2. Organise Your Bar Stock And Storage For Maximum Efficiency

Learn easy tips to organise your bar stock and storage with Shake, Sip, Serve for a smoother bartending experience.

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I’m your host, KAD, and I’ve been slinging drinks and navigating the world of hospitality for over two decades.
The past 15 years, I’ve perfected my bartending skills, experimented with countless flavor combinations, and learning a thing or two about how to keep the party going behind the bar.

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In the below blog, I’ll be sharing my knowledge and experience on everything from classic cocktails and innovative new creations to essential bartending techniques and industry secrets. I’ll also be offering tips on stocking your home bar, mastering the art of presentation, and creating a memorable experience for your guests.

So, grab your shaker, dust off your favorite glassware, and get ready to embark on a delicious journey into the world of bartending!
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Efficient stock management is crucial for any bar in Australia. A well-organized storage system ensures smoother operations, reduces waste, and ultimately leads to increased profitability. From complying with Australian regulations to leveraging technology, understanding how to properly organize stock and storage can transform your bar into a high-functioning establishment.

The Importance of Efficient Stock Management

Managing stock in a bar is more than just keeping shelves tidy. Poor stock control can result in over-ordering, spoilage, theft, and unhappy customers due to unavailable drinks. Implementing a structured stock management system:

Reduces Wastage and Loss:
- Spoilage: Perishable items like fresh juices, garnishes, and even some liqueurs have limited shelf lives. Proper rotation (FIFO – First In, First Out) and accurate forecasting minimize spoilage.
- Theft (Shrinkage): Stock control helps identify discrepancies, whether due to employee theft, customer theft, or errors in pouring. Regular inventory checks are essential.
- Over-Pouring/Free Pouring: Inconsistent pouring leads to increased alcohol consumption and reduced profit margins. Standardized pouring techniques and measured pours are crucial.
- Broken Bottles/Damaged Goods: Careful handling and storage prevent damage.
Improves Service Speed and Efficiency:
- Streamlined Ordering: Knowing what’s needed and when reduces delays in restocking.
- Organized Storage: A well-organized bar allows bartenders to quickly locate ingredients, reducing wait times.
- Faster Inventory Checks: Regular, efficient inventory checks minimize disruptions during peak hours.
- Reduced 86’d items: When a bar is “86’d” that means they are out of a certain item. Good stock control reduces those situations.
Helps with Cost Control and Profitability:
- Accurate Costing: Knowing the exact cost of each drink allows for accurate pricing and profit margin calculations.
- Negotiating Better Prices: Accurate sales data allows for better forecasting, giving you leverage when negotiating with suppliers.
- Identifying High-Profit Items: Stock data reveals which drinks are most popular and profitable, allowing you to focus on promoting them.
- Preventing Over-Ordering: Tying up capital in excess stock reduces cash flow.
Ensures Compliance with Australian Regulations:
- Responsible Service of Alcohol (RSA): Stock control can indirectly support RSA by ensuring accurate tracking of alcohol consumption.
- Tax Compliance: Accurate records of alcohol purchases and sales are essential for tax purposes.
- Health and Safety: Proper storage of chemicals and cleaning supplies is crucial for compliance.
- Licensing requirments: Many Australian liquor licenses require accurate record keeping.

Additional Considerations:

Technology: Point-of-sale (POS) systems, inventory management software, and bar-specific apps can significantly streamline stock control.
Regular Inventory Counts: Whether daily, weekly, or monthly, regular counts are essential for identifying discrepancies and trends.
Supplier Relationships: Building strong relationships with suppliers can lead to better pricing, faster delivery, and access to new products.
Staff Training: Educating staff on proper stock handling, pouring techniques, and inventory procedures is essential.
Menu Engineering: Analyzing sales data to optimize your menu and reduce slow-moving items.

Australian Regulations on Stock and Storage

Australia has strict rules regarding the storage of alcoholic beverages, food, and chemicals in hospitality venues. Bars must adhere to guidelines set by authorities such as Food Standards Australia New Zealand (FSANZ) and local liquor licensing laws.

