Inconsistency of pouring was evident in both bar operations, but understandable when it became clear there were different opinions amongst the bar teams on what standards were and should be. The key opportunity however turned out to be missed up charges and unaccounted for pours.
The perfect hotel bar strategy in the minds of those who look at results, often turns out to be an Extended Hangout concept. The focus shifts from trying to be a destination restaurant to trying to be a destination bar. The menu, the cocktail offering, the way the venue is setup, the service strategy, all are tuned to deliver a great place to hangout. Tucked inside the Monaco DC across from the Capital One arena, Dirty Habit DC has achieved that perfection. And its not just $4+M in beverage revenues that are feeding the top line. Excellence in beverage inventory and revenue control is yielding 18% beverage costs / 15% liquor cost results which are part of a huge gross profit result coming from the venue.
Caribbean hotel/resorts have always been challenging from a beverage cost control perspective. And Hilton Aruba was well aware of the profit improvement opportunity in their primary bar venues serving guests across the day. Each market situation is different, but labor costs and inventory costs are often dramatically different then peer resort properties in the United States. Longer stay rates and high cocktail product mix factors also create a higher probability for pouring control issues to be happening in the bars.
An SBS Assessment in Jan 2016 – yielded a long list of action items projected to dramatically improve both the top and bottom line results in the bar operation. One of those action items – a beverage monitoring tool supplied by SBS was immediately set in motion. Today property beverage costs are running 3 points lower than historical numbers at the time the project started. That’s a $75K per year bottom line improvement. Liquor costs have dropped from 18% down to 14%, driving the overall beverage cost improvement.