Glossary

Plow Horse

A menu item that sells in high volume but has a low profit margin, reliable on sales but a drag on margin.

What a plow horse actually means

A plow horse is a menu item that sells all day every day, but makes less money per sale than the menu average. High popularity, low margin. It is the reliable item customers order on autopilot, and it keeps the lights on even if it does not move the needle on profit.

Classic bar plow horses: well vodka sodas, domestic beer, rum and Coke. They sell constantly. They barely make money per pour.

How it is used on the floor

Managers treat plow horses as a volume asset and a margin project. You cannot cut them because they drive traffic. But you can reprice them, re-recipe them, or swap the ingredient mix to improve margin without affecting customer perception.

The trick is doing any of those things slowly. A $1 price jump on a plow horse that was $8 can trigger a customer revolt. A $0.50 jump plus a slight recipe tweak usually passes unnoticed.

Why plow horses drag margin

Two common causes. First, the pour cost is high because the drink is simple and customers expect a big pour. Second, the menu price is stuck low because competitors price the same drink the same way, and raising it risks losing share.

A vodka soda at $8 with 1.75 oz of Tito’s and seltzer has a pour cost around 28 percent. Compared to a menu average of 20 percent pour cost, every vodka soda sale is costing the bar 8 points of margin on that dollar.

A concrete example

A neighborhood bar sells 16 cocktails and a handful of call and well drinks. Vodka soda (well) sells 540 a month at $8, with 1.75 oz of well vodka at $0.85 cost. That is $4,320 in monthly revenue and roughly $3,860 in gross profit. Menu average gross profit per item is $2,100. Vodka soda is a plow horse: above-average volume, below-average margin percentage.

The moves: raise price to $9 (an 11 percent lift usually passes without customer loss), tighten the pour to 1.5 oz (saves $0.14 per drink), consider upgrading the well vodka slightly to justify the higher price. Result: monthly gross profit climbs to around $4,600, the drink sells almost the same number, and no one walked out.

When a plow horse becomes a problem

Plow horses become problems when a bar has too many of them. If 60 percent of the menu is plow horses, the overall margin collapses because nothing is pulling weight. A healthy menu has stars balancing out plow horses.

Plow horses also hide pour cost leaks. Because they sell so much, a small over-pour on a plow horse turns into a huge variance. Jiggering plow horses is one of the fastest margin wins a bar can hit.

Common mistakes

Ignoring plow horses because “they’ve always been cheap.” Raising prices too much and too fast. Not jiggering the pour. Treating plow horses as untouchable when they are actually the biggest lever.

How PourIQ handles it

PourIQ flags plow horses and shows exactly how much the margin gap is costing per month. It models price change scenarios so you can see the impact of a $0.50 versus $1.00 price bump before you make the change. Small adjustments on high-volume items are where the money is.

Also known as
WorkhorseVolume sellerLow-margin staple

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