Beverage Production Control and Standard Procedures

The production of beverages is a critical component of any beverage operation. Failure to establish control in this area can diminish the overall effectiveness of standards and procedures meticulously designed to maintain control in other operational aspects.

Neglecting to implement control over beverage production can result in customer dissatisfaction due to improperly prepared drinks, alongside various unwarranted costs.

Sales, profits, and customer numbers may all decline if management fails to establish robust control over production processes.

Additionally, the beverage profit margin is vital for most restaurants and especially critical for establishments primarily serving liquor. National averages for restaurants that serve liquor indicate that beverage sales constitute approximately 20 percent of total sales in these establishments.

The profit margin for liquor significantly exceeds that for food, and in some cases, liquor profit is the primary driver of satisfactory overall profitability.

Considering the relatively low cost percentage for liquor compared to food and the minimal labor cost in preparing drinks compared to food preparation, maintaining the liquor profit margin is often critical to operational success.

Beverage Production Control and Standard Procedures

1. Objectives of Beverage Production Control

Control over beverage production is established to achieve two primary objectives:

i. To ensure that all drinks are prepared according to management’s specifications.

ii. To guard against excessive costs that can arise during the production process.

2. Standard Procedures for Beverage Production

Standards must be established for the quantities of ingredients used in drink preparation, as well as for the proportions of ingredients in a drink. Drink sizes must also be standardized. When standards are set for ingredients, proportions, and drink sizes, customers gain reasonable assurance that a drink will meet their expectations each time it is ordered.

Once these standards are established and procedures are developed for training employees to adhere to them, consistency can be maintained even with high employee turnover rates.

By establishing and maintaining these standards, managers create a mechanism for controlling costs. When drinks are prepared by formula and served in standard portion sizes, the cost of one portion of any drink should match the cost of every other portion of that same drink.

Since sales prices for drinks are fixed, the cost-to-sales ratio for one portion of any drink should be consistent with the cost-to-sales ratio for every other portion of that drink.

This consistency ensures that the cost-to-sales ratio for the overall operation remains stable, provided sales remain relatively constant. Once standards and procedures for beverage production are established, a standard cost percentage for the operation can be developed, allowing comparison with the actual cost percentage.

One of the first steps in establishing control over beverage production is to standardize the quantities of the most costly ingredients, namely alcoholic beverages. The quantities used by the bartender must be controlled.

To achieve this, specific quantities for drink production must be determined in advance, and bartenders must be provided with a means of measuring those quantities. Most drinks prepared with spirits combine one type of liquor with a mixer, such as scotch and soda, gin and tonic, rye and ginger ale, or rum and cola.

Managers must determine in advance the specific quantity of the expensive ingredient the liquor that a bartender should use to prepare any drink. This amount varies between bars, typically ranging from three-quarters of an ounce in some establishments to as much as 2 ounces in others.

This quantity standard is set by the manager and represents the fixed quantity provided to a customer for the fixed sales price of a drink.

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Devices for Measuring Standard Quantities

Four measuring devices are commonly used by bartenders: shot glasses, jiggers, pourers, and automated dispensers.

1. The Shot Glass

In some establishments, bartenders use small glasses, called shot glasses, for measuring. There are two types of shot glasses: plain and lined.

A plain shot glass holds a predetermined quantity when filled to the rim. Plain shot glasses are available in various sizes, from fractions of an ounce to several ounces. In any given bar, all such glasses should be the same size.

In many establishments using shot glasses, bartenders are instructed to fill the shot glass and pour the exact measure into the drink. In others, bartenders are provided with shot glasses that hold slightly less than management is willing to serve.

Bartenders are instructed to fill the shot glass, pour it into the drink, and then, in full view of the customer, pour an additional small amount directly from the bottle into the glass. Some believe this practice has a positive psychological impact, as customers may feel they are receiving more than expected.

