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LOSS PREVENTION - Scannabar

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Page 1: LOSS PREVENTION - Scannabar
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Bar & Beverage Business / www.barandbeverage.com 31

When Alberta-based Cowboysopened its first location inCalgary in the late 1990s,

the bar was packed to the gills everynight. Amazingly, despite the wall towall revelers, the popular club wassomehow still failing to turn a profit.

At that point, it was clearly time to fig-ure out what was going on says Paul Vick-ers, president of the Cowboys chain. Afteran exhaustive review of the business, aninternal audit determined that one of thekey problems was that each of the bar’sservice staff was, on average, handingout one or two free drinks per shift.

While that may seem like small pota-toes, once all the employees and all theshifts were added up, the loss to Cow-boys was a staggering $3.8 million peryear. Obviously, even small scale pilfer-ing can have a huge cumulative effectin a busy operation, particularly in abusiness with multiple locations.

At the time, Cowboys was manuallymarking bottles and weighing theirliquor as their primary method of inven-tory control. It was an arduous and timeconsuming process that was still not get-ting the job done.

Knowing they needed some help,

Vickers turned to Montreal’s Scannabar.Scannabar’s Roberto Scanga explainsthat his company’s system, “helps ahospitality operator manage their liquidassets the moment they are received inthe establishment until the day they areemptied and recycled. Scannabar givesthe operator the ability to check andbalance what is being received, trackwhat is being transferred and quicklyand accurately quantify usage at eachof their pouring stations, thus keepingbar staff accountable.”

The system is very straightforward.Once a liquor delivery is made, all bot-

LOSS PREVENTIONby James Farr

Photo Courtesy of Scannabar

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32 www.barandbeverage.com / Bar & Beverage Business

tles have a bar coded ribbon affixed tothe exterior of the bottle. By scanningboth the Scannabar bar code and theexisting bar code on the bottle, the sys-tem is able to calibrate each bottle indi-vidually from the bottom to the top. Thebar coded ribbon is used as a measuringtool and designed to sustain all the harshelements found in a typical bar, includingice bins, speed rails and coolers.

For those looking to put a tight con-trol on inventory, Scanga explains thatScannabar is, “the only product in themarket that offers individualized bottletracking by way of a serialized labelthat tracks every bottle from the receiv-ing point to an unlimited number ofpouring stations and not only makes theounce accountable, but also the bottle.”

Another system well worth investiga-tion by bar operators looking to stay astep ahead of those looking to rob them

blind is the AZ-200 from Azbar, anoth-er Montreal-based company.

Sam Uva, president of Dynamic Hos-pitality & Entertainment Group, a com-pany that includes Toronto clubs SevenLounge and Berlin among its interests,says that after a great deal of research,the AZ-200 was chosen because it bestaddressed the issue of liquor shrinkage.

The AZ-200 control unit, which canbe used with programmable pourers, acocktail tower, a draft beer head, awine dispenser, a liquor gun, and in-line flowmeters, offers bar operatorsone-stop shopping for their liquor con-trol problems.

The easy to use system automaticallytallies each transaction between a bar’sstaff and their customers, then updatesthe bar’s inventory in real time. It

avoids waste by always pouring exactportions and a seal prevents dilution ofbottle contents.

For the owner who likes to keep aclose eye on their operation while not onthe premises, the system allows formodem-based remote control monitoring.For those with security on the mind, thatmeans the ability to check out what ishappening at their bar from anywhere inthe world with an internet connection.

For Uva, as it should be for all opera-tors, the bottom line is the determiningfactor of success. He estimates that priorto signing on with Azbar, the liquourshrinkage at his locations was in thevicinity of 22% to 23%. With the AZ-200, he figures that number has droppeddown to 16%, an impressive savings thatmakes the return, on the considerableinvestment of implementing the system,well worth it over the long run.

Systems like those from Scannabar,Azbar and a multitude of other compa-nies specializing in loss prevention soft-ware, make a lot of sense for medium tolarge operations that employ a lot of staff.

However, for cozier neighbourhoodbars and small family-run operations,something as simple as a dependablepour can make a big difference.

Michael Billard, owner of the ElroseTavern, in Elrose, Saskatchewan, is abig fan of the pours he buys from Preci-sion Pours, Inc. They look and handlejust like a non-measured pour and theysave bartenders precious time by allow-ing them to pour liquor and mix at thesame time, eliminating the need for shotglasses or jiggers.

Overpouring can ultimately cost thebartender money.

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for information on a distributorin your area contact Browne & Co.