Key Legal Considerations:

Liquor Licensing:
- Each Australian state and territory has its own liquor licensing authority, and regulations can vary significantly.
- Generally, licensed premises must ensure that alcohol is stored in a secure area to prevent unauthorized access, particularly outside of permitted trading hours.
- This often involves locked storage rooms, secure cabinets, and robust security measures.
- It is also important to adhere to the trading hours that are dictated by the liquor licencing for that specific venue.
Food Safety:
- Food Standards Australia New Zealand (FSANZ) sets the national standards for food safety, and these apply to any bar that serves food.
- Proper food storage is essential to prevent foodborne illnesses. This includes:
- - Maintaining appropriate storage temperatures.
  - Preventing cross-contamination.
  - Ensuring proper labeling and rotation of stock.
  - Maintaining clean and hygienic storage areas.
- Local council also has involvement in the regular checking of food safety standards.
Occupational Health and Safety (OHS):
- Safe Work Australia provides national guidance on OHS, and employers have a duty of care to provide a safe working environment.
- In a bar setting, this means:
- - Ensuring that storage areas are well-organized and free from hazards.
  - Providing adequate lighting and ventilation.
  - Implementing safe manual handling practices.
  - Providing clear walkways and preventing obstructions.
Hazardous Chemicals:
- Bars use various cleaning agents and other chemicals, and these must be stored safely to prevent accidents.
- Safe Work Australia regulations require that:
- - Chemicals are stored in their original containers or in properly labeled containers.
  - Incompatible chemicals are stored separately.
  - Storage areas are well-ventilated.
  - Safety data sheets (SDS) are readily available.
- It is very important that chemicals are stored away from food and beverage items.

Important Notes:

It’s crucial for bar owners and managers to stay up-to-date with the latest regulations, as they can change.
Local councils also play a role in enforcing these regulations, and they may have their own specific requirements.
Regular staff training is essential to ensure that all employees understand and comply with the relevant laws.

Failure to comply with these rules can lead to fines, license revocation, or even business closure.

Best Practices for Organising Bar Stock

A structured and logical approach to stock management can drastically improve efficiency. Here are some effective strategies:

1. Strategic Stock Categorization: Optimizing Efficiency and Service

Effective stock categorization is the cornerstone of a well-run bar. It’s not merely about tidiness; it’s about creating a system that minimizes downtime and maximizes service speed. A thoughtful categorization strategy allows bartenders to instinctively locate items, reducing the cognitive load during busy periods and ensuring consistent drink quality. Here’s a deeper dive:

Alcohol Type: The Foundation of Organization:
- This is the most fundamental categorization. Distinguish between spirits (vodka, gin, whiskey, rum, tequila), wines (red, white, rosé, sparkling), beers (ales, lagers, stouts, IPAs), and liqueurs/cordials.
- Within each category, further subcategories can be beneficial. For example, within spirits, you might separate “white spirits” (vodka, gin) from “brown spirits” (whiskey, rum).
- This initial separation streamlines the search process, allowing bartenders to quickly narrow down their options.
Brand and Supplier: Facilitating Tracking and Reordering:
- Organizing by brand and supplier is crucial for inventory tracking and efficient reordering.
- This method allows for easy identification of popular brands and helps manage supplier relationships.
- It also aids in identifying discrepancies between orders and deliveries.
- Knowing which supplier a product comes from is very important for product recalls.
Frequency of Use: Prioritizing Accessibility:
- The “80/20 rule” often applies to bar stock: 80% of sales come from 20% of the products.
- High-demand items (e.g., popular spirits, house wines, draft beers) should be stored in easily accessible locations, minimizing movement and maximizing efficiency.
- Less frequently used items can be stored further away.
- This includes the placement of speed rails, and the placement of the most popular beers on draft.
Storage Conditions: Ensuring Quality and Longevity:
- Different beverages require different storage conditions.
- Refrigerated storage: Beers, white wines, and some liqueurs require refrigeration to maintain their optimal temperature and prevent spoilage.
- Ambient storage: Most spirits and red wines can be stored at room temperature, but it’s crucial to avoid extreme temperature fluctuations and direct sunlight.
- Dry storage: Non-alcoholic mixers, syrups, and garnishes should be stored in a cool, dry place to prevent spoilage and maintain their quality.
- Proper storage is very important for the prevention of oxidation in wines, and the prevention of skunking in beers.

