Bar Beverage Cost Guide: How to Calculate Pour Cost and Price Drinks Profitably

Beverage margin is usually the profit engine of a US bar or restaurant. But the same program can underperform quickly when pour size, waste, and pricing are reviewed only at month-end.

This guide gives you a practical method: calculate real pour cost, price by category, and run one weekly variance loop that operations teams can actually maintain.

Quick Summary

• pourCostRate = beverageCOGS / beverageSales
• drinkCost = sum(allIngredientCosts)
• menuPrice = drinkCost / targetPourCostRate
• Use actual draft yield and weekly variance checks for top-volume SKUs.

Why This Matters in 2026 (US)

The BLS January 2026 CPI release was published on 2026-02-13. Category-level movement in food and beverage indexes means static menu assumptions age quickly, especially in bars with high-volume draft and cocktail programs.

If your operation only reviews at month close, losses from over-pouring and yield drift can accumulate for weeks before anyone sees them.

Core Formula (US Beverage Programs)

beverageCOGS = openingInventory + purchases - closingInventory
pourCostRate = beverageCOGS / beverageSales

For menu pricing:

drinkCost = baseSpirit + modifiers + juiceSyrup + garnish + disposables
menuPrice = drinkCost / targetPourCostRate

For draft beer, use actual yield:

actualPints = theoreticalPints x (1 - wasteRate)
costPerPint = kegCost / actualPints

Worked Example: Neighborhood Bar in Austin

Assumptions for one weekly close:

• Opening beverage inventory: $18,000
• Purchases: $7,400
• Closing beverage inventory: $17,100
• Beverage sales: $35,000

Step 1) Calculate weekly beverage COGS:

beverageCOGS = 18,000 + 7,400 - 17,100 = $8,300

Step 2) Calculate pour cost rate:

pourCostRate = 8,300 / 35,000 = 23.7%

Step 3) Price one cocktail from target rate:

• Margarita ingredient cost: $2.20
• Target pour cost: 20%

menuPrice = 2.20 / 0.20 = $11.00

Step 4) Adjust draft by actual yield:

• 1/2 barrel keg cost: $228
• Theoretical 16 oz pours: 124
• Waste rate: 15%

actualPints = 124 x (1 - 0.15) = 105.4
costPerPint = 228 / 105.4 = $2.16

At a $7.50 menu price, draft pour cost is:

2.16 / 7.50 = 28.8%

This explains why draft can miss target even when the theoretical model looked healthy.

Local Execution: Manhattan Cocktail Program vs College Sports Bar

20-Minute Weekly Beverage Control Loop

1. Count top 20 beverage SKUs.
2. Reconcile POS sales vs actual depletion.
3. Flag variance above threshold by category.
4. Fix one root cause first: pour size, draft waste, or pricing.
5. Repeat on same weekday next week.

Related Guides

• How to Calculate Recipe Cost
• Food Cost Ratio Guide
• Prime Cost Guide: Food + Labor
• Menu Engineering Guide

KitchenCost helps operators track recipe cost, pour-cost variance, and menu pricing decisions in one dashboard workflow.

Sources (checked on 2026-02-13)

• U.S. Bureau of Labor Statistics - Consumer Price Index Summary
• Alcohol and Tobacco Tax and Trade Bureau - Tax and Fee Rates
• U.S. Census Bureau - Monthly Retail Trade (Food Services and Drinking Places)