1.877.327.6963

Mix your cocktails with

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Page 5: LOSS PREVENTION - Scannabar

Digitot

iQInnQuestCanada

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or call 888-477-0344.Proud supplier of

“InnQuest” is a registered trademarkof InnQuest Software Corporation.

34 www.barandbeverage.com / Bar & Beverage Business

With these simple pieces ofequipment, bars can eliminateoverpouring and spillage, savingthe operator a lot of money in theprocess. After a lifetime in thehospital i ty business, Bi l larddoubts even he can pour an exactone ounce shot. And if he can’tdo it, he doubts many bartendersor servers can do it either.

Rick Sandvik, president of Preci-sion Pours, estimates two to threedrinks are lost per bottle at loca-tions that encourage free-pouring,a number Billard agrees is justabout right. If an establishmentcharges $5 per drink, the loss is$10 to $15 per bottle or $120 to$180 per 12-bottle case. Unlessaddressed, that money is comingout of the pocket of the bar ownerand will never be recouped.

Considering the durable and easy to maintain pours fromPrecision Pours cost roughly $5 each, the return on investmentdoes not take much time to realize, particularly when boughtin bulk at a slight discount.

Billard also points out that by using the dependable pours,his customers can always count on receiving a drink that con-sistently tastes the same. When the customer trusts that they

are getting what they have paid for, itbuilds increased customer loyalty.

Further to that, Billard speculates thatbartenders that overpour areultimately costing themselvesmoney. When the beveragesa bar patron receives arestronger than expected, it isnatural that most would con-sume fewer drinks, resultingin a lower total bill and sub-sequently, a lower tip for thebartender.

Philippe Blouin, vice-presi-dent of sales at Azbar, saystheir system will always pourthe exact drink that isordered. If customers have

any issue with the taste of a particulardrink, then the operator knows it is therecipe they are using and not differentbartenders using different ingredients.

Regardless of the system a bar has in place to preventliquor losses, Vickers says it is imperative that management bevigilant in watching what is happening on the premises. Hecompares his onsite managers to Las Vegas pit bosses, point-ing out that their roles are very similar.

In Vegas, pit bosses are tasked with being the casino’s eyesand ears in the trenches. They are looking for any suspicious

Precision Pours offers a great returnon investment.

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Bar & Beverage Business / www.barandbeverage.com 35

behaviour from both the dealers and the gamblers. They arealso responsible for signing over chips, representing hugesums of money, to the dealers.

In a bar, Vickers says it is pretty much the same process. Asformer bartenders and servers themselves, the managers atCowboys know every trick in the book. Whether it is sneakingin a bottle to sell off the books, or adding too much ice to atray of shooters to water them down, they must be on the look-out for potential scams at all times.

With over 20 years in the bar biz, Uva feels an operatorhas to have a basic understanding of human psychology to

be successful. He refers to the 80-10-10 principle as an example ofthis. Of 100 random people thatcould potentially work in one ofhis bars, he estimates 10 willalways steal when given thechance; 10 will never steal underany circumstances; and 80 areopportunists that could go eitherway depending on the situation.With this in mind, he figures thatintroducing measures that makestealing extremely difficult, shouldhelp to keep the group of 80 onthe straight and narrow.

Cameras are popping up inmore and more bars as an attemptto provide added security. Whilethese can be very helpful as a gen-eral deterrent, Uva is not sure theyare that helpful in the end. “Theresolution on those cameras is terri-ble and to be honest, who has thetime to watch through hours of sur-veillance tape anyway?” he asks.

A better technique he suggests is to have managers lookthrough the sales reports of staff looking for questionable pat-terns. He recalls a few years back at one of his clubs, a bar-tender who took advantage of a two-ounce Vodka-Cranberryspecial. A single drink would sell for $5, while the doublewould sell for the reduced price of $6.95. If a patron were tocome to the bar and order two single Vodka-Sodas, the bar-tender would provide the drinks and charge $10, but would

then turn around and input the two vodka shots into the POSsystem as the Vodka-Cranberry special for $6.95, pocketingthe extra $3.05 every time that transaction came up.

Had this bartender not overdone it on the scam, it couldhave gone on for a while. However, when she got toogreedy, her sales reports showed an inordinate number of theVodka-Cranberry specials being sold as compared to thebar’s other employees. A manager going over the reportsnoticed the pattern and was quickly able to figure out whatthe cheating bartender was up to.

Memo Degirmenoglu, beverage manager at Montreal’s SirWinston Churchill Pub, uses the full Azbar package at thepopular Crescent St. hotspot. He appreciates the inventorycontrols built into the software, as well as the varied anddetailed reports that can be generated from the system.

