Prioritize which drinks to remove

Quick answer

You're scanning your bar menu and noticing drinks that barely sell while taking up precious space. Most bars keep underperforming cocktails around for months, missing opportunities to boost profits.

You're scanning your bar menu and noticing drinks that barely sell while taking up precious space. Most bars keep underperforming cocktails around for months, missing opportunities to boost profits. You can fix this by analyzing margins and sales data systematically.

Calculate the pour cost of every drink

Pour cost works exactly like food cost, but for beverages. It reveals what percentage of your selling price gets eaten up by ingredient costs.

? Example pour cost calculation:

You sell a gin and tonic for €8.50 (incl. 21% VAT)

Selling price excl. VAT: €8.50 / 1.21 = €7.02
Gin (4cl): €1.20
Tonic (20cl): €0.35
Garnish (lime): €0.15

Pour cost: (€1.70 / €7.02) × 100 = 24.2%

⚠️ Note:

Alcoholic drinks carry 21% VAT, not 9%. Always work with the VAT-excluded price for accurate pour cost calculations.

Analyze popularity and revenue per drink

A drink with terrible margins but strong sales volume can deliver more profit than a high-margin cocktail that sits untouched. You need to examine both factors side by side.

? Example analysis:

Compare these two drinks over a month:

Gin and tonic: sold 150 times, €5.32 profit per drink = €798 total profit
Premium whisky: sold 20 times, €12.00 profit per drink = €240 total profit

The gin and tonic generates 3x more profit despite lower margin per drink

Identify the four drink categories

Break your drink menu into four quadrants based on popularity and profitability:

Stars: Popular + profitable → Push these drinks harder
Plowhorses: Popular + poor margin → Bump the price or tweak the recipe
Puzzles: Unpopular + good margin → Find ways to boost sales
Dogs: Unpopular + poor margin → Prime candidates for removal

Create a priority list for removal

Focus on drinks that contribute the least profit while hogging the most menu real estate and bar space. This is a pattern we see repeatedly in restaurant financials — profitable operations ruthlessly cut the dead weight.

? Removal priority:

1. Dogs: poor margin + low sales
2. Drinks that hog bar space but generate minimal revenue
3. Seasonal drinks that have outlived their moment
4. Drinks requiring specialty ingredients you rarely use elsewhere

Test before you remove permanently

Before permanently axing drinks, run a trial removal to gauge actual impact.

Pull them from the menu temporarily (but keep ingredients stocked)
Track how many guests request them
Suggest alternatives and monitor acceptance rates
Monitor your overall bar revenue during the test period

⚠️ Note:

Don't axe more than 20% of your drink menu simultaneously. Guests still expect variety and choice.

Replace removed drinks strategically

Fill the newly available space with drinks that deliver better profits or streamline your operations.

Pick drinks using ingredients you already stock
Emphasize cocktails with stronger margins
Introduce signature drinks that differentiate your bar
Trial new drinks as limited-time specials before making them permanent

How do you prioritize which drinks to remove? (step by step)

Calculate the pour cost of all drinks

Create a list of all drinks with their cost prices and selling prices. Calculate for each drink: (cost price / selling price excl. VAT) × 100. Note: alcoholic drinks have 21% VAT.

Analyze sales figures per drink

Check how much of each drink you sell per week or month. Multiply this by the profit per drink to see the total contribution to your revenue.

Categorize your drinks into four groups

Divide your drink menu into: Stars (popular + profitable), Plowhorses (popular + poor margin), Puzzles (unpopular + good margin) and Dogs (unpopular + poor margin).

Start by removing Dogs

Start with drinks that both sell poorly and generate little profit. Test first by temporarily removing them from the menu and see if guests ask for them.

Replace with better alternatives

Use the freed-up space for drinks with better margins or that are easier to make. Focus on ingredients you already have in stock.

✨ Pro tip

Track which cocktails require the most unique ingredients over a 30-day period but generate under €150 in total profit. These space-wasters rarely justify their menu position.

Calculate this yourself?

In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.

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Frequently asked questions

What pour cost should I target for different drink types?

Aim for 18-25% on most alcoholic drinks. Beer typically runs 25-30%, while premium spirits can hit 15-20%. Cocktails usually land between 20-28% depending on complexity.

Should I remove popular drinks with terrible margins?

Not immediately. Try raising prices by 10-15% first, or adjust the recipe to reduce costs. Popular drinks drive traffic and can boost sales of other items.

How frequently should I analyze my drink menu performance?

Pull the numbers monthly, but limit menu changes to quarterly at most. Guests need time to adapt to your offerings, and you need sufficient data to spot real trends.

What about drinks that require unique ingredients I can't use elsewhere?

These are prime removal candidates unless they're genuine profit drivers. Specialty ingredients tie up capital and bar space while adding complexity to inventory management.

How do I test menu changes without alienating regular customers?

Remove items temporarily while keeping ingredients available for special requests. Monitor guest reactions for 2-3 weeks before making permanent decisions.

Should bar space efficiency factor into removal decisions?

Absolutely. Cocktails requiring five different bottles for €2 profit waste valuable real estate. Prioritize drinks that share ingredients and maximize space utilization.

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ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

Sources consulted

EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
NVWA — Hygiënecode voor de horeca (2024) — Official source
NVWA — Allergenen in voedsel (2024) — Official source
Codex Alimentarius — International Food Standards (2024) — Official source
FSA — Safer food, better business (HACCP) (2024) — Official source
BVL — Lebensmittelhygiene (HACCP) (2024) — Official source

Food Standards Agency (FSA) — https://www.food.gov.uk

The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.

Written by

Jeffrey Smit

Founder & CEO of KitchenNmbrs

Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.

8 years kitchen manager at 1NUL8 Group Rotterdam

Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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