#Grossest bartender duties how to#

Food has a much lower profit margin than alcohol and is subject to more waste.įood cost is how much a dish’s ingredients cost divided by how much the dish is sold for. If you run a restaurant or a bar that also sells food, food cost is just as important to monitor as pour cost.

#Grossest bartender duties how to#

A good bar manager needs to know how to find and monitor this cost. To get the pour cost for the entire bar, Seán’s Bar will have to do this for every. They’re only making 70% profit on their Aperol Spritzes. That's weak from a bar profitability standpoint. That means it costs Seán’s Bar 30% of the price of an Aperol Spritz to make it. Pour Cost = Inventory Usage ($) / Total Sales ($) Pour Cost = $300 / $1000 Pour Cost = 30% Math tells us that the total revenue for Aperol Spritz that month was $1,000. We discover that the inventory usage rate in dollars for one month of Aperol, Prosecco, and soda water, was $300. That will show us how many dollars worth of Aperol Spritz ingredients Seán’s Bar used during that time frame. First, we need to calculate inventory usage for Seán’s Bar's Aperol Spritz in dollars. Seán’s Bar sells an Aperol Spritz for $6.25, and, over the last month, they sold 160 of them. The formula is: Pour Cost = Inventory Usage ($) / Total Sales ($) ‍Liquor cost, beer cost, and wine cost all differ. Most bar operators consider 20% a good goal. The average pour cost for a bar is between 18% and 24%. Your pour cost is how much inventory you’re using-in dollars-divided by how much of that inventory you’re selling. ‍ It's what percentage of the drink's sale price you're eating to create the drink. The formula is: COGS + Total Labor = Prime Cost Pour CostĪt a drink level, pour cost is how much a drink’s ingredients cost divided by how much the drink is sold for. Once you calculate this number, you can divide it by total sales to help determine your profit margin. Since it is the total spend on materials and overhead expenses, it essentially accounts for all costs of operating your bar within a given time period. Prime cost is the sum of cost of goods sold and labor costs.

Prime cost is used by business owners to set goals and optimize profits. This simple formula is: Beginning Inventory + Received Inventory - Ending Inventory = COGS Prime Cost In a restaurant or bar, the cost of goods sold would be the cost of all the ingredients and materials used to create a plate of food or beverage. Essentially, it is the cost to the business for all products sold. Cost of Goods SoldĬost of goods sold (COGS) is one of the most important figures for any business owner and is a valuable restaurant KPI. These costs are cost of goods sold, prime cost, liquor cost, and food cost. There are four major cost figures that you’ll need to be able to calculate before beginning your journey to maximum profits. The first step to achieving bar profitability is to get a handle on your bar’s costs. Make the right choices, manage your restaurant balance sheet, keep track of p&l restaurant data, and your little corner of it can be wildly profitable.‍ Increase Bar Profits with Analysis Whether you’re starting a bar or running an existing one, the industry has room for you. has grown an average of 2.9% year-over-year. Our desire to belly-up to a bar and relax is as old as the hills.įrom 2013 through 2018, the bar and nightclub industry in the U.S. Look at Seán’s Bar in Westmeath, Ireland, founded in 900 A.D.

A thousand years ago, people slammed beers in bars just like we do.