Pour cost per drink category gives you insight into which drinks are profitable and which cost you money. Many bartenders estimate this, which means they don't see ...
Pour cost per drink category gives you insight into which drinks are profitable and which cost you money. Many bartenders estimate this, which means they don't see where their profit is leaking. In this article, you'll learn step-by-step how to create a monthly overview that your administration can use.
What is pour cost per drink category?
Pour cost is the drink version of food cost. It shows what percentage of your selling price goes to purchasing drinks. Per drink category, you get insight into which categories are performing well.
💡 Example:
Beer sold in March: €3,200
Beer purchases: €800
Beer pour cost: €800 / €3,200 = 25%
This is a healthy pour cost for beer.
The main drink categories
Divide your drinks into these categories for a clear overview:
- Beer: All beers, from lager to specialty beer
- Wine: Per glass and per bottle, white and red combined
- Spirits: Pure spirits, no cocktails
- Cocktails: All mixed drinks
- Non-alcoholic: Soft drinks, juice, coffee
Gather the right figures
For a reliable overview, you need this data from your POS system:
- Sales per drink category (excl. 21% VAT for alcohol, 9% for non-alcoholic)
- Purchase invoices from suppliers
- Opening and closing inventory per category
⚠️ Note:
Alcoholic drinks have 21% VAT, non-alcoholic 9%. Always calculate your pour cost using prices excl. VAT.
The importance of accurate inventory tracking
Many hospitality entrepreneurs underestimate the importance of accurate inventory tracking. A difference of €50 in your closing inventory can affect your pour cost by 1-2%. Therefore, ensure:
- Weekly inventory counts of high-value products
- Separate storage per drink category
- Registration of breakage and waste
- Monitoring of staff consumption
Calculate your pour cost per category
The formula is simple but must be applied correctly:
Pour cost % = (Cost of goods used / Sales excl. VAT) × 100
Where cost of goods used = Opening inventory + Purchases - Closing inventory
💡 Example wine March:
Wine sales: €4,800 incl. 21% VAT = €3,967 excl. VAT
Opening inventory: €600
March purchases: €1,200
Closing inventory: €500
Cost of goods used: €600 + €1,200 - €500 = €1,300
Pour cost: €1,300 / €3,967 × 100 = 32.8%
Healthy pour cost percentages
Each drink category has a different margin. Use these guidelines:
- Beer: 20-28%
- Wine per glass: 25-35%
- Wine per bottle: 30-40%
- Spirits: 18-25%
- Cocktails: 20-30%
- Non-alcoholic: 15-25%
⚠️ Note:
These are guidelines, not absolute truths. Your location, concept, and pricing determine what's healthy for you.
Factors that influence pour cost
Your pour cost is influenced by various factors that you should consider in your analysis:
- Seasonal influences: Patio season often increases beer sales
- Events: Holidays can boost cocktail sales
- Staff changes: New employees often make more mistakes when pouring/serving
- Supplier price changes: Can suddenly affect pour cost
Create an overview table
Create a simple table that you update monthly:
💡 Monthly overview template:
March 2024 - Pour Cost Overview
Beer: 24.5% (€850 / €3,469)
Wine: 32.8% (€1,300 / €3,967)
Spirits: 22.1% (€420 / €1,901)
Cocktails: 28.3% (€680 / €2,403)
Non-alcoholic: 18.9% (€340 / €1,798)
Total average: 26.4%
Practical example: Café de Vrolijke Tap
Owner Marcel of Café de Vrolijke Tap notices in April that his total pour cost has risen from 26% to 30%. By analyzing his monthly overview per drink category, he discovers:
- Beer: Risen from 24% to 32% - investigation shows the new bartender is pouring too much foam
- Cocktails: Risen from 28% to 38% - recipes weren't followed consistently during busy evenings
- Wine: Stable at 33% - no action needed
- Spirits: Even dropped to 20% thanks to a successful whisky promotion
Through targeted training on beer-pouring techniques and strict adherence to cocktail recipes, Marcel got his pour cost back under control the following month. His total pour cost dropped to 27%, earning him an extra €400 in margin.
Signals to watch for
These deviations require action:
- Sudden increase: Check if inventory has gone missing
- Cocktails above 35%: Look at portion size and recipes
- Beer above 30%: Possibly too much foam or incorrect tap pressure
- Wine per glass above 40%: Too generous glasses or expensive purchases
Common mistakes
1. Not calculating VAT correctly
Many entrepreneurs forget to deduct VAT from their sales figures. This leads to an artificially low pour cost that doesn't reflect reality.
2. Not counting inventory correctly
Inaccurate inventory counts lead to incorrect usage figures. Always count on the same day of the month and involve multiple people in the count.
3. Not registering staff consumption
Staff drinks are often not registered, making your usage appear higher than it actually is. Make clear agreements about staff consumption.
4. Ignoring seasonal fluctuations
Comparing summer and winter figures without accounting for seasonal influences gives a distorted picture of your performance.
5. Analyzing too late
Waiting until the end of the quarter to analyze means you're too late to fix problems. Analyze at least monthly.
Use for your administration
This overview helps your administration with:
- Budgeting and forecasting
- Supporting price adjustments
- Conversations with your accountant about margins
- Comparison between months and seasons
Reporting to stakeholders
Your monthly pour cost overview is valuable for various parties:
- Investors: Demonstrate operational efficiency
- Bank: Support credit applications
- Suppliers: Negotiate better terms
- Staff: Transparency about business performance
Summary
A monthly pour cost overview per drink category gives you essential insight into your bar's profitability. By systematically recording your sales, purchases, and inventory, you can quickly identify problems and take targeted action. Use the correct VAT rates, count your inventory accurately, and analyze deviations immediately. With this approach, you maintain control over your margins and improve your hospitality business's profitability.
How do you set up a monthly pour cost overview?
Gather sales figures per drink category
Pull sales per drink category for the entire month from your POS system. Convert all amounts to excl. VAT (alcohol 21%, non-alcoholic 9%).
Count inventory and purchases
Note the inventory value at the beginning of the month, add up all purchase invoices, and count the closing inventory. Calculate: opening inventory + purchases - closing inventory.
Calculate pour cost per category
Divide the cost of goods used by sales excl. VAT and multiply by 100. Compare with healthy percentages and note any deviations.
✨ Pro tip
Check your three best-selling drinks separately. If those have a healthy pour cost, 70% of your drink profit is on track.
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
Should I include VAT in my pour cost calculation?
No, always calculate using sales excl. VAT. Alcohol has 21% VAT, non-alcoholic 9%. Otherwise, your pour cost will appear lower than it actually is.
What is a healthy pour cost for cocktails?
Cocktails typically fall between 20-30% pour cost. Higher than 35% often means too generous portions or expensive ingredients without proper pricing.
How often should I check my pour cost?
Monthly for your administration is sufficient. Checking weekly helps you adjust faster if something goes wrong.
What if my beer pour cost suddenly increases?
First check if inventory has gone missing. Then look at pouring quality, foam formation, and whether the tap system is properly adjusted.
Can I put different wines in one category?
Yes, that gives you a good overall view. If you want more detail, split into wine per glass and wine per bottle, or white and red separately.
📚 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
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (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.
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