A popular nightclub near London approached Venners with the intention of reducing revenue losses across its operation. By the end of a four month consultation process the results were:

  • An average loss reduction of £3,300 per trading day
  • An average GP increase of 4.6%

 

Challenge

 

The customer had been noticing significant losses in potential revenue and connected with our consultancy experts to identify operational areas of concern.

 

Solution

 

A combined approach of a one-off observational audit, weekly stocktakes and additional consultancy visits was carried out.

 

The covert observational audit aimed to pinpoint initial areas of concern. It noted a trend of carelessness across the operation. Staff drinking was rampant. The site was overstaffed. And there was a lacklustre attitude amongst staff that ranged from inattentiveness to stock movement, to recipes not being followed, to spirit measures not being used and wastage while pouring.

 

The stocktake results showed a loss of drinks across all areas. Staff mentioned that it was not ‘easy’ to check the lines for some bar areas and had therefore neglected this duty. But the extent of losses experienced indicated that other factors were involved too.

 

The consultant briefed site management to lock down on who was accountable for stock results. This meant increasing physical security measures (e.g. locking away high value drinks). It also meant the theoretical lockdown of registering stock movement (e.g. recording stock movement between bars and booths as transactions).

 

Further consultancy sessions were required to enlighten management about the significant losses the stock variances continued to result in. It was during these sessions that suspicious activity by one staff member – who appeared to be abusing the discount system – came to light.

 

Outcome

 

The staff member who had been found to be abusing discount transactions to pocket money on the sly was dismissed. This, together with the stock improvement plan resulted in an average £3.3K more revenue per trading day than before.

 

Average GP% increase graph for nightclub

 

Reduction in Loss per trading day for Nightclub

 

For more information call us on 01279 620866