2. The Jigger

A jigger is a double-ended stainless steel measuring device, with each end resembling a shot glass. The two ends of the jigger are of different sizes. Many consider the jigger essential for accurate measuring to ensure perfect cocktails. It can be used for measuring straight shots but is particularly useful for preparing cocktails requiring varying quantities of ingredients. For such complex drinks, shot glasses are less suitable.

3. The Pourer

A pourer is a device fitted on top of a bottle that measures the quantity poured, limiting it to a predetermined amount. This is another method to control the quantity of liquor used in drink preparation.

Several types of pourers are available, all operating on the principle of controlling the quantity poured each time a bottle is used. In an establishment where 1 ounce is the standard measure, all bottles can be fitted with devices that dispense exactly 1 ounce. Each time the bartender tips the bottle to pour, precisely 1 ounce is dispensed.

The psychological effect of these pouring devices is debated. Some believe customers perceive the bartender as pouring freely, while others argue that customers may feel resentment toward an establishment that neither trusts the bartender nor allows an extra drop to be dispensed.

Others suggest pourers are useful at service bars, which customers do not see, but should not be used at front bars where customers observe bartenders mixing drinks.

Most bartenders dislike these devices, as pouring a shot takes slightly more time than other methods. Many pourers and other devices are associated with computer software, some of which are attached to liquor bottles, as discussed in the following section.

4. Automatic Pouring Systems

All automatic pouring systems are designed to regulate the amount of liquor transferred from the bottle to the glassware. The primary difference between systems lies in how this is achieved.

The most common method involves a special pourer fitted on each bottle, used in conjunction with a ring or collar that slides over the pourer to activate it. Most of these rings or collars are attached to the cash register or a piece of hardware designed to replace the cash register.

5. The Wireless Free Pour

This system is commonly used in foodservice operations dispensing liquor. It features a radio transmitter that transfers data from the bottle to a software program, storing the information for generating reports when requested by the manager.

The benefit of this system is the absence of wires, which avoids interfering with the bartender’s activities, and the data is readily available to assist in decision-making.

The downside is that this system does not control portions, making it suitable for operations confident that bartenders follow standard recipes and are skilled enough to do so without measuring devices.

Glassware Standardization

In addition to controlling the quantity of liquor used, it is desirable to control the overall size of drinks. Standardizing the glassware used for service simplifies this process.

Managers are responsible for establishing the standard portion size for each type of drink and providing bartenders with appropriate glassware. By purchasing specific glassware for specific drinks and training bar personnel to use the correct glasses, managers standardize portion sizes.

Although standardizing portion sizes aids in controlling beverage costs, it is insufficient alone. Specifying that gin and tonic be served over ice in an 8-ounce glass does not clarify the proportion of gin to tonic.

This is critical for cost control, as the cost of gin per ounce is significantly higher than that of tonic water, affecting both cost and taste. The following examples illustrate the cost differences due to changing proportions:

Gin and Tonic
Cost of gin: N45/oz. Cost of mixer: N4/oz.

In both cases, the result is 8 ounces of gin and tonic. However, due to the changed proportions, the cost of Gin and Tonic B is significantly lower than that of Gin and Tonic A. If this drink were offered at a standard sales price of $4.00, the cost-to-sales ratios would differ considerably: 28.5 percent for Drink A versus 18.25 percent for Drink B.

Example of Standard Glassware

Establishing Quality Standards and Standard Recipes

To control costs, it is essential to establish control over the ingredients in each drink and their proportions. Standard drink recipes must be established so bartenders know the exact quantity of each ingredient required to produce any given drink.

Bartenders typically prepare two types of drinks requiring liquor: straight shots with mixers, such as gin and tonic, and mixed drinks or cocktails, which often involve multiple ingredients combined in specific ways.

For straight shots with mixers, the standard drink is controlled by providing bartenders with appropriately sized glassware and a measuring device, such as a jigger, for the liquor. The standard quantity of liquor is measured and poured over ice in the proper glass, and the glass is filled with the mixer, constituting the standard recipe.

For example, each time a customer orders a scotch and soda, the bartender places a set number of ice cubes in a glass of the correct size, adds one standard measure of the pouring brand of scotch, and fills the glass nearly to the rim with soda. Every scotch and soda prepared this way will be consistent, ensuring customer satisfaction and repeat business.

