Something We Should All Think About

Special Annoucement from Eba G at Bar Profits

Every Monday - starting Monday, April 29th, we will be posting a new featured article on how small bars and local taverns can increase their sales, revenues and profits.

If you own a bar, tavern, local pub & grill or small family resort you may want to check in or subscribe to our bar and tavern profit making articles.

Eba G.

Does Your Bar "Sizzle" or "Fizz"

To appreciate this article, I need to share some history. Years ago there was a very popular television series based on a father raising three sons. No, it wasn’t My Three Sons; it was the other one, the western, set back in the late 1800’s. It had a powerful name, Bonanza. Ben Cartwright was the father; Adam was the oldest son; the middle son was Hoss; and the youngest boy was Little Joe. Dan Blocker played Hoss. Now you are probably saying, Eba G. what does any of this have to do with my bar or tavern sales? Very little, unless you want to significantly attract more customers and increase sales.

You see, Dan Blocker never enjoyed the Hollywood lifestyle. His dream was to run a business. Hoss was the only star on Bonanza smart enough to realize he could capitalize on his fame and the popularity of Bonanza. Hoss decided to create two restaurant chains, one chartered in America and the other in Canada. The two restaurant chains Hoss founded were Bonanza and Ponderosa - both family-friendly steakhouses with names to which people could relate.

Hoss was brilliant. Before he opened the doors to his restaurants, he hired a consulting firm; a firm that employed Elmer Wheeler. Hoss’ question to Mr. Wheeler was, “Is there anything I can do to ensure success with my steakhouses?” Elmer asked for some time to think about it.

Nearly three weeks passed before Mr. Wheeler came back to Hoss with a phrase that is now immortal. Elmer said, “Dan, if you want to achieve financial success with your steakhouses – don’t sell steaks, sell their sizzle.”

“What?” was Hoss’ knee jerk reaction. “Don’t sell steaks?”

“That’s right.” Wheeler replied. “Don’t focus on raw meat. People can get that anywhere. Instead, focus on the sizzle you offer.” Elmer suggested Hoss highlight the good times families will have at Ponderosa and Bonanza: their steaks arriving cooked exactly the way they want; the access they would have to an all you can eat salad bar and all the free drink refills they want. Sell the sizzle, Hoss.

During the time Dan Blocker owned Ponderosa and Bonanza, commercials never focused on raw meat. Every commercial focused on the sizzle – the beautifully charred lines running across the face of piping hot steak and served on a thick pewter platter; the unbelievable choices of steak toppings on every table, A-1, Heinz 57 and a neatly paper-wrapped bottle of Worcestershire sauce. Hoss made millions. When he sold these two chains, the new owners immediately focused on the meats they offered and sales plummeted. Eventually Ponderosa and Bonanza steakhouse filed for bankruptcy.

So let’s talk about your bar or tavern. Do you sell the sizzle? For example; do you sell beer, cold beer or ice cold beer? Do you serve beer in a glass, a mug or in a stein? Do you offer an assortment of snacks behind the bar, or do you provide delicious, handy treats to help quell an appetite?

Here’s a good one. What sounds better - Fried Chicken, Deep Fried Chicken, or Southern Fried Chicken? If a bar offers a bowl of ground beef simmered in a tomato-based sauce, which is more appealing - Chili, Cowboy Chili, or Montana Style Chili? If a bar sells slices of potatoes dunked in hot oil, which sounds more appetizing - Fries or French Fries? But what if a little paprika was sprinkled on them and then called Bohemian Style Fries? Which would be more desirable and command a premium price?

What do regulars and potential new customers see when they enter your bar or tavern, raw meat or a sizzle? Are you providing a four-walled enclosure that sells beer and booze or are you offering customers a good time, in a fun atmosphere that they can’t stop thinking about?

