How to Run a Successful Bar

Starting a new bar comes with its unique set of challenges. Once it is off the ground, keeping it successful requires a combination of strategic planning, efficient operations, and exceptional customer service. From creating a unique atmosphere to curating a diverse drink menu, every aspect of a bar's operation plays a crucial role in attracting and retaining customers. By focusing on proper inventory management, staff training, and marketing, bar owners can ensure a memorable and enjoyable experience to keep their patrons coming back for more.

Bar Management Tips

Whether you own a brewery or sports bar, these tips can help you keep your bar thriving for years to come. Success for some is monetary. For others, it is brand recognition, or it could be customer satisfaction. We created a list of tips to produce the most well-rounded successful operation in today's competitive market.

1. Stay on Top of Inventory Management

Running a successful bar involves keeping a close eye on your inventory. Regularly tracking the quantities of your stock will help you identify which items are selling well and which ones may be sitting on the shelves for too long. By staying on top of inventory, you can reduce food and beverage waste, saving you money in the long haul.

Bar inventory shrinkage—the loss of inventory due to theft—spillage, or errors, can significantly impact a bar's profitability. On average, bars experience a 20-25% shrinkage rate, with the most common causes being overpouring, employee theft, and administrative errors. By implementing strict inventory control measures, you can optimize your operations, improve customer satisfaction, and maximize your profitability.

• Conduct Regular Inventory Checks: Regularly audit your bar inventory to ensure that all items are accounted for to identify any discrepancies or potential losses promptly. Keep track of the usage of different types of alcohol and mixers to anticipate demand and prevent running out of popular items. This can help optimize your purchasing decisions and maintain a well-stocked bar.
• Implement Inventory Management Systems: Utilize inventory management software or systems to track your stock levels accurately. These tools can help in automating inventory counts and generating reports for better decision-making.
• Train Staff on Pouring Techniques: Train your bartenders on proper pouring techniques to minimize overpouring and ensure consistent drink quality. Implementing measured pour spouts can also help control portion sizes.
• Stock Up Regularly on Essentials: To ensure that you meet the demands of your customers and maintain a smooth operation, it is crucial to stock up on bar essentials. This includes popular liquors, mixers, garnishes, glassware, and other key items that are essential for serving a wide range of beverages. Identify your best-selling items and ensure that you have an adequate supply of these essentials at all times. Create a restocking schedule to replenish inventory before it runs low to avoid stockouts.

2. Prioritize Bar Cleanliness

Maintaining a clean and sanitary bar environment is crucial for running a successful bar operation. Not only does cleanliness contribute to the overall customer experience, but it also ensures compliance with health and safety regulations. Here are some key facts to consider when prioritizing bar cleanliness:

• Regular Cleaning Schedule: Establishing a routine cleaning schedule is essential for keeping your bar area spotless. Daily tasks should include wiping down surfaces, cleaning glassware, and sanitizing equipment. Additionally, weekly deep cleanings should be conducted to address hard-to-reach areas and prevent the buildup of grime and bacteria.
• Proper Sanitization: Effective sanitization is critical in preventing the spread of germs and maintaining a hygienic bar environment. Use commercial-grade disinfectants to clean surfaces, bar tools, and equipment regularly. Pay special attention to high-touch areas such as bar tops, door handles, and restroom facilities. Regularly clean your soda guns and sanitize your keg lines to serve the best-tasting drinks at your bar.
• Organized Storage: Maintaining organized storage areas for liquor bottles, glassware, and bar supplies not only improves efficiency but also contributes to cleanliness. Properly labeled containers, shelving units, and storage racks help prevent clutter and make it easier to keep track of inventory and cleaning supplies.
• Staff Training: Investing in staff training on proper cleaning procedures and hygiene practices is essential for upholding cleanliness standards in your bar. Ensure that all employees are familiar with cleaning protocols, sanitation guidelines, and the importance of maintaining a clean workspace.
• Attention to Detail: Paying attention to small details can make a big difference in the cleanliness of your bar. Regularly inspecting for spills, stains, and debris, as well as promptly addressing any issues, helps maintain a pristine appearance and demonstrates your commitment to cleanliness to both customers and health inspectors.

