How To Calculate Liquor Cost

How to Calculate Liquor Cost

1. Determine Your Pour Cost:

Pour cost is the percentage of total liquor sales that goes towards the cost of the liquor itself.

To calculate pour cost, divide the cost of liquor used by the total liquor sales

* Pour Cost = (Cost of Liquor Used / Total Liquor Sales) x 100%

2. Calculate Your Liquor Usage:

Track the amount of liquor used over a specific period (e.g., a week or month).

Use inventory records, sales data, or a liquor tracking system to determine the total volume of liquor used.

3. Determine Your Liquor Cost:

Multiply the liquor usage by the cost per unit (e.g., per ounce or bottle).

This will give you the total cost of the liquor used.

4. Calculate Your Liquor Cost Percentage:

Divide the total liquor cost by the total liquor sales

* Liquor Cost Percentage = (Total Liquor Cost / Total Liquor Sales) x 100%

5. Set Your Target Pour Cost:

Industry standard pour costs typically range from 15% to 25%.

Determine a target pour cost that is appropriate for your business and profit margins.

6. Monitor and Adjust:

Regularly track your liquor cost and compare it to your target.

Make adjustments to your pricing, inventory management, or staff training as needed to maintain your desired pour cost.

Tips for Controlling Liquor Cost:

Use a liquor tracking system to monitor usage and identify areas for improvement.

Train staff on proper pouring techniques and inventory management.

Negotiate favorable prices with suppliers.

Offer drink specials or promotions that encourage customers to order lower-cost drinks.

Consider using pre-batched cocktails or draft beer to reduce waste and improve efficiency.

DISCLAIMER: This information is provided for general informational purposes only, and publication does not constitute an endorsement. Kwick365 does not warrant the accuracy or completeness of any information, text, graphics, links, or other items contained within this content. Kwick365 does not guarantee you will achieve any specific results if you follow any advice herein. It may be advisable for you to consult with a professional such as a lawyer, accountant, or business advisor for advice specific to your situation.

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How To Calculate Liquor Cost