For mixed drinks and cocktails, establishing control over ingredients, proportions, and costs while ensuring consistency is more complex. Different recipes for the same cocktail can yield varied results. For example, the following two recipes for a Manhattan cocktail, taken from different drink mixing guides, illustrate this:

Although both recipes produce a Manhattan cocktail, there are significant differences. In Manhattan 1, the whiskey-to-vermouth ratio is more than 3 to 1; in Manhattan 2, it is 2 to 1.

Additionally, Manhattan 1 produces a drink 1 ounce larger than Manhattan 2 and costs more due to the additional ounce of whiskey. Management must designate which recipe will be the standard for preparing the Manhattan, and similar decisions must be made for all cocktails.

Calculating Standard Portion Costs for Straight Drinks

Calculating the standard cost of a straight drink is generally simpler than calculating the standard cost for a portion of food. Unlike food, which may require butcher’s tests or cooking loss tests, calculating the cost of a straight drink involves determining the cost of the liquor and adding the cost of the mixer when necessary.

To calculate the cost of straight drinks, served with or without mixers, divide the standard portion size in ounces into the number of ounces in the bottle to determine the number of standard drinks per bottle.

This number is then divided into the bottle’s cost to find the standard cost of the drink. With the metric system used for beverage packaging, converting the metric contents of bottles into ounce equivalents is necessary.

For example, at Wazobia Hotel, the standard portion size for the pouring brand of scotch is 1.5 ounces, and the bar uses 750 ml bottles containing 25.4 ounces. Dividing the 1.5-ounce standard drink into the 25.4 ounces yields 16.9 drinks per bottle, rounded to the nearest tenth:

25.4 oz. ÷ 1.5 oz. = 16.9 drinks

Accounting for minor spillage and evaporation, this is adjusted to an average of 16.5 drinks per bottle. If the bottle costs N17.10, the standard cost per drink is:

N17.10 ÷ 16.5 drinks = N1.0364, or N1.04 rounded to the nearest cent

For a premium scotch costing N25.80 per 750 ml bottle, the standard cost per drink is:

N25.80 ÷ 16.5 drinks = N1.56

An alternative method involves dividing the bottle’s cost by the number of ounces to find the cost per ounce, then multiplying by the standard drink size. For example, if a 750 ml bottle of gin costs N10.70 (25.4 ounces), the cost per ounce is:

N10.70 ÷ 25.4 oz. = N0.42

Multiplying by the standard 1.5-ounce drink size yields:

1.5 oz. × N0.42/oz. = N0.63 per drink

Some adjust for spillage and evaporation by subtracting 1 ounce from the bottle’s total ounces (e.g., treating a 750 ml bottle as 24.4 ounces). The chosen method depends on the preferences of those performing the calculations. Results are typically recorded on a form like that shown in Figure 2, updated regularly when dealer prices change.

Figure 2: Example of Standard Costs for Straight Drinks

Calculating Standard Costs for Mixed Drinks and Cocktails

Determining the standard costs of cocktails and mixed drinks is particularly important, as these drinks typically involve multiple ingredients, including two or more alcoholic beverages, making them more expensive to produce than straight drinks.

Knowledge of the cost per drink is critical for informed pricing decisions. To simplify this task, many bar managers use recipe detail and cost forms, such as those shown in Figure 3.

Standard Recipe Detail and Cost Card

Item: Gin Martini
Drink Sales Price: N4.50
Drink Cost: N1.02
Cost Percent: 22.67%

Bar Recipe No. 53

Glassware: 4 oz cocktail

Procedure: Pour gin and vermouth into glass shaker. Add cracked ice. Stir gently. Strain into 3 oz cocktail glass. Add olive and serve.

The first step is to record all information from the standard recipe, including all ingredients used by the bartender, such as nonalcoholic ingredients (e.g., fruit juices, eggs, heavy cream) and garnishes (e.g., olives, cherries, cocktail onions, fruit slices). The cost of all ingredients must be added to the cost of the alcoholic ingredients to determine the true cost of the drink.

