Sugar Tax & Summer has arrived! Stocktaking Summer update
This year has flown by, we are already heading into the Summer and as is normal there are lots of stocktaking challenges ahead.
Sugar Tax considerations
With the new sugar tax coming into for there are lots of implications for pubs, bars and restaurants.
Update your soft drink options
Have you looked at your soft drinks options since the sugar tax has come into place?
There are various options to switch products, so that you can avoid the tax. Like moving from Pepsi to Pepsi Max and from Coke to Coke Zero. Some of the alternative post mix products of Coke & Lemonade are also sugar tax free.
However, be aware that some products that you think would not have been affected by the tax, have been. A good example being some of the commonly used mixers & fruit juices.
Don’t forget your gross profit
Have you checked your GP% since the tax was introduced? Some products have had a large increase, for example Coca Cola is now about £10 a box more expensive. It is important that you reflect these changes in your pricing if your GP is not to be effected.
Many pub, bar and restaurant owners are struggling with how to charge more for sugar tax items than the diet versions. Many have chosen to increase the pricing of both products. With increasing business costs such as rises in the minimum wage this is one way to protect your profit margins.
Ask your stocktaker
The general advice is don’t be afraid to ask for advice from your stocktaker. They should have the knowledge to advise you and also visit a variety of licensed premises in your region and so know what is happening in the marketplace.
Summer Drinks
Cider crazy
It looks cider is still the favoured summer drink with sales set to soar during the good weather.
Many in the licensed trade are responding to this demand by installing fruit cider on draught, rather than stocking so many bottled versions.
It is also noticeable that all the big companies now seem to be producing a fruit cider of some description – so there is a lot more choice including Cloudy Cider which is selling well at outlets I work with.
Lighter Ales
Real Ale sales are dropping in the heat of summer, so it seems sensible to reduce the number of options available so that you maintain the quality. Lighter Ales are a better option for the summer.
National Beer Day
Remember that 15th June is National Beer Day, a great opportunity for pubs and bars to generate business through promotions.
Chilling challenges
With the lovely hot, sunny weather comes the challenge of refrigeration and keeping all drinks and food products suitably chilled.
So make sure you are monitoring your cellar temperature and that of your remote coolers. Have a look at your bar fridges and any under counter coolers and make sure that the condensers and cooling grills are clear of rubbish and dust – give them a hoover as part of a monthly cleaning schedule.
Kitchen fridges can also be a problem, so it is worth having them serviced to check on their health and action anything before it comes a problem.
With brewery new year price increases and recent Budget changes that also increased prices, now is a good time for those in the licensed trade to make sure that their profit margins are in good order.