2. The FIFO (First In, First Out) Method: Minimizing Waste and Maximizing Freshness

The FIFO method is a fundamental principle of stock rotation, ensuring that older stock is used before newer stock. This is crucial for maintaining the quality and freshness of beverages and preventing waste.

Implementation:
- When receiving new stock, always place it behind existing stock of the same product.
- Regularly check expiry dates and prioritize the use of items with the earliest dates.
- Train staff to consistently follow the FIFO method.
Benefits:
- Reduces spoilage and waste, minimizing financial losses.
- Ensures that customers are served fresh, high-quality beverages.
- Maintains consistency in drink quality.

3. Clear Labelling: Preventing Errors and Ensuring Compliance

Clear and accurate labeling is essential for preventing errors, ensuring compliance with regulations, and maintaining efficient stock management.

Essential Information:
- Product name: Clearly identify the product.
- Expiry date: Crucial for preventing the use of expired products.
- Received date: Helps track stock rotation and identify potential issues.
- Batch number (if applicable): Useful for tracking product recalls.
- Alcohol by volume (ABV): Important for knowing the strength of the product.
Best Practices:
- Use durable labels that are resistant to moisture and wear.
- Ensure that labels are clearly visible and legible.
- Regularly check and update labels as needed.

4. Inventory Turnover Monitoring: Optimizing Stock Levels and Identifying Trends

Inventory turnover monitoring is a critical aspect of stock management, providing valuable insights into sales trends and helping to optimize stock levels.

Calculating Inventory Turnover:
- Inventory turnover is calculated by dividing the cost of goods sold (COGS) by the average inventory value.
- A higher turnover rate indicates that stock is selling quickly, while a lower rate suggests that stock is moving slowly.
Analyzing Inventory Turnover:
- High turnover: Indicates strong demand and suggests that stock levels may need to be increased.
- Low turnover: Indicates weak demand and suggests that stock levels may need to be reduced.
- Identify slow-moving stock and consider promotional strategies or menu adjustments.
Benefits:
- Optimizes stock levels, minimizing storage costs and preventing stockouts.
- Identifies sales trends and helps forecast demand.
- Helps identify potential issues with stock management, such as overordering or spoilage.
- Allows bar managers to see which products are the most profitable.
Technology:
- Point of sale (POS) systems can be very helpful in generating reports that track inventory turnover.
- Inventory management software can also be used to automate the process of tracking inventory and generating reports.

By implementing these strategies, bars can optimize their stock management, improve efficiency, minimize waste, and enhance the customer experience.

Utilising Technology for Stock Management

Digital tools can streamline inventory management, improve accuracy, and save time. Consider the following solutions:

1. Inventory Management Software

Popular systems like OrderMate, BevSpot, and Unleashed help bars track stock levels, forecast demand, and generate real-time reports.

Benifits:

Real-Time Stock Tracking: Provides up-to-the-minute visibility into stock levels across all locations, preventing stockouts and overstocking.
Demand Forecasting: Analyzes historical sales data and trends to predict future demand, enabling accurate ordering and minimizing waste.
Automated Ordering: Sets reorder points and automatically generates purchase orders when stock levels fall below predetermined thresholds.
Cost of Goods Sold (COGS) Tracking: Calculates COGS, providing insights into profitability and helping to identify areas for cost reduction.
Recipe Management: Tracks ingredient usage and calculates the cost of each drink, ensuring consistent pricing and profitability.
Reporting and Analytics: Generates detailed reports on stock levels, sales trends, and inventory turnover, providing valuable insights for decision-making.
Integration with POS Systems: Seamlessly integrates with point-of-sale systems, streamlining data entry and improving accuracy.
Examples: OrderMate, BevSpot, and Unleashed are excellent examples, each offering a suite of features tailored to the needs of bars and restaurants.
Reduced human error: Automation greatly lowers the amount of errors that can occur during manual stock takes.

