Pour Cost Is the Foundation of Bar Profitability
Pour cost is the percentage of the sale price of a drink that the raw alcohol cost represents. If you pay $22 for a 750 mL bottle of well bourbon and pour 1.5 oz drinks, each pour costs about $1.30. Sell that drink for $9 and your pour cost is roughly 14.5 percent. Pour cost is the single most important number for measuring bar profitability because it tells you the gross margin on your most variable cost: the alcohol itself. Once a bar has settled rent, payroll, and overhead, the difference between a profitable program and a money-losing one comes down almost entirely to pour cost discipline across the bottles, draft lines, and wine list.
Industry Benchmarks by Category
Different beverage categories have different target pour costs. Spirits-based cocktails should land between 18 and 24 percent, with high-end craft cocktail bars often achieving 18 to 20 percent through smart sourcing and disciplined recipes. Beer pours typically run higher at 25 to 30 percent because of lower margins on commodity brands and the cost of draft system maintenance. Wine by the glass is typically 28 to 35 percent because of the higher cost basis and the expectation of a generous pour. Mixers, syrups, garnishes, ice, and labor are not included in pour cost — those are separate line items in the overall beverage cost calculation.
Calculating Pour Cost in Practice
The formula is straightforward: cost per pour equals the bottle cost divided by the total ounces in the bottle, times the pour size in ounces. A 750 mL bottle holds 25.36 ounces, so a $22 bottle costs $0.867 per ounce, and a 1.5 oz pour costs $1.30. Pour cost percentage is then $1.30 divided by the menu price. The calculator also returns gross profit per pour and per full bottle, which is useful when forecasting daily revenue from inventory levels. The suggested sale price reverses the math: enter your target pour cost percentage and it returns the price you would need to charge to hit it.
Why Actual Pour Cost Differs From Calculated
The calculator returns the theoretical pour cost assuming every pour is exactly the configured size and nothing is wasted. Real-world pour cost is always 1 to 3 percentage points higher because of spillage, over-pouring, free pours, comps, broken bottles, theft, and inventory shrinkage. A well-run bar with proper measurement (jiggers or controlled spouts) and good inventory controls can keep the gap to 1 to 2 points. A loose operation with free pours and unaudited inventory often runs 5 points or more above calculated, which is why managers track actual versus calculated pour cost weekly and investigate any persistent gap.
Frequently Asked Questions
What is pour cost in a bar?
The percentage of a drink's sale price that the raw alcohol costs. A $1.30 pour sold for $9 has a 14.5 percent pour cost.
What is a good pour cost?
Industry standard is 18 to 24 percent for spirits, 25 to 30 percent for beer, and 28 to 35 percent for wine. Premium cocktail bars aim for 18 to 22.
How is pour cost calculated?
Cost per pour = bottle cost / bottle ounces × pour ounces. Pour cost % = cost per pour / sale price × 100.
What is the suggested sale price?
The price you would need to charge to hit your target pour cost. Calculated as cost per pour / target pour cost as decimal.
Does this account for spillage?
No. Add 1 to 3 percentage points for waste, spillage, and over-pouring. Anything more than that means you have a training or process problem.
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