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CONTENTS
ix
ESTABLISHING
BEVERAGE CON
TROLS 616

 ESTABLISHING
CASH CONTROL
S 622

TECHNOLOGY
AT THE BAR 62
4

SUMMING UP
629

POINTS TOPON
DER 630

TERMS OF THE
TRADE 630

CHAPT
ER
15M A
NAGI
NG Y
OUR
BUSI
NESS
633
CREATING A BU
SINESS PLAN 6
35

MARKETING A
BAR BUSINESS
641


MARKETING TO
OLS
TO ATTRACT
CUSTOMERS 65
0

PRICING AS A P
ROMOTIONALTO
OL 658

 PROTECTING A
ND EXPANDING
YOUR CONCEPT
659

SUMMING UP 6
61

POINTS TO PO
NDER 662

 TERMS OF THE
TRADE663
A CONVERSATI
ON WITH...
JULIE
HANSEN,
Regional
Manager,
OregonLiqu
or Control C
ommission
664
CHAPT
ER
16R E
G U L
A T I O
N S 6
6 7
REGULATIONS:
AN OVERVIEW 6
69

GETTING READ
Y TO OPEN 672

WHAT, WHEN,
AND TO WHOM
YOU MAY
SELL 675

REGULATIONS T
HAT AFFECTPUR
CHASING 680

REGULATIONS
THAT AFFECT O
PERATIONS 683

SUMMING UP 6
92

POINTS TO PO
NDER 693

TERMS OF THE
TRADE694

Glossa
ry 695I
ndex 7
23
Pr
ef
ac
e
Owning a bar
seems like the
ultimate way
to make
friends and
have fun
whilebuilding
a successful
business. In
this fourth
edition of
The Bar and
Beverage
Book,
weve tried to
prepare
prospective
bar owners,
managers,
servers, and
bartendersfor
the hard work
and planning
that are
required in
order to
realize the
payoffse.g.,
friends, fun,
and prot!
Since the rst
edition of this
book was
published in
1983, the
years have
thrownchallen
ges at the bar
and beverage
industry that
few observers
could have
predicted.The
changing
demographics
of America
have changed
drinking
habits, as well
asbeverage
preferences.
The trends are
discussed in
Chapter 1,
after a brief
historyof the
industry. A cli
mate of cautio
n has overtake
n the legal and
law enforceme
nt
communities,w
ith higher
legal drinking
ages, more
stringent
drunken-
driving laws,
and
stifferpenaltie
s for breaking
them. For
anyone who
serves alcohol,
the increased
respon-
sibilities
legal, ethical,
and moral
are huge
considerations.
We cover them
thor-oughly in
Chapter 2, alo
ng with inform
ation about al
cohols impact
on humanheal
th and
nutrition.
Then,
Chapters 3
and 4
encompass
the many
details of
howto plan
and organize a
new bar
business, from
doing market
research on
potentialcusto
mer groups, to
designing and
equipping the
bar
itself. A visit to
any local liquor
store will conr
m the plethora
of avored
liquors andeye
-catching
packaging and
advertising to
make each
and every
product the
nextbig
thing. And
yet, almost all
of them begin
with the same
basic
distillation
stepscovered
in Chapter 5.
Our in-depth
discussion
includes
current trends
in
mixology,
food-pairing,
and
demographics
of whos
drinking
what. It is the
longest
chapterin the
book, covering
all the major
brown goods
and white
goods, plus
liqueursand
specialty
products. The
art (and
science!) of
bartending is
covered in
Chapters10
and 11,
including
plenty of
cocktail
recipes and
discussion of
techniques. Wi
nemaking is th
e topic of Chap
ter 6, with new
information ab
out all ten of t
he worlds top
wine-
producing
countries, and
why some
wineries are
choosingaltern
atives to tradi
tional corks as
bottle closure
s. The discussi
on continues i
nChapter 7
with new
sections on
creating and
pricing wine
lists and by-
the-
glassprograms
. We have
retained basic
information
about
decanting,
storage, and
howto open
wine and
Champagne
bottles.The
hotly
competitive
beer industry
is the focus of
Chapter 8, in
which we
havegreatly
expanded the
denitions of
ale and lager
types and
styles and
included
adiscussion of
malternative
beverages.
We have
added hints for
promoting
beer
sales,training
serving staffs,
and
maintaining
draft beer
systems.Chapt
er 9 covers
the basic bar
sanitation and
set-up
procedures
and the im-
portance of
creating these
routines, with
expanded
HACCP-based
food-safety
guide-lines.
xii
PREFACE
Like any
service
industry, bars
have
numerous
budget
challenges. In
the
latterchapters
of the book,
we delve into
the scal
realities of the
following:

Employee ma
nagement (Ch
apter 12)
Interviewing a
nd hiring, staff
training,calcul
ating wages,
paying
benets, and
requiring
dress codes or
uniforms.

Purchasing
and inventory
considerations
(Chapter 13)
The
consolidation
of suppliers a
nd its impact
on purchasing
, using the Int
ernet for rese
arch andpurch
asing, product
freshness, and
how to
determine the
value and
turnoverrates
of inventory.

