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How To Calculate Liquor Pour Cost

Pour Cost Formula:

\[ \text{Pour Cost %} = \frac{\text{Bottle Cost} / \text{Ounces per Bottle}}{\text{Drink Price}} \times 100 \]

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1. What is Pour Cost Percentage?

Pour cost percentage is a key metric in the bar and restaurant industry that measures the cost of liquor used in a drink relative to its selling price. It helps business owners understand their liquor cost efficiency and profitability.

2. How Does the Calculator Work?

The calculator uses the pour cost formula:

\[ \text{Pour Cost %} = \frac{\text{Bottle Cost} / \text{Ounces per Bottle}}{\text{Drink Price}} \times 100 \]

Where:

Explanation: The formula calculates the cost per ounce of liquor, then determines what percentage of the drink price this cost represents.

3. Importance of Pour Cost Calculation

Details: Monitoring pour cost is essential for bar profitability management. It helps identify pricing issues, control inventory costs, and optimize menu pricing strategies.

4. Using the Calculator

Tips: Enter the total bottle cost in dollars, the total ounces in the bottle, and the selling price of the drink. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good pour cost percentage?
A: Industry standard is typically 18-24%. Below 18% may indicate overpricing, while above 24% suggests underpricing or cost control issues.

Q2: Should I include other costs in pour cost?
A: This calculation shows liquor cost only. For total drink cost, consider adding mixers, garnishes, and other ingredients.

Q3: How does bottle size affect pour cost?
A: Larger bottles often have lower cost per ounce, which can improve your pour cost percentage if drink prices remain the same.

Q4: What if I use different pour sizes?
A: Adjust the calculation by using the actual ounces poured per drink rather than total bottle ounces.

Q5: How often should I calculate pour cost?
A: Regularly - ideally weekly or monthly - to track trends and identify issues early.

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