1. What is Cost Per Drink?

Cost Per Drink is a crucial metric in beverage costing for bars and restaurants. It helps determine the actual cost of each drink served, enabling proper pricing strategies and profit margin management.

2. How Does the Calculator Work?

The calculator uses the Cost Per Drink formula:

Where:

• \( \text{Pour Cost} \) — The percentage of bottle cost used per pour (%)
• \( \text{Bottle Price} \) — Purchase price of the bottle (currency)
• \( \text{Shots per Bottle} \) — Number of standard shots per bottle (count)

Explanation: This calculation helps bar managers understand the direct cost of each drink served, which is essential for setting appropriate selling prices and maintaining profitability.

3. Importance of Cost Per Drink Calculation

Details: Accurate cost per drink calculation is vital for inventory management, pricing strategy, profit margin analysis, and overall bar profitability. It helps identify waste, theft, and inefficiencies in pouring practices.

4. Using the Calculator

Tips: Enter pour cost as a percentage (typically 15-25% for profitable operations), bottle price in your local currency, and the number of standard shots per bottle (usually 16-25 depending on bottle size and shot volume).

5. Frequently Asked Questions (FAQ)

Q1: What is a typical pour cost percentage?
A: Most bars aim for 15-25% pour cost. Lower percentages indicate higher profit margins, while higher percentages may suggest waste or pricing issues.

Q2: How many shots are in a standard bottle?
A: A 750ml bottle typically yields 16-17 shots (1.5oz each), while a 1-liter bottle yields about 22 shots.

Q3: Why is cost per drink important for pricing?
A: Knowing your cost per drink helps set appropriate selling prices to achieve desired profit margins and cover overhead costs.

Q4: How can I reduce my cost per drink?
A: Reduce waste through proper training, use measured pourers, negotiate better bottle prices with suppliers, and monitor inventory closely.

Q5: Does this include other costs like labor and overhead?
A: No, this calculates only the direct liquor cost. For complete pricing, you should also factor in labor, glassware, mixers, and overhead expenses.