1. What is Pour Cost?

Pour cost is the percentage of liquor sales that is spent on the actual liquor. It's a key metric for bar and restaurant owners to measure profitability and control costs in their beverage programs.

2. How Does the Calculator Work?

The calculator uses the pour cost formula:

Where:

• \( Liquor\_cost \) — Total cost of liquor used (currency)
• \( Sales \) — Total revenue from liquor sales (currency)

Explanation: The formula calculates what percentage of your liquor sales revenue is being spent on the actual product.

3. Importance of Pour Cost Calculation

Details: Monitoring pour cost helps businesses maintain profitability, identify potential theft or waste, and make informed pricing decisions.

4. Using the Calculator

Tips: Enter your total liquor cost and total sales in the same currency. Both values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is a good pour cost percentage?
A: Typically 18-24% is considered good, though this varies by establishment type and location.

Q2: How often should I calculate pour cost?
A: Most bars calculate weekly or monthly to monitor trends and catch issues early.

Q3: What causes high pour costs?
A: Common causes include overpouring, theft, improper inventory tracking, or underpriced drinks.

Q4: Should I include all alcohol in this calculation?
A: Many businesses calculate separate pour costs for different categories (well, call, premium).

Q5: How can I reduce my pour cost?
A: Strategies include standardizing pours, training staff, adjusting prices, and improving inventory control.