First, select your bottle size and enter bottle cost. This will automatically calculate the cost per ounce of your bottle of wine.
Next, select the number of ounces in a glass pour for wine at your restaurant. This will automatically calculate the Cost Per Glass, or your Cost of Goods for a glass of wine.
Lastly, set your desired pour cost (liquor cost) percentage. This will calculate a suggested menu price by on all costs. Adjust the pour cost percentage calculate to see different menu prices.
It's good to know the benchmark pour costs to see if your liquor costs are inline with the industry averages. You're actual cost percentages may differ slightly, which is expected.
These industry averages are only guidelines. The costs that are acceptable costs depend on a host of factors like the type of restaurant or bar you operate. For example, a wine bar is going to have higher costs on average than sports bar selling a lot of draft and bottled beer.
This chart will give you a good benchmark for acceptable liquor cost percentages.
Here's a simple chart to help you the remember the number of ounces for bottles of liquor, beer, and wine, as well as keg sizes.
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A wine bottle sold at a restaurant has an average liquor cost of 35%. And while selling a bottle is great for a server's check average, selling wine by-the-glass and create big profits for restaurants. The profit margin on glass pours can be closer to 75% - 80% (15% - 20%) cost.
The revenue and, more importantly, the profits that you earn off each sale in your restaurant or bar are directly tied to your the cost of goods sold. Whether it's food sales or beer sales, the price you pay vendors for your products will determine the prices you set on your menu.
Like any retail business, a bars success is dependent on a sustainable profit margin. By costing out your drinks and making sure you wine, beer, and liquor are within an acceptable range of costs, you can make sure your always hitting acceptable profit margins.
If you're looking to find your pour costs for cocktails, try our free cocktail calculator.
Download our free drink cost calculator spreadsheet to cost drinks and save recipes in an excel spreadsheet.
Looking for more ways to track your liquor costs? Try our liquor cost formula cheat sheet to learn more advanced ways to analyze beverage performance.
Backbar is a bar inventory platform for mobile and web. Make everyday tasks easier so you can spend less time crunching numbers and more time helping guests.
Here's a quick overview of how Backbar streamlines work:
