by David Wyld, Contributing Editor

According to hospitality industry experts, every year in the United States, over $7 billion is lost due to “liquor shrinkage.” What is “liquor shrinkage?” It happens when bartenders give out free drinks, overpour intentionally making drinks too strong, or make mistakes as they mix cocktails. It also happens when bottles of liquor disappear from bar storage areas due to theft. It all adds up to a major alcohol problem.

In fact, industry analysts project that liquor shrinkage across the hospitality industry affects between 20 and 30 percent of alcohol stock. For banquet and reception operations, losses may range even higher. Thus, solving the liquor shrinkage problem can be vitally important to restaurant and bar managers, as they can not only control costs, they can recover lost revenue from otherwise unpaid drinks.