Incentive

| | Comments (0)

One of the issues that owners of bars have with bartenders is "tipping the tills".

Basically it goes like this.

The bartender hands the customer a $100 bill. The customer pays $120, or $100 for the tab and $20 for the 20% tip. The bartender enters $80 on the register and puts $40 in their tip cup.

In order to combat this, a bar owner can do two things. One, be extremely tight about how the bartender does their job, with cameras and managers. Hawkish management of what is sold, and using meticulous means to track profits, like using a pour regulator on a bottle, which measures for the bartender an EXACT pour for each drink. Or, you may have seen a bartender pour liquor into a shot glass, add it to the rocks glass and add the soda/juice on top. That's an exact pour, which maximizes profits for the bar.

Or, just implement a bonus system that rewards employees who bring in profits to the bar & work hard. The barometer to measure them would be the bartenders individual register. If an employee rings "x" amount on the register they get a bonus. The amount of "x" would depend on the bar and hopefully set to realistic expectations. Right now at our bar, I think the numbers are realistic, I have hit the bonus on multiple occasions.

So, then, there is more of an incentive NOT to "give the bar away", a term used for bartenders who give away too many buybacks, in order to pad their tip jar, and more of an incentive to put cash in the register. Giving out such a bonus increases the profits for the bar, and increases the profits for the employees.

Nearly everyone working on Wall St. has some kind of way to bonus for their hard work. Some companies have profit sharing. Some companies give out bonuses in the form of stock. Some people make money as individuals, based on whatever they bring into the company and profit from that.

Wouldn't it make more sense if everyone did this with their employees?

I pass CVS everyday coming home from the PATH and they always have ridiculoulsly long lines. Why? Well, it is a popular store in a good location. I would also hazard that the employees don't have an incentive to work faster, which keep the queues moving at a sluggish pace. I'm sure the same is true for fast-food places like McDonalds. Imagine if they had some kind of incentive system in place everywhere, how much faster things would get done.

Like in Hoboken if you go to a mom & pop owned store, and the owners are there, the product comes out lickety split. But if you have a bunch of teenagers in there who don't care about profit margins, they are going to be S-L-O-W. There' just isn't an incentive for a teenager to work harder and faster.

I'm sure others, including myself, have avoided CVS in the past because of the long lines. That is profit which is walking out of their door, because their employees don't care about working faster when they are making $9 an hour. It is $9 an hour if they work slow or $9 an hour if they work fast. Imagine if you told them they could make $15 an hour?

I was at CVS on Saturday. I needed to pick up a few things for the condo. I was 3rd in line and it took the cashier 10 minutes to get to me. By that time i'm just thinking how I don't want to come back to this store if I can help it. Unfortunately it is the only store at that end of Hoboken which most closely resembles a supermarket. They don't really have a reason to be fast, in a way. So very annoying.

Leave a comment

Monthly Archives

Pages

Powered by Movable Type 5.2.7

About this Entry

This page contains a single entry by Furey published on April 25, 2007 12:01 AM.

Boy This Is Strange was the previous entry in this blog.

Eagles Draft Grade: C is the next entry in this blog.

Find recent content on the main index or look in the archives to find all content.

Join Zipcar and get $25 in free driving!