Bar costing sets drink prices via the beverage cost ratio (pour cost): ingredient cost divided by the target ratio yields the minimum selling price. Beverages are the house's highest-margin product group — target ratios sit well below the kitchen's: cocktails and spirits 15–20%, beer 20–25%, wine by the glass 25–33%. Whoever prices by gut feeling gives money away at the evening's highest-revenue spot.
Enter ingredient costs — minimum selling price and your real ratio appear instantly.
Calculated with 19% German VAT (on-premise drinks). Traffic light: 🟢 in the target band, 🟡 up to 3 points above, 🔴 beyond. Mind the trap: the RATIO isn't everything — a €0.50 espresso at 90% margin earns fewer euros than a cocktail at a 20% ratio. The ratio steers the range; the euro margin pays the rent.
| Step | Practice |
|---|---|
| Fix the recipes | Every drink with exact cl specs (jigger!) — without a standard recipe there is no costing, only guessing (see pouring loss). |
| Bottle price → portion price | Purchase ÷ content × pour size, plus a 2–3% loss surcharge; garnish/ice flat €0.20–0.40. |
| Target ratio per category | Cocktails 15–20%, long drinks 15–20%, beer 20–25%, wine by the glass 25–33%, non-alcoholic 10–20% — premium bottles may run higher (euro margin!). |
| Psychological rounding | From the calculated minimum to menu logic: price gaps between drinks tell a value story (menu psychology applies at the bar too). |
| Monthly recalculation | Beverage stocktake: theoretical revenue from consumption vs. till actual — the gap is pouring loss or a costing error. |
A total bar below 22% is strong, 22–26% solid; above that, analyse: costing, pouring loss or range mix. Category values as above — and always watch the euro contribution in parallel.
Degressively instead of a fixed ratio: entry wines ×3–3.5, mid-range ×2.5, premium purchase + a fixed euro markup (e.g. +€25–35). Good bottles stay sellable — and each one sold earns more euros than the fixed ratio ever would.
For flagship products (gin, standard beer) yes — 10% purchase increases silently eat the margin otherwise. Practically: quarterly recalculation of the top 20 drinks, small price steps instead of an annual shock.