Bar Operations
Daily operations, supplier relationships, stock management, and cost control framework for Pride’s bar service.
Operating Schedule
Pride operates as a bar/venue Wednesday–Saturday. Licensed trading hours are Sunday–Wednesday 12 noon–1am and Thursday–Saturday 12 noon–3am, but current practice is Wednesday–Saturday only due to insufficient weekday demand.
Service model: Licensed on-premises venue with entertainment (DJs, performers, karaoke, ticketed events). External security required by law. No food service until kitchen expansion (March 2026).
Key Suppliers
Liquor Supply
Wholesalers:
- ALM: Primary supplier (range and reliability)
- Paramount: Secondary supplier (backup)
Contracted product (Mountain Goat Beer):
- Contract: 49,000–54,000 litres/year
- Status: Partnership with Mountain Goat Brewery; pricing and volume tiers under contract
Supply chain challenge: Late payments by Pride have disrupted supplier relationships. Some suppliers (e.g., spirits distributor in early 2026) cut deliveries due to arrears. Invoice payment automation is Automation Opportunities Priority 1 (invoicing and payments) to rebuild supplier confidence.
Non-Liquor Suppliers
- VCPG Security: External security services (mandated by licence)
- Optus NBN: Business broadband (single point of failure)
- Cleaning: Conducted internally by rostered staff (formerly contracted; insufficient volume to justify cost)
- CCTV: Integrated system required by liquor licensing; record-only access
Stock Management
Current practice: Manual stock management by bartenders during shifts. Pride uses Square POS for sales tracking, but stock counting is not automated.
Data quality issues:
- Staff type amounts (e.g., pour sizes, waste) inconsistently recorded
- No staff-level sales attribution (can’t analyse performance by bartender)
- Stock tracking inaccurate; actual stock levels diverge from system records
Opportunity: Automation Opportunities could implement:
- Automated stock depletion from POS transactions
- Weekly stock counting workflow
- Variance analysis (theoretical vs actual consumption)
- Supplier order automation based on stock thresholds
Cost Control
The venue operates on tight margins. Weekly fixed costs (~$20,700) require careful stock management:
- Stock allocation: $6,000–$7,000/week
- Minimise waste (over-pouring, spillage, shrinkage)
- Optimise product mix (higher-margin drinks prioritised)
- Negotiate pricing with wholesalers (contract review, volume discounts)
Current challenge: Cost-cutting measures already taken (lowest-price spirits). Structural transformation (licence recalibration, kitchen integration) is the strategic solution, not further cost reduction.
Staff Rostering
Bartenders: ~12 casuals with variable hours. Scheduling managed through Deputy (rostering system). Emily (Head of Programming) and Monique (Venue Manager) coordinate with bartenders on event-specific staffing needs.
Key shift types:
- Weekday setup (if applicable): 2–3 hours
- Event nights (Wed–Sat): 4–6 hours typical; variable based on expected attendance
- Opening/closing duties: 30–60 minutes each
Challenge: Shift length and customer volume concentration on Saturday creates uneven wage distribution ($15,000 Saturday vs $1,500 Wednesday).
Incident Reporting and Compliance
Current practice: Incidents logged by staff and Monique. Security incidents reported to VCPG. Liquor licensing compliance tracked informally.
Gaps:
- Banned persons list not consistently provided to VCPG security
- Incident reports not systematised; storage/retrieval ad hoc
- No automated escalation for serious incidents
Improvement: Automation Opportunities includes incident reporting form redesign and security liaison protocol.
COGS and Pour Cost Benchmarks
Added April 2026 per Pride Venue Benchmarks Research.
Pride spends ~$6,500/week on stock against ~$19,200/week revenue = 33.9% COGS. This sits at the efficient end of Australian hospitality benchmarks:
| COGS % Range | Rating |
|---|---|
| Below 25% | Exceptional |
| 25–30% | Excellent |
| 30–35% | Good — Pride sits here at 33.9% |
| 35–40% | Average (ATO mean: 37%) |
| Above 45% | Red flag |
Pour Cost by Beverage Category (Australian Market)
| Category | Typical Pour Cost | Notes |
|---|---|---|
| Spirits (neat/rocks) | 14–22% | Highest margin category |
| Draught beer | 15–18% | Strong margin, high velocity |
| Bottled beer | 24–28% | Lower margin than draught |
| Signature cocktails | 17–22% | Labour-intensive but high margin |
| Wine (glass) | 30–45% | Most variable |
| Post-mix soft drink | 4–8% | Negligible cost |
Australia imposes the world’s third-highest spirits excise (~$108 per litre of alcohol), which structurally inflates bar COGS relative to US/UK benchmarks. A cocktail-dominant nightclub will structurally outperform wine-heavy or food-heavy venues on COGS.
Shrinkage
Acceptable shrinkage: under 10%. Bars without stocktake systems typically lose 20–25%. Pride’s current stock management is manual (bartenders during shifts, Square POS tracks sales but stock counting not automated) — shrinkage risk is elevated. Implementing systematic stocktake would likely improve the COGS ratio further.
Physical Infrastructure
Sound system: Managed by Emily (Head of Programming)
Lighting: Managed by Monique (Venue Manager)
Internet: NBN business broadband via Optus (single point of failure for POS, reservations, payment processing). No backup connectivity documented.
CCTV: Extensive system required for liquor licensing compliance. Record-only access; used for incident investigation and evidence retention.
Related Pages
- Venue Operations — physical venue constraints and operating model
- Trading Pattern — revenue concentration and supplier cost structure
- Staffing Model — rostering and supplier relationship management
- Revenue Diversification — kitchen integration and supply chain expansion
- Operations - Supplier Register and Payments — detailed supplier information and payment status