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    Bar Frauds & Forms

    Uploaded by

    Om Singh
    The document discusses various methods for monitoring beverage operations in bars and restaurants to prevent fraud. It notes that while alcoholic beverages have lower costs than food items, they are also more prone to fraud through drink substitutions, improper pouring, bringing in outside drinks, and other means. The document then provides standards and control procedures for pouring, pricing, inventory management, and other systems that can be implemented to monitor beverage costs, liquid inventory, and potential sales values to detect any fraud or losses. It also discusses legal issues around beverage control and gives examples of calculating drink costs and expected alcohol usage based on sales.

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    Attribution Non-Commercial (BY-NC)
    Download as PPT or read online from Scribd

    Bar Frauds & Forms

    Uploaded by

    Om Singh
    8K views41 pages
    The document discusses various methods for monitoring beverage operations in bars and restaurants to prevent fraud. It notes that while alcoholic beverages have lower costs than food items, they are also more prone to fraud through drink substitutions, improper pouring, bringing in outside drinks, and other means. The document then provides standards and control procedures for pouring, pricing, inventory management, and other systems that can be implemented to monitor beverage costs, liquid inventory, and potential sales values to detect any fraud or losses. It also discusses legal issues around beverage control and gives examples of calculating drink costs and expected alcohol usage based on sales.

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    The document discusses various methods for monitoring beverage operations in bars and restaurants to prevent fraud. It notes that while alcoholic beverages have lower costs than food items, they are also more prone to fraud through drink substitutions, improper pouring, bringing in outside drinks, and other means. The document then provides standards and control procedures for pouring, pricing, inventory management, and other systems that can be implemented to monitor beverage costs, liquid inventory, and potential sales values to detect any fraud or losses. It also discusses legal issues around beverage control and gives examples of calculating drink costs and expected alcohol usage based on sales.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT or read online from Scribd
    Download as ppt
    8K views41 pages

    Bar Frauds & Forms

    Uploaded by

    Om Singh
    The document discusses various methods for monitoring beverage operations in bars and restaurants to prevent fraud. It notes that while alcoholic beverages have lower costs than food items, they are also more prone to fraud through drink substitutions, improper pouring, bringing in outside drinks, and other means. The document then provides standards and control procedures for pouring, pricing, inventory management, and other systems that can be implemented to monitor beverage costs, liquid inventory, and potential sales values to detect any fraud or losses. It also discusses legal issues around beverage control and gives examples of calculating drink costs and expected alcohol usage based on sales.

    Copyright:

    Attribution Non-Commercial (BY-NC)
    Download as PPT or read online from Scribd
    Download as ppt
    of 41

    Bar

    Frauds
    Profit Potential of Alcoholic
    Beverages

    • Lower Product Cost


    • Lower Labor Cost
    • Lower Labor Wages for Bar Production
    Personnel
    (Bartenders) as Opposed to Food
    Production Personnel
    • Lower Operating Costs (Ware Washing,
    Linen,
    Maintenance, Cleaning, Supplies, Energy
    and So Forth
    • Lower Investment Expense
    • Beverage Systems Less Complex;
    Therefore, Should
    Be Easier to Control
    • BUT!!!
    BAR FRAUDS

    ?
    BAR FRAUDS
    • Substitutions
    • Under pouring/Over pouring
    • Bring in Own Bottles
    • Free Pouring
    • “Free” Drinks
    • Unrecorded Drinks
    • Watering Bottles
    • Banquets
    • Ringing Wrong Price
    • Full bottle versus portion
    BAR FRAUDS - Continued
    • Alteration of Checks
    • Draft Beer
    • Misuse of Promotional Materials
    • Soft Drinks
    • Reusing Guest Checks
    • Breaking Empty Bottles
    • Assume guest is gone
    STANDARDS
    • Glassware
    • Measuring Devices
    • Pouring Procedures and
    Techniques
    • Garnishing
    • Pricing
    • Ordering and Calling
    • Check Writing
    • Drink Formulas - Recipes
    STANDARDS
    • Station Setup
    • Cash Handling
    • Register Procedures
    • Replenishment of Bar Stock (Par
    stock)
    • Ordering Stock from the
    Storeroom
    • Bottle Arrangement in Bars and
    Storage
    Areas
    STANDARDS
    • Back bar

    • Front bar

    • Under bar
    Automatic
    Beverages

    Control System
    Controlled access to the system

    • “Every waiter has it’s own


    personalized ID device”
    • There are several access levels,
    depending on the responsibility of
    each user
    Various
    Forms
    Facing the
    Law
    Approaches to Monitoring Beverage
    Operations
    • Cost: determining the cost of
    beverages sold and comparing that
    figure with standard cost
    • Liquid measure: comparing the
    number of ounces sold with the
    number of ounces consumed
    • Sales values: comparing the
    potential sales value of beverages
    consumed with actual sales
    revenue recorded
    The Cost Approach
    • Are cost-to-sales ratios being maintained?
    • Beverage cost is determined from inventory
    and purchase figures (like food)
    • Opening inventory plus purchases = value of
    beverages available for sale
    • Bar inventory differential must be included
    • Beverage cost percent %= beverage cost /
    beverage sales
    • Calculation per category is possible
    The Cost Approach – Adjustments

    • Food and beverage transfers


    • Cost of mixers
    • Cost of garnishes
    • Consumed by management or
    employees
    • Beverages used in promotional
    activities
    Exercise

    The Boss Bar


    • Standard Portion Costs
    • • 750 ml bottle contains 25.4
    ounces
    • • Portion size = 1.5 ounces
    • • 25.4 ÷ 1.5 = 16.9 drinks per
    bottle
    • • Allowing for evaporation and
    spillage of .4
    • oz.
    • • 16.9 – 0-4 = 16.5 portions
    Standard Portion Costs
    • Calculation:
    • $13.85 ÷ 16.5 oz. = $ 0.83
    standard cost per drink (for
    straight drink with no mixer
    Or
    • $13.85 ÷ 25.4 oz per bottle =
    $ 0.55 per ounce
    • $ 0.55 x 1.5 portion size = $
    0.83 standard portion
    Liquid Measure Approach
    – Ounce control method
    • Involves taking daily
    inventory of bar stock to
    determine actual usage,
    which is then compared to
    usage that should have
    occurred relative to
    revenues
    THE QUANTITY OUNCE METHOD
    •The manager of the Daiquiri bar wishes to make a
    spot-check of rum sales record for comparison with
    rum inventory records for May 25th.
    •Opening rum inventory on that date was 6.4 bottles
    and closing inventory was 4.1 bottles. Five full bottles
    of rum have been requisitioned for the storeroom on
    that day.
    •Bottle of rum contains 25 ounces.
    Analysis of the sales checks revealed the following:
    Drinks Quantity sold
    Straight rum (1 oz) 144
    Daiquiri (1 ½ oz) 8
    Cuba libre (1 ¼ oz) 8
    Rum Swizzle (1 1/8 oz) 8
    As manager would you be satisfied with the results?
    Potential Sales Value
    Approach

    • Determine the
    potential sales value of
    each bottle and
    compare to actual sales
    Potential Sales Value Approach -
    Example
    • 1 btl of Chivas Regal
    • 70 cl
    • 1 drink = 4 cl
    • 1 bottle = 70 / 4 = 17.5 drinks
    • 1 drink sales price = CHF 20.-
    • POTENTIAL SALES OF THE
    BOTTLE
    17.5 drinks x 20.- = CHF 350.-

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