# How do you price a cocktail?

## How do you price a cocktail?

The cost of a cocktail should be directly related to the cost of the ingredients. The cost of the ingredients should fall somewhere between 18% and 24% of the price to the customer. Your prices should reflect the local area, the type of outlet and your customers.

What is the markup on cocktails?

That, of course, has made beer, wine, and cocktail sales a huge profit center for restaurants; but exactly how do they decide how much to mark up your drink? In general, the industry standard is that the cost of the drink for the establishment should be between 20% and 30% of the price it charges a customer.

### What does it mean to order a cocktail up?

“Up” means that your drink will be served in one of those familiar tall martini glasses that has been chilled. “On the rocks” means that it will be served in a tumbler over ice.

How are bar prices calculated?

How to Calculate Liquor Cost

1. Here’s an example.
2. If in a year, your bar sold \$10,000 worth of alcohol inventory, and that inventory generated \$50,000 of sales, then your beverage cost percentage is 20 percent. Which means 80 percent of your alcohol sales are gross profits.
3. 10,000 / 50,000 = .2 or 20 percent.

#### Why are cocktails so expensive?

Handcrafted cocktails require more time and labor, and a skilled hand. For bartenders making their own bitters, shrubs or other mix-ins, “all of those things take time, and most likely your cocktails will go up in price the more time it takes to make all of the ingredients that go into it,” Selman said.

What is a good bar cost percentage?

Liquor cost is 37.5%. That means it costs the business, on average, 37.5% of a drink’s sale price to make it. The average pour cost that most bar operators strive for is generally between 18% and 24%. Having a liquor cost at 37.5% is significantly high.

## How much is an average drink at a bar?

Average Drink Prices at Bars Most restaurants are aiming for 20% pour cost and 80% margin on liquor sales. That means the average drink price at bars is between \$5 and \$15.

What is a good profit margin for a pub?

For a London pub or bar, Euroboozer states that gross profit has to be in the region of 70% in order to be sustainable. The Rake was making a 66% gross profit margin on the Cloudwater beer. On the other hand, there needs to be a balance in order to not alienate or annoy the consumer.

### What is a expensive cocktail?

The Ritz-Carlton Tokyo’s Diamonds Are Forever Martini holds the title as the most expensive cocktail at 2,000,000 Yen (nearly \$19k USD). The decadent drink is made with chilled Absolut Elyx vodka, a hint of fresh lime juice, stirred or shaken, and sparkling with a one-carat diamond at the bottom of the glass.

How many fingers is two shots?

Three fingers, means you fill up the glass to a height with liquor (usually whiskey) approximately equal to the width of three fingers. So three fingers means roughly 3 ounces, or two shots…that’s a pretty good slug of whiskey!

#### How much does a cocktail cost at a bar?

How Much Does Liquor Cost? The average drink costs between \$1 and \$3 for a bar to make.

What is the most expensive cocktail?

Diamonds Are Forever Martini
The Ritz-Carlton Tokyo’s Diamonds Are Forever Martini holds the title as the most expensive cocktail at 2,000,000 Yen (nearly \$19k USD). The decadent drink is made with chilled Absolut Elyx vodka, a hint of fresh lime juice, stirred or shaken, and sparkling with a one-carat diamond at the bottom of the glass.

## Which alcohol has the highest profit margin?

Best Bar Profit Margin for Whiskey Cocktails

• Old Fashioned: 13.8% Pour Cost.
• Whiskey Sour: 16.1% Pour Cost.
• Moscow Mule: 9.4% Pour Cost.
• Margarita: 13.1% Pour Cost.
• Paloma: 10.4% Pour Cost.
• Mojito: 13% Pour Cost.
• Daiquiri: 13.6% Pour Cost.
• Tom Collins: 13.4% Pour Cost.

How much does it cost to make a cocktail?

Cocktails are made by mixing a variety of ingredients, and each of those comes at a price. Have you ever thought about how much it actually costs to make your favorite drinks? It’s a necessary discussion in professional bars because businesses need to set prices to cover expenses and make a profit.

### Which is the best way to price liquor?

Using liquor cost as a goal is the most traditional and airtight way to price drinks. Liquor cost, or pour cost, is the amount of the drink’s price that it costs to make the drink. A drink with a pour cost of 15% has a profit margin of 85%. Learn how to become your own liquor cost calculator.

How to calculate the cost of a drink?

You’ll use this formula: Drink Price (\$) = 3 / .20 You’d need to price your margarita at \$15 to achieve a pour cost of 20%. You can do the same for food, but use your target food cost. Setting shot prices at bars is an easy exercise. Given that there’s no additional ingredients, the pour cost calculation is straightforward.

#### What’s the average pour cost of a drink?

This is the most traditional and airtight way to price drinks and cost out drink and alcohol menus. Pour cost is the amount of the drink’s price that it costs to make the drink. A drink with a pour cost of 15% has a profit margin of 85%. The average bar industry pour cost is between 18% and 24%.

Using liquor cost as a goal is the most traditional and airtight way to price drinks. Liquor cost, or pour cost, is the amount of the drink’s price that it costs to make the drink. A drink with a pour cost of 15% has a profit margin of 85%. Learn how to become your own liquor cost calculator.

How much does a drink a cocktail cost?

Drink A is a complex cocktail that requires a little more attention from the bartender and uses some more obscure, expensive ingredients. It costs \$10 but comes in at a 32% pour cost, but it’s designed appeal to a smaller segment of the customer base, and therefore you only sell ten of them a night.

## How to set cocktail prices for your bar?

Account for the cost of each individual item, or the cost of produce purchased in bulk like lemons and apples, and find out your juice cost in the same manner you find out your liquor cost. For example, if 8 pineapples yield 2 quarts of pineapple juice, and each pineapple costs \$1.00, then 2 quarts, or 64 oz., of pineapple juice costs you \$8.00.

This is the most traditional and airtight way to price drinks and cost out drink and alcohol menus. Pour cost is the amount of the drink’s price that it costs to make the drink. A drink with a pour cost of 15% has a profit margin of 85%. The average bar industry pour cost is between 18% and 24%.