Will saying no to guns mean lost business for Ohio restaurants?
It is looking like bar and restaurant owners in Ohio are having to make a decision between allowing guns in their business and losing a few paying customers.
Last summer the state passed a piece of gun legislation the Cleveland Plain Dealer called “one of broadest in the country.” Senate Bill 17 made carrying firearms into any so-called “Class D” establishment legal. The Class D list includes includes bars, restaurants, nightclubs and shopping malls.
The law allows those with conceal carry licenses to possess firearms but not to consume alcoholic beverages or be drunk. Violation of the provision is a felony and results in revocation of the conceal carry license.
It also is illegal to carry a firearm into any establishment that posts a sign saying it does not want guns on its premises. Which is where this story begins.
Operations Tip: Comparing Ideal, Actual and Purchased Costs to Sales
Guest Post by Chuck Deibel, Senior Partner at BEVINCO
Often Bar operators will calculate what their costs should be by dividing their purchases by their sales. This is a flawed method. This paper provides the actual numbers for purchases, sales and costs used for 3 weeks to show how this doesn’t provide accurate information.
As you might recall the calculation for each is as follows”
Actual Pour Cost percentage (APC) is arrived at by dividing the cost of the inventory used by the sales. The cost of the inventory used is arrived at by adding the purchases to the previous inventory and then subtracting the ending inventory from that sum. So it’s Beginning Inventory, plus purchases subtract ending inventory.
Ideal Pour Cost percentage (IPC) is arrived at by dividing the cost of the inventory sold by the sales. The cost of the inventory sold is arrived at by adding the cost of the inventory sold, plus the cost of any comps or spills.
Is money the best way to motivate your staff?
We all know they wouldn’t show up for work each day if you weren’t paying them, but is money the most effective way to get the most out of your employees?
In a piece for Inc. magazine, Ciplex founder Ilya Pozen says not necessarily. Pozen details a handful of free carrots that could help you push your staff to be its best.
Here are a few of his ideas:
Don’t criticize or correct: Choosing different ways to handle a mistake – asking the employee to come up with better solutions on their own, should the issue arise again – can be superior to a strictly negative approach.
Operations Tip: Profit Analysis Simplified
Guest Post by Chuck Deibel, Senior Partner at BEVINCO
Is looking at just the change in your Pour Cost percentage enough to determine how much more profitable it is to reduce your lost sales and missing inventory?
Look at the following simple example. Whether it’s bottles of beer, shots of liquor, glasses of wine or pints of draft beer, the use of the analysis method and interpretation on profit is the same.
Bottles of domestic beer are used at a cost of 65 cents each. They are to be sold for $3.00 each. The ideal cost percentage is .65/3.00 = 21.67%
WEEK ONE
10 bottles of beer are used, which results in costs of $6.50.
8 bottles of beer are sold, which results in sales of $24.00.
The actual cost percentage is 27.1%
The ideal cost percentage is 21.67%
The efficiency rating is 80%
The loss at cost is $1.30
The loss of revenue is $6.00. Profit is $17.50
Questions you have to ask during interviews
We found an article on the CBS News website that could potentially be very useful the next time you are filling positions.
After interviews with a number of job placement and human resources professionals, CBS settles on a half dozen questions that will help in the process of selecting the best possible candidate. Here is what they came up with:
1. What’s important for you in a job? Since we know the candidate wants to work there, CBS points out the interview is a chance to assess the fit from both sides. If something about how you operate doesn’t gel with their goals this is the time to find out.
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About Barry Chandler
Barry Chandler works with bars and restaurants to bring more customers in the door through effective use of social media, online tools and customer engagement.
Since 2004, more than 2500 bars, restaurants and hotels have used his tools and services to improve their bottom line.
TheBarBlogger.com contains daily tips and strategies to grow a profitable hospitality business.
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