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Managing your bar tab

Why should you have a bar tab?  

A bar tab is essentially a pre-agreed amount that you commit to putting on the bar to cover the cost of your guests’ drinks.  Having a bar tab can influence your event in a number of ways:  

·         It’s always a great way to get people into the swing of the evening and help them relax and mingle with guests they may not know.

·         Some guests may be reluctant to drink unless they receive some encouragement in the form of complimentary drinks at the start of the night.

·         A party will usually move onto the dance floor quicker once a few drinks are consumed and inhibitions disappear. You can help this process and speed it up courtesy of a bar tab.

·         Guests are more likely to stay while the bar tab is running and in some occasions may leave once it runs out.  

·         It’s often a nice way of saying thank you for coming, have a drink on me and enjoy the evening. 

The type of guests you are expecting can also be a factor.

·         Older guests, or guests with a higher disposable income are more likely to purchase their own drinks in the absence of a bar tab. 

·         Younger guests, (18 to 21 year old students for instance) may sometimes be reluctant, or cannot afford to spend their own cash on drinks and therefore may not drink unless there is a bar tab.  It can be common for them to leave, purchase drinks elsewhere (i.e.: bottle shop) and then return later.  Take this into consideration when planning your tab. 

Once everyone has consumed a few drinks and your party is in full swing, guests are more likely to purchase their own drinks as the night progresses. I have definitely seen a surge in cash sales for cocktails, top shelf spirits, shooters and other guest purchases off the bar tab 3 or 4hours into the party, once everyone has consumed at least 4 or 5 drinks. The theory here is momentum – gets the ball rolling and the rest will look after itself. 

Reasons you shouldn’t have a bar tab

At the end of the day, it all comes down to your budget and how much you can allocate towards a bar tab.  After room hire, invitations, entertainment and food, your budget may be depleted. 

Apart from budget, there’s generally only two other compelling arguments against running bar tabs:

1.       Lack of trust in the venue and uncertainty of how your money will be used behind the bar.

2.       Fear of guests abusing your bar tab

It’s always difficult to be certain that bartenders will be responsible with your bar tab and will not abuse or exploit your tab.

Solution:

·         Make sure you are comfortable with the staff and managers you are dealing with. 

·         You can request updates throughout the night so you know how your bar tab is progressing. 

·         You can request the option to stop or suspend the bar tab at any time if you feel the need to change anything or query anything

·         You can ask for a tax receipt and advise the venue that you would like a printout at the end of the night of your bar tab amount.

Fear of bar tab being exploited by your guests:

This is an easy one to address, simply restrict the drinks that guests can acquire on your tab to a certain amount, quantity or type. 

E.g.:

I only want beer, wine, champagne & basic spirits on my tab… no shooters, no top shelf spirits. 

I only want Corona, Stella, Gunn Estate, Cosmopolitans, vodka and Rothbury Estate on my tab.

See post on “what should be on my bar tab?”