Forms like those in Figure 3 include the standard preparation procedure and glassware. These records can be kept in a loose-leaf notebook or card file, or, for ease of use, on a computer. After recording the standard recipe, the cost of each ingredient, alcoholic or nonalcoholic, is determined.

If a form of listing standard costs for straight drinks, is available, this process is simplified. Otherwise, bottle costs and sizes must be accessed, often from accounting records, beverage purchasing records, invoices, or inventory books. For nonalcoholic ingredients, transfer memos or recent purchase prices from the steward may be necessary.

List of Standard Costs and Sales Prices for Straight Drinks (Scotch)

The cost of a bottle (e.g., a 750 ml bottle of gin costing N10.70) is divided by the number of ounces (25.4) and multiplied by the ounces used in the recipe. The costs of all ingredients are totaled to determine the standard cost, which is divided by the sales price to calculate the cost-to-sales ratio.

If sales prices are not yet set, the cost per drink is a key factor in determining reasonable sales prices. Even if prices are set, they should be reviewed based on newly calculated costs.

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Using Computers for Beverage Production Control

Computers can maintain standard drink recipe files and calculate standard costs. Simple word-processing programs can treat each recipe as a document, saved and edited as needed.

However, spreadsheets or databases are more practical, allowing selective printing (e.g., recipes without cost data for bartenders) and updating costs when ingredient prices change. Specialized beverage control software, however, offers more functionality than generic programs, addressing specific operational needs.

For operations with significant draft beer sales, a draft beer control system can meter portions accurately, support multiple taps, and compensate for fluctuations in line pressure to maximize keg yield.

Automatic portion control allows bartenders to serve other customers while containers fill, improving service efficiency. For operations focused on mixed drinks, bottled liquor control systems, such as automatic pouring systems, ensure consistent portions and track sales.

Establishing Standard Sales Prices

With standard costs established, a list of standard sales prices should be created for posting at the bar or inclusion in menus. Maintaining an accurate list in the manager’s office is good practice.

Sales prices vary based on ingredient costs, quantities, establishment ambiance, customer expectations, and desired cost-to-sales ratios, typically 15–25% for cocktails, 25–35% for beer, and 40–50% for wine.

Standardizing sales prices ensures customers are consistently charged for drinks, enhancing satisfaction. For example, a customer charged N4.50 for a drink on Tuesday can expect the same charge on Wednesday. Prices may be displayed on signs or menus to avoid disputes.

Wine pricing is straightforward: bottle prices typically reflect a 100–120% markup over cost. For wines by the glass, the bottle price is divided by the number of glasses poured (e.g., a N20 bottle yielding four glasses is priced at N5 per glass). Premium wines, which increase in value with age, require periodic reassessment.

Standardized sales prices maintain planned cost-to-sales ratios. A drink costing N0.90 and selling for N4.50 has a 20% cost-to-sales ratio, contributing N3.60 to gross profit per sale. This planned profit is not left to chance but is determined by management through standardized costs and prices.

Monitoring Beverage Production

Without computer-based systems, bartenders may deviate from standards, increasing costs unnoticed until monthly reports reveal issues. For example, pouring 1 ounce instead of a standard amount could add N0.10 per drink. For 200 drinks daily over 31 days, this results in N620 in additional monthly costs, or N7,300 annually.

Non-computer-based monitoring involves observing bartenders, with frequency depending on perceived need. Employees with questionable performance may require frequent observation, while reliable employees need only occasional spot-checks. Observation methods include:

1. Managers personally observing operations.
2. A designated employee, like a head bartender, reporting issues.
3. Hiring individuals to patronize the bar and report problems.
4. Installing closed-circuit television for remote observation.

Computer-based programs provide nightly cost-sales comparisons or restrict over-pouring, but observation remains valuable. While these methods help assess performance and uncover issues, they cannot eliminate all deviations from standards, as opportunities for non-compliance remain varied and numerous.

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