The Beverage Cycle
Purchase
Beverage
Control Receiving
The Beverage
Service Storing &
Sequence Cycle Issuing
Service Methods Inventory
Production Methods
Purchasing
Aims to purchase the best quality
at the lowest price
What to buy depends on quality of
pouring and well brands.
Also, purchasing should offer a
wide enough range to satisfy the
target market.
Where to buy is governed by laws
of the state and structure of the
market.
Purchasing
How much to buy is established by
deciding the par stock for each bar.
Maximum and minimum stock levels
and reorder points are laid down.
When and how often to buy depends on
the volume business, size of inventory
schedules of suppliers, specials and
offers and variables such as holidays.
What to pay is typically fixed by law and
prices are the same in all bonded
warehouses.
Beverage Suppliers
Wine shippers
Wholesalers eg. M/s Brindco Sales,
M/s TT&G Trading Pvt Ltd
Beverage manufacturers eg. United
Distilleries, United Breweries, Bacardi
Martin India Ltd, McDowell & Co,
Baramati Grape Industries,
Champagne Indage Ltd, Grover
Vineyards Ltd.
For all imported beverages, purchase
orders are raised via central purchase.
Purchase Specifications
Sets down in writing the standard of a
product for a specific use by an
establishment.
Then used by the purchasing manager
to inform suppliers and used when
negotiating price
Specifications much simpler for
beverage than food as beverages are sold
by brand name label (own quality) and
in standard size
Price is the only factor which is not
constant
Receiving of Beverages
Due to value accuracy is important with
quantity received and that ordered
quality sent is what was requested
(brands, case sizes and vintages)
prices as quoted (check extensions;
invoice total = no. of units X unit cost)
if returns are sent a credit note is
raised
records in goods received book
returned empties etc (kegs)
Important to schedule deliveries to when
suited to the establishment for thorough
checking.
Storage and Issuing
Require appropriate
storage/refrigeration and tight level of
control
Refrigerated area for the storage of white
and sparkling wines (5.8 oC)
Refrigerated area for the storage of kegs
(sent directly to the bar)
Area for the storage of bottle and
packaged beverages held at a constant
temperature (13)
Separate area for the storage of crates/
boxes/ empty beer and soft drinks
bottles and kegs
Storage and Issuing
Beverages usually bin listed or
coded (kardex) as a system of
perpetual inventory.
Issuing of beverages is usually
done at select times of the day, for
greater control and to allow staff
time to prepare orders.
Beverage requisition is required,
and a system of one for one is
followed.
Storage and Issuing
Due to the high value of the beverage
products, sufficient records must be
kept
Goods received (cellar inwards)
Bin cards (Kardex)
Cellar control book: daily deliveries
and issues from cellar
Beverages perpetual inventory ledger
Ullages and breakages
In Maurya each bottle is also stamped
with an identifying sticker for better
control.
Beverage inventory
Objectives
Determine value of all beverages in
stock
To compare the actual value of
beverages held with the book value
(cross check)
Identify the value of slow moving and
non moving items
Compare beverage usage with
beverage sales to calculate gross profit
To deter pilfering and check security
and control systems
To determine rate of stock turnover
Physical inventory
It is done monthly in Maurya.
A complete count of all bottles and
kegs by persons, who do not buy or
handle liquor on the job.
At least two people should do the
job together.
The liquor in the bar is also part of
the inventory and is counted daily.
Perpetual inventory
A continuous process of compiling
daily from invoices and daily
requisitions.
It is maintained by kardex system
– a separate card for each item.
Further a stock report can be
reported by the computer at any
moment.
A combination of these two
inventory methods is virtually fool
proof.
Inventory management
Stock levels may be determined by using
past sales data.
M = W (T + L) + S
M = Maximum stock
W = Average usage rate
T = Review period
L = Lead time
S = Safety stock (buffer)
Inventory turn over = purchases for the period
average inventory
Beverage Production Methods
Degree of preparation varies,
generally non-alcoholic which take
more time
Raw beverages (coffee, tea, hot
chocolate etc), require preparation
time
Semi-prepared (cordials, cocktails)
not ready to serve, need some
preparation
Fully prepared - require no
preparation
Range should suit establishment
Beverage Service Methods
Self-service Waiter Service
Cafeteria Counter or bar
Bar service Table service
Banquet service
Vending
Room and
Room Service
lounge service
Buffet Drive-in service
Take away Coffee carts
Liqueur trolleys
Basic Steps in Bar Control
ORDER FORM (PURCHASE/STORES)
WHOLESALE WINE AND SPIRIT DEALER
BEVERAGE STORES
GOODS RECEIVED RETURN
CELLAR STOCK REGISTER (COMPUTERIZED)& KARDEX
ISSUE AGAINST REQUISITIONS (L3 AND L5)
BARS MAINTAIN PAR STOCKS, BY WEEKLY REQUISITIONS
DAILY CONSUMPTION SHEETS
BAR STOCK BOOKS
Beverage Production Control
Simpler task than for food as beverage
often secondary to food and product
generally non-perishable.
Areas that need to be considered
Volume forecasting (use sales history)
Standard yields - accurate to
calculate as there is no wastage
Standard recipes
Standard portion sizes (auto
dispensing systems)
Beverage Service Sequence
Beverage Controlling
Report on the actual and the potential
sales and costs of each beverage outlet.
Strict controls necessary to avoid theft
and fraud
Several methods can be used
Bar cost system
Par stock or bottle system
Potential sales value system
Inventory or ounce system
Function bar system
Beverage Control - terminology
Beverage cost - cost of beverage in
prepared drink
Beverage cost percentage - cost of
beverages sold as a percentage of
sales
Gross profit - sales minus the cost
Potential beverage cost or sales -
what would be achieved under
ideal circumstances
