Sculpture Hospitality Case Study: The Wormy Dog Saloon

Sculpture Hospitality Case Study: The Wormy Dog Saloon
Company News, Industry & Technology - April 13, 2016 Written By: Krista Dinsmore

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 After opening in 2003, the bar was struggling financially. It was obvious to managing partner, Ronnye Farmer that there were irregularities between the amount of product purchased and the return.

With no effective tracking system in place, Farmer found the Sculpture Hospitality Bar Inventory system. 

Read more to see how the Sculpture solution was able to quickly save this bar.

Ronnye Farmer, the managing partner of Wormy Dog Saloon in Oklahoma City, remembers the dark days of business at the establishment. Fortunately for Farmer, there was Lee Morris, Sculpture Hospitality franchisee in the area.

Once the Wormy Dog Saloon started working with Morris and his liquor inventory software, the bar finances showed immediate results.

The pour costs dropped 50 percent, bringing cost of product down almost $2,000 a week & over $100,000 in savings annually. After including the increase in top-line sales from moving shrinkage into the POS system cash drawer, weekly profit improvement grew by $3,644, or $194,000 annually.

With the trend spotting reports provided by Morris, the Wormy Dog Saloon has become more competitive with prices, special events and happy hours in the local market. 

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The weekly audits provide detailed reports to track all transactions and are used to motivate the staff. The old saying "you can't manage what you don't measure" couldn't be more true in the bar business. By providing a target number for the staff to strive for each week with the "Sculpture Rating," it creates a sense of gamification to bar performance and the staff actively asks how they did each week.

The third party tracking system is also beneficial in the event of a state sales tax audit. Having proof of your liquor shrinkage helps you tremendously when facing an audit for state liquor tax. This is because the shrinkage amounts allowed by the state are unrealistic and more often than not, end up with the bar being responsible for paying tax on product that was used but was not sold, due to over pouring and theft. This unfair penalty commonly results in penalties due to the state of forty thousand dollars or greater.

 

“If we had not started using the Sculpture Solution, we would no longer be in business. Sculpture bar control system is the extra set of eyes and ears I need to make my life a lot easier,” said Farmer. “Morris offers his suggestions on ways to improve and is always there to answer questions. It’s almost like he’s invested in the business because he really is concerned about our success. Morris has done us a tremendous service.”

Download the case study here

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A Complete Buyer's Guide to Food & Beverage Inventory Management Systems

With around 25 to 35 percent of a restaurant’s operating budget dedicated to purchasing food (that’s not even taking into account beverage inventory costs for the bar), proper inventory management can significantly improve expected revenue.

To maximize profits you need to improve visibility and control over your restaurant or bar’s inventory. 

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