And what brands, bottle sizes, and wholesale pricing a bar gets.įood managers will also have to work on reigning in their food cost. But a lot of that depends on sales mix-the percentage of total restaurant sales that come from liquor, beer, or wine. Though the actual number will depend greatly on each bar’s pricing and what drinks are popular.īut a lot of bar managers strive to have their pour cost at around 15%. Most food and beverage directors expect an average pour cost of, max, 20%. Food and Beverage Directors Expect a Pour Cost of.
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That's why you need to know how to price a menu and factor in any shrinkage. That lowers your liquor cost and dents your profit. But you’re still paying the same amount for it from your vendors.
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If you’ve got bartenders giving drinks away for free or overpouring, you’re selling less of your inventory. Let’s say you spend $3 on materials and labor to make a single cocktail. Your bar may have issues with over-pouring, spillage, undocumented comps, suboptimal menu pricing, and even theft (there are actually many ways employees steal ).Įach of those above factors can impact your liquor pour cost numbers.
How Does Liquor Cost Impact Profit?Īccurate liquor cost numbers reveal inefficiencies. It's a vital part of restaurant accounting and can have a major impact on your bottom line. “How much of this drink’s retail price did I spend to make it?”Īnswering that allows bar managers to tweak their wholesale purchases, recipes, and pricing strategies (including psychological pricing) for maximum profit. You’ll hear pour cost percentage thrown around out there on the internet. The definition of liquor cost is the percentage of a drink’s selling price that it costs to make the drink. You've already spent so much in learning and implementing how to get a liquor license, you owe it to yourself to boost profits whenever you can.īut to lower it, you gotta know what it is, what it means, and how to find it. Lowering liquor cost, then, is one of the most effective ways to increase bar profits. The profit margin on alcohol is huge, but a high liquor cost (also called pour cost or beverage cost) eats away at it. Liquor costs can make or break your beverage program and sway how much bars make.
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