The Truth About Bar Rescues: Do Most Fail?

A hot topic in the hospitality sector is bar rescues. They’re frequently portrayed as a last-ditch effort to turn around a failing company, with specialists swooping in to make radical changes. But are bar rescues generally successful? The answer, according to industry professionals, is no. In actuality, many bar rescues fall apart a year after the show premieres.

Why then do bar rescues fall short? The modifications made throughout the performance are frequently excessively radical and unsustainable, which is one of the main causes. The professionals might be able to make the bar seem better and change the menu, but they could not always solve the fundamental problems that made the establishment suffer in the first place. Additionally, once the specialists have left, some bars might lack the tools or the expertise to keep up the modifications.

Pour cost is another aspect to take into account. Pour cost is the difference between the cost of the alcohol used in a drink and its retail price. A high pour cost indicates that the establishment is purchasing more booze than they are recovering from customers. Given that alcohol is frequently the main source of income for bars, this can be a serious problem. The ideal pour cost for a bar is between 18 and 24 percent. If it is higher, the bar might have trouble making a profit.

Certain food products are more lucrative than others. Wings, burgers, and pasta dishes are among the entrees and appetizers with the highest profit margins, according industry insiders. On the other hand, the cost to the bar to buy and prepare foods like steak and seafood might be high, resulting in a lower profit margin.

What about cocktails, though? Cocktails can be both profitable and well-liked, but making them well calls for a lot of expertise and resources. A decent cocktail needs premium ingredients, knowledgeable bartenders, and a lot of time to prepare. A few clients might also be reluctant to spend more on a drink than they would on a beer or a bottle of wine.

What GP then ought a pub to make? The percentage of income that the bar makes after deducting the cost of goods sold is known as gross profit, or GP. Industry experts recommend that a bar’s GP be about 70%. Accordingly, the bar should be producing $0.70 in profit for every $1 in sales. If a bar’s GP is less than that, it might be difficult for them to make ends meet and generate a profit.

Bar rescues can be exciting to witness, but they don’t always have a positive long-term impact. A bar must to deal with the root causes of its problems and implement long-lasting solutions if it is to succeed. Bars may make wise selections and improve their chances of success by comprehending elements like pour cost, food profitability, and GP.