COGS (Cost of Goods Sold)

Definition:
Cost of Goods Sold (COGS) is the total cost of the products and ingredients your bar or restaurant used to generate revenue during a specific period. It reflects what you spent in order to serve your guests — not what you purchased or still have on hand.

Formula:
COGS = (Beginning Inventory + Purchases) – Ending Inventory

In Context:
COGS is a key financial metric that helps you measure efficiency and profitability across your beverage program. It’s typically calculated weekly or monthly. In Spec, COGS is generated automatically when you perform regular Stock Counts and log product Purchases. It powers critical reporting around Margin %, performance by category, and overall Inventory Value.

Tracking COGS helps you identify overpouring, theft, or ordering mistakes — and provides a foundation for cost control.

Example:
Let’s say:

  • Beginning Inventory: $5,000

  • Purchases: $2,000

  • Ending Inventory: $4,000
    Your COGS = $3,000 for that period.

Pro Tip:
COGS is only accurate if your inventory data is accurate. That means consistent Stock Counts, real-time purchase logging, and correct Units of Measure. Spec makes this painless — and powerful.

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