POS inventory management sounds great in sales pitches: "Track every bottle, catch theft instantly, never run out of product!" But the reality is more complicated. Here's the honest truth about when it works and when it doesn't.
Two Types of Inventory Tracking
1. Perpetual (Real-Time) Inventory
Every sale automatically deducts from inventory. You always know what you "should" have.
2. Periodic (Manual) Inventory
You count by hand weekly/monthly and compare to what you sold. Most bars actually do this.
The Pros and Cons
When POS Inventory Works
- ✓ Food with recipes (deduct ingredients)
- ✓ Bottled beer (discrete units)
- ✓ High-volume operations
- ✓ Multiple locations
- ✓ Serious theft problems
When It's More Trouble
- ✗ Pour liquor (hard to track accurately)
- ✗ Small operations
- ✗ High staff turnover
- ✗ Complex cocktail menus
- ✗ No one to maintain it
The Liquor Problem
Here's why most bars struggle with POS liquor inventory: a "shot" isn't a discrete unit. Is it 1 oz? 1.25 oz? 1.5 oz? Does your bartender pour the same every time?
The Dirty Secret
POS perpetual inventory for liquor is never 100% accurate. It gives you a variance to investigate, not an exact count. If you expect perfection, you'll be frustrated.
My Recommendation
For most bars, here's what actually works:
- Use POS inventory for food and bottled products - These are discrete, trackable units
- Use periodic counting for liquor - Weekly weigh/count with a dedicated system
- Track variance, not exact counts - Any variance over 3% deserves investigation
- Focus on high-cost items - Track your top 20 liquors by volume, not everything
Bottom Line
Don't let perfect be the enemy of good. Some inventory tracking is better than none. Start simple, get consistent, then add complexity if you need it.
Want Help Setting Up Inventory?
I'll design a system that fits your operation—not an overcomplicated one you'll abandon in a month.
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