05/02/2026
My goal in posting is to enlighten restaurant and bar operators regarding inventory and sales management. I try to accomplish this by posting information in an educational manner with real live examples of inventory loss, combined with analysis of the correct methods of inventory managment to uncover losses.
Our company didn't invent the "math". That was done a long time ago in the early 1900's by three accountants. G. Charter Harrison, John Whitmore and George Norton. These three men are credited with developing the analysis and subsequent formula's used in todays' modern industry to identify and uncover inventory shrinkage. Our company was just the first company to develope a software program specifically for the Hospitality industry focusing on beverage. Later, we added a food analysis program.
I utilize my technical training as a CPA, along with my practical experience as a college accounting instructor (I taught principles 1 and 2, advanced, auditing and cost accounting), former bartender and in my current position of a sculpture franchisee for 32 years.
It's been my experience that many operators are using the incorrect methods for identifying waste. Whether it's just using the financial statements (this only shows you the actual results in only dollar terms), or tracking their cash/sales on hand - in the bank, or tracking their inventory usage, or watching video's or simply sitting at the bar. Or looking at "industry averages", among others, these methods simply do not work for correctly and accurately identifying shrinkage.
I currently oversee the management of 400 bars using our systems in the three states I manage for Sculpture.
If you are interested in diving a little bit deeper into the concepts of inventory management or you would like to get a free assessment, comparing your system to our system, we will be happy to run through the pro's and con's of both yours and ours.