How to Run a Successful Bar Business: Expert Tips on Drinks Menus, Wine Lists, and Managing Inventory

Operating a profitable and popular bar takes much more than just mixing drinks. You need a strategy for curating an excellent wine and beer selection, managing inventory carefully, training staff appropriately, and marketing your business effectively. Follow this guide to running a successful bar business.

Know Your Specialties and Build the Drinks Menu Accordingly

Understanding your bar’s identity and crowd is the first key to success. This knowledge not only shapes your drink offerings but also gives you a strategic edge in the market.

Focus on Quality Over Quantity

• It’s crucial to resist the temptation of offering a vast drink selection. Instead, curate a tighter, specialised menu that showcases high-quality liquors and cocktails. This discipline and focus will set your bar apart.
• Build your menu around 6-10 base spirits, such as vodka, tequila, rum, whiskey, etc. Then, include 5-10 signature cocktails.
• Rotate in 1-2 seasonal special drinks to keep things fresh.

Understand Your Patrons’ Tastes

• Take stock of your customers’ preferences. It’s not just about what you like, but what they gravitate towards. This customer-centric approach will keep them coming back for more.
• Keep a range of draft beers and classic mixed drinks for a local neighbourhood pub. Craft cocktail bars can feature more exotic ingredients.
• If you draw a younger crowd, include trendy drinks like hard seltzers, spritzes, and vodka sodas.

Specialise in a Type of Cuisine or Drinks

• Consider a speciality, like a whiskey bar focused on scotch and bourbon. Or a Latin bar with tequilas, sangria, and mojitos.
• Let your drinks menu reflect your bar’s ambience and motif. For example, a beach bar could offer tropical rum drinks and lighter beers.

Curate a Thoughtful Wine and Beer Selection

Choosing wines and bottled/draft beers is an art and a science. Follow these tips to make an appealing selection.

When curating your wine list, it’s crucial to offer a range of Styles and prices. This approach caters to different customer preferences, from those seeking a casual glass to those looking for a more premium experience.

• Include inexpensive $5-15 glasses and higher-end $12-20+ options on your wine list.
• Cover the significant bases like Chardonnay, Cabernet, Pinot Noir, and Sauvignon Blanc.
• Mix in less-common varieties like Albariño, Grüner Veltliner, and Viognier. But start with just 1-2 to test demand.
• Rosés and sparkling wines are very on-trend. Carry 3-4 options for each.

Feature Local and Craft Beers

• Dedicate at least 25% of your draft lines to local/craft beers. They attract beer lovers.
• Also, they stock nationally-known beers like Heineken, Corona, and Guinness to satisfy mainstream tastes.
• Include diverse styles: IPAs, stouts, wheat beers, sours, lagers, and ales.
• Rotate seasonal beers regularly. Offer beer flights so customers can sample 4-5 small pours.

Take Risks Sparingly on New and Rare Products

• It’s exciting to snag hard-to-find bottles of wine or whiskey. But these don’t always sell.
• Only buy 1-2 bottles of rare, expensive liquor until you gauge if there is demand.
• Particular orders of high-end champagne and wine for customers are available upon request. Don’t invest in cases upfront.

Use Inventory Systems to Optimize Ordering and Reduce Waste

Careful inventory management saves money and reduces waste. Use these techniques:

Use Inventory Software

• Invest in bar inventory software to track exactly what you use and sell. It calculates ideal reorder points.
• Set par levels for each product. The system alerts you when the stock hits its floor and needs reordering.

Follow Ideal Order Quantities

• Order liquor in ideal quantities – usually 1 litre, 1.75 litre, or litre bottles. Buy lesser-used ingredients in smaller 375 ML or 200 ML bottles.
• For wine, order cases of 6 or 12 to get distributor discounts.
• For beer, order kegs of various sizes, such as 1/6 barrel, 1/4 barrel, etc. Get mini kegs for experimental and seasonal brews.

