How do you calculate liquor cost percentage?

Liquor Cost Formula

1. Here’s an example.
2. If in a year, your bar sold $10,000 worth of alcohol inventory, and that inventory generated $50,000 of sales, then your beverage cost percentage is 20 percent. Which means 80 percent of your alcohol sales are gross profits.
3. 10,000 / 50,000 = .2 or 20 percent.

How do you figure out price per mL?

How to Figure Out Your Beverage Cost

1. Divide the cost of the bottle of premium tequila ($38) by the bottle size (750 mL) to determine the cost per milliliter.
2. Multiply your cost per milliliter (0.0507) by 30 to find out how much the liquor costs you per ounce.

How do you calculate proof of alcohol in liters?

Proof is a method of measuring the alcohol content of spirits. You calculate the proof of a spirits product by multiplying the percent of alcohol by volume by two (2). For example, a spirits product that has a 40\% alcohol content by volume is 80 proof [40 multiplied by 2 = 80].

How do you price liquor shots?

To price a drink, calculate the cost of your drink by adding up the cost of ingredients. Choose a pour cost percentage (or profit margin) to target. Price the drink by taking the cost of your ingredients and dividing by the target pour cost.

How do you figure out price per Litre?

Divide the gas price (per U.S. gallon) by the number of liters in a gallon, 3.78541. The result is the gas price per liter.

How do I calculate Litres?

The first thing you need to do is multiply the length by the width by the height. That gives the number of cubic millimetres. To calculate the number of litres, you then divide that number by a million.

What is proof Litre and bulk Litre?

Strength of alcohol is measured in terms of ‘Degree Proof’. 100˚ Proof is taken as base for determining the strength of Alcohol. The volume of spirit/ENA is expressed in LPL (London Proof Litres) or PL (Proof Litre)and BKL (Bulk litre, equivalent to a Litre).

How do you calculate labor cost for a small business?

When you calculate direct labor costs by multiplying an hourly rate by the number of hours worked, you won’t end up with an accurate figure. The correct labor cost calculation includes federal, state and local fees.

How do you calculate cost accounting?

Cost accounting formulas

1. Net sales percentage. Divide net sales by gross sales.
2. Gross margin. Subtract the cost of goods and services from net sales.
3. Breakeven point.
4. Net profit percentage.
5. Selling price variance.
6. Purchase price variance.
7. Material yield variance.
8. Labor rate variance.

What is a good liquor cost percentage?

Liquor cost is 37.5\%. That means it costs the business, on average, 37.5\% of a drink’s sale price to make it. The average pour cost that most bar operators strive for is generally between 18\% and 24\%. Having a liquor cost at 37.5\% is significantly high.

How to calculate liquor cost in your bar or restaurant?

Bottle Size

Bottle Cost.

Tax Rate.

Drink Sale Price.

Cost Percentage (Add-on Sales Tax) Some establishments charge Sales Tax in addition to the drink price.

Profit with Add-on Sales Tax (per drink) This result is the Dollar figure profit from the drink sold at this price.

How do you calculate liquor cost?

Calculating your liquor cost is accomplished by dividing the value of the product used by the sales of that product for a particular time period. The typical time period most bars use for calculating liquor cost is one month, although 1- and 2-week time periods also work well.

What should liquor cost be?

The average drink costs between $1 and $3 for a bar to make. That’s why liquor markup in bars is so profitable. Alcohol is relatively cheap to acquire. Most restaurants are aiming for 20\% pour cost and 80\% margin on liquor sales. That means the average drink price at bars is between $5 and $15.

How to calculate liquor prices?

– Calculate the liquor cost. You can use the following formula to help get to this number: Bottle Price / Ounces in Bottle = Liquor Cost per Ounce – Calculate the pour cost or beverage cost. You can use the following formula to help get to this number: Cost to Make the Drink / Price You Sell It for – Calculate the drink price. You can use the following formula to help get to this number: Liquor Cost / Pour Cost in Decimals = Drink Price – Factor in the garnish prices. You can do this similarly to how you calculate the liquor cost and price out each individual ingredient, or set a flat rate that is – Factor in the shrinkage variance. Most bars will add in an additional fee of approximately 20\% to cover the cost of lost product due to expiration or damage. – Round to the nearest quarter. The number you get after you complete your calculations may not be a well-rounded number. – Evaluate and adjust. The prices you come to may not always be the most cost-effective price for your demographic.