Is Your Establishment Making All It Could? Sculpture Hospitality Helps Companies Maximize Bar Profits

By on June 9, 2017

As often as the life of working at Quest Magazine brings us in contact with bars, bar managers and staff, when we came across Sculpture Hospitality and learned what they do and how we were infinitely intrigued. The methods they are using are nothing short of effective.

Sculpture Hospitality will, among other things, make sure that your establishment’s staff and equipment are able to more effectively meet their highest potential. From teaching you how to create Management Incentive Plans that actually work to teaching you and your staff how to properly use and navigate the huge free (or low cost) advertising potential of social media marketing and rapport, how to avoid the overstocked/under stocked paradox, how to fix dysfunctional POS systems and more.

Here is a small peek at some of their methods…

The Motivation to Focus on Profitability
There’s a reason why everyone in the restaurant industry is talking about Management Incentive Plans (MIPs). Highly successful when used effectively, they motivate hospitality managers to stay laser-focused on the most valuable, controllable, profit-enhancing elements of your business. With the right balance, you can structure an MIP to pay a portion of salary according to performance, giving you the flexibility to recoup losses if they occur.

The Keys to Successful Incentives
Successful MIPs start with the right objectives, and they include an appropriate and adequate financial reward. The plans that truly motivate are applied fairly and consistently, plus they involve regular monitoring and communication.
An effective MIP will give your restaurant manager a sense of ownership, providing the motivation to focus on correct, controllable measurements, despite the many distractions of a busy restaurant.

When incentive plans set unrealistic objectives, pay out only once a year, or lack regular discussion and revision, the effect can be quite different. Handled without due care and attention, an MIP can become demoralizing and demotivating to your staff, and fail to accomplish the primary objective of improving profitability.

A Valuable Recruitment Tool
Nowadays, many large chains offer their management teams 401ks, health benefits, training, education, and even ownership options. Implementing an MIP places you in a competitive position, so you can tap into a prospective employee’s entrepreneurial spirit. It will help you attract and retain the best talent available, because top performers welcome the opportunity to control salary, and thrive on the motivation to earn more by reaching objectives.

Beyond MIPs… The Wide World of Social Media, POS Systems, & Efficient Ordering

The explosion of Facebook, Yelp, and other social media has upended traditional restaurant and bar marketing and now for little to no cost it can be taken advantage of for a number of it’s promotional abilities. Any bar or restaurant owner right now who has a growing business and who is doing well or is maintaining business or who wants to grow business at some point turns to advertising and marketing to get people in. It might be radio. It might be TV. It might be magazines. Whatever it is, they’re advertising to get people in the door and grow their business. They have no idea whether people heard their ad on the radio. They have no way to measure the success, necessarily, of that media. What they’ll have done is they’ll have bought a 30 second spot in the hope that it gets people in the door. If you’re sceptical about social media, something to bear in mind is that we already know from the numbers, from all the statistics that we hear every day, that our customers are using social media. So wouldn’t it make more sense to be where our customers are – rather than hoping that they’ll listen to the radio that we take our ad out on. And we already know our customers are spending one, two, three, four hours a day on social media every day. So, it makes sense to be where our customers are, and that’s the biggest reasons why social media makes sense for bars and restaurants.

After Sculpture Hospitality gets done teaching you how to use Social media to it’s fullest you’ll also learn about how you may be sabotaging yourself with a dysfunctional POS system and how to maximize profits with simple programming changes. For instance they will help you eliminate generic modifiers, better structure new modifiers, how to be speedy without “speed keys”, using POS for effective inventory control, encouraging upselling, tracking comps, spills and kitchen use, how to integrate color coding and more. Touchscreen point-of-sale (POS) systems can cost more than $20,000. So, why do so many POS installers dumb the system down to the level of a $200 cash register? This is a phenomenon we see all too often. Operators waste much of that $20,000 if they set up their POS system to include so-called “speed keys” that enable the bartender or server simply to ring up well liquor or import beer, rather than the drink or brand ordered. Inevitably, when the system allows for the use of speed keys, most drinks are rung up using them—which defeats the whole purpose of buying an expensive POS system in the first place. If all your sales reports can tell you is that you sold 312 premium liquor drinks, you’re not getting much value out of your POS system. In fact, a cash register could have told you the same information at 1/100th of the cost!

Another confusing conundrum facing the Bar & Restaurant Industry is that most bars carry too much inventory—between $6,000 and $10,000 too much. Yet, all too often, they run out of something between orders. Bar and restaurant owners are right to be confused about how and why they’re running out of items despite the fact that their overall inventory level is actually excessively high. The problem, of course, is that most bars have too much of the wrong things. Still, this doesn’t completely explain the root cause. Clearly, the ordering process in our industry is flawed. Here’s why: There are four main ways that an establishment determines how much to order: 1. Eye-balling it, 2. Deferring responsibility, 3. Set up a par for historical use, 4. An empty bottle assessment. These are all subpar methods for this task and use of subpar methods comes at the cost of profits you should be collecting. One of our better methods is to establish a par that is re-calculated every week. Thus, pars are automatically raised as a brand’s sales go up and automatically lowered if a brand’s sales drop.

For more in-depth information please contact Sculpture Hospitality of Arizona directly at 480-525-1041, ask@sharizona.com, or www.sharizona.com and see how they can help you maximize your profits.


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