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As a bar manager or restaurant manager, it’s likely you already know that inventory variance can be one of the biggest problems for your margins. Whether you’re missing one bottle or one hundred dollars in lost products, these small discrepancies quickly add up. This is especially true when you’re managing high-volume and high-value items like liquor and wine.
So, what are the causes of variance, and how do you fix them? It all comes down to having the right tools in place, and BinWise is one of those tools.
Below, we’ll go over the five most common causes of bar inventory variance and how BinWise helps restaurant and bar owners and managers stop the loss before it’s too late.
1. Overpouring
The problem:
A lot of bartenders pour heavily. It’s not always intentional, but even an extra half-ounce per drink every shift may add up to hundreds of dollars in lost product each week.
The fix:
With BinWise, you can compare your POS sales data with actual inventory depletion. This way, they can see where overpouring may be happening.
The BinWise platform will flag items with high variance and signal you to make a change or investigate. You may want to consider retraining your staff on standard pours, identifying pour cost, or consider using measured pour spouts where necessary.
There are different standards for pouring beer, pouring wine, and other alcoholic beverages. When your bar staff is in the know and follows these standards, it can decrease your variance.
2. Unrecorded Comps or Spillage
The problem:
Free drinks, spilled cocktails, broken bottles - these problems can happen every day or night. But when they aren’t recorded in your POS or inventory logs, they show up as unexplained losses.
The fix:
BinWise lets you track and account for comps, voids, and breakage events directly in your variance reports. By capturing this data in one place, you eliminate the guesswork and build a clearer picture of where the product is actually going.
A loss variance analysis provides you with insight into the inventory you don’t necessarily see. The BinWise platform is where you can access this report and others that will help you keep track of all your beverage inventory.
3. Theft (Internal or External)
The problem:
Theft is real and it can be internal or external. Whether the bottles are walking out of the back door or drinks are not being rung up properly, it’s a common occurrence in bars and restaurants. Even the best teams need oversight and BinWise can help.
The fix:
When using BinWise, users can identify patterns in variance that can signal theft. For example, consistent losses that occur during specific shifts, or products vanishing without corresponding sales.
With this kind of insight, you can tighten the controls on your inventory and review security footage or logs. You can do this with precision instead of suspicion.
4. Vendor Delivery Issues
The problem:
Picture this: you ordered six cases of wine, but only five cases showed up. Or, maybe the invoice said one thing, but the self tells a different story. This is a common occurrence in bars and restaurants, but what do you do?
The fix:
BinWise automatically compares purchase orders with received inventory, helping users identify missing deliveries or invoicing errors before they go unnoticed. This automation protects you from paying for products you never received and holds vendors accountable.
5. Manual Inventory Errors
The problem:
Manually taking inventory is a process prone to errors. In fact, when inventory is tracked manually it often leads to counting errors, missed invoices, and data entry mistakes. As a result, you’ll be left with unreliable numbers.
The fix:
With BinWise, all of your numbers are in one system, automatically. This includes your inventory counts, purchase history, and sales data. With this automation, there will be less room for manual errors and you’ll have more confidence in the numbers to make business decisions.
Stop Guessing and Start Controlling Your Invetory
Every bar and restaurant will deal with the causes of variance. However, if you’re not actively tracking and addressing the variance, you’ll be losing money.
With BinWise, you don’t have to do it manually. BinWise automates variance tracking, flags problems in real time, and helps users take control of their inventory.
Why Bars and Restaurants Trust BinWise to Reduce Variance
BinWise isn’t just a reporting tool, it’s a complete inventory management solution built for bars, restaurants, and the hospitality industry. Wether you need to manage one bar or ten, the BinWise platform connects your POS, purchasing, and inventory into a single centralized system.
This means, fewer manual errors, faster inventory counting, and total transparency into where your items are going. Since variance is automatically flagged and calculated in the BinWise platform, you can stop guessing about the causes of variance and start making decisions backed by data.
To see how the variance report and others work in real-time, be sure to book a BinWise demo today!
Frequently Asked Questions About How to Fix the Causes of Variance
Understanding the causes of variance is crucial for managing a profitable restaurant or bar. Below are answers to commonly asked questions about what leads to inventory discrepancies such as variance and how BinWise can help you stay ahead of them.
1. What are the most common causes of inventory variance in bars?
The most common causes of inventory variance in bars includes overpouring, theft, unrecorded comps or spills, vendor delivery issues, and manual inventory errors. These small discrepancies add up quickly and can significantly impact business profit margins.
2. How can BinWise help reduce inventory variance?
BinWise helps reduce inventory variance by syncing inventory counts with POS data and purchase orders. The platform also flags discrepancies in real time, tracks spills and comps, and gives users insight to loss patterns so they can take appropriate action.
3. Why is overpouring such a big issue for bars?
Overpouring is a big issue for bars because it can lead to hundreds or thousands of dollars in lost revenue. Even small overpours can lead to large problems. BinWise helps identify these trends by comparing sales to actual inventory depletion, making it easier to enforce standard pour amounts and reduce waste.
4. How does BinWise catch vendor delivery issues?
BinWise helps businesses catch vendor delivery issues by comparing purchase orders with received inventory. If there is a mismatch or discrepancy between the two, like a missing case or incorrect item, the system flags the issue so they don’t pay for what they don’t receive.
5. Can BinWise help prevent theft?
Yes, BinWise can help prevent theft by identifying suspicious patterns such as recurring losses during certain shifts or missing items with no sales activity. With this data, users can narrow down where the loss is happening and act quickly without all of the guesswork.