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#Average inventory formula opeartions how to#
#Average inventory formula opeartions software#

Calculating the Direct Cost of a ShotĬalculate the per-ounce cost of the liquor using the cost of the bottle. The smaller size is usually for the liquor with higher alcohol content.

The standard shot size ranges from 1 1/2 to 2 ounces. When a bar owner is pricing liquor, the cost per pour is a good starting point.Ī shot is a stand-alone, with no mixers. It's important to review these percentages regularly to identify any potential areas for improvement. Pour cost is calculated by dividing the cost of liquor sold by the total sales of liquor. A well-run bar usually has a pour cost ranging from 18% to 24% for average liquor, with higher-quality or premium brands having higher pour costs. 5 Calculate the Pour Cost Percentage Pour cost percentages provide a measure of efficiency and profitability. You can then use your inventory to check the calculations and ensure the numbers match.

#Average inventory formula opeartions software#

This software can differentiate between types of liquor sold and tally up bar tabs automatically, saving you a lot of time and effort. 4 Calculate Total Sales of the Liquor Use a point of sale (POS) system specifically designed for bars or restaurants, like Lavu, Rexku, or Toast, to calculate the total sales from the liquor.

If you sold 30 ounces, the cost of the liquor sold is $9.00. For instance, if a $15 bottle of whiskey contains 50 ounces, that's a cost of 30 cents per ounce.

3 Calculate the Cost of Liquor Sold Using the true cost of the liquor from Step 1 and the measurements from Step 2, calculate the cost of the liquor you've sold. Make sure your bartenders are using measuring tools like jiggers or pour spouts to ensure accuracy in their pours. The inventory will tell you how much liquor you've sold based on the remaining ounces in each bottle. 2 Measure the Amount of Liquor Sold Keep accurate inventory, possibly on a daily or weekly basis depending on your volume of sales. For example, a $10 bottle of liquor might actually cost around $15 once all these additional costs are accounted for. Calculating Pour Cost: A Step-by-Step Guide Step Description 1 Determine the Cost of Your Liquor Determine the actual cost of your liquor by taking into account not only the base price of the bottle, but also any delivery costs, taxes, and labor costs related to stocking the liquor. Therefore, it’s crucial to keep track of all these costs and consider them when setting your drink prices. These additional factors all contribute to what is known as the “total beverage cost.” In addition to the cost of the liquor itself, these costs must be factored into the price of each drink to ensure profitability. They may seem like small expenses, but over time, they can have a significant impact on your overall cost.

Drink Accessories: This category includes everything from cocktail napkins to those adorable little umbrellas.

Rim Salts/Sugars: For cocktails like margaritas or sidecars, you might need to rim the glass with salt or sugar.

Ice: Ice is often overlooked, but there is a cost associated with producing, storing, and serving it.

Garnishes: Think of the olives in your martini, the cherries in your Manhattan, or the lime wedge on your rum and coke.

Mixers include items like soda, tonic water, or juice mixed with liquor to create cocktails.

There are many other costs associated with serving a drink that needs to be taken into account:

Additional Factors: The liquor cost and the pour cost are just the start.

With 50 ounces in the bottle, the cost per ounce would be 20 cents ($10 / 50 ounces).

Alternatively, you could calculate the cost per ounce.

This makes the cost per pour 40 cents ($10 / 25 pours).

If each pour is 2 ounces, the bottle would contain 25 pours (since a standard bottle of liquor is usually around 50 ounces).

To determine the basic pour cost, you’ll need to know the cost of the bottle and how many pours it contains.įor example, consider a bottle of liquor that costs the bar owner $10. Typically, a “pour” or a “shot” ranges from 1 1/2 to 2 ounces, with 2 ounces being the most common.

Pour Cost: This is the cost of serving a shot or a drink.

The liquor cost excludes additional costs such as taxes, shipping, or labor for stocking. It’s the starting point for determining the profitability of your liquor sales.

Liquor Cost: This is the wholesale cost the bar owner pays for each liquor bottle.

#Average inventory formula opeartions how to#

To understand how to price liquor, you need to put real numbers on your liquor cost and pour cost. Understanding the Basics: Pour Cost and Liquor CostĬreating a pricing strategy is an important part of learning how to open a bar.