Monitor Usage and Adjust Orders

• Look at usage rates and sales velocity for each product. Order more of your top sellers, and scale back on slow movers.
• Gradually increase orders for growing products and decrease stocks of declining items.

Institute Inventory Controls

• Do regular inventory counts to identify shrinkage or theft. Require employees to ring up every poured drink.
• Establish protocols like portion controls and manager approval for complimentary drinks. Don’t allow over-pouring.
• Use redesigned pour spouts and graduated shot glasses to ensure accurate 1 oz/1.5 oz pours.

Optimise Staff Training for Maximum Quality and Efficiency

Proper employee training improves service, drink consistency and financial performance.

Investing in formal bartending training is a key step in improving the quality of service at your bar. Sending your bartenders to multi-day immersion programs at bar schools can equip them with the skills they need to excel in their roles.

• Send bartenders to multi-day immersion programs at bar schools. They’ll learn skills like:
  • Mixology, garnishing, balancing flavours
  • Pouring accurate shot sizes
  • Advanced techniques like flaming, muddling, layering

Train Servers on the Menu Offerings

• Educate servers thoroughly on the drinks menu. They should be able to make recommendations and answer questions.
• Have them sample the wines, beers, and cocktails so they can describe their tastes from experience.

Set Service Standards

• Establish proper protocols for service steps, such as greeting customers, taking orders, pouring, and presenting.
• Train staff to prioritise speed, friendliness, and maintaining the bar’s vibe.

Monitor Performance Closely at First

• Invest time early on critiquing new hires and offering feedback. Nip bad habits in the bud.
• Test bartenders on pour counts, recipes and proper garnishing. Calibrate them to your standards.

Market Your Bar’s Drinks Offerings Creatively

Promote your beverages wisely to attract customers.

Advertise Happy Hour and Daily Drink Specials

• Promote discounted drink prices and happy hour on social media, email, and in-restaurant displays.
• Offer deals like “$3 Margs on Mondays” or “$5 wine flights on Wednesdays”.

Create Seasonal Drinks Menus

• Design special menus around Halloween, Christmas, and Valentine’s Day with themed cocktail names and presentations.
• Refresh your menu completely each season with new recipes.

Partner with Alcohol Brands

• Collaborate with liquor reps to do speciality tasting events and new product launches.
• Apply for sponsorship deals with beer/wine brands to fund advertising or events.

Highlight Your Bar’s Unique Selling Points

• Promote your speciality liquor collection, rare imported beers, or award-winning bartenders.
• Share positive press and reviews about your cocktails. Tout cocktail competition wins.

5 Frequently Asked Questions About Operating a Bar

1. How much liquor inventory should a new bar have?

Aim for 25-40 bottles of base spirits plus mixer ingredients and bitters for a full bar. Have at least ten wines by the glass. Start with 5-8 draft beers, then expand over months.

2. What percentage of revenue should come from alcohol sales?

Industry benchmarks suggest 60-80% of revenue comes from liquor, wine, and beer and 20-40% from food in establishments that serve food. Keeping alcohol sales high improves profit margins.

3. How can you prevent theft behind the bar?

Require counting bottles at open and close. Weigh kegs to identify missing beer. Install security cameras. Conduct random inventory audits. Require employees to ring up every drink poured.

4. Should you allow staff to drink on the job?

No. Prohibit drinking on premises except in very small quantities for menu training purposes. Set expectations early that drinking while working is unacceptable.

5. How can bartenders make consistent cocktails?

Use jiggers for exact pour counts. Make batched mixes. Standardise recipes and garnishes. Use high-quality juices and ingredients. Taste frequently for consistency.

Wrap Up

Running a lively and lucrative bar starts with thoughtful menu planning, inventory controls, and top-notch staff. Focus on quality over quantity in your offerings. Take risks sparingly on new products and only after testing demand. Market your speciality drinks and team talents. Your bar can become “everybody’s favourite neighbourhood spot” with the proper foundation. Cheers!