3. Invest in Marketing Opportunities

Successfully promoting your bar is crucial for attracting and retaining customers. Investing in various marketing opportunities can help increase brand visibility, drive foot traffic, and differentiate yourself from competitors in the industry. Stay creative and open to new ideas to continuously engage with your audience and drive business growth. Consider incorporating the following strategies into your marketing plan:

• Social Posts: Utilize social media platforms such as Instagram, Facebook, and Twitter to engage with your audience and promote your bar. Regularly posting updates, specials, and events can help create buzz and attract new customers.
• Email Blasts: Build an email list of loyal customers and send out regular newsletters with updates on upcoming events, promotions, and new menu items. Personalized email blasts can help keep your bar top of mind for customers.
• Customized Merchandise: Create branded merchandise such as t-shirts, hats, or glassware that customers can purchase or receive as promotional items. This not only serves as a revenue stream but also helps promote your bar outside of your physical location.
• Radio Appearances: Consider partnering with local radio stations to promote your bar through on-air appearances or advertisements. Radio is a powerful medium to reach a wide audience and can help increase brand awareness in your community.
• Brand Collaborations: Collaborate with other businesses or influencers to cross-promote each other's brands. Partnering with a local brewery for a tap takeover event or teaming up with a popular food truck can help attract new customers and create a unique experience for your patrons.
• Sponsorships: Sponsor local events, sports teams, or community organizations to increase your bar's visibility and support your community. Sponsorship opportunities can help build goodwill and strengthen relationships with customers.

4. Be Intentional with Hiring and Training

The bar industry has a very high turnover rate, which results in lots of money wasted on training new employees. Your bar can prevent this by implementing strict standards when hiring and creating a rigorous training regimen that weeds out any poor fits early in the process. Once you have a strong team, remember to invest in them through training and promotional opportunities.

• Hire Eager Individuals: When building your team, look for individuals who are eager to learn and grow within the industry. A positive attitude and willingness to take on new challenges can go a long way in creating a dynamic and motivated staff. Look to hire bartenders who not only have drink-making skills but are versed in customer service as well.
• Train Bartenders and Wait Staff to Upsell: Upselling is a valuable skill that can help increase revenue and enhance the customer experience. Provide training to your bartenders and wait staff on effective upselling techniques, such as suggestive selling and recommending premium products. Framing the sale as a suggestion will make your customers more likely to try the more expensive option. Boost sales by offering food and drink pairings based on common flavors or contrasts. Train staff to detect undecided customers. If someone has glanced at their menu for an extended period of time, a simple "Can I suggest one of our specials?" can help sway them.
• Offer Bonuses and Incentives for Excellent Performance: Recognizing and rewarding exceptional performance can boost employee morale and motivation. Consider implementing a bonus or incentive program based on sales performance, customer satisfaction, or other key metrics to encourage your staff to excel in their roles. One of the best ways that bar managers can retain good employees is with incentives, such as bonuses, favorable shifts, promotions, or pay raises.
• Regularly Train Employees on New Skills: The food and beverage industry is constantly evolving, with new trends and technologies shaping the way businesses operate. Keep your staff up-to-date by providing regular training sessions on new skills, products, and industry best practices to ensure they are equipped to deliver top-notch service to your customers. If you have a dishwasher who is dedicated to working hard but who also wants to learn bartending skills, reward them by offering some training and allowing them to bartend during slow periods of business at first.

5. Update Your Drink Menu

To stay ahead in the competitive bar industry, it's essential to constantly update your drink menu to keep customers engaged and interested. By updating your drink menu with new and innovative offerings, you can attract new customers and keep existing ones coming back for more. These are just some ways you can keep your menu fresh:

• Keep Up with Bar Trends: Keeping up with the latest bar trends is crucial to ensuring that your drink menu remains relevant and appealing to customers. Stay informed about popular cocktail ingredients, flavor profiles, and presentation styles to incorporate fresh ideas into your menu. Monitor industry publications, attend trade shows, and follow social media influencers to discover emerging trends. Whether it's the resurgence of classic cocktails or the introduction of innovative mixology techniques, being aware of current trends can give your bar a competitive edge.
• Create a Signature Cocktail: Developing a signature cocktail is a great way to showcase your bar's unique identity and stand out from the competition. Consider incorporating unique ingredients, innovative techniques, or a creative presentation to make this drink a standout feature on your menu. Develop a drink that reflects the personality of your establishment, whether it's a creative twist on a classic cocktail or a completely original creation. A signature cocktail can become a customer favorite and even a must-try item that sets your bar apart. Promote it through social media, menu placement, and special promotions to drive customer interest and sales.
• Add Mocktails to the Menu: Appeal to a wider audience by including mocktails and zero-proof drinks on your drink menu. Mocktails are non-alcoholic beverages that are crafted with the same attention to detail as cocktails, offering flavorful and refreshing options for customers who prefer not to drink alcohol. Non-alcoholic options are increasingly popular among customers who are looking for flavorful, alcohol-free alternatives. Create mocktail versions of popular cocktails or develop unique non-alcoholic recipes that showcase fresh ingredients and creative flavor combinations. By including mocktails on your menu, you can accommodate designated drivers, non-drinkers, and those looking for a lighter alternative.