The two largest breweries in America – Budweiser and Miller - don’t sell a concoction of hops, malt and barley boiled in water. One sells ‘The King of Beers’ and the other ‘The Champagne of Bottle’ - two sizzles. To attract more customers, sell more products and increase your sales. Stop selling beer and booze and start selling “your sizzle” (your uniqueness).

If you have been in business awhile, you know why sizzle counts – sizzle often makes the difference. Have comments or suggestions on how a small bar or local tavern can create its sizzle, please share them. Send Eba G. an email at barprofitman@gmail.com

Why Bartenders and Wait Staff Receive Tips

Its common knowledge that most bartenders and wait staff are often paid a stipend hourly wage since it is expected that the bulk of their wages will come from the tips they earn. Since tips are such an integral part of a bartender’s and wait staffer’s income I find it amazing that so many bartenders and wait staff don’t understand the origins and reasons behind tipping. Many hospitality providers think tips are required and certainly expected. This historical article should help you understand the reasons behind tipping and help you increase your tips.

Most scholars and historians alike agree that the concept of providing money for a service or product dates back to the early Roman Empire. Historical records reveal citizens of Rome would typically provide a merchant or vendor a small sum of money prior to ordering any product or service. This  was done to insure their product or service would be promptly delivered. After the service or product was rendered and if it met or exceeded the customers expectations the buyer would provide an additional compensation known as a gratuitatem which we today call a gratuity. 

Therefore a tip was initially provided whereas a gratuity was received after a transaction was complete. Thus the word Tip is not even a word. TIP or TIPS is actually an acronym with stood for To Insure Promptness or To Insure Prompt Service.

For years Americans often gave money (a TIP) prior to a receiving meal or drink just like the Romans.  Upon leaving a bar or restaurant they then left a gratuity to show their appreciation. Maybe you have seen an old movie where a group of people or couple arrives at a crowded restaurant or busy night club. It looks like they will never get in because it is so packed. Then someone reaches into their pocket and pulls out what was appears to be a $10 or $20 - hands it to the host - who instantly finds a table that has just become available with their name on it and the group or couple is promptly escorted in.

This historical concept of tipping in America changed however during the mid 1940’s for a few reasons: First, there was the depression of the 1930’s which left most people with limited money; Second, the GI’s returning home from WWII had traveled the world and saw that most countries did not require a Tip to get good service only a gratuity to say ‘Thank You’ based on the service that was rendered. Finally, the industrialized American business concept was changing; businesses were now beginning to realize the importance of attracting and retaining “regular” customer’s;  consequently prompt customer service when a person walked in the door was becoming the norm and expected business practice.  

Today the sum of money a customer leaves a bartender or member of a wait staff after a service has been provided is generally referred to as a tip though it is technically a “gratuity”.

If you enjoyed this historical account of the custom of tipping and would want to learn seven fantastic ways to substantially increase your tips I will email you complimentary white paper entitled “Please email me your paper entitled: Eba G’s Seven Ways Bartenders and Bar Staffs can increase their tips”? 

Beer Drinker Poll

We have just added a poll on our blog which we hope all adults over the age of 21 will share their thoughts.  The poll wants to know how you enjoy your beer.  In a bottle, in a can, from a tap.   

Bartender Trivia

Soldiers Disease was a term coined back in the Civil War.   It was used to describe soldiers who were addicted to morphine.  When the Civil Ware was over 400,000 men were addicted to morphine.

Bartender Trivia

Most people are not aware of this but snakes are immune from their own poison.

Bartender Trivia

Bartenders need to know their customers.

Only one in fourteen women in America is a natural blond and only one in sixteen men is a natural blond.

Trivia For Bartenders

Good bartenders know their customers.

Did you know that one person out of every 9000 people is an Albino.

7 Ways Guaranteed to Lose Money With Your Bar, Tavern, Pub or Post

Hard to believe but there are bar and tavern owners who disagree with the strategies I share to increase their bar’s profits.  Some think my money making ideas are too simple.  Well just for fun I thought I would share seven strategies I guarantee will help you lose money.  Yes, each idea is simple however I assure you they are all effective and so easy to implement.

