Pour Cost Formula:
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Pour cost percentage is a key metric in the beverage industry that measures the cost of liquor used in a drink relative to its selling price. It helps bar and restaurant owners understand their liquor cost efficiency and profitability.
The calculator uses the pour cost formula:
Where:
Explanation: This formula calculates the percentage of your selling price that goes toward the cost of the liquor itself, helping you determine your profit margin on each drink.
Details: Monitoring pour cost is essential for bar profitability. Ideal pour costs typically range from 18% to 24%, with lower percentages indicating higher profitability. Regular calculation helps identify pricing issues, over-pouring, or theft.
Tips: Enter the cost per ounce of your liquor, the selling price of the drink, and the number of ounces per drink. All values must be positive numbers. The calculator will instantly compute your pour cost percentage.
Q1: What is an ideal pour cost percentage?
A: Most bars aim for 18-24% pour cost. Below 18% may indicate overpricing, while above 24% suggests potential profit loss.
Q2: How do I calculate cost per ounce?
A: Divide the bottle cost by the total ounces in the bottle. For example, a $30 bottle with 25.4 oz = $1.18 per ounce.
Q3: Why is my pour cost too high?
A: High pour costs can result from underpricing, over-pouring, spillage, theft, or using premium liquor without adjusting prices.
Q4: Should pour cost be calculated for each drink?
A: Yes, calculating pour cost for individual drinks helps identify which menu items are most and least profitable.
Q5: How often should I check pour costs?
A: Weekly or monthly checks are recommended to maintain control over your liquor costs and identify trends quickly.