The Impact of Bar Service Operation Practices on Organizational Performance in Indian Hotel Industry Mohinder C. Dhiman*, Abhishek Ghai** Abstract The paper has a two fold purpose - examine the impact of bar service operation practices (BSOP) on organizational performance (OP) and study the relationship between organizational performance and demographic variables. Based on a survey of 362 bar manager’s perceptions on the impact of bar service operation practices on organisational performance were assessed by 59 practices and 6 demographic variables. Bivariate test and ANOVA were employed to test the working hypothesis in the study. Results indicated that ‘there is a positive relationship between the bar service operation practices and organisational performance. Further, the results indicate some practical and managerial implications to improve organisational overall performance. Keywords: Bar, Service, Practices, Hotel, Industry, Performance, India INTRODUCTION In the food & beverage operation, the alcoholic and non- alcoholic beverage plays the pivotal role. According to Gonzalez-Gomez & Morini, (2006) alcoholic beverages demand, particularly wine is changing & growing now days. Bar is defned as “a public place where the primary business of the place is to sell alcoholic beverages to the general public, for consumption on the premises” (Arora, 2009). This defnition suggests that bars are primarily involved in the sale of alcoholic beverages to the general public for consumption on the premises. There are many revenue generating department in the hotel. Bar is one of the key revenue generating areas of the hotel (Singaravelavan, 2011). The classifcation of the bar and beverage operation is not an easy task as other food and beverage outlets because there can be so many blends of features. Beverage services differs in many ways with different purposes from the bar or the bar-restaurant combination in hotels i.e. Lobby bar, cocktail lounge, restaurant bar, a night club, pub, room service, mini bar, etc. So a broad classifcation is one using the groupings bars and lounges. There are a lot of differences among the operations in each of these broad categories. Based on the defnitions of bars presented above, it is evident that both the terms “bar” and “lounge” seem to primarily focus on the selling of alcoholic beverages to the public for consumption at the premises of sale. Hence, for the purpose of this research study, the terms “bar” and “lounge” are seen to relate to hospitality organizations, which are primarily concerned with the sale of alcoholic beverages for consumption on the premises of sale. According to Beverage Information Group’s Handbook Advance 2013, distilled spirits increased for the 15 th consecutive year, growing slightly faster than in 2011. New products and the modernization of spirits are helpful in growth as since 2006, 3.6% is the largest increase. Further the report revealed that the consumption of wine is also increased as domestic wine consumption increased by 3.0%, surpassing imported brands but the fortifed and aromatized wine category is declined if compare to sparkling wines or champagne. The world bar and pub market includes the various bars, taverns, nightclubs, pubs, lounges and other * Department of Tourism and Hotel Management KurukshetraUniversity, Kurukshetra, Haryana, India. E-mail: mohinderchand@rediffmail.com ** Assistant Professor, UIHTM, Panjab University Chandigarh, and Doctoral Candidate, DTHM, Kurukshetra University, Kurukshetra, Haryana, India. E-mail: abhishekghai87@gmail.com International Journal of Hospitality & Tourism Systems Volume 8 Issue 1 June 2015 ISSN: 0947-6250 Print ©Copyright IJHTS ® Exclusive Marketing Rights: Publishing India Group