Dollars vs. Percent

Pour cost % is the industry benchmark, but it breaks down on high-cost ingredients. Forcing a 20% target on a premium spirit prices the drink out of reach.

A worked comparison

Say you sell a 1.5oz pour of a spirit that costs you $20.

At 28% pour cost

• Drink retails for $71.
• You walk with $51 in margin.
• Compares favorably to a standard cocktail that nets $10 to $12.

At a traditional 20% pour cost

• Drink retails for $100.
• You walk with $80 in margin.
• Fewer guests actually order it.

The point

The 20% version makes more per sale on paper, but only if someone buys it. The 28% version sells more often and still prints money. The goal is balancing margin (money in the bank) with whether guests will actually order the drink.