Does Your Nightclub Business Plan Cover Bartender Theft?

Many owners and operators when developing their nightclub business plan focus on the concept and its related sales and cost of operations in terms of how many costumers will show up and so on. However, one area that is commonly not thought about is having good controls that your bartenders must adhere to from the beginning. If you think about it, one bartender skimming per shift can easily shave off 5% to 10% percent of your sales without anyone realizing it. There is a good article in Nightclub & Bar Magazine this month that addresses the various areas a bartender can steal without it going noticed. Here are two excerpts from it: “Left unchecked, employee theft can reduce cash flow to a trickle. How extensive is the problem? Internal theft costs bars on average 24 to 26% of gross sales, according to Bevinco, an international beverage auditing service. The thought is enough to make seasoned managers wince and bar owners shudder.” “One reason behind-the-bar schemes are so effective is that most bartenders conduct themselves professionally. Faced with the same opportunities to pad their income, professional bartenders choose instead to look out for the best interests of the house and perform their jobs sans a hidden agenda. Paradoxically, it’s the ethical behavior of the majority that thoroughly obscures the actions of the few, making it harder to diagnose the problem and root out its cause.” Read the rest here to help in your nightclub business plan. Check out these other nightclub publications at our bookstore if you plan to open or buy a nightclub. There are also tips and ideas on night club managementfrom our experts in The INNsider© monthly newsletters too. Are you an owner operator writing a nightclub business plan? What areas of bartender theft have you considered in the initial planning? Is it quantified as to what it might cost if you do not address it? Please share your comments.