Expert: Stuart Mullis - 10/9/2009

Question
Hey there.. I own a bar and my manager's pay is dependant on his ability to keep liquor costs under 25%.  as you can imagine, they do all types of tricks to keep that liquor cost under control.  my question is around spills.. I've noticed the spill tabs are creeping up and its currently a factor in calculating liquor costs.. Should spills be used in calculating liquor cost? what the acceptable range for spills?  is it "x" percentage of liquor sales?

thanks

Answer
Jonathan..

This really hits a nerve with me, counting and then basically allowing spills, is rewarding poor employee habits. I never allowed spills to be counted, bar employees should know that they are un=acceptable, yes they happen... and you should have a very small percentage added to your costing of drinks to cover for the rare, and very occasionally broken bottle or, tray accident.

But, to openly allow spill tabs, is asking for on going problems, in my opinion and my past experience.

I still remember one employee in my first year of bar management, that milked a spill tab, out of close to 100.00 per week, for to long.

Stuart