What is the formula for liquor cost?

Liquor cost is an important metric for measuring how profitable a bar or restaurants is. Another term for liquor cost is pour cost, here is how to calculate pour cost:

 

 

Cost of Goods Sold  = Liquor Cost Percentage

Alcohol Sales

 

Take your cost of goods sold (the price you paid for a bottle of wine or a shot of whiskey) and divide it by the sale price for your alcohol. This formula with will provide you with your liquor cost percentage. 

 

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