With all things being equal to product selection, price and atmosphere, the answer is pleasant customer service with a smile. Making the customer feel special so they have a good experiance. As you can see, Owners lose 2 fold when this is happening:

1. Cost and sales of stolen product.
2. Sales revenue lost from diminishing new customer base

Now let’s say Tom had a falling out with one of the ”click” members, and another moved and then over time this “click” customer base disappeared due to attrition. You now have no new customer base to replace the “Click” because your staff provided only limited customer service. What you end up with is an empty bar.

Red Flags

  • Bartender has many friends that come on a regular basis. The same crew present every time they work. 
  • Unequal attention to parties. The crew mentioned above get more attention and service. 
  • Bartender drives a nice car, jewelry, etc.. nicer than what their salary can support.
  • Limited new customer base. 
  • Poor performance of inventory.
  • Also see 50 ways to steal from your bar below!

Our software can help identify this type of arrangement so you can clean house and increase your revenue stream 2 fold. Once you have cleaned house, employees must provide consistent great customer service to all customers in order to solicit tips. This helps maintain and increase your customer base as new customers are more likely to return when they have a good experience, which will dramatically increase your sales revenue. You no longer are being stolen from which will dramatically increase your sales revenue and lower your cost. Once you see the amount of revenue that is generated from a clean house, you will be shocked at the amount lost due to thief and poor customer service that is inherent with the "CLICK". This can average in the thousands per week.

Do you need to clean house? Contact LAC today!