Exam 5 Chapters 25 27 and 28 Chapter 25 Bar and Beverage Operations Historical Context Believe it or not most political movements in the United States were born in Taverns and pubs in Europe were gathering and meeting places from the times The first inns in Europe were gathering places for the locals and sometimes for bars of the Middle Ages a traveler or two o These taverns were arguably the first hospitality establishments Bar Management Bar and beverage management is considered by many to be the most interesting challenging and profitable area of hospitality management Many types of hospitality operations have a bar or beverage operation as part of their service offerings to their guests or members o Lodging restaurant private clubs casinos Due to the substantial profit margin for the sale of alcoholic beverages beverage operations are often lucrative Beverage knowledge is an essential tool for many careers in hospitality such as banquet manager restaurant manager room service manager and in diverse operations such as corporate food service airlines stadium food service hotels casinos and cruise lines Glamorous Careers The bar business has a glamorous side which can be enticing Bar and beverage operations are connected to entertainment in many ways Many bars offer entertainment which may be as simple as darts or as complicated as full blown live entertainment productions by world famous artists Working at night in a fast paced part of the industry that caters to and often hires beautiful people who have disposable income can be very exciting Often a lot cash is changing hands and for tipped employees there is certainly a great deal of money to be made Contact with entertainers and interesting promotional possibilities are perks Legal Ramifications Harsh Realities Due to the unique nature of alcoholic beverages the legal implications and the control issues involved in their sale make this area of hospitality particularly challenging 1 In addition to social responsibility and the guest host relationship there are legal requirements regarding the serving of alcohol Hospitality businesses in the United States are subject to a Duty of Care for guests and the public which has evolved under the common law from the inns of England in the Middle Ages Dram Shop legislation refers to the legal onus on the provider of the alcoholic beverage Alcohol is a drug and is considered to be so reality altering that inebriated persons are not held responsible for their own actions With regard to injury to person or property of a third party the actions of an intoxicated person are rather the legal responsibility of the provider of those beverages The cocktail server bartender manager owner of the establishment and even the owner of the building will often be named in the suit Most companies take this responsibility very seriously Cash Business costly mistakes A business that involves cash is full opportunities for employees to make Checks and balances must always be in place There are techniques for controlling costs which range from computer regulated shots that cannot be activated unless a sale is rung into an interfaced POS point of sale terminal to subjecting the proper use of measured portions shot glasses or measured pourers to management vigilance Secret shopper services are sometimes utilized to uncover or validate instances of inappropriate cash handling Technology although expensive offers many solutions to the problems presented in a cash business The newest technologies include a DVR based application which allows managers to view actual marked transactions that have been recorded on cameras in the bar Theft controlling costs Regular inventory reconciliation is a commonly used technique for o The drawback of using this method is that it is reactive rather than proactive which is to say that it can only detect a problem after it has occurred There can be no substitute for awareness and constant training for all members of the staff There are more ways for employees to steal Over pouring using more than the recipe amount of the alcohol for a beverage constitutes a loss for the business and is also considered to be theft 2 A competent manager will also be aware that employees who are completely honest can cost a business profit through sloppiness waste and poor training poor knowledge of recipes and standards Licensing In the United States alcohol sales are regulated by individual states that often allow municipalities to issue licenses and determine laws so long as those laws are compatible with any existing state regulations The number and locations of licenses are often stipulated per municipality Quite often liquor licenses are very expensive and can be revoked for a number of violations Serving minors or already intoxicated persons in often cause for suspension or revocation of the licensed privileges but so can paying your bills late or failing to keep adequate records regarding sales and purchases of alcoholic beverages The rights and privileges associated with holding a license must be protected at all times by the owners managers and staff of an establishment serving alcoholic beverages Opportunities to BYO bring your own beverages do exist in many venues Corkage fees can be charged by an operation that holds a license to sell alcoholic beverages should a guest prefer to bring their own selection of beverage into the establishment Licensing regulations and requirements may vary from state to state in the United States therefore the prudent beverage manager will always have a copy of those regulations on premise for reference and will be familiar with them Products Many sold different products are sold in beverage operations As with sales positions in any other industry the most knowledgeable sales persons can offer the best information and service to their guests Wine Wine is an alcoholic beverage made from fermented grapes It is sold around the world and has gained in popularity in the past several decades Wines vary from dry to sweet o The term dry refers to the absence of sweetness Wines can also be distinguished by the grape from which they are made or the year the grapes were grown and harvested vintage A varietal is a wine that is made primarily from one grape In general white wines are made from white green grapes and are usually served cold Red wines are made from red grapes and are generally served at room temperature Truly ideal vintages years age well which means that
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