Dubai bars see an average shrinkage – an F&B industry term used for losing revenue on liquid assets based on bad practices – of 13%, according F&B Business Solutions founder Simon Lazarus.
Lazarus, who discussed F&B variance during a presentation at the Caterer Food and Business Conference 2018, says around 45 bars and restaurants, whose names he did not mention, were surveyed to compile the local data. Compared to Dubai, Lazarus says bars in the US see a 10% average variance while in the UK, the average is 7% according to the National Retail Security Survey conducted by the National Retail Federation and the University of Florida in 2015.
Lazarus explained that the shrinkage in most businesses mostly stems from the difference in standard costs as opposed to actual costs – the products leaving the kitchen or bar but not being registered in the point of sale (POS).
And those, he further explained, were on average 80% of the time due to unintentional factors such as spills, incorrectly drained bottles, and incorrect sales or not rung up entirely, over pouring, over foaming draft beers etc.
However, Lazarus says 20% of the shrinkage can be accounted for by intentional factors such as unrecorded wastage, free drinks usually given to friends or customers, drinking on the job and theft of cash or product.