What will the EUROS 2024 yield for you?

With the much spoken about summer of sport soon to be on us, Roslyns' Head of Stock Auditing, Peter Gregory, looks at maximising your yield in the context of the upcoming Euros.

The Morning Advertiser recently published an article it headlined ‘In no way do pubs want to be accused of short serving’

Read the full article here

Although the article is well balanced and helps to put the figures in context it does highlight that from the 2000 people surveyed 35% believed the head should not be included in the cost of a pint.

I am sure the debate will continue but what does that mean to you?

We know the current economic environment is challenging and as a result people, your customers, are very conscious of every penny.

We know you also face the very same financial pressures and are equally conscious of every penny.

This means more than ever you have to be focused on maintaining the right balance between you and your customers.

"Success is no accident. It is hard work, perseverance, learning, studying, sacrifice, and most of all, love of what you are doing or learning to do." – Pelé

For many of you that will mean many weeks and months of planning and preparation in readiness for Scotland opening the tournament on 14th June.

We look forward to what we hope are four glorious weeks of success for our home nation sides and, perhaps more significantly, four weeks where revenue skyrockets.

In the build up to the Euros, as a leading provider of stock taking services to the licensed trade, Roslyns Stock Audit team have been working with our clients to look at profit margins, stocking policy and stock management.

But if you are not quite there yet, our website has several free to access tools and guides for anyone who needs to make any last-minute adjustments to get match ready Visit our website

"I am constantly being asked about individuals. The only way to win is as a team." – Pelé

So, you are fully prepared and ready to go…

“Don't give up at half time. Concentrate on winning the second half.”

All that preparation will be for nothing if you get it wrong once the whistle blows at 8pm on the 14th June!

Why the importance of managing yield is paramount if you are to have a successful tournament

No matter how much work you put into sourcing the right products and calculating the correct selling prices to achieve that all important target GP% if you do not manage your yield profit will, and in some case quite literally, go down the drain.

Consider a pint that you have calculated makes you £1 gross profit

Simple…

Sell 1000 pints and you have £1000 profit

Or is it? What if you bought 1500 pints and sold 1000?

You will still see £1 for each pint sold but nothing for the missing 500. Imagine it costs you £2 to buy each pint, that means it will have cost you £1000 to buy those extra 500 pints that are ‘lost’.

So, despite all that hard work calculating the optimum selling price and all the time, effort and money spent to sell those 1500 pints you have now got a profit of exactly Nil with no prospect of extra time!

And that is where yield comes in…

Yield compares product sold against product consumed.

Controlling yield is controlling your business

Less than 100% means some of what you have bought has not been sold and is missed profit

For single serve items yield should be exactly 100%. That is, you have a recorded sales for every bottle, shot or glass you purchase.

Is greater than 100% yield always a good sign?

In some cases, definitely not…

Consider a 70cl bottle of vodka that contains 28 x 25ml shots, should you expect to get 30, or 32 shots from that bottle?

Obviously not, a yield of greater than 100% here demands investigation. It could be a training issue, such as product knowledge or till procedure or something more nefarious such as watering down to replace pilfered stock.

But in some cases, you should be aiming to get in excess of 100% yield…

As the MA reminds us, industry guidance that says that a measure of beer served with a head must include a minimum of 95% liquid.

So, for draught you should expect a yield ranging from 100% – 105%

If you are getting yields above 105% then you have entered the same scenario as our previously mentioned bottle of vodka and need to investigate.

What yield should I aim for?

Every business differs but our advice would be aim for 103%.

And, by hitting 103% you may have found that perfect balance that works for both you and your customers!

“They think it's all over... it is now!” – Kenneth Wolstenholme, 30 July 1966