Pour Cost

What pour cost actually means

Pour cost is the number every bar manager gets asked about in their first annual review. It tells you what percentage of every drink dollar goes to the liquor in the glass. Low pour cost means you are keeping more of each sale. High pour cost means the bar is bleeding.

It is the most watched number in bar finance because it is the fastest to move and the easiest to blow.

The formula

Pour Cost = Cost of liquor used / Revenue from drinks sold

Example: you sell $20,000 in liquor drinks this week. The liquor that left your shelves to make those drinks cost you $4,000. Your pour cost is $4,000 / $20,000 = 20 percent.

The number runs per drink, per SKU, per category, and per bar. All four angles matter.

Industry benchmarks

Typical ranges by segment:

• Well drinks: 15 to 20 percent
• Call brands: 18 to 22 percent
• Top shelf: 22 to 28 percent
• Beer: 20 to 25 percent
• Wine: 30 to 40 percent
• Draft beer: 15 to 20 percent

Overall blended pour cost for most bars lands between 18 and 24 percent. Anything above 25 percent and you have a problem. Above 30 percent and the bar is losing money.

How it is used on the floor

Bar managers track pour cost weekly. A sudden jump from 20 to 26 percent means somebody is over-pouring, giving away comps, spilling, or straight up stealing. Pour cost does not lie. It just points you at the right place to look.

On the floor, pour cost also drives menu pricing. A cocktail with $2.00 in liquor needs to sell for at least $10 to hit a 20 percent pour cost. Some operators target 18 percent on signature drinks to build buffer for batch waste.

Common mistakes

Confusing pour cost (liquor only) with food cost or total beverage cost. Calculating it from ideal recipes instead of actual usage. Ignoring the gap between theoretical and actual pour cost, which is where variance lives.

How PourIQ handles it

PourIQ calculates pour cost three ways: theoretical (what it should be based on recipes), actual (what your count says), and per-SKU (so you can see which bottles are driving the miss). You see the gap in real time and know exactly which brands to investigate.