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Liquor Cost Per Bottle Formula:
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Liquor cost per bottle calculation helps bar and restaurant owners determine the actual cost of each pour from a bottle, enabling better pricing strategies and profit margin management in the beverage industry.
The calculator uses the liquor cost formula:
Where:
Explanation: This calculation determines the per-pour cost from a bottle by dividing the total bottle cost by its yield, then multiplying by the standard pour size.
Details: Accurate liquor cost calculation is essential for setting appropriate drink prices, managing inventory costs, maximizing profitability, and maintaining competitive pricing in the hospitality industry.
Tips: Enter the purchase price of the bottle in your local currency, the total yield in ounces (standard bottle sizes are 750ml = 25.4oz, 1L = 33.8oz), and your standard pour size in ounces.
Q1: What is a standard pour size?
A: Standard pour sizes vary by establishment but typically range from 1.5oz to 2oz for spirits, depending on local regulations and pricing strategy.
Q2: How do I calculate yield for different bottle sizes?
A: Convert bottle volume from milliliters to ounces (1ml = 0.0338oz). Common yields: 750ml = 25.4oz, 1L = 33.8oz, 1.75L = 59.2oz.
Q3: What is a good liquor cost percentage?
A: Industry standards typically aim for 18-24% liquor cost, but this varies by establishment type, location, and pricing strategy.
Q4: Should I include bottle loss and spillage?
A: For more accurate calculations, consider adding 5-10% to account for normal bottle loss, spillage, and over-pouring.
Q5: How often should I recalculate liquor costs?
A: Recalculate whenever purchase prices change, when switching suppliers, or at least quarterly to account for market price fluctuations.