1)   Look Dirty.   When you or your staff tend bar look dirty; wear well worn clothing, the same clothes you wore the day before work great.  If possible make sure the clothing has stains or has grease spots.  If you don’t’ have soiled clothing anything with rips or tears will work just as well to help you lose profits.   

2)   Bitch, Bitch, Bitch.   Whenever possible bitch in front of customers.  Any subject is good but the best topics tend to be: spouses, taxes, local law enforcement and any state or federal politician.  Listening to bitching encourages customers to reduce their time in your bar and drive your sales down.

3)   Over Serve Customers.   Watching an individual sway back and forth in a bar stool and mumble incoherently is so amusing and it’s intriguing to watch an over served customer head for the restroom or walk out the door; no one knows if they are going to stumble or fall. Knowing that you “over serve” reassures everyone they can count on you to over serve them and once again your profits will decrease.   

4)   Tolerate Obnoxious Customers.  (My personal favorite).  By all means tolerate obnoxious customers.  Allow small groups (men or women – it doesn’t make a difference) to drop the F bomb and shout “F” once in a while.  It’s charming to hear a discussion about this F-ng thing and that F-ng thing and all the F-ng things wrong in the F-ng world and all the things F-ng up someone’s life.  Yeap, permitting rude and repugnant behaviors will really help you lose profits.

5)   Loud Juke Boxes and TVs.  Blaring juke boxes and deafening TV volumes are a must.  There’s nothing better than to sip on a drink and watch the few people who wanted the volume cranked up wiggle on the bar floor; it’s almost as much fun as listening to a couple of loud mouths yell at a TV screen.  Cranking up the volume really does have an impact on your sales. 

6)   Garbage and Trash.  Try to have garbage and trash visible in your bar.  It doesn’t have to be a lot but it must be noticeable.  Examples are empty beer bottles on games tops, rubbish in the window sills and trash building-up under the pool table.  A real plus is to never wipe down the bar counter or table tops after a customer leaves. New arrivals love the surprise of laying their arms or hands on a sticky surface.  Two other proven profit losing techniques to consider are never:  1) clean under the bar’s foot rail or 2) pick up litter outside.  Customer appreciate the dust balls accumulating under the bar rail and seeing empty beer cans and trash blowing around your parking lot and front entrance.  Garbage is such an easy way to lose revenues.

 

7)   Repulsive Restrooms.  A true favorite.  Only scrub out the sinks, wipe down the mirrors and clean the lavatories in your restrooms once a month.  Also only re-paint the walls and stalls once every two or three years. To accelerate the loss of profits have broken paper towel dispensers and out-of-order hand dryers in the restrooms.  There really is nothing better that walking into a disgusting, graffiti marked restroom then not being able to dry your hands.  Yeah, losing bar profits can be so easy.   

Well there you have it, Eba G’s Seven (7) Guaranteed Ways To Lose Money With Your Bar or Tavern.  Some of you may have already tried a few of these ideas and know they work well.  Feel free to try the rest.  If you liked them send me an email barprofitman@gmail.com or tweet me @EbaG2. If I get enough feedback I’ll share The 7 Wonderful Ways to Lose Regular and Longtime Customers. Rest assured these ideas will be easy to implement as well and extremely effective.

 

Remember when you want to increase your Bar’s, Tavern’s, Pub’s or Post’s profits Eba G. is here and always ready to help.   

Interesting and Important History Lesson

In 1911, Turkey established gun control. From 1915 to 1917, 1.5 million Armenians were exterminated.

In 1929, the Soviet Union established gun control. From 1929 to 1953, about 20 million dissidents, were rounded up and exterminated.

China established gun control in 1935. From 1948 to 1952, 20 million political dissidents were exterminated.

Germany established gun control in 1938 from 1939 to 1945, a total of 13 million Jews exterminated.

