Minnesota Municipal Beverage Association Newsletter
(January 3, 2010 - January 9, 2010)
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As I See It...... 
 
January 

 

For me, the best thing about January is that it is a new beginning.

While I don't make personal New Year resolutions, I do take a look at the past year as it pertains to work.

I take notes through the year as to what worked and what didn't work and then I create goals to work towards throughout the coming year. This helps to give me data that I can track and offers a sense of accomplishment. Plus, I get to cross things off my list - and who doesn't like to do that?

I usually take the first couple of weeks to clean up old files and reorganize my office and the back room.

We design a shelf cleaning schedule so that all shelves, bottles, cooler and other areas of the store are cleaned. 

I will look at budgetary concerns and meet with my assistants and other keyed staff to make sure we are on the same forward path.

We look back at advertising and come up with a new plan for the New Year.  Their input is beneficial to the overall success of our operation.

I truly and fully enjoy it when all things are cleaned up and in their proper place. So I encourage you to take this fresh new opportunity, talk with your staff and other municipal managers and then create the best New Year ever for your store and your city's residents.

Joyce Zachmann
Central Park Liquor (Spring Lake Park) Manager
MMBA Director
 
 
Getting Customers Into Your Bar
Bar - 2 
By BarOwnerTips.com
 
How do you get customers into your bar and buying drinks during tough economic times?  Like during any other time, to reach customers in a down economy you have to find a way to fulfill their needs.

Here are our tips on how to survive and thrive in a challenging economy.

Emphasize Value

Despite the bad economic climate, McDonald's saw a sales increase of 7% last January.  Why?  Because customers view McDonald's as a place to get good value for their money when money is tight.  You don't have to be the McDonald's of the bar business to capture customers seeking value where they spend their money.

Create a good value at your bar with drink and food specials.  Take
your low cost items and pass along the lower price to your customers.

If you already offer the best specials you can afford (while still
making a profit of course) make sure you're promoting them as a good value. 

Offer An Escape

Customers are feeling the weight of the economic downturn too and
they need a place where they can go to escape their daily stressors and have a good time.  Let customers know that your bar offers that escape.

Work to create a fun and non-threatening environment by planning unique promotions that give your customers an escape.  Focus your staff on improving customer service and on recognizing customers by name when they enter your bar. 

There are also changes that you can make to the ambiance of your bar to take away stress for customers - like switching televisions from news channels to sports or cable channels and adding relaxing music
to your bar.

Cut Where You Can

While you can't cut many of your overhead costs, there are some places where you may be able to trim a little to help your bar's bottom line.

Consider eliminating non-essential employees like busboys and reallocate the work among your servers.  You can also combine some of the wait-stations to allow for fewer servers on the floor.

Hold a staff meeting and bounce around ideas for reducing waste around the bar.  You may find some ideas for cutting costs that you haven't thought of before.
Sam's Club to Sell Its Own Vodka Brand
 
Sams Club Store
 
Discount chain Sam's Club is venturing into the world of liquor, launching a new store-brand vodka this month in more than 240 stores.

The company, a subsidiary of Wal-Mart Stores Inc., said the Sam's Club store brand Member's Mark will carry a premium French vodka under the name Rue 33. The vodka will sell in 1.75-liter bottles for about $28 and be on shelves by the end of January.

Private-label spirits are unusual, though Sam's competitor Costco has its own Kirkland label of vodka, scotch, tequila, wines and beer.

Vodka is the most popular spirit in the U.S., reaching $4.49 billion in revenue in 2008, according to the Distilled Spirits Council of the United States. Figures for 2009 will be released later this month.

Sam's Club already works with wine producers to make wines for its stores, but they do not carry the Member's Mark label.

The company is seeing more people entertaining at home, and that's who they are targeting with the vodka, said spokeswoman Susan Koehler. People have been avoiding restaurants in the recession and eating and drinking at home more to save money.

"We saw this was a really great opportunity to introduce something that would be under our own private label brand," she said Wednesday, adding the company was considering expanding its offerings in many categories, including spirits.

Sam's Club has more than 600 locations in the U.S. but due to state laws and other factors, including the size of likely vodka sales, Rue 33 will be sold in less than half its stores.

Rue 33 will be made by French distiller Louis Royer, a company known for its cognac.

 
A Lower Price is Actually an Increase
Pricing 
Here is an interesting drink pricing and serving size analysis...
 
By: Ryan Johnson, Grand Forks Herald
 
GRAND FORKS - The Ralph Engelstad Arena has lowered its largest serving size of beer effective immediately, but beer will now actually cost more per ounce even after a price decrease.
 
In a Wednesday press release, General Manager Jody Hodgson said the change is "in an attempt to more appropriately align our operation plans with our stated alcohol service objectives."
 
