Where this started and It was personal for me: 2007 Hastings Cafe Case Study

Mini Case Study: Jack Daniel's Loss Analysis at Hastings Café (2007)

Background:
In 2007, Hastings Café was moving a high volume of Jack Daniel's. At the time, there was no POS system in place—only a standard cash register with programmed buttons to track sales. One week, after purchasing a case (12 bottles) of Jack Daniel's, owner EJ Glenn was shocked at how quickly inventory ran out. A deeper look revealed a costly pattern hiding in plain sight.

The Setup:

• Product: Jack Daniel's (750ml)
  
  
• Bottle Cost: $18
  
  
• Standard Shot Size: 1.5 oz
  
  
• Actual Poured Size (on average): 3 oz (double shots)
  
  
• Selling Price per Drink: $5
  
  

Expected Yield per Bottle:

• 750 ml = 25.36 oz per bottle
  
  
• 25.36 oz ÷ 1.5 oz = 16.9 shots per bottle
  
  
• 16.9 shots × $5 = $84.50 in revenue per bottle
  
  

Actual Yield per Bottle (due to overpouring):

• 25.36 oz ÷ 3 oz = 8.45 drinks per bottle
  
  
• 8.45 drinks × $5 = $42.25 in revenue per bottle
  
  

Loss Per Bottle:

• Lost Revenue: $84.50 - $42.25 = $42.25
  
  
• Lost Gross Profit: (since cost stayed fixed at $18) also $42.25
  
  

Total Weekly Loss (1 Case = 12 Bottles):

• $42.25 × 12 bottles = $507 in lost profit/week
  
  

Annualized Loss:

• $507 × 52 weeks = $26,364/year
  
  

Key Insight:

“I didn’t realize it at the time, but just one liquor — Jack Daniel’s — was hemorrhaging over $26,000/year in lost profit. Not from theft, but from a common behavior: overpouring and undercharging. No one stole a dollar — but I lost a $26,000 of pure profit that year. And that was just one product.”

Lesson:
This real-world experience became a foundational moment that shaped the EBITDA Solutions methodology. It proved that even trusted staff, good intentions, and high volume don’t protect against financial hemorrhages. Only clear math and operational discipline do.

Want to uncover what your numbers are really saying?
A free snapshot audit can expose where you might be hemorrhaging six figures annually. Most owners have no idea. Let’s find out.

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