This is the first in a series of posts that will cover the basics of stock control and usage/cogs in the context of Beverage Management. Having worked with countless Bars & Restaurants over the past couple of years, it’s evident that things are often more complex than needs be and that some of the core principles are not that well otherstood.

Our goal is to distill stock control and usage/cogs down to their basics and to give you the knowledge & tools needed to run your venue like a pro. Let’s get started!


Table of Contents


Series Breakdown

The series will be made-up of 9 lessons and will cover the following topics.

Lesson 1: The Basics. What you need to know.

Go to Lession 1

  • Pour cost %
  • Usage & COGS
  • Shrinkage + variance
  • Stocktakes
  • Stock movements (stock in/out)
  • How to value stock-on-hand
  • Performance reporting
  • Stock control

Lesson 2: Pour cost %

  • What is pour cost?
  • How to I calculate it?
  • Should I benchmark versus others?

Lesson 3: Usage & COGS

  • Actual vs theoretical usage
  • COGS (cost-of-goods-sold)

Lesson 4: Shrinkage + variance

  • Known shrinkage
  • Unknown shrinkage (or variance)

Lesson 5: Stocktakes

  • Full vs partial stocktakes
  • Benefits of having storage areas

Lesson 6: Stock Movements (In/Out)

  • Purchase orders & invoice check-ins
  • Transfers

Lesson 7: How to value stock-on-hand (and hence cogs)

  • Stock-on-hand valuation methods
  • The need for accurate prices (and an audit trail of changes)

Lesson 8: Performance reporting

Lesson 9: Stock control

  • Periodic vs perpetual
  • Shrinkage/variance and what to do about it

Barsumo is committed to providing educational materials that help F&B professionals navigate Bar/Restaurant operations and acquire the skills needed to excel in this space. If there is a particular topic you would like us to cover, let us know at