Budgeting an
d planning (Ch
apter 14)
Pricing drinks
protably, pre
ventingtheft,
and shopping
for point-of-
sale systems
to track
transactions.

Managing the
business
(Chapter 15)
Creating a
business plan
and using it
asa
touchstone for
ongoing
operations;
how to
determine the
worth of the
busi-ness, and
what to do to
protect your
successful
concept from
being stolen
orcopied.

Obeying the l
aws (Chapter
16)The
federal-
agency chang
es (from BATF
toTTB),
product
labeling and
disposal
requirements,
insurance
coverage,
learningabout
state and
federal alcohol
regulations,
and how and
why bars are
audited.
To the Student:
Weve worked
hard to ensure
that this
textbook is
useful and
easyto read,
and we have
tried to offer
many options
for you to
consider if
youreserious
about making
a career in the
beverage
industry. Pay
special
attention to
thequestion-
and-answer
segments
found at the
end of the
chapters. Also,
read
carefullythe
proles of
people from
all facets of
the industry.
You will nd
their
commentsenli
ghtening and
fun, and their
enthusiasm
contagious.
To the
Instructor:
This text
presents a
comprehensiv
e treatment of
a topic that
isever
changing.
Weve tried to
organize the
material in
logical,
sequential
teachingunits;
there is also
an
 Instructors
Manual
(ISBN 0-471-
78201-7) to
help you
createboth in-
class activities
and
enrichment
assignments
beyond the
classroom
walls.The
Instructors
Manual
is available to
qualied
instructors on
the Wiley web
site
atwww.wiley.co
m/college
To the
Prospective
(
or Current
)
Bar Owner:
This book is
comprehensiv
e enough
touse for
planning your
business
protably.
From layout
and
equipment, to
hiringand
stafng, to
purchasing
and
budgeting, to
responsible
alcohol
service, you
canuse this
text both as
your road map
and as a
springboard
for testing
your ownideas
and creating a
solid, money-
making,
crowd-pleasing
business. As y
ou can tell ther
es a whole lot
more to this bu
siness than mi
xing a gooddri
nk. The
year 2005
marked
the 20-year
anniversary
of
 Nightclub &
Bar
magazine,the
joint effort of
publisher Ed
Meek and a
small group of
bar owners.
The
groupholds its
well-attended
annual
convention,
known as
The Show,
in Las
Vegas. Judging
from the photo
s on the maga
zines web site
,a
very
good time
was had byall
at the 2005
gathering! But
beneath the
revelry was an
undercurrent
of trueconcern
for the future
of the industry.
Comments
from
participants,
excerpted
withpermissio
n from the July
2005 issue of
Nightclub &
Bar,
sum it up
quite well:
PREFACE
xiii
The next 20
years will
prove to be
even more
challenging
than the
last.The days
of just serving
alcohol and
being
successful are
over. Licensed
es-
tablishments
need to
provide more
value-added
products and
services
tocreate a
unique
experience for
our guests. We
will face more
and
morecompetiti
on for that
consumer
entertainment
dollar while
also battling
thenew
Prohibitionists
who distort
the facts and
continue to
push us
towardtheir
ultimate goal
of criminalizing
beverage
alcohol.Georg
e Borello, Vice
President of
Marketing, Top-
Shelf Market-
ing, a division
of Progressive
Specialty
Glass, Buffalo,
New YorkWe
cannot
segment by
music
anymore.
Today, gang
members
listen to
thesame
music as 21-
year-old girls
do. That is
part of the
reason we
have sucha
huge burden
on security
and safety.
When we do
concepts
today, we re-
ally look hard
at how to
position it
from an
entertainment
standpoint
sothat it
drives
revenues but
doesnt pull an
undesirable
element. Once
youput in a
dance oor,
that becomes
a real
challenge. Jo
hn Taffer, Chair
man, Taffer Dy
namics, Inc., W
est Palm Beac
h,FloridaEver
ything from tip
reporting to
sexual
harassment
has become
the re-
sponsibility of
owners and
managers. As
a result of
Mothers
Against
DrunkDriving
(MADD), state
regulatory
agencies and
the pot of
money
availablethrou
gh an
operators
liquor liability
insurance,
guests
responsibility
forover-
consumption
and driving
under the
inuence has
been shifted
inpartor in
some cases,
entirelyover
to restaurant
and bar
operators
andtheir staff
members. In
many states,
operators are
now
responsible for
po-licing their
guests
smoking. And
theres more
to come.Bill
Asbury,
President and
CEO, Pencom
International,
Denver,Colora
doThese
salient quotes
should give
prospective
bar owners
pause for
reection,but
certainly not
cause them to
give up their
dreams.
These trends
(and
others)point
to the need for
well-trained
bar managers
with common
sense, people
skills,nancial
exibility, and
marketing
savvy. Youll
get a taste of
all these topics
in thenext 16
chapters. The
only things we
havent
provided . . .
are tastes of
the
beveragesthe
mselves!
Costas (Gus)
KatsigrisChris
Thomas
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