What is Beverage Unit Economics and Pour Cost Benchmarks?
Mathematical Foundation
Laws & Principles
- A standard 750ml bottle of liquor contains exactly 25.36 fluid ounces. A 1-liter bottle contains 33.81 oz, and a 1.75-liter handle contains 59.17 oz.
- Garnishes, ice, cocktail napkins, and straws must be factored into the drink cost as a 'hidden cost.' These pennies erode margins across thousands of drinks served per week.
- A well-run bar typically achieves pour cost between 18% and 22%. Bars with high liquor theft or over-pouring will see their effective pour cost climb toward 28–35%.
- Calculate pour cost separately for beer, wine, and spirits — beer and wine typically have higher pour costs (25–30%) while spirits have the most margin at 15–22%.
Step-by-Step Example Walkthrough
" A bar manager buys a $30 bottle of premium gin (750ml / 25.36 oz) and builds a Gin & Tonic using a 2 oz pour, $0.75 worth of tonic and lime wedge. "
- Calculate cost per ounce: $30 ÷ 25.36 oz = $1.183/oz.
- Calculate spirit ingredient cost: $1.183 × 2 oz = $2.37.
- Add mixer and garnish cost: $2.37 + $0.75 = $3.12 total COGS.
- Divide by target pour cost to find menu price: $3.12 ÷ 0.20 = $15.60.