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Excessive Beverage Stock in the Store. Why? What impact does it have?

Challenge


At a reputed Golf Resort the F&B beverage store had a huge inventory of Alcohol ranging from spirits to wines. At the restaurant bar’s there was a huge display of beverages which were actually too much and confused the staff as what to sell.  Alcohol suppliers used to make attractive offers to the club to purchase their products and it used to remain in the store. It was noticed staff were not able to sell due to having unwanted brands.

Solution


Bosco spent more time going through old records, and purchase slips of beverages:


What was discovered

  • Lots of assorted wines and Spirit brands.

  • The amount of stock when calculated was astonishing that was basically cash sitting on the shelf that could be utilized elsewhere.

  • Clients who visited the Golf resort preferred to have Beer

  • Staff were not motivated resulting in no upselling.

It was immediately determined that the client did not have a consistent beverage menu and a ordering system in place.


Bosco after conducting a sales mix report on the last two years found out that some products were order with two different names.


e.g Sancerre, Château de Sancerre and, Château de Sancerre, Viognier, Y Series, Yalumba and Yalumba Viognier. There were many other products in a similar fashion.


Bosco advised the client to put a Par stock in place with minimum and maximum for every brand. This ensured that the store keeper kept a track in his store and the Restaurant team had what they wanted. A plan was made to have a monthly promotion on wines and themes.


Bosco advised management to institute an incentive and award program for the Bartenders and Service staff on a monthly basis for the highest sales.


This led to a competition between every associate, pushing brands that were on sales for a particular week or until they ran out of the old stock. In turn all old stock were seen to start moving of the shelf.

Conclusion

Outcome


Beverage stock was depleted in the store that was there for years, within 4 months all the old stock was consumed. Staff were motivated to sell more. With the new stock there was a new menu put in place that gave a fresher look to the bar with fast moving items and thus increased the profits margins.

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