Pour Cost

Definition:
Pour cost is the percentage of a drink’s selling price that goes toward the cost of the ingredients in that drink. It’s a critical metric for measuring profitability behind the bar. The lower the pour cost, the higher the potential profit.

Formula:
Pour Cost % = (Cost of Ingredients / Selling Price) × 100

In Context:
Most bar managers aim for a pour cost between 18% and 24%, depending on their concept and pricing strategy. A high pour cost often signals overpouring, inconsistent recipes, or poor menu pricing — all of which cut into profits. Spec helps users calculate pour cost automatically for each drink on the menu, using real product costs and serving sizes.

Example:
If your Margarita costs $1.75 in ingredients and sells for $9, your pour cost is:
(1.75 / 9) × 100 = 19.4%

Spec users can set target pour costs at the menu level and get real-time pricing suggestions that align with their profitability goals.

Pro Tip:
Don’t just chase the lowest pour cost. A drink with a higher pour cost but stronger sales volume or customer appeal (a “plowhorse” in menu engineering terms) might be more profitable overall. Spec gives you the context to make that call.

Related Terms:

• Markup

• Target Cost %

• Target Profit Margin

• Recipe Costing

• Menu Engineering