2. Barcode Scanning

Using barcode scanners reduces manual counting errors and speeds up stock checks.

How it Works:
- Each product is assigned a unique barcode that contains information such as product name, supplier, and price.
- Barcode scanners are used to quickly and accurately record stock movements, such as receiving deliveries, conducting stock takes, and processing sales.
Benefits:
- Reduced Manual Errors: Eliminates the risk of errors associated with manual data entry.
- Increased Speed: Speeds up stock takes and other inventory management tasks.
- Improved Accuracy: Ensures that stock levels are accurately recorded.
- Enhanced Traceability: Facilitates tracking stock movements and identifying potential issues.
- Time saving: Barcode scanning is much faster than manually counting items.

3. Automated Ordering Systems

Automated ordering ensures you never run out of key products by tracking usage patterns and predicting restocking needs.

How it Works:
- These systems track usage patterns and predict restocking needs based on historical sales data and trends.
- When stock levels fall below predetermined thresholds, the system automatically generates purchase orders.
- Some systems can even integrate with supplier systems, automating the entire ordering process.
Benefits:
- Prevents Stockouts: Ensures that popular items are always in stock, minimizing lost sales.
- Reduces Overstocking: Prevents excessive stock buildup, minimizing waste and storage costs.
- Optimizes Ordering: Ensures that orders are placed at the right time and in the right quantities.
- Saves Time and Effort: Automates the ordering process, freeing up staff to focus on other tasks.
- Improved supplier relations: Automated ordering can create more predictable ordering patterns, which suppliers appreciate.

4. Cloud-Based Tracking

Remote access to stock data via cloud platforms allows for seamless stock checks and updates from anywhere.

How it Works:
- Stock data is stored in the cloud, allowing authorized users to access it from any device with an internet connection.
- This enables bar managers to monitor stock levels, generate reports, and make adjustments in real-time.
Benefits:
- Remote Access: Allows bar managers to monitor stock levels and make decisions from anywhere.
- Real-Time Updates: Provides up-to-the-minute visibility into stock levels.
- Improved Collaboration: Facilitates communication and collaboration between staff members.
- Enhanced Security: Cloud-based platforms offer robust security measures to protect sensitive data.
- Scalability: Cloud-based systems can easily scale to meet the needs of growing businesses.
- Less on site hardware: Cloud based systems reduce the need for expensive on site servers.

Ensuring Safety and Compliance

Safety is paramount in any Australian bar. Following proper storage practices reduces risks and ensures compliance with regulations.

Key Safety Tips:

Store alcohol securely to prevent theft or misuse.
Follow proper refrigeration protocols to keep perishable items fresh.
Use suitable shelving to prevent bottles from falling and breaking.
Train staff on safe handling practices for heavy stock and hazardous substances.
Maintain clear records for health inspections and audits.

Conclusion

Organizing stock and storage in an Australian bar is a vital aspect of running a successful business. By following legal requirements, implementing efficient organization strategies, and leveraging technology, bar owners can enhance operations, reduce costs, and provide better service to customers. Investing time in proper stock management today will pay off in the long run, ensuring a smooth and profitable business operation.

Thanks for joining us behind the bar!

The bartending community is a vibrant and supportive one, and I’m excited to build that community here on Shake, Sip, Serve. I’d love to hear your thoughts, questions, and experiences in the comments below. What are you shaking up these days? What topics would you like to see covered in future posts? Let’s connect and continue the conversation!
Liquor & Gaming NSW: This website provides information on liquor licensing, responsible service of alcohol (RSA) training, and regulations for serving alcohol in NSW. It’s essential for anyone working in the hospitality industry in NSW. You can find it here: https://www.liquorandgaming.nsw.gov.au/