Drinks carry some of the best margins on the bill, which makes them easy to stop checking. Pour cost is the cost of a drink as a share of its price without VAT. Work it out per serve, allow for spillage, and price each list against its own target.
The pour cost formula
- Serves per bottle = bottle size ÷ serve size × (1 − spillage %)
- Cost per serve = bottle cost net of VAT ÷ serves per bottle
- Pour cost % = cost per serve ÷ menu price without VAT
- Suggested price = cost per serve ÷ target %, plus VAT, rounded up
Spillage covers spills, tasting and overpouring. The sample bistro allows 3% for spirits and wine, and 6% for draught beer to cover line cleaning and foam.
Spirits: pours per bottle
A 700 ml bottle at 40 ml a pour gives 17.5 pours on paper. With 3% spillage it gives 16.975. House gin costs €16.50 net, so each pour costs €0.97. On the menu at €6.00 with 20% VAT, the bistro keeps €5.00, a pour cost of 19.4% against a 20% target. A drink more than 2 points over target is marked Check.
| Spirit | Bottle (net) | Cost per pour | Menu price | Pour cost | Status |
|---|---|---|---|---|---|
| House vodka | €14.00 | €0.82 | €5.50 | 18.0% | OK |
| House gin | €16.50 | €0.97 | €6.00 | 19.4% | OK |
| Premium gin | €28.00 | €1.65 | €8.50 | 23.3% | Check |
| Brandy | €21.00 | €1.24 | €6.50 | 22.8% | Check |
| Single malt whisky | €38.00 | €2.24 | €9.00 | 29.9% | Check |
Premium bottles are often priced too close to the house ones. The single malt would need €13.50 to hit 20%. It still leaves €5.26 per serve, more than the house gin's €4.03, so decide whether the cash profit or the percentage matters more for that bottle.
Draught works the same way. A 30-litre keg of lager at €72.00 gives 60 half-litre serves on paper and 56.4 after 6% line loss, or €1.28 a serve. At €5.00 that is 30.6% against a 25% target.
Wine by the glass and by the bottle
A 750 ml bottle gives five 150 ml glasses, or 4.85 after spillage. The sample targets are 30% by the glass and 35% by the bottle. The lower glass target pays for the open bottle that goes off before it sells.
| Wine | Bottle (net) | Cost per glass | Glass price | Glass cost % | Bottle price | Bottle cost % |
|---|---|---|---|---|---|---|
| House red | €5.80 | €1.20 | €5.50 | 26.1% | €24.00 | 29.0% |
| Prosecco (125 ml) | €7.20 | €1.24 | €6.50 | 22.8% | €32.00 | 27.0% |
| Malbec | €9.50 | €1.96 | €7.50 | 31.3% | €36.00 | 31.7% |
| Sancerre | €14.00 | €2.89 | €9.50 | 36.5% | €48.00 | 35.0% |
Sold by the glass, a bottle of house red brings in €26.68 against €24.00 as a whole bottle, as long as the last glass sells. The last glass is the profit. It is also the one left open on a Monday. The Sancerre by the glass sits well over target, and the suggested price is €12.00. Raise it, or sell it by the bottle only.
Cocktail costing
Cost a cocktail like a dish: every ingredient, every line, including the mixer and the garnish.
| Aperol Spritz | Quantity | Line cost |
|---|---|---|
| Aperol | 60 ml | €1.07 |
| Prosecco | 90 ml | €0.86 |
| Soda water | 30 ml | €0.02 |
| Orange | ¼ piece | €0.10 |
| Cost per drink | €2.05 |
At €8.50 the Spritz runs at 29.0% against a 22% target, and the suggested price is €11.50. The Espresso Martini costs €1.39 and sells at €10.00, a pour cost of 16.7% and €6.94 profit per serve. In a gin and tonic, the tonic costs €0.45, almost half the cost of the gin.
A note on VAT
Always work pour cost on the price without VAT. With 20% VAT, a €6.00 drink leaves €5.00. VAT rates on drinks differ by country, and sometimes from the rate on food, so use your own rate and check local rules.
Cost every drink in one workbook
The Bar & Drinks Costing workbook has separate lists for spirits, wine, and beer and soft drinks. Enter the net bottle or keg cost, the size and your serve, and it works out serves per bottle after spillage, cost per serve and a suggested price. Wine shows glass and bottle prices from the same bottle cost. Cocktails and coffee are costed line by line from an ingredients list. Enter your menu prices to see the real cost %, profit per serve and a Check flag, and the Overview shows the average cost % for each list against its target. VAT rate, rounding, spillage and targets are set on Settings.
Related
- Read: How to Price a Menu: The Food Cost % Method
- Read: How to Measure Food Waste in a Restaurant Kitchen
- Also useful: Supplier Price Tracker, spot a price rise on spirits before it eats the margin
Every template in Restaurant Notes is in the Complete Restaurant Collection: 25 tools in one download.