99 Taps of Beer on the Touchscreen

Fair warning: I am going to take a position that some of you won’t agree with, but 100% of smart entrepreneurs will.

Here in the US, a growing number of states have implemented what they call a “living wage” (aka minimum wage) or are considering it.

Now while that sounds nice and rosy, the unintended consequences are going to further eliminate minimum wage jobs. Order takers at McDonalds? Replaced by kiosks. Wal-Mart greeters? Gone. Bartenders? On their way out.

What you say????!! Not bartenders?

While I was driving last week, I heard an interview on NPR about this new touch screen beer dispenser. Yes, you heard that right, the beer gods have delivered nirvana with self dispensing suds.

The article is based on a bar in downtown Washington, DC. A very expensive place to run a business. The rent alone is $30,000 per month. His 24 employees only adds to the crushing overhead.

DC has implemented a plan to go to a $15/hr min wage. Which would make doing business almost impossible in an industry with razor thin margins. So he decided to reduce the bar staff and install a wall of beer taps.

The shiny beer wall allows customers to choose from 23 different varieties of beer — or “24 if you count Bud Light,” says owner Jeremy Gifford. Pour-your-own beer isn’t just a novelty, Gifford says; the idea is to cut down on waiting for alcohol (which means selling more of it) and freeing up bartenders to make cocktails.” While also reducing labor costs.

The 2 main companies providing the equipment, PourMyBeer and iPourIt, have seen growth explode. They are now creating technology for wine, cocktails, coffee for companies like Whole Foods, Dunkin’ Donuts, the US Military and Starbucks.

“If you have 50 self-serve taps, then you essentially have 50 employees you don’t have to pay to service your customer,” says Josh Goodman, who runs PourMyBeer. “I guess anywhere you see a line, we see an opportunity,” he says.

So, what does this have to do with you business?

All together now.. EVERYTHING!

PourMyBeer and iPourIt are industry disruptors! They saw the issues, long wait lines and burdensome labor costs and went straight for the jugular. Proving again that if your job can be automated or done by machine, it will be.

Guests are happier since they don’t have to wait, thereby spending more and owners are happy reducing their labor costs. Win / Win… Except for the bartenders.

Questions you should have answers to:

1. What will a mandatory increase in wages do to your business?
2. Do you have a process that is annoying or frustrating your clients or patients? If so, how do you get rid of it?
3. Can you use technology to enhance your patient or client experience?

Start answering those questions.

Remember, you won’t profit unless you implement,

Vance “Loves Self-Serve Beer” Morris

P.S. Enough of you responded to my query about doing a Newsletter Master Class, that I have decided to do it. Stay tuned for the details.

P.P.S. Here is the link to the whole interview

Author of the book “Systematic Magic, 7 Magic Keys to Disnify Any Business”

For more on Disney Style Service and small business marketing or having Vance speak at your next event or meeting, check out the free special report “Systematic MAGIC, How to Disnify Any Business”. Vance Morris is a Walt Disney World Resort Management Alumni, having spent 10 years as an executive in the Resorts. He runs the only Disney Service & Direct Response Marketing business on the planet. Here he coaches companies to create Disney Style Service Systems and then monetize them through direct response marketing. He is also the longest reigning GKIC Marketer of the Year. He can be reached at www.DeliverServiceNow.com or vance@deliverprofitsnow.com .

For speaking engagements, please visit www.vancemorris.com