Does your bar offer Happy
Hours?
Are you making money or losing money?
Some bars offer Double Bubbles,
some host 2 - 4 - 1 Nights still others
schedule Decompression Sessions or Group
Therapy Hours. A few bold but really dumb
bar owners offer Triple Cripples.
It makes no difference what they are called - the question I am asking is: Do periods
of reduced drink prices actually increase your bar’s sales and profitability?
Before I give my answer let me share a story. It was
Easter morning and Becky’s Mom was in the kitchen preparing the Easter ham. As usual, Mom took out a large knife and cut approximately
2 inches of meat off each side of the ham before wrapping it in tin foil and placing
it in the oven.
“Momma” Becky asked “Why do you always cut 2 inches off
each side of the ham?” “Well it’s an old
family tradition I learned from my Momma”. When Grandma arrived around 11am
Becky asked Grandma about this old family tradition. Grandma said “Well Dear all I know is my Momma always did it so I decided to do it as
well”.
When Great-grandma arrived around 2pm Becky ran over and
asked “Great Grandma why did you always cut off two inches of meat off each side
of the Easter Ham?” Great grandma sat down smiled and replied “Well you see Becky
when your great grandfather and I first got married we didn’t have a lot of
money; we couldn’t afford one of those big fancy stoves. The only way I could
fit an Easter ham in our small oven was to cut two inches off on each side.
So let’s now go back to Happy Hours. Do Happy Hours really increase profits
or are bar and tavern owners’ just ‘cutting
ham’? The only person who knows for sure is the bar owner - the person who
pays the bills. They know product costs and the revenues they generate.
If you own or manage a bar, an American Legion
or VFW post, Eagles or Elks club do you have a Happy Hour? Why???
I love when a bar owner tells me happy hours help them attract
new customers. Really!! Well just how many new customers have you
picked up each month - the last year because of your Happy Hours I ask? They don’t have a clue. It’s just their regulars coming in?
Personally, I am insulted when I have to pay $3 for a
mixed drink at one time then $4 at another.
I get the same drink, in the same bar, usually served by the same
bartender - generally in the same glass and yet I pay two different prices. Why??
Money making Alternatives to Happy Hours are: A “Featured
Drink Special” and “Customer Appreciation
Night” – often times called Industry Night.
The featured drink special is easy. You identify a top shelf drink or beer and reduce
the price only on that one item. For example you have a Corona or Sam Adams’ Night
on Tuesday’s and Thursday … it would mean only Corona or Sam Adams are reduced
in price from 4 to 7. People who normally
may not drink a Corona or Sam Adams may try because of the reduced priced and
like it. They may then make it their
preferred drink when they come on other days and now you are making more money.
Simple - right!
The Customer Appreciation or Industry Night is even simpler.
Pick your slowest night of the week – generally a Monday or Wednesday
and call it ‘Customer Appreciation night’.
Anyone who walks in you bar between 4 and 7, gets a free drink. That’s it ‘one free drink! Since it’s a slow night and you’re already paying
a bartender why not get people in on your slow night. After their free drink they may stay and have
another or two. Plus people walking past may see your bar is hopping on a slow
night and be curious stop in. They get a
free drink and meet your staff – now you may have a new customer.
All Eba G is saying - Don’t Cut Ham - because
everyone is. If Happy Hours are not making
you money try something different. Don’t
lose revenue because of an old stupid tradition.
Eba G. is a small bar and local tavern profit analyst. Google
Eba Gee on Face Book or link with Eba on www.linkedin.com/in/ebagee. Isn’t it time you started increasing your sales and profits.
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