As a bar manager, you live in a constant balancing act. Order too much stock, and your cash is tied up on the shelves, your storeroom is chaotic, and you risk products expiring. Order too little, and you face the dreaded "86"—telling a customer you're out of their favourite drink, which results in a lost sale and a disappointed guest.

This entire stressful, inefficient cycle is caused by one thing: "gut feel" ordering.

"Gut feel" ordering is when you walk into the cellar with a clipboard and think, "Hmm, we look a bit low on vodka... let's get two cases. And we've got a busy weekend, so better get an extra keg of lager just in case."

This guesswork is killing your cash flow and creating chaos.

The professional solution is a simple but powerful technique called Par Levels. Mastering par levels is the most important step you can take in your bar inventory management strategy, moving you from a reactive guesser to a proactive, efficient operator.

What is a "Par Level" in a Bar Context?
"Par" is simply a golf term meaning the standard, expected number. In bar inventory management, a Par Level is the minimum amount of stock you need to have on hand for a specific product to get you through until your next delivery.

It's your "safe" number. Your "don't drop below this" number.

· If your stock is below par: You are at risk of running out. It's time to order.

· If your stock is at or above par: You are safe. You do not need to order.

This sounds simple, but it fundamentally changes your entire ordering process. You no longer order based on "gut feel." You order with a single, data-driven goal: to get your stock back up to par.

Example:

· Your Par Level for your house vodka is 6 bottles.

· Your next delivery is on Tuesday.

· On Monday, you count your stock and find you have 2 bottles (both on the rail and in the store).

· You are below par.

· Your order is simple: Order 4 bottles to get you back up to 6.

· If you had counted 7 bottles, your order would be 0 bottles.

You stop thinking in "cases" and start thinking in "pars."

The 4 Massive Benefits of Using Par Levels
Moving to a par level system requires a bit of setup, but the payback is immediate and enormous.

1. You Instantly Improve Your Cash Flow
   This is the single biggest benefit. "Gut feel" ordering always leads to over-stocking. That "extra case just in case" is dead money. It's cash that is sitting on your shelf instead of sitting in your bank account, paying wages, or earning interest. A par system ensures you only buy exactly what you need, when you need it. This keeps your on-hand stock value (and your tied-up cash) to an absolute minimum.

2. You Eliminate Stockouts and "86s"
   A properly calculated par level has a buffer built in. It's not just the average amount you use; it's the maximum you are likely to use before your next delivery, plus a small safety margin. By consistently ordering up to par, you virtually guarantee you will never run out of a core product again, protecting your sales and keeping customers happy.

3. You Reduce Waste and Spoilage
   Over-stocking is the number one cause of waste. That case of a niche craft beer you bought 6 months ago? It's now past its "best before" date. The wine you have 5 cases of? It's not being stored properly and is spoiling. A par system forces you to keep less stock on hand, which means you are turning it over faster. This ensures your products are always fresher, which improves both quality and reduces waste.

4. It Makes Your Ordering Process Fast and Foolproof
   Your weekly ordering process transforms from a 90-minute strategic headache into a 20-minute administrative task. The "thinking" is already done. The task is just:

5. Count the item (e.g., "House Vodka: 2 bottles").
   

6. Check the par (e.g., "Par is 6 bottles").
   

7. Write the order (e.g., "Order 4 bottles"). It's simple, fast, and can be delegated to any trained member of your team with total confidence.
   

How to Set and Maintain Perfect Par Levels
Here's a simple, step-by-step process. This is where a professional stocktaker can be invaluable, as they can do this for you using your sales data.

Step 1: Know Your Usage and Delivery Times
You can't set a par until you know two things:

1. Delivery Frequency: How often does your supplier deliver? Once a week? Twice a week?
   

2. Product Usage: How many bottles/kegs of this item do you actually sell between deliveries?
   

You must use your POS sales data for this. Run a report for the last 4-6 weeks to see your sales of that product.

Step 2: The Par Level Formula
The formula is simple: Par Level = (Average Usage Between Deliveries) + Safety Stock

· Average Usage: Let's say you sell, on average, 10 bottles of house vodka a week, and your supplier delivers once a week.

· Safety Stock: This is your buffer for a busier-than-average week or a late delivery. A good rule of thumb is 50% of your average usage. So, 50% of 10 is 5 bottles.

· Your Par Level: 10 + 5 = 15 bottles.

This means that just after your delivery arrives, you should have 15 bottles in total. By the time your next order is due, you'll have sold your average of 10, leaving you with your safety stock of 5. Your new order will top you back up to 15.

Step 3: Set Pars for Everything
Yes, this takes time. But you must do it for your top 80% of products (the "A-Brands" that make up most of your sales). Start with your house spirits, your top 5 wines, and your top 5 draught and bottled beers. A simple spreadsheet is all you need.

Step 4: Adjust and Review
Your pars are not "set in stone." They are living numbers. If you run a big promotion on a gin, you'll need to temporarily raise its par. If a product starts selling more slowly, you must lower its par to avoid over-stocking. You should review your par levels with your stocktaker every 2-3 months to ensure they still reflect your sales trends.

How a Stocktaker Helps You Master Bar Inventory Management
A professional beverage stocktaking service is the "easy button" for this. A good stocktaker doesn't just count your stock; they become your inventory management partner.

At Hospitality Partners, we analyze your POS sales data as part of our service. We can scientifically establish and maintain your par levels for you. Our stock variance reports will not only show you your profit and loss but will also compare your current stock levels to your established pars.

This highlights over-ordering, improves your cash flow, and takes the single most stressful task off your plate, freeing you to focus on what you do best: running your bar and serving your customers.