The cost of a cocktail is the cost per millilitre of each bottle multiplied by what you pour, plus the citrus, syrup, mixer, garnish and ice. Pour cost is that cost divided by the price before tax. A gin and tonic that costs you $2.59 and sells for $10.00 has a 25.9% pour cost. The number falls apart the moment someone free-pours, which is why you also check it against the bottles that actually empty.
Before the list: licences and local rules
Selling alcohol comes with rules that food does not: licensing, permitted hours, age checks and, in some places, legally set measures for spirits. They vary by country and often by city. Check your local rules before you write a drinks list, and ask an accountant how alcohol is taxed where you are.
Step 1: cost per millilitre of the bottle
Divide the bottle price by the millilitres you actually serve from it. A 700 ml bottle rarely gives 700 ml of drinks: there is a bit left at the bottom, a taste when it is opened, a film in the jigger. If a 700 ml bottle of gin at $28.00 gives you 690 ml of pours, your gin costs:
28.00 ÷ 690 = $0.0406 per ml
A 30 ml measure of that gin costs 30 × 0.0406 = $1.22.
Step 2: a measured recipe
Every drink needs a spec with exact amounts: millilitres of each spirit, of juice, of syrup, number of dashes. You choose the measure. What matters is that it is the same every time and that it is the number in your costing. The guide to portion control covers setting those measures; behind the bar, the tool is the jigger.
Do not forget what is not spirit:
- Citrus: weigh how much juice a kilo gives. If a kilo of lemons at $3.00 gives 300 ml, juice costs $0.01 per ml.
- Syrup you make: batch cost ÷ millilitres.
- Egg white: the whole egg, even if you only use the white.
- Bitters, mixers, ice, garnish.
Step 3: pour cost
Pour cost = drink cost ÷ price before tax
Pour cost is the same calculation as food cost percentage, applied to the bar.
Worked example: a gin and tonic and a whiskey sour
Gin and tonic, $10.00 before tax
| Ingredient | Measure | Cost |
|---|---|---|
| Gin | 50 ml × 0.0406 | $2.03 |
| Tonic (1 litre at $2.40) | 150 ml | $0.36 |
| Lime wedge | $0.10 | |
| Ice | $0.10 | |
| Total | $2.59 |
Pour cost: 2.59 ÷ 10.00 = 25.9%. Contribution: 10.00 − 2.59 = $7.41 per drink.
Whiskey sour, $12.00 before tax
Bourbon at $35.00 a litre, with 985 ml of pours per bottle: 35.00 ÷ 985 = $0.0355 per ml.
| Ingredient | Measure | Cost |
|---|---|---|
| Bourbon | 60 ml × 0.0355 | $2.13 |
| Lemon juice | 25 ml × 0.01 | $0.25 |
| Simple syrup ($1.00 a litre) | 20 ml | $0.02 |
| Egg white ($3.60 a dozen) | 1 egg | $0.30 |
| Bitters | 2 dashes | $0.08 |
| Ice | $0.10 | |
| Total | $2.88 |
Pour cost: 2.88 ÷ 12.00 = 24.0%. Contribution: 12.00 − 2.88 = $9.12 per drink.
Free-pouring: what it costs
Now the gin and tonic poured without a jigger. If 60 ml goes in instead of 50 ml, that is 10 ml extra: 10 × 0.0406 = $0.41. The cost rises to $3.00 and the pour cost to 3.00 ÷ 10.00 = 30.0%.
It sounds small. At 900 gin and tonics a month, it is 900 × 0.41 = $369 a month, or 9,000 ml of gin: 13 bottles given away.
Check against the bottles: theoretical versus actual
The spec tells you what you should use. Stock tells you what you did use. Do this once a month for your main spirits:
- Theoretical use: drinks sold × millilitres in the spec. 900 gin and tonics × 50 ml = 45,000 ml, or 45,000 ÷ 690 = 65 bottles.
- Actual use: bottles at the start of the month + bottles bought − bottles at the end. Say it comes to 71 bottles, or 71 × 690 = 48,990 ml.
- Gap: 48,990 − 45,000 = 3,990 ml, nearly 6 bottles. In money: 3,990 × 0.0406 = $162 of gin that is in no drink anyone paid for.
That gap bundles spillage, over-pouring, drinks on the house and drinks that never got rung up. It does not tell you which; it tells you the leak exists and what it is worth. The guide to inventory basics covers counting stock without losing an afternoon.
Pricing a cocktail list
- Cost every drink from its measured spec.
- Choose your target pour cost from your own numbers (rent, staff, sales). Do not copy a percentage from another bar.
- Price before tax = cost ÷ target pour cost. At 22%: the gin and tonic needs 2.59 ÷ 0.22 = $11.77 and the whiskey sour 2.88 ÷ 0.22 = $13.09.
- Look at dollars, not only percentages. A premium drink with a higher pour cost can leave more money per glass than a cheap one with a low pour cost. Contribution per drink is what pays the rent.
The menu price from cost and target food cost % tool does step 3 for you, and the markup and margin tool shows the same sum as a margin. For soft drinks, coffee and juices, see the guide to drink costs.
Do it with the calculator
In the food cost calculator, enter each cocktail as a recipe with the millilitres and price of each bottle, the citrus, syrup and ice; it returns the cost per drink and the price for the margin you want.
Frequently asked questions
What is pour cost?
It is the ingredient cost of a drink divided by its selling price before tax. If a gin and tonic costs you $2.59 and sells for $10.00, its pour cost is 25.9%.
What pour cost should my bar aim for?
There is no single right number. It depends on your rent, staff and sales. Set your target from your own numbers and look at how many dollars each drink leaves, not only the percentage.
How do I know if my bar is over-pouring?
Compare the millilitres you should have used, based on drinks sold, with the bottles actually emptied that month. The gap is spillage, over-pouring and drinks that were never rung up.
Do I need a licence to sell cocktails?
Selling alcohol has its own rules on licensing, opening hours, measures and age checks, and they vary a lot by country and city. Check your local rules before you put a drinks list together.