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Second Quarter 2016 & Third Quarter 2015
Bar Edition
OverviewBeer: includes bottled and draftLiquor: includes all liquor products including open liquor (assumed 30% cost)Non-Alcoholic: Includes soda, juices, craft sodas, coffee products and teas (iced and hot)Wine: Includes all wine and corkage. Wine analyzed at per glass averages (i.e. BTL = 5 glasses, .5 BTL = 2.5 glasses)
Time Frames•Second Quarter 2016• 1st of April – 17th of June•67 Days of Business
•Third Quarter of 2015•1st of July – 30th of September•92 Days of Business
Alcohol and Beverage Comparison
Items 2016
Daily AVG 2015 Daily AVG Diff % Change
Beer 6194.28 92.45194 6403.89 69.6075 22.84444 33%
liquor 12701.29 189.5715 13111.37 142.5149 47.05663 33%
Non Alc 3007.71 44.89119 4448.81 48.35663 -3.46544 -7%
Wine 14849.99 221.6416 12505.69 135.9315 85.71019 62%* Table of bar profits by item type
%Change: Beer: +28.4% Liquor: +26% Non Alc: -2.29% Wine: +53%
* Wine Units in GL
%Change : Beer: +33% Liquor: +33% Non Alc: -7% Wine: +62%
Average Profit Per Drink (Q2.2016)
Beer Liquor Non-Alcoholic Wine*
$4.43 $7.31 $2.86 $7.65
*GL, BTL, .5 BTL all averaged to per GL profit
Overview SummaryOn Any given day wine accounts for 40% of total bar profitsFollowed by liquor @ 35%Beer @ 17%And non alcoholic @ 8%
WineALSO KNOWN AS HOW THE BAR MAKES MONEY
Wine OverviewHighest average profit per glass @ $7.65Most frequently sold alcoholic beverage on average @ 29 glasses per day and highest average daily profit @ 22262% increase in profits from last yearBy the Glass sales most profitableCommon Varietals more frequently purchasedPattern of varietals sold largely similar between quarters
*BTL, .5 BTL and GL reduce to GL counts*Data labels refer to customer cost per glass
Wine Profit by Varietal
Price per glass doesn’t greatly impact sales
Fairly even distribution between white and red wine drinkers
*Data label refers to customer price per glass
Profits by Volume SalesAVG Profit per GL per
BottleAVG Profit per GL
per .5 BTLAVG Profit per Glass
$6.57 $7.08 $8.42
*Mark up from cost is the same but rounding benefits per glass sales
Wine SummaryThere may be an upper limit for price point for customers (i.e. Zinfandel Sales down perhaps due to Seghesio price point; other retired high point wines)Varietal familiarity likely determines choice before pricePerhaps more flexible in pricing for known varietals, less so with uncommon onesQualitatively: while some customers want a foreign wine (specifically Rose and Prazzo), many Europeans request local wines. Maybe list state and region on wine list?
LiquorWHERE CRAFT IS KING
LiquorSecond highest average profit per drink @ $7.31Second highest average volume in sales @ 25 per daySecond highest average daily profits @ $190 a dayPrickly Pear dominates despite being $12 a cocktailFinancial and Brand incentive to favor craft cocktails vs conventional cocktail
Craft vs ConventionCraft Cocktail AVG Profit Per Drink Conventional Cocktail AVG Profit Per Drink
$8.33 $5.70
*Craft cocktail order worth approximately 45% more than ordering off menu on average
Cocktail-Other: -7% Craft Cocktail: +51%
Comparing Off Menu Cocktail
ProfitsIncrease in Scotch and
after dinner drinksPreference for cheaper
vodka and whiskey off menu
Beehive G&T similar to Sage Mojito
Consider another whisky or Vodka craft cocktail with cheaper ingredients but more favorable profit margin Scotch: +75% AD: +240%
Craft Cocktail Trends
Prickly Pear continues to dominate despite being $12
Perceived ‘sweetness’ may influence customer choice over price
Craft Cocktail profit margins range from $6.50 (Walters) to $9.90 (Ancho)
Liquor SummaryOpen liquor a black hole in cost/profitSweeter craft cocktails preferredCraft cocktail much higher profit margin than conventionalWhen going off menu, customers prefer vodka
BeerNOTHING TO DRAUGHT ABOUT
Beer OverviewThird top seller @ 21 Beers per dayThird top average per drink profits @ $4.43Third top average sales profits @ $92 per dayDraft beer more popular
Comparing Draft and BottledBeer sales up
primarily through draft
Draft beer accounts for 72% of Beer profits
Bottled: +17% Draft: +40%
Beer Sales Volume
Common practice to charge equal amount for draft or bottle beer when it’s a craft beer
$1 increase in draft equals a 16% increase in average daily beer profits
IPA highest bottle sales, consider IPA draft
Beer SummaryThird top seller but with substantially lower profit margin compared to wine and liquorDraft preferred to any specific bottle by large marginAdvisable to raise price of draft $1Limits on profitability; however draft has better profit margin potential and beer cocktails may increase per beer profits
Non-AlcCOFFEE OR TEA?
Non-Alcoholic Drinks OverviewLowest average profit per drink @ $2.86Lowest average volume of sales @ 16 units per dayCoffee biggest profit source, primarily after dinner drinks• Espresso, Cappuccinos popular with European crowd
Sharp decline in fountain soda sales, acceptable considering higher sales of alcohol?
After ThoughtsWine is biggest profit portion of bar; local and familiar varietals sell bestCraft cocktail is a higher profit margin to conventional; considering adding a sweet vodka or whiskey drink Draft beer accounts for majority of beer sales; considering increasing price $1After Dinner drinks (both alcoholic and coffee) sales are increasing and good source of additional non competitive income