Pour Cost Formula:
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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.
The calculator uses the pour cost formula:
Where:
Explanation: The formula calculates the cost per ounce of liquor, then determines what percentage of the drink price this cost represents.
Details: Monitoring pour cost is essential for bar profitability management. It helps identify pricing issues, control inventory costs, and optimize menu pricing strategies.
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.
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.