Cocktail bars look profitable on paper. Then a few heavy pours, a promo night, and rising ingredient prices quietly erase margin.
The latest U.S. CPI data shows food away from home up 4.1% year-over-year, with full-service meals up 4.9%. That cost pressure hits citrus, syrups, and premium spirits first.
This guide gives you a clear, repeatable pricing system so every cocktail earns its keep.
Quick Summary
- Cost by portion standards and batch recipes
- Track all components: protein, sides, sauces, packaging
- Update prices monthly when supplier costs change
- Use portion scales to prevent margin drift
Key Takeaways
- Pricing starts with a standard pour and a realistic bottle yield
- Build a drink cost sheet that includes modifiers, garnish, and shrink
- Use a target pour cost to set a defensible price
- Control labor by batching and counting prep time in each drink
1) Standard Pour Math (Stop Guessing)
The U.S. standard drink for 80-proof spirits is 1.5 oz. If your recipes are built around that, your yield is predictable.
Bottle yield examples:
| Bottle size | Ounces | 1.5 oz pours | 2.0 oz pours |
|---|---|---|---|
| 750 ml | 25.4 oz | 16.9 | 12.7 |
| 1 L | 33.8 oz | 22.5 | 16.9 |
Rule of thumb: round down for loss. If the math says 16.9 pours, count 16.
2) Build a Cocktail Cost Sheet (With Real Inputs)
Every cocktail cost should include:
- Base spirit
- Modifiers (liqueurs, vermouth, amaro)
- Citrus + sweetener
- Garnish
- Shrink buffer (spill, over-pour, comps)
Example: House Margarita (Costed)
Inputs:
- Tequila: 1.5 oz
- Orange liqueur: 0.75 oz
- Lime juice: 0.75 oz
- Agave syrup: 0.5 oz
- Salt + garnish
| Component | Cost |
|---|---|
| Tequila | $1.43 |
| Orange liqueur | $0.47 |
| Lime juice | $0.25 |
| Agave syrup | $0.12 |
| Salt + garnish | $0.08 |
| Total | $2.35 |
If your target pour cost is 20%:
Target price = $2.35 ÷ 0.20 = $11.75Round to $12 and you are still on target.
3) Add Labor to Protect Margin
Cocktails are not just ingredients. They are labor.
Batching helps, but you should still count prep time.
Quick labor add-on example:
- Syrup prep: 30 minutes
- Bartender wage: $18/hour
- Labor cost: $9
- Syrup yield: 60 drinks
Labor per drink = $9 ÷ 60 = $0.15Add $0.15 to the drink cost and reprice.
4) Create Menu Tiers (So Prices Make Sense)
Most cocktail menus work best with tiers:
- Well / Classics (simple build, fast)
- House Signatures (balanced margin + story)
- Premium / Reserve (higher pour cost, higher price)
This protects your best labor items without pricing everything too high.
5) Shrink: The Silent Profit Leak
Shrink happens in every bar. Common sources:
- Over-pours
- Spills
- Comps
- Free samples
- Broken glass
Track shrink monthly and build a 2-5% buffer into your drink costs. If shrink rises, your menu should adjust with it.
6) Happy Hour Without Margin Damage
Discounting can grow volume, but only if the math is controlled.
Use one of these structures:
- Limited happy-hour menu (3-5 drinks only)
- Smaller pour sizes for the discount window
- Pre-batched cocktails with lower labor cost
- Time-boxed discounts (60-90 minutes)
Avoid blanket discounts across the full menu. That is the fastest way to erase your best sellers’ margin.
7) Zero-Proof Cocktails Still Need Pour Cost Math
Non-alcoholic cocktails can look cheap, but premium syrups, fresh juice, and labor add up.
Treat them like a regular cocktail:
- Cost the recipe the same way
- Set a target pour cost
- Price based on value, not just alcohol content
If a zero-proof drink costs $1.80 to make, a $9 price is still reasonable.
8) Inventory Rhythm (Simple and Sustainable)
You do not need daily inventory to stay profitable.
Minimum cadence:
- Weekly spot checks on top 10 spirits
- Monthly full bar count
- Monthly shrink % report and pricing adjustments
Consistency beats perfection.
Simple Cocktail Pricing Worksheet
- Write the recipe with exact ounces
- Convert bottle cost to cost per ounce
- Add modifiers, juice, garnish, and labor
- Add shrink buffer (2-5%)
- Divide by target pour cost
- Round to the nearest pricing tier
Do This Now
- Weigh and record 3 portions of your main ingredient
- Calculate the cost per portion using your supplier invoice
- Set a portion standard and train your team
- Review your current menu price against 28-35% food cost target
- Update your pricing if food cost is above 35%
- Schedule a monthly cost review with your team
Related Guides
- Recipe Costing Guide
- Prime Cost Guide
- Food Cost Ratio Guide
- Restaurant Labor Cost Percentage Guide
- Menu Price Review Checklist
- US Restaurant Credit Card Processing Fee Pricing Guide
Sources
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KitchenCost recalculates drink costs, pour cost %, and target prices whenever your ingredient prices change.
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