Pour Cost Calculator

The Pour Cost Calculator is specifically designed to help the owners and managers of bars, restaurants, and nightclubs track the pour cost percentage and manage profit margins. In this article, we are going to cover the topics:

• What Pour Cost is
• How it works
• The formula used
• Example with calculations
• FAQs to answer common questions

What Is Pour Cost?

Pour Cost (also called beverage cost) is a measurement used in the bar and beverage industry. It helps determine what percentage of beverage sales goes toward the beverages themselves, e.g beer, wine, or liquor cost. In simple terms, it tells you how much it costs you to pour what you’re selling. A lower cost percentage indicates higher profitability, while a higher pour cost may indicates issues like over pouring, waste or pricing problems.

How Can We Calculate Pour Cost? — Formula and Example

Calculating pour cost percentage is simple. The following formula can be used:

Pour Cost % = ( Beverage Cost / Beverage Sales ) x 100

In formula:

• Beverage Cost: This is the cost of the drinks that you're serving.
• Beverage Sales: The total amount of money that you generate from selling those drinks.

💡 Example:

Imagine you’re the owner of a bar. The beverage costs you 500 dollars, which generated total sales of 2000 dollars. Let's compute those values using the formula:

• Beverage Cost = 500 dollars
• Beverage Sales = 2,000 dollars

Let's compute the values in the formula:

Pour Cost % = ( 500 / 2000 ) x 100 = 25%

So, we have calculated that 25% of your beverage sales revenue is going toward the beverage cost, and this is considered a healthy pour cost.