Ever wonder which drinks actually make you money versus just moving volume? Most bar managers focus solely on popularity rankings while ignoring profitability margins. A proper PMIX analysis reveals which beverages deserve prime real estate and which need strategic adjustments.
What is a PMIX report?
PMIX stands for Product Mix and reveals the relationship between your various drink offerings. This report merges two essential data points:
- Popularity: Volume sold per beverage type
- Profitability: Margin generated per drink
Combining these metrics shows you which beverages truly drive your bar's success.
The four quadrants of drink analysis
Similar to menu engineering principles, you can categorize your drinks into four distinct groups:
💡 The four drink categories:
- Stars: High volume + high profit (craft cocktails, premium beer)
- Plowhorses: High volume + low profit (house beer, basic wines)
- Puzzles: Low volume + high profit (top-shelf spirits, specialty cocktails)
- Dogs: Low volume + low profit (stale inventory, failed experiments)
Calculate pour cost per drink
Pour cost represents the beverage equivalent of food cost. It's the percentage of your selling price consumed by ingredient costs:
Pour cost % = (Ingredient cost / Selling price excl. VAT) × 100
💡 Sample calculation:
You price a Mojito at €12.10 (including 21% VAT)
- Net selling price: €12.10 / 1.21 = €10.00
- Ingredient costs: rum €1.80 + mint €0.20 + lime €0.30 + sugar €0.10 + ice €0.10 = €2.50
- Pour cost: (€2.50 / €10.00) × 100 = 25%
That's an acceptable margin for mixed drinks.
⚠️ Important:
Alcoholic beverages carry 21% VAT, not 9%! Always use the VAT-exclusive price for pour cost calculations.
Analyze sales numbers
Extract data from your POS system showing unit sales per beverage over weekly or monthly periods. Sort by volume to identify your highest-performing drinks.
Focus particularly on:
- Your top 10 volume leaders
- Beverages occupying significant storage space but generating minimal sales
- Seasonal fluctuations (summer beer spikes, winter hot beverage increases)
Profitability per category
Different beverage types operate within distinct margin ranges. After managing kitchen operations for nearly a decade, I've seen these benchmarks hold true across various establishments:
💡 Target pour cost by category:
- Beer: 20-28%
- Wine by glass: 22-30%
- Cocktails: 18-25%
- Spirits: 15-22%
- Non-alcoholic drinks: 10-18%
- Coffee beverages: 15-25%
Take action based on PMIX
Once you've categorized your beverages by quadrant, implement targeted strategies:
Stars (high volume + high profit): Maintain consistent inventory levels. Feature prominently on menus. Train staff to actively promote these winners.
Plowhorses (high volume + low profit): Implement gradual price increases or negotiate better supplier rates. These represent your staple offerings that customers expect.
Puzzles (low volume + high profit): Boost visibility through strategic menu placement. Train bartenders to suggest these during appropriate moments.
Dogs (low volume + low profit): Consider menu elimination. They consume valuable storage space while contributing minimal revenue.
⚠️ Caution:
Don't eliminate all 'Dogs' simultaneously. Some represent customer favorites. Test reduced visibility before complete removal.
Digital PMIX analysis
Manual calculations consume considerable time and effort. A food cost calculator like KitchenNmbrs automates pour cost calculations and identifies your highest revenue-generating beverages.
These systems provide instant access to:
- Pour cost percentages per beverage
- Total profit contribution over specified periods
- Most expensive ingredient breakdowns
- Comparative analysis between similar drink categories
How do you analyze your PMIX report? (step by step)
Gather sales and cost data
Pull from your POS system how much of each drink you sold last month. Calculate the pour cost for each drink by dividing the purchase price by the selling price excl. VAT.
Divide drinks into four quadrants
Create a chart with popularity (units sold) on the x-axis and profitability (low pour cost) on the y-axis. Place each drink in the right quadrant: Stars, Plowhorses, Puzzles, or Dogs.
Determine actions per quadrant
Stars: promote more. Plowhorses: raise price or find cheaper purchasing. Puzzles: stimulate sales. Dogs: consider removing from menu. Focus first on your top 10 best-selling drinks.
✨ Pro tip
Analyze your top 8 volume drinks from the past 6 weeks first. Optimizing these high-performers captures roughly 75% of your potential profit improvements.
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
How often should I update my PMIX report?
Update your PMIX analysis monthly at minimum. Seasonal establishments like rooftop bars or ski lodges benefit from bi-weekly reviews since customer preferences shift rapidly with weather patterns.
What is a good pour cost for cocktails?
Cocktails should maintain 18-25% pour cost ranges. Complex drinks with multiple premium ingredients can reach 30%, but exceeding this threshold makes profitability challenging.
Should I include VAT in my pour cost calculation?
Never include VAT in pour cost calculations. Always use net selling prices since alcoholic beverages carry 21% VAT rates, making a €6.05 drink actually worth €5.00 net.
What if a popular drink generates low profit?
These 'Plowhorses' need careful price adjustments in €0.50 increments or supplier negotiations. Since customers expect these staples, avoid dramatic changes that might alienate your base.
📚 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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