Pour Cost Formula:
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Pour cost percentage is a key metric in the beverage industry that measures the ratio of ingredient cost to drink selling price. It helps bar and restaurant managers understand their profitability and optimize pricing strategies.
The calculator uses the pour cost formula:
Where:
Explanation: This formula calculates what percentage of the drink's selling price is consumed by ingredient costs, helping determine profitability.
Details: Monitoring pour cost is essential for beverage cost control, menu pricing optimization, inventory management, and overall profitability analysis in bars and restaurants.
Tips: Enter the total ingredient cost and drink selling price in dollars. Both values must be positive numbers, and drink price must be greater than zero.
Q1: What is a good pour cost percentage?
A: Typically, 18-24% is considered good for bars, though this can vary by establishment type and drink category.
Q2: Does pour cost include labor and overhead?
A: No, pour cost only measures ingredient costs. It doesn't include labor, rent, utilities, or other operational expenses.
Q3: How often should pour cost be calculated?
A: Most establishments calculate pour cost weekly or monthly to monitor trends and identify potential issues.
Q4: What causes high pour cost percentages?
A: Overpouring, theft, inaccurate pricing, waste, and spoilage are common causes of high pour costs.
Q5: How can I improve my pour cost?
A: Strategies include standardizing recipes, training staff on proper pouring, regular inventory checks, and adjusting pricing when ingredient costs change.