How to Manage a Bar: Bar Management Tips 101

Alright, so you’ve been bartending for a while now, and you’re starting to feel like it’s time to level up. You’ve got the drink recipes down, the customers love you, and you’re ready for more responsibility. You’re thinking about stepping into bar management—well, that’s a whole new beast, my friend.

Managing a bar isn’t just about making cocktails and keeping the good times rolling (though, that’s a big part of it). It’s about overseeing everything—from inventory to staffing, from budgeting to making sure your bar is making money while keeping the atmosphere fun and lively. If you’re ready to take that step, here’s a friendly guide on how to manage a bar, with all the skills and tips you need to succeed. Grab a seat, and let’s dive in.

1. Managing Inventory, Ordering, and Stock Levels

Let’s start with one of the most critical parts of bar management: inventory. Without proper stock management, you’ll either run out of what you need or end up with too much stuff sitting around. Both scenarios are bad for business.

  • How to Handle It:
    • Track What You Have: Know what’s in your storage and how much you’ve got left. You don’t need to be a math whiz, but a simple inventory system can save you from scrambling last-minute when you’re out of, say, whiskey or soda.
    • Set Reorder Points: If you go through a bottle of gin every week, make sure you know when you’re getting low, so you can reorder in time. It’s all about staying ahead of the game.
    • Keep an Eye on Waste: You gotta keep track of wasted products—spilled drinks, broken bottles, or anything that doesn’t get used. The more you waste, the less profit you’re making.
  • Pro Tip: Invest in a good point of sale (POS) system that tracks inventory for you. These systems can automatically deduct the ingredients used when drinks are ordered, which makes life a whole lot easier when you’re managing a busy bar.

2. Setting the Bar’s Menu and Pricing

Now, this is where you get to flex your creative side a little. As a bar manager, you’ll have the responsibility of curating the drink menu—choosing which cocktails make the cut and figuring out the prices.

  • How to Approach It:
    • Know Your Audience: If you’re managing a dive bar, you’re probably not gonna feature $20 craft cocktails. On the flip side, if you’re managing a fancy cocktail lounge, premium drinks might be your bread and butter. Understand the vibe of your bar and price accordingly.
    • Balance the Menu: Your drink menu should have a mix of classics (like martinis and mojitos) and a few unique options that set your bar apart. And don’t forget about non-alcoholic options—people still want something refreshing when they’re not drinking.
    • Consider Your Costs: When pricing drinks, always factor in the cost of ingredients and labor. A $10 cocktail might seem like a good deal to customers, but if you’re losing money on every drink, you’ll be out of business fast.
  • Pro Tip: Keep an eye on what’s popular and what’s not moving. If a drink is just collecting dust on the menu, don’t be afraid to swap it out for something new.

3. Handling Staffing: Hiring, Training, and Scheduling

Being in charge of staffing is a huge part of bar management. You’re not just finding bartenders—you’re finding people who are going to represent your bar and make it a place people want to come back to.

  • Hiring the Right Team:
    • When you’re hiring bartenders and barbacks, look for experience, but also attitude. A good bartender is someone who knows their drinks but also knows how to handle a rush, deal with difficult customers, and keep the vibe positive.
    • Don’t forget about server staff and security. These folks are just as important to the overall experience.
  • Training:
    • Take the time to properly train your staff. This doesn’t just mean teaching them how to make drinks; it’s about getting them familiar with your menu, your POS system, and how to handle tips, customers, and busy nights.
    • Make sure everyone knows the bar’s policies—from handling complaints to working with the kitchen staff.
  • Scheduling:
    • Here’s where things can get tricky. You’ve gotta know how many people to schedule for the shift and at what times. Don’t overstaff (because you’re losing money) but also don’t understaff (because you’ll burn your team out).
    • Peak hours (like Friday and Saturday nights) are going to need more bodies, while slower shifts (like Tuesday afternoons) can have a smaller crew.
  • Pro Tip: Use scheduling software (like 7shifts or HotSchedules) to manage shifts, track hours, and communicate with staff. This makes scheduling way less of a headache and ensures your staff stays in the loop.

4. Budgeting and Financial Oversight of the Bar

Okay, here’s where the real business side of bartending comes in. You can make the best drinks in the city, but if your numbers aren’t right, your bar won’t stay open long. Bar management means keeping track of your expenses and making sure the bar is turning a profit.

  • How to Budget:
    • Know Your Fixed Costs: Rent, utilities, insurance, and salaries are the things you gotta pay no matter what. These costs are non-negotiable.
    • Track Variable Costs: This includes ingredients, supplies, and anything that fluctuates. Pay attention to your liquor cost (ideally around 20-25% of sales), labor costs, and waste.
    • Set Profit Margins: Your goal is to make a profit on every drink, so make sure you’re pricing drinks to cover your costs and leave some room for profit. You’ll also need to account for tips—while tips are great for your staff, they don’t contribute to the overall profitability of the bar, so don’t rely on them too much when doing the math.
  • Pro Tip: Keep a daily cash flow journal or use accounting software. This way, you can track how much money is coming in, where it’s going, and spot potential issues before they become serious problems.

5. Keeping the Bar Profitable While Ensuring Great Customer Service

Ultimately, a bar’s success comes down to two things: keeping the customers happy and making sure your profits stay high. A good manager knows how to balance the two.

  • Customer Service: The bar is a social environment, and customers want to feel like they’re being treated well. Make sure your staff is friendly, attentive, and efficient. You want them to feel like they’re part of the fun, not just someone who’s pouring drinks.
  • Profitability:
    • Encourage upselling. If someone orders a regular beer, suggest a craft beer or an upgraded cocktail. If someone orders a whiskey, offer them a top-shelf pour.
    • Keep an eye on happy hour specials—they can be a great way to get people in the door, but don’t give away the farm. Happy hour prices should bring in customers without eating into your profit margin too much.
  • Pro Tip: Implement customer loyalty programs or special events (like trivia nights or themed parties). People love feeling like they’re getting a deal, and a packed bar always means more sales.

Wrapping It Up: You’ve Got This!

So, you’ve got the basics of bar management down—inventory, staffing, pricing, budgeting, and of course, keeping those customers happy. It’s a lot of responsibility, but if you’ve been bartending for a while, you already know how to keep the place running smooth. Now it’s just about taking those skills and applying them to the bigger picture.

Remember, good management is about staying organized, being hands-on when you need to be, and treating your staff like family. If you keep things running efficiently while making sure your customers are having a blast, your bar will be a hit.

So, what are you waiting for? Get out there and start managing like a pro. You’ve got this!