Guatemala established gun control in 1964. From 1964 to 1981, 100,000 Mayan Indians were exterminated.

Uganda established gun control in 1970. From 1971 to 1979, 300,000 Christians, exterminated.

During WW II Japan decided not to invade America. The Military High Command advised against it as most Generals knew many American households had guns.

Gun-control laws generally have adverse affects on law-abiding citizens – let’s be real careful if we suggest more gun control laws.

7 Steps to Increase your Bar Profits in 2013

As the New Year hovers in the distance I thought I’d share some tips you might want to consider in 2013 to increase your bar profits. Each tip would be an excellent New Year’s resolution to adopt and work on next year.
 

Why these seven tips?  Because when you skip all the bull these are the only seven functions that directly contribute to your bars profits. Every profitable local bar,neighborhood tavern, VFW post or American Legion post knows these seven tips and monitors them closely.

To increase your profits in 2013 review the functions I have listed- understand these seven functions and apply these seven functions.  

Evaluate your current bar operation - if you are honest you will clearly see how these seven functions already impact your bottom line. Some are postively affecting your profits while others are negatively affecting them.

Below are the only seven bar functions I know of that generate revenues and make your bar operation money on a consistent basis.  These seven functions are provided as a courtesy by Eba G:

       Bartenders    Hire only good bartenders – get rid of
                              any mediocre ones

       Appearance   Make sure your bar has an appearance    
                               that attracts customers or members

       Atmosphere   Create an atmosphere that maximizes
                                your sales

       Food               Offer only great bar food – you don’t have
                               to offer a large selection but whatever you
                               offer needs to be great – adequate and
                               average food just wont’ do

       Events            Routinely schedule fun events at your
                               bar – get people to come on in

      Advertise        Make sure you are advertising your bar.
                               A Yellow Page ad is not advertising

      Bar $ense       Cultivate a high level of bar $ense. Know
                               your bar, know you clients and know your
                               products; know them inside and out better
                               than anyone else in town. 

Remember don't assume at damn thing. Should you want detailed explanations on any of the above functions no problem.  Just send an email to barprofitman@gmail.com or post your address in the  comment section and I will personally send you additional information on that function you need clarified.

Remember Eba G. is here to help you increase your profits.

Cocktails and Taxes - a must read for every bar and tavern owner as well as all wait staff personnel.

Not long ago ten boys graduated from High School; all 10 went to work at the local mill. As luck or faith would have it the boys qualified for different jobs. Their jobs ranged from Custodian to Sales, to Marketing and Machinists. All earned different wages.  

The years at the mill flew bye yet their friendship remained strong. When they turned 21 they began to meet on Thursday nights at a local bar after work. They’d talk about the old HS days, discuss how their families were doing and sip on several drinks. When the night ended their bar tab was typically $100.

Since there was such a difference in their pay they wanted to come up with a plan to pay their tab that was fair. The first four men (the lowest paid) were asked to pay nothing. The fifth man put in a $1.00 while the sixth man chipped in $3. The seventh laid down $7 and the eighth tossed in $12. The ninth kicked in $18 and the tenth man (the highest paid) coughed up the remaining $59.

For over two years, every Thursday, the men paid their bar tab with this arrangement and all seemed okay with it. Then one week the bar owner threw them a curve. He came to their table and said: “You boys are wonderful customers – from now on I’m going to reduce the cost of your bar tab by $20; so when you guys come in on Thursday night’s from now on you will only have to pay $80 instead of the regular $100.00.

Delighted with the owners kind offer the buddies agreed to still pay their bar tab on a sliding scale. The six payers now had to decide how to divide up the $20 reduction? They thought they would divide the $20 equally by the six payers a $3.33 savings per man. However when they went to subtract the $3.33 from each of their shares, the fifth and sixth both received money and that just didn’t seem right.

Seeing the dilemma he caused, the bar owner walked over and suggested they reduce their shares using the principles the Federal government applies to income taxes. The men listened and watched as the bar owner calculated what each man’s fair share should be using the US tax tables.

