In an era where escalating food and labor costs are squeezing profit margins, bar and restaurant owners face the pressing challenge of maintaining profitability without compromising quality or customer satisfaction.
Chris Leavitt, Content Creator and Industry Consultant at Not Just A Bartender, offers invaluable insights into maximizing bar profits through strategic beverage menu design and operational efficiency.
The restaurant industry has undergone significant transformations in recent years, with rising food prices and increased labor costs becoming persistent concerns. According to industry reports, many establishments operate on razor-thin margins, making profitability a constant challenge.
Leavitt emphasized, “In today’s economic climate, it’s essential for bars to optimize every aspect of their operations to remain profitable.”
Leavitt’s career trajectory is a testament to passion and adaptability. Starting as a bartender during his college years at Penn State Harrisburg, he briefly ventured into pharmaceutical sales before realizing his true calling lay in hospitality.
A pivotal business trip to Las Vegas exposed him to the city’s vibrant bar scene, inspiring him to relocate and immerse himself fully in the industry.
Over the years, Leavitt honed his skills at notable establishments, including Carson Kitchen and Barry’s Downtown Prime at Circa Resort & Casino. Reflecting on his journey, Leavitt noted, “Each experience allowed me to understand different facets of the business, from mixology to operations, shaping my approach to bar management.”
A well-curated beverage menu is pivotal in driving profitability. Chris Leavitt advocates for a strategic approach: regularly analyzing the menu to identify high-profit items, promoting them through strategic placement and vivid descriptions, and removing underperforming items to streamline operations.
“Review your pricing structure to balance profitability with customer value,” he said. “Consider factors like ingredient costs, preparation time, and market competition when setting prices.”
He also recommends developing signature cocktails using cost-effective ingredients that are perceived as premium. “This allows for higher price points and differentiates your bar from competitors,” Leavitt said.
With a growing trend towards reduced alcohol consumption, bars must innovate to cater to this demographic. Leavitt advises against merely creating non-alcoholic versions of existing cocktails. Instead, he encourages bars to craft non-alcoholic drinks that stand on their own, offering unique flavors and experiences.
“This not only caters to health-conscious patrons but also showcases the bar’s creativity,” he said. Investing in high-quality mixers, fresh ingredients, and artisanal syrups can elevate the flavor profiles of these offerings and turn them into destination drinks in their own right.
Operational efficiency is closely tied to the tools and training provided to the bar team. Leavitt stresses the importance of empowering bartenders with what they need to succeed. “Ice plays a crucial role in the presentation and dilution of cocktails,” he noted. “Investing in quality ice machines ensures consistency.”
He pointed to companies like Hoshizaki as examples of technology partners that can streamline operations, reduce waste, and ensure consistent product quality.
Beyond tools, he advocates for comprehensive training that equips staff with the knowledge and skills to work more efficiently and confidently. “Well-trained staff can improve service quality and contribute to increased sales.”
The industry-wide increase in food and labor costs necessitates adaptive strategies. Efficient inventory management, including regular checks to prevent overstocking and waste, can directly impact the bottom line. “Utilize point-of-sale systems and inventory management software to monitor sales and stock levels,” Leavitt advised.
These tools aid in data-driven decision-making and support smarter purchasing. At the same time, operators should focus on enhancing the customer experience. “A memorable experience encourages repeat business,” he said. “Focus on ambiance, personalized service, and engaging promotions to build customer loyalty.”
For bar and restaurant operators seeking personalized guidance, Chris Leavitt is accessible through his social media channels. He engages regularly on Instagram at notjustabartender and shares industry insights and updates on LinkedIn at cleavitt.
Engaging with industry experts like Leavitt can provide valuable strategies and a clearer roadmap to navigate the complexities of today’s hospitality landscape.