6. Host Events at Your Bar

Hosting events at your bar can be a great way to attract customers, create a lively atmosphere, and increase revenue. These events give your customers something to look forward to, talk about, and invite their friends to. Here are some popular event ideas to consider implementing at your bar:

• Happy Hour: Offering a happy hour with discounted drinks and appetizers is a classic way to draw in customers during slower times. Promote your happy hour specials on social media and through flyers to attract a larger crowd. Your happy hour menu should feature discounts on items with a high-profit margin, group specials, snacks, and designated driver discounts to maximize your profits.
• Trivia Nights: Hosting trivia nights is a fun and interactive way to engage your customers. Consider offering prizes for the winning team to encourage participation and keep patrons coming back for more.
• Speed Dating Event: Organizing a speed dating event can be a unique and exciting way to bring people together and create a fun and social atmosphere at your bar. Partner with a local speed dating company to help organize and promote the event.
• Karaoke and Open Mic Nights: Karaoke and open mic nights are always a hit with customers looking to showcase their talents or simply enjoy some entertainment. Encourage customers to participate and create a welcoming and inclusive environment for performers and spectators alike.
• Televise Sporting Events: Broadcasting popular sporting events at your bar can attract sports fans and create a lively and energetic atmosphere. Consider offering food and drink specials during the event to enhance the viewing experience for customers. Market sporting events ahead of time to attract to your bar on game night.
• Participate in a Bar Crawl: Joining a bar crawl in your area can help expose your bar to new customers and increase visibility within the community. Collaborate with other bars in the area to create a fun and memorable bar crawl experience for participants.
• Invite Local Bands and Artists: Hosting live music events featuring local bands and artists can help attract a diverse crowd and create a vibrant and dynamic atmosphere at your bar. Consider creating a regular schedule of live music performances to keep customers coming back for more.

7. Invest in a POS System and Tech

In today's fast-paced bar industry, having the right technology can make a significant difference in the efficiency and success of your establishment. One crucial investment for running a successful bar is a Point of Sale (POS) system. A POS system streamlines the ordering process, tracks sales data, manages inventory, and helps you make informed decisions to optimize your business operations. When selecting a POS system for your bar, consider factors such as ease of use, scalability, reporting capabilities, and customer support. Here are just some of the benefits of choosing an up-to-date POS system for your bar:

• Improved Efficiency: A POS system allows your staff to take orders quickly and accurately, reducing wait times for customers. It also enables seamless communication between the front and back of house, ensuring smooth operations during busy hours.
• Sales Tracking: With a POS system, you can easily track sales trends, identify top-selling items, and analyze customer preferences. This data can help you make data-driven decisions about pricing, promotions, and menu offerings.
• Inventory Management: Keeping track of inventory levels manually can be time-consuming and prone to errors. A POS system automates inventory management by tracking stock levels in real time, generating alerts for low-stock items, and helping you optimize your ordering process.
• Customer Relationship Management: Many POS systems offer customer management features that allow you to track customer preferences, create loyalty programs, and send targeted promotions. Building strong relationships with your customers can lead to repeat business and increased revenue.
• Integration with Other Technologies: A modern POS system can integrate with various technologies such as payment processors, online ordering platforms, and kitchen display systems. This integration streamlines operations and enhances the overall customer experience.

8. Take Liabilities Seriously

Alcohol service is a risky business. When managing a bar, you should train staff to handle alcohol-related safety issues, not just for the safety of customers who have consumed too much alcohol, but to protect your bar from fines, imprisonment, loss of liquor license, increased insurance costs, and even losing your business. These are some common safety procedures to train your staff to perform:

• Detect Fake IDs: Spotting fake IDs is a crucial aspect of running a successful bar. It is essential to train your staff to carefully examine identification cards to ensure that they are legitimate. Refusing to serve minors is not only a legal obligation but also a moral responsibility. By strictly adhering to age verification protocols and refusing service to individuals who cannot provide valid identification, you uphold the integrity of your establishment and protect both your customers and your business. Utilizing tools such as UV lights and ID scanning devices can further assist in detecting fraudulent IDs and preventing underage drinking.
• Understand Angel Shot Protocols: Offering angel shots is a proactive approach to ensuring the safety of your patrons. This discrete signal allows customers to secretly communicate with your staff if they feel uncomfortable or unsafe in a social situation. By providing this option, you create a safer environment for all patrons and demonstrate your commitment to their well-being.
• Cut Excessively Intoxicated Patrons Off: Knowing when to cut patrons off is a critical skill that every bartender and server should possess. Monitoring the behavior of customers and recognizing signs of intoxication is essential in preventing overconsumption and potential harm. By intervening when necessary and responsibly managing alcohol service, you protect both your customers and your business from liability issues.

The bar industry is very competitive, and it can be difficult to run a bar successfully due to the razor-thin profit margins. But, by taking a more active role in your business, ensuring that your bar is stocked with everything it needs, and training your employees for success, you can help your bar become profitable and succeed.