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AT THE BAR

Developing a Dynamic Bottled and Draft Beer Program


Minimize loss and maximize profits from your beer business

By Robert Plotkin

©2007 Maiden Name Press LLC

Benjamin Franklin said, "Beer is tangible proof that God wants us to be happy." Americans must be quite happy because beer remains one of this country's favorite alcoholic beverages. Since beer typically accounts for a sizeable portion of a restaurant's beverage sales (draft beer often yields margins of 85 to 90 percent), implementing a dynamic beer program is crucial to long-term success.

But serving beer is not problem-free. Bottled beers present challenges in the areas of pricing and waste. With draft beer, portion control, theft, over-pouring and spillage are problems operators face. In fact, one industry survey estimates losses on draft beer due to over-pouring, giveaways and pilferage is roughly 20 percent — approximately one out of every five kegs you buy! Depleting forty kegs per week at an average of $47.50 per keg equates to a loss of nearly $10,000 a year.

The following advice can help you minimize loss and maximize profits from your beer business.

Bottled Beer

Maintain Proper Inventory Levels. Some establishments carry almost every beer available as part of their concept. The fact that much of the inventory will turn over slowly is expected and acceptable. Unless your operation falls into that category, review your purchase records and drop product that doesn't turn over in 30 days or less, or sells more slowly than the other labels. The long-term solution may not be to replace the product with another brand; the answer may be to stock fewer labels.

Store Bottles Upright. Store beer upright in a dry, clean, dark place never exposed to direct sunlight or fluorescent light (which could cause a reaction that will negatively affect the beer's taste and aroma). With a top-loading cooler, it is tempting to lay bottled beer on its side to efficiently utilize space. When bottles are stored horizontally, the metal cap will adversely affect the beer's taste and character. Keeping bottles in six-packs protects the bottles and makes rotating stock easier. Also keep beer as still as possible (excessive movement can cause taste and aroma to deteriorate), and rotate inventory so oldest products are used first (the First In, First Out system).

Maintain Proper Temperatures. Ideal storage temperatures range from 40˚ to 60°F. Don't quick-chill beer in a freezer (0˚-5°F); a sudden drop in temperature will adversely affect its taste. Never let beer freeze. Lengthy exposures to temperatures of 28°F or colder will cause solids and liquid to separate. If it is only slightly frozen, gradual thawing in a refrigerator may bring it back to its natural state. But if the beer is cloudy or has sediment in it, don't sell it!

Pay Attention to the Seal and Lip. Discard beer if the bottle's seal has leaked and it is no longer airtight. Evidence of this might be a larger than normal air space in the bottle; cloudiness; or the presence of sediment (which is okay with wheat-sedimented beer). Consider buying wall-mounted openers, and caution staff to open bottles without chipping the lip. Once chipped, discard the bottle.

Draft Beer

Maintain Proper Pressure. Maintain constant, uniform pressure in beer feed lines. Most American beers have a natural carbonation in the keg of 12 to 14 pounds per square inch (psi) at a temperature of 38°F. Additional gauge pressure of 12 to 14 psi is required to propel the beer through the lines and dispenser, and prevent the beer from losing its natural carbonation. It requires 1/2 lb. of carbon dioxide ( CO₂) at 12 to14 psi of pressure to dispense a half-barrel of beer at 38°F. If the carbon dioxide regulator or air pump is set too low, or the line pressure drops below 12 psi, the natural carbonation in the beer will dissipate and the draft beer will go flat. Conversely, if the internal pressure in the lines exceeds 16 to 18 psi the draft beer will become over-carbonated.

Keep it Clean. Every week, clean the spigot and feed lines (including refrigerated lines from a walk-in cooler) to prevent formation of off-tastes, odors, yeast and bacteria buildup. Cleaning is typically performed by the beer distributor.

Store Properly. Store kegs in a cool, well-ventilated storage space where they can be connected by the same dispenser gas main. Because draft beer is not pasteurized it should be stored at a constant 36˚ to 38°F (8˚-10˚C) to prevent spoilage. High storage temperatures cause beer to turn cloudy, sour or otherwise unpalatable. If temperatures drop below 36°F, beer may go flat.

Keep draft beer unagitated and untapped for 24 to 36 hours after delivery. Implement the First In, First Out inventory system. If storing more than two kegs at once, mark each with the delivery date to facilitate rotation.

Never let draft beer freeze, which will cause the solids to separate from the liquid.

Draft beer should not be stored near food. Exposure to food odors, condensation pooling on the keg top, and/or fungal growth can adversely affect the beer inside the kegs.

Serve at Proper Temperatures. Draft beer absorbs heat rapidly. If served immediately, beer drawn at 36°F will rise to 38˚ to 40°F by the time it reaches the patron. The ideal serving temperature for most lagers is 40°F. A flat taste is often a sign the beer is too cold while wild, foamy beer means it is too warm.

Train Staff About Pouring. Never let the spigot touch the beer in the glass. To prevent the head from dissipating quickly, glasses must be totally clean! Pour draft beer directly into a glass and never let it run first. Traditionally, draft beer is served with a 3/4- to 1-inch head. Tilting the glass and letting the flow of beer slope off the inside will inhibit the amount of head. When the glass is half full, let the beer flow directly into the center of the glass to produce the right amount of head. Serving draft beer in a frosted or frozen glass will likely result in the head rapidly dissipating.

Prevent Internal Theft. Because it is hard to assess the amount of beer in a half-barrel, draft beer is a frequent target of internal theft. Watch for free give-aways, over-pouring, serving two- for-ones, and ringing beer sales into the liquor sales key of the cash register to offset previous theft.

Install Fob Detectors. When a keg empties, foam sprays out of the spigot as the gas pressure drains the last of the beer out of the feed lines and causes fobbing. Once a new keg is brought on-line, the beer displaces the volume of gas from the line. This takes time and creates further beer waste. A fob detector (which mounts on the wall of the walk-in cooler and is connected to the feed line) can prevent these problems. When the keg empties, the float in the fob detector's central chamber cuts off the flow, so pouring ceases and gas is prevented from entering the line. Once the chamber recharges with beer, pouring continues with little or no waste or disruption from gas spraying from the tap.

Weigh the Pros and Cons of Pitchers. Serving draft beer in pitchers is convenient and often stimulates sales because buying pitchers is a better value for patrons than buying glasses of beer. But pitchers sell at a higher cost (and lower profit margin) than glasses do. They also make your by-the-glass prices appear unreasonably high. From a profit perspective, it is more advantageous to sell four glasses of draft than one pitcher of beer.

Robert Plotkin is the past president of the National Bar & Restaurant Management Association and author of books including "Successful Beverage Management — Proven Strategies for the On-Premise Operator." You can reach him at 1-800-421-7179, or e-mail him at robert@barmedia.com.

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©2008 Maiden Name Press LLC