With our compliments

[jpeckster]

My partner and I have begun to necessary steps for opening a bar in the Denver area.

One point that we have discussed at lenght (among hundreds of others) is the idea a complimentary soda's/flavored waters. We got the idea from some of the casions at Blackhawk, Colorado.

The casinos offer free flavored, non carbonated waters and coffee. No sweat off their backs considering the cash they bring in. But would this idea work out in a bar??

Our thougt is to offer only Coke & Diet Coke via a self serve fountain stocked with let's say 8oz. cups. Of course anyone who gets a drink in a pint or mixed drink glass could help themselves. I know that I dont usually switch from beer to soda, but that's just me.

Has anyone see/offered this?! Is it worth the initial investment in the fountain, added distribution lines and COG?? We initially thought of it for the 'designated drivers' but then thought how much could it possibly cost to just give it free to anyone who wanted it; especially if you are buying it already for your mixed drinks.

Any thoughts or experience.

Cheers,
Jimbo

[Music Man]

Why would you want to give away the high profits, even at discounted prices, that you would make on water and soft drinks? The casinos make their money on gambling, so they want to give away their drinks to keep people there gambling. It's not how much it costs you to buy the product, it's how much it costs you in lost income to give it away.

[bigbun01]

i agree, personally i dont think that any nightclub/bar should give this product away. isnt this why we are in the business? whether it be to make a smaller profit on non alcoholic drinks or beer/liquor/wine, we sale drinks-period. check into getting bottled water with your logo on it, its a justified way to sell water instead of giving away water in a cup, and its not too expensive.

-andy

[jpeckster]

Good point, it's a low cost item that returns higher margins upon resale. Decidedly, the casinos are making hand over fist and this is a small expense for them to incur.

But I wonder how much soda only could one resonably expect to sell in a night. I am sure that even after only a handfull of soda only sales that your costs are made up a few times over, and shouldn't that be figured into your mixed drink sales. But you do make a valid point, it doesnt matter how many you sell but, what you do sell makes more money than giving it away.

I also wonder that if you are relying on soda to turn you a profit, whats wrong with your liquor/beer sales?! I understand that one sale of soda make more money than giving away one soda.

I appreicate your responce and feedback.

Cheers,
Jimbo

[jpeckster]

Andy -

Good point. We did decide that water wouldn't be free as the demand for bottled water indicates a good sales item. I like the idea of club 'branded' water.

I liken it to 'free refills' offered at almost every restaurant, from McD's to place like Outback, Chilis, etc., etc. The cost of the sodas are so offset by the profits made in food sales, that the expense is minimal at best.

The question I come to after reading the relpies, is...

Should we rely on the customers paying for bee/liquor to subsidize the soda for other customers?

Hmmmmm

Cheers,
Jimbo

[bigbun01]

should you rely on them to subsidize the sale of cokes to others? i would say no. not to sound greedy but where ever i can make an extra buck, i say go for it. in my club there are exceptions. i tell my bartenders to give cokes/coffee to designated drivers of groups, or if a customer has been drinking all night and they ask you for a coke towards the end of the night, it would be ok to give them one "on the house" (they may even get a bigger tip for it). personally when figuring my end of the month numbers (to clarify, i work for a large corportation which currently runs 25 large nightclubs across the country and we all do it the same way.) the liquor cost is broken down into not only liquor, but beer, wine, and non-alcoholic. so much of my na is "given" away thru regular liqour sales that when i do charge someone for a coke or water, the result is seen clearly. where as if you figure all the factors into your "true" liquor cost, you may not see the bottom line as well. just a thought, not trying to preach. good luck!

-andy

[David]

We charge for the first soda and give the rest for free if you are the Designated Driver or a non-drinker. If you are any of the two that I mentioned, we give you a small, quarter sized, button to wear that tells the servers that you are participating in the program.

We only get a couple a night if any. And, we only do it if they ask. Sure there are a lot of ways to beat the system, who cares. The lost money isn't going to break us.

[jpeckster]

David:

Great idea, I like the button thing.

I guess that we should get a feel for the number of non drinker/DD we get per night, week, what ever and build a system around that. I feel like we kinda put the cart before the horse on this one.

Thanks to all that have responded so far, other please feel free to comment.

Cheers,
Jimbo