If you think that the bar business is an easy one, think again. It’s kind of like professional sports: the successful ones just make it look easier than it actually is. The reality of the situation, as Nikhil Kundra, CEO of Partender points out, is that bars lose an average of 23 percent of their inventory due to theft, over pouring, and spillage.
“Almost one in every four drinks goes straight down the drain, because full inventory takes so long to do that no one can do it every day or week,” explains Kundra. “To make matters worse, the costs associated with shrinkage, the loss of inventory, cause 60 to 80 percent of bars and restaurants to fail within three years.”
One of the industry standards to prevent loss, increase bottom lines, and remain in business is to do inventory every day, but the archaic pen and pad method can take anywhere from six to 24 hours to complete. Kundra and his team decided to digitize the whole process, reducing the time to inventory to mere minutes.
Bar managers and owners have an on-screen image of a bottle, like Jameson, and they simply drag the leveling bar to where the liquid is inside the bottle. From there, they just swipe left and right to get to the other bottles on their digital shelf.
After the completed inventory session, Partender automatically emails you a purchase order. Combined in the order are analytics that determine what booze is selling the best, what bottles to be swapped out for better margins, if your last happy hour worked, and what factors might be causing shrinkage.
“I was actually at 3 Day Startup, and got frustrated trying to come up with ideas on Friday night,” explains Kundra. “My teammates and I wanted to meet up with some girls we knew were bartending down the street. They texted us at 2 am saying they could not meet up until 7 am because of inventory. We never did hang out with them, but we finally had our idea right then and there.”
Kundra and his team didn’t just throw their due diligence to the wind with this idea. In fact, they conducted concentrated case studies, showing that their digitized platform can provide accuracy up to 99.2 percent for bar managers and owners. Additionally, the results from their current clients show an average 6 percent increase to the bottom line in only three months of use.
“Other competitors claim that they do not alter operational or social behavior, but they still introduce expensive, over-engineered technological burdens that force staff to change their behaviors,” says Kundra. “We take the Steve Jobs approach and use whatever is in your pocket; no bulky proprietary hardware.”
The Steve Jobs approach seems to be working for Partender, as they have customers in Florida, New Orleans, Los Angeles, Silicon Valley, Sydney, and even Tony Hsieh’s Gold Spike in Downtown Vegas. According to these bars, Partender is the best thing since the lift of Prohibition.
Partender was featured at Tech Cocktail’s Downtown Vegas Mixer & Startup Showcase on September 12th.