Why better stock management is one of the fastest ways to improve margins without sacrificing customer satisfaction.
Running a bar in today’s climate is no small feat. With rising costs, staff shortages, and shifting consumer behaviour, profitability can feel like a moving target. But one area remains consistently within your control – stock. More specifically, how you manage it.
Smarter stock control doesn’t mean cutting corners or short-pouring drinks. Done right, it’s about tightening operations, identifying inefficiencies, and using data to make better decisions. For bars looking to improve profitability without compromising guest experience, optimising stock management is one of the most powerful tools available.
The Cost of Guesswork
It’s easy to underestimate how much profit is lost between delivery and sale. A couple of free pints here, a misrung cocktail there – over time, it adds up. In fact, the average UK bar loses between 3% and 6% of its gross profit due to poor stock control. For a venue turning over £15,000 a week in wet sales, even a 3% loss equates to over £23,000 a year.
These aren’t just numbers on a spreadsheet – it’s money not banked.
Know Your Variances
Stock variances – the difference between what you should have and what you actually have – are a key metric in identifying loss. They can be caused by a wide range of factors:
- Overpouring or free-pouring
- Incorrect EPOS entry or cross-ringing
- Unrecorded wastage or staff drinks
- Spoilage or theft
- Untrained staff misusing product
Understanding the root causes of these variances is the first step. For example, one Capcon client saw their spirit variance reduce by 40% in two months after a simple retraining session on correct pouring and EPOS usage. No change in product, no change in pricing, just better processes.
EPOS Isn’t Magic – It Needs Management
EPOS systems are powerful tools, but only if used properly. A common issue is “cross-ringing” – where staff select the wrong product at the till (for example, ringing a house gin and tonic for a premium serve). Over time, this distorts sales data and erodes margins.
To address this, ensure your EPOS:
- Has clearly labelled buttons and categories
- Limits unnecessary product duplication
- Reflects the actual products behind the bar
- Is reviewed monthly to match your stock report
Clear training, logical menus, and regular checks all help make sure what’s being sold is what’s being poured.
Stock Audits: More Than a Compliance Box
Many operators treat their stocktake as a tick-box exercise. But your audit report is a goldmine of insight – if you know how to read it. Variance reports, GP%, line-by-line analysis, and trends over time can highlight:
- Fast-moving products with lower-than-expected yield
- Slow movers taking up valuable shelf space
- Allowances like staff drinks and breakages getting out of hand
- Promotions impacting margin more than anticipated
Bars that review their reports proactively – not just when there’s a problem – consistently outperform those that don’t.
Simple Changes, Big Results
Small operational tweaks often bring significant results:
- Pre-Shift Briefings – Let staff know what’s being promoted and why. If they understand the margin on a new serve, they’re more likely to upsell it properly.
- Wastage Logs – Encourage accurate recording of spillage or returns. It improves accountability and helps identify patterns.
- Rotation Systems – Ensure older stock is used first, reducing spoilage and out-of-date product.
- Mystery Pours – Spot-checking how drinks are poured can reveal inconsistency before it impacts margins.
The Guest Experience Shouldn’t Suffer
Some operators fear that focusing too much on stock control will compromise the guest experience. In truth, it’s the opposite. Well-trained teams, consistent serves, and fewer “we’ve run out” moments all improve service. Guests appreciate value – and consistency is a key part of perceived value.
How Capcon Helps
At Capcon, we understand that data alone doesn’t drive improvement – people and process do. That’s why we provide:
- Independent, professional stocktaking tailored to your venue
- Easy-to-read variance reports with actionable insights
- Mystery guest visits to help you match guest experience with operational delivery
- Training support to improve EPOS usage, reduce losses and empower your staff
- Dark web monitoring to protect your business from online risks, fraud, or staff-related security issues that could threaten your profitability
We’re not just ticking a compliance box. We help you understand what’s happening, why it’s happening, and how to fix it – so you can run a more profitable, more consistent bar.
Ready to take control of your stock and unlock hidden profit? Talk to Capcon today and find out how much more your bar could be doing – beyond the pour.