Hodgson told the Herald lowering the largest serving size of draft beer from 32 ounces to 24 ounces would help in that attempt as well as "our goal to promote responsible alcohol consumption."
 
The size change will apply to all events in the arena, he said. Accompanying that change is a price reduction: A large domestic draft beer, now 24 ounces, will cost $6 instead of $6.75. Large premium draft beers were also reduced from $7.25 to $6.50.
 
Price increase
 
The change means beer will actually cost more per ounce. Under the old price of a 32-ounce domestic beer, each ounce cost about $.21, but changing it to 24 ounces for $6 means it will now cost $.25.
 
That seems like a small increase, but if the new size cost the same per ounce as the old size, a 24-ounce domestic beer would cost $5.06 - about $1 less than the new $6 price.
 
It's a similar situation for the 24-ounce premium beer, which will cost $6.50 but would have been priced at $5.44 if it was the same cost per ounce as the 32-ounce size.
 
Another way of looking at it: Domestic beer will now cost $3 per 12-ounce serving rather than $2.53, and the price of premium beer per 12-ounce serving will rise from $2.72 to $3.25.
 
Hodgson said it's "a fair question" to wonder why the lowered price is actually an increase, but said it has its reasons.
 
"We believe that the size and the price point are aligned well with a responsible alcohol plan," he said. "We don't seek to incentivize excessive consumption."
 
The arena's small size of draft beer, 16 ounces, will still be sold. Small domestic beers will remain the same price at $4.50, while small premium beers are decreasing in price from $5.25 to $5.
 
Hodgson said one of the drivers of the size change is a response to "what's happening in our industry from a risk management standpoint," adding many places have stopped serving a 32-ounce beer "in response to alcohol-related incidents in public facilities."
 
He pointed out the NFL has prohibited any serving size of more than 24 ounces, as did a national concession organization.
 
Hodgson said the changes will help improve the situation for everyone.
 
"I think it's a proactive step and a step in the right direction," he said. "We believe this change will enhance the overall event experience and improve guest safety for all of our fans."
People Change When..
 
Leadership2 
How many people does it take to change a light bulb?
 
Four.  One to change the bulb and three to reminisce about how good the old light bulb was.
 
People change when they HURT enough they HAVE to change; LEARN enough they WANT to change; RECEIVE enough they are ABLE to change.
 
A leader must recognize when people are in one of these three stages.  In fact, top leaders create an atmosphere that causes one of these three things to occur.
Future Dates to Remember!!
2010 MMBA Boot Camp,
 
February 22 - 24, 2010 Breezy Point
 
 
2010 MMBA / MLBA Legislative Day
 
March 1, 2010
 
2010 MMBA Conference
 
May 15-18, 2010 Arrowwood 
 

 
Ask A Director
 
Gary Buysse
Rogers
763-428-0163
 
Bob Leslie
 Pelican Rapids
218-863-6670
 
Brian Hachey
Stacy
651-462-2727
 
Nancy Drumsta
Delano
763-972-0578
 
Lara Smetana
Pine City
320-629-2020
 
Joyce Zachmann
Spring Lake Park
763-780-8247
 
Virgene Shellenbarger
Hutchinson
 320-587-2762
 
Tom Agnes
Brooklyn Center
763-381-2349
 
Steve Grausam
Edina
952-903-5732
 
Toni Buchite
50 Lakes
218-763-2035
 
Michelle Olson
Sebeka
218-837-9745
E-Mail Me
 
Bridgitte Konrad
North Branch
651-674-8113
 
Paul Kaspszak
MMBA
763-572-0222
1-866-938-3925

 
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Tell Them How Good the Wine Is
Wine Critic 2

A recent study by the Swiss Federal Institute of Technology Zurich found that people enjoyed wine more when they were told a wine critic gave it a glowing review

 
Keeping a False ID
IDs
An MMBA member recently asked if a server can keep a false ID from a minor attempting to purchase alcohol.
 
According to Minnesota Statute 
 
340A.503, subd. 6 (c)
 
A licensed retailer or municipal liquor store may seize a form of identification listed under paragraph (a) if the retailer or municipal liquor store has reasonable grounds to believe that the form of identification has been altered or falsified or is being used to violate any law. A retailer or municipal liquor store that seizes a form of identification as authorized under this paragraph must deliver it to a law enforcement agency, within 24 hours of seizing it.
Tip of the Week
Basics
The start of a new year is a good time to focus on the basics.
 
So, how well is your facility doing on these requirements for a positive shopping experience....
 
Clean Environment
 
Orderly Set-Up
 
Friendly, Well Groomed, Knowledgeable Staff
 
A Greeting and Welcome Into the Facility (Especially to Non-Regulars)
 
Clear Signage
 
Efficient Check Out
 
Perceived Value of Merchandise or Services 
 

Narrow-Mindedness Thwarts Acceptance of New Ideas