According to the owners calculations the fifth man, like the first four, would now pay nothing (a 100% savings). The sixth man would now only pay $2 instead of $3 (a 33% saving). The seventh man would now only pay $5 instead of $7 (a 28% saving) and the eighth man would now kick in $9 instead of $12 (a 25% saving). 

The ninth man would be asked to contribute $14 instead of $18 (a 22% saving) and the tenth man under the new system would only be responsible for $49 instead of $59 (a 16% saving). Proud of his solution the bar owner smiled as he believed the ten men were now off than before. 

After the men settled their tab they left the bar. However once outside they began to compare their savings. “Damn, I only got one dollar out of the $20,” declared the sixth man!” he then pointed to the tenth man and said” but he got a $10 savings!” 

“That’s right,” exclaimed the fifth man. “I too only save a dollar and it isn’t fair he gets a benefit ten times more than me!” “That’s true!” shouted the seventh man. “Why should he get $10 back, when I on get $2? I guess it’s true what they say the wealthiest always get all the breaks!”
Just then the first four men yelled out in unison, “Why are you guys complaining? Look at us; we didn’t get any savings from the $20.00. This system really sucks; we get nothing and he gets $10 - we are the ones being exploited!” The nine men were now so worked up that they surrounded the tenth man and beat him severely and left him in the street as they walked home.

The following Thursday night tenth man did not show up; however the other nine men still met, talked about HS their families, had fun and drank without him. Towards the end of the night the bar owner came over with their $80.00 bar tab. Quickly, the men realized they did not have enough money between the nine of them to cover even half the bill.

And that, boys and girls is the problem we face when someone wants to fix our tax system and reduce our taxes. Invariably the individuals who have the most are going to be the ones to get the greatest benefit from any reduction.

But remember - and this is very important - If we decide to tax the wealthy extra just for being wealthy they might decide not to show up on Thursday nights at the local tavern. In fact, they might start going overseas to atmosphere they find more friendlier.

If you enjoyed this story will you let me know?

If you did not enjoy this story please also let me know.

Thanks

Eba G. 

Seven Reasons Bars Lose Money - # 1 Bartenders

Hi,

Eba here with my first post.  To make this post special I am posting a wonderful checklist for bar owners. Its a checklist developed by a colleague of mine Gabe Gabrielsen that he included in a series of articles he wrote explaining WHY BARS LOSE MONEY. 

Mr. Gabrielsen by profession works with local governments across the country to increase their economic development opportunities.  Many of his ideas you will agree apply to those of us in the bar and tavern industries.  After you read his checklist post a comment below or contact me directly at barprofitman@gmail.com.  { I included an excerpt from Mr Gabrielsen's article on Bartenders on a separate page to this blog which I think you will find tremendous value.}

   BAR OWNER BARTENDER CHECKLIST                                
     Warning this checklist may significantly increase your bar profits. 

To use the checklist just answer “Yes” or “No” to the nine questions listed below. Some Yeses increase your bar revenues other Yeses severely limit your profits. 
 
Do your bartenders –

Welcome strangers when they walk in the door?

Engage first-time visitors in “lite conversation”?

Spend time “evenly” with all patrons at the bar?

Every YES means more profits

Do you allow -

Bartenders to report for work wearing T-shirts advertising other businesses or places they have been?

Male bartenders to show up for work unshaven and not wearing a belt?

Female bartenders to wear tank tops and plunging V-neck blouses and sweaters that expose excessive cleavage?

Your bartenders to consume alcohol while on duty?

Every YES means you are losing money

Finally,
Do your bartenders -

Allow customers to frequently drop the “F” word in their conversations?

Engage in controversial discussions such as politics and religion?

Each YES costs you significant profits and leads to the loss of customers

Remember = Profitable bars have great bartenders.

Sincerely - Gabe Gabrielsen