While the system helps him to keep on top of the liquorshrinkage issue at the sprawling, three-level bar, he also sug-gests using “mystery shoppers” as a means of identifyingpotential problems. Bartenders will often let their guard downaround customers, openly mocking a bar’s management. Mys-tery shoppers with a keen eye can quickly ascertain any barprotocols that are being compromised and alert managementto areas that need to have tighter controls.

In the bar business, time is money. With most loss preven-tion systems now of the high tech variety, it is extremely impor-tant that the company that sold the system be ready to provideinstant support in the event of a problem.

When dealing with a vendor, bar operators need to knowthey can trust that vendor to be there for them in the event of

Two More Systems to WatchWith loss prevention such an important issue facing the bar biz today, finding the right product to meet

an operator’s needs can be a tough task. For those looking for an easy-to-use system, Thomas Zurch,the sales and marketing manager for InnQuest Canada, suggests bar operators look at a couple of theirpopular products: the iBarControl and Digitot.

iBarControl Developed in Edmonton by InnQuest Canada, the system makes the daunting and time-consuming task of taking inventory much quicker and easier. Using Bluetooth wireless technology, iBarallows staff to take inventory with handheld computers that instantly tally the count, allowing reports tobe created immediately. Even better, there is no labour-intensive, manual inputting of numbers intospreadsheets. It is an efficient and clean way to keep on top of inventory control.

Digitot Created in South Africa, Digitot is distributed in Canada by InnQuest. Digitot combines reliable dispensing and measuring equipment to helpoperators take control of inventory and profit margin management. The system’s products focus on managing and monitoring spirit liquor, draught beer,cask wine, soda fountain cold drinks and bottled wine by the glass. Digitot’s integrated equipment and software provide revenue assurance; beveragequality assurance; real-time management reporting; and marketing data.

Azbar always pours exactportions avoiding wasteand eliminating dilution ofbottle contents.

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an emergency. With Scannabar andAzbar, most problems can be resolvedonline. However, if the issue is of amore serious nature, then it is equallyimportant that an actual technician bedispatched to the locations as soon asis humanly possible.

Vickers knows the Scannabar systemhas never given Cowboys any majorissues. He credits the company’s initialinstallation of the system, coupled withtheir training program as the reason forthis. Had there ever been any hugeproblems, they would have made it to

his desk in the president’s office. Andsince that has never happened, he feelsvery comfortable giving the companythe thumbs up on customer support.

Another factor that bar operators lookfor in a loss prevention system is sim-plicity for staff. The more time spent ontraining staff is less time that staff isactually on the floor generating sales.

Spiro Peterson, assistant manager atMoe’s Deli & Bar in Pointe Claire, Que-bec, has worked with both Scannabarand Azbar and says both are easy touse, resulting in minimal time spent on

training. With staff turnover continuingto be a big issue in the bar businessacross the country, anything that con-tributes to employees wanting to stickaround is a big plus.

By being vigilant in the battle to reduceliquor losses, savvy owners and operatorscan count on having more of their hardearned cash in the till at the end of everynight. For Vickers, the savings realizedsince the transition to Scannabar meansmore capital to keep his clubs popular.“Most bars last six months to two years.At Cowboys, we’ve been around for over10 years because we invest back into ourlocations.” He adds that, “We spendmoney on promotions, on bringing inbands and making constant renovationsto keep our places looking fresh.”

There are plenty of choices to pickfrom when it comes to loss preventionsystems. Uva was turned on to theAzbar system at a trade show yearsago and has stuck with it ever since.

Trade shows like the Bar and Bever-age Show in Calgary or the Rendez-Vous HRI show in Montréal are goodplaces to start. Both offer bar operatorsa wonderful opportunity to see first-handthe newest and most effective productsin the marketplace. Knowledgeablesales staff and technicians from thesecompanies will be more than happy toanswer any questions about their prod-ucts. This is also a good chance to seemany of these competing products sideby side, making choosing a little easier.

With drinks flying over the bar at Cow-boys on a busy Saturday night, it is clearthat there is plenty of money to be madeby both the bar itself and the staff bustingtheir tails working at the hopping joint.

And while the relationship betweenbar staff and management can often bea frosty and confrontational one, itdoes not have to be. If operators andstaff can create an atmosphere thatencourages patrons to open up theirwallets, enough money will be made tokeep everybody content.

With the proper loss prevention sys-tem in place, bar operators and staff canfocus less time and energy on trying tooutsmart one another and more on serv-ing their customers. Because at the endof the day, improving the experience forevery patron that walks through the doorwill keep those customers coming backagain and again. And that is a goodresult for everybody involved. �C

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