Beer Archives | Sparkler City

Tap Beer

Maximizing Your Beer Profits

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Whether you’re running a bar and grill or an upscale nightclub, beer sales are going to make up a significant amount of your total revenue. Even if you’re attempting to capture the cocktail market in a certain area, America loves their beer way too much to convince everyone to throw away their pint glass and try something new (and likely more profitable). However, there is still plenty of profit to be made on your draft beer if you put together your system correctly. There are a lot of things that affect how much money you make from a pint of beer, so being aware of all those things can make a very drastic difference.

It’s also important to note that the profit you make selling draft beer versus the profits from cans or bottles is drastically higher; sometimes as much as double! Beer manufacturers need to pay for the container, the shiny label, and labor to put that all together when they roll out cans and bottles from their brewery, but when they keg their beer instead it is a much simpler and streamlined process. This means you only are paying for the beer in the keg; not the fancy marketing or the container. This is why it’s so important to have a good tap beer program in place and to know what it takes to have customers coming back for another pint of your draft beer.

Proper Temperatures

The most important aspect of selling tap beer is that you need to keep your kegs at the proper temperature. If draft beer is too warm when it comes out of your taps, it will be flat, foamy, and unappealing to the drinker. This means that you’ll be pouring up to 40% of your beer down the drain because the pints come out too foamy, and even worse is that nobody will buy your draft beer and your poor reputation will spread throughout the community.

Proper Margins

Another important thing when trying to make more money off of your beer sales is to price things with the proper margins. Charging the right amount for each type of beer you have in stock is crucial to making profits while at the same time keeping your customers coming back for more. You can offer your draft beer at lower prices than your bottled beer and still have higher margins because the initial cost is so much cheaper. Overall, you should try to price your draft beer to have a profit margin of around 80% and your bottled beer for a profit margin of around 75% to make everything shake out in your favor at the end of the day.

The Right Selection

Lastly, one of the worst things you can do is to have a poor choice of beer selections available for purchase. This is a double-edged sword because you want to have enough variety to bring in the masses but you want to avoid beer going stale and being thrown in the trash. To accomplish this, you need to rely on your sales data. If there’s a beer that isn’t selling well, switch it out for something new or remove it from the menu all together. Your beer distributor should be helpful in this arena as well because they obviously have a vested interest in your bar selling more beer. By balancing quality, pricing, and the right selection, maximizing your beer profits can quickly become a simple science.

Beer Cocktails

The Rise of Beer Cocktails

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Things have been changing pretty drastically in the bar and nightclub business recently, and not even beer drinkers are immune to this wave of change. It used to be that you could rely on your beer drinkers to order the same tap or bottled beer on regular basis, with exception of maybe adding a couple of large green olives or a shot of tomato juice, but the new generation of drinkers has a much more elaborate and discerning taste. Essentially considered the mixology of beers, the rise of beer cocktails is well at hand and sweeping the industry like wildfire. There are a few different ways people like to have their beers mixed, and looking at all the possibilities is the first step to mastering the art.

Mixing Beers

The first method of creating beer cocktails is also the oldest, mixing two beers together to create one new “super” beer. This practice has existed for well over a decade already, but the recipes have gotten more elaborate and the frequency that they are ordered has gone up drastically. Classic versions of mixed beer cocktails include the famous “black and tan” which is an Irish stout (typically Guinness) and pale ale mixed in equal parts. Other popular choices include variations such as the “black and blue” which substitutes Blue Moon for the pale ale or the “black and brown” which uses brown ale instead of the pale ale. There is literally a list of hundreds of combinations, so you may want to study up to better serve your clientele.

Beer Cocktails

Beyond mixing two or more beers together to create a unique flavor, people are growing very fond of actual beer cocktails that combine beers and liquors to create completely new drinks. A classic example of this is known as the “Belfast car bomb” which mixes Guinness stout, Bailey’s Irish cream, and Jameson Irish whiskey together to make a shot that is unlike anything else you can buy. But recently, customers have gotten more adventurous and start using beer in place of standard mixers like cola to create beer and whiskeys, beer and rums, and beer and tequilas. One of the more popular variations mixes apple flavored ale with Jack Daniel’s whiskey to create an “Apple Jack”.

Premixed Flavored Beers

With so much popularity and so many variations out there, many companies are capitalizing on this new trend to drum up more profits. There are companies that are releasing premixed versions of these beer cocktails such as beer mixed with margaritas, beer mixed with clam and tomato juice, and even fortified beers that have liquor added directly to the batches before bottling or canning. You can even buy premixed versions of beer combinations such as black and tans which usually come in larger jugs that contain more than one serving. Though these premixed versions are already out there on the shelves, you can make a lot more money by mixing them yourself right at the bar.

As the availability of beer cocktails and premixed beverages rises, more and more customers will show up seeking them rail side. This can be a great way to draw in the younger demographic and also earn higher profit margins. Make sure your bartenders are properly trained in all the latest beer cocktails to ensure they are prepared to satisfy their customers.

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