Pour Cost
Definition
Pour cost is the percentage of a drink’s selling price that goes toward the cost of its ingredients.
For example, if a cocktail costs $2.50 to make and sells for $10, the pour cost is 25%.
Pour Cost Formula:
Ingredient Cost ÷ Menu Price = Pour Cost
Why It Matters
Pour cost is one of the fastest ways to understand whether your bar program is actually making money.
If your pour cost is too high, you’re underpricing drinks or overpouring. If it’s too low, you may be leaving money on the table or pricing yourself out of your market.
It’s not just a number—it’s a signal that something in your pricing, prep, or execution needs attention.
Simple Example
Ingredient cost: $3.00
Menu price: $12.00
Pour Cost = 3 ÷ 12 = 25%
Now compare:
Same drink, priced at $10 → 30% pour cost
Same drink, priced at $14 → ~21% pour cost
Small pricing changes move this number fast.
What’s a “Good” Pour Cost?
Most bars target somewhere between 18% and 28%, depending on concept.
That range is a reference point, not a rule. A profitable menu can include drinks above or below it.
But this breaks down quickly in the real world:
High-end cocktail bars often run higher
Dive bars with simple builds often run lower
Specialty ingredients (fresh juice, infusions, house syrups) push costs up
High-margin items (beer, wine) can offset cocktails
What matters more is consistency and control—not hitting a single number.
Common Mistakes
Confusing pour cost with profit: A 20% pour cost doesn’t mean you’re making 80% profit.
Using bottle cost instead of recipe cost: You need the cost per drink, not per bottle.
Ignoring waste and prep loss: Citrus, syrups, and batching all affect real cost.
Pricing everything the same way: Not every drink should hit the same pour cost.
When You Use Pour Cost
Pricing new cocktails
Auditing an existing menu
Deciding whether to raise prices
Evaluating promotions (like happy hour)
Comparing performance across categories
It’s a daily operational tool, not just a spreadsheet metric.
Non-Obvious Insight
Your overall pour cost matters more than any single drink.
You can run a 30% cocktail if it helps sell high-margin items elsewhere. What kills profitability is when your entire menu quietly drifts high.
