Mastering your draft beer profitability starts here. Use the Beer Pour Cost Calculator to determine the true cost of every pint served, factoring in keg costs, serving size, and essential waste. Accurate pour cost is the first step toward optimal menu pricing and improved bar management.
Beer Pour Cost Calculator
Calculated Pour Cost Percentage:
Detailed Calculation Steps
Beer Pour Cost Calculator Formula
The Beer Pour Cost is typically calculated in two stages: first, finding the cost of a single serving, and second, expressing that cost as a percentage of the selling price.
1. Usable Servings = (Unit Volume / Serving Size) × (1 – (Waste Rate / 100))
2. Cost Per Serving = Cost of Unit / Usable Servings
3. Pour Cost % = (Cost Per Serving / Selling Price) × 100
Formula Sources: Dummies – Bar COGS Calculation | Restaurant Business Online – Cost Control
Variables Explained
Understanding the inputs is crucial for accurate results:
- Cost of Keg/Case: The exact price paid for the unit of beer (e.g., a 1/2 barrel keg or a case of bottles), including tax and delivery charges.
- Unit Volume (oz): The total liquid volume in the unit purchased. (e.g., a standard US half-barrel keg is 1984 fluid ounces).
- Serving Size (oz): The amount of beer delivered to the customer (e.g., 16 oz for a pint glass).
- Selling Price Per Serving: The price the customer pays for one serving.
- Waste/Spillage Rate (%): The estimated percentage of product lost due to spills, foam, or imperfect pours.
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What is Beer Pour Cost?
The Beer Pour Cost, also known as Beverage Cost Percentage, is a key performance indicator (KPI) in the hospitality industry. It measures the raw cost of the beer used to produce a single serving relative to the revenue generated by selling that serving. It is essentially the Cost of Goods Sold (COGS) for a specific beverage item.
Pour Cost is vital for determining if an item is priced profitably. For most bars, the ideal pour cost for draft beer ranges between 18% and 24%. If the calculated percentage is too high, it indicates poor operational control or that the menu price is too low, jeopardizing the establishment’s overall profit margin.
Crucially, this calculation must account for the inevitable product loss from spillage, over-pouring, and foam—represented by the Waste/Spillage Rate. Ignoring this rate leads to an artificially low and inaccurate pour cost, resulting in underpricing and lost profits.
How to Calculate Beer Pour Cost (Example)
Let’s use a standard example of a $150 keg, 16oz serving size, and 5% waste:
- Determine Total Available Servings: A half-barrel keg contains 1984 oz. Divided by a 16 oz serving size equals 124 potential servings.
- Factor in Waste: With a 5% (0.05) waste rate, only 95% of the beer is usable. Usable Servings = 124 × 0.95 = 117.8 servings.
- Calculate Cost Per Serving: The keg cost of $150.00 is divided by 117.8 usable servings. Cost Per Serving = $150.00 / 117.8 = $1.27.
- Determine Pour Cost Percentage: If the selling price is $7.00, the Pour Cost % = ($1.27 / $7.00) × 100. The resulting Pour Cost is 18.14%.
Frequently Asked Questions (FAQ)
What is an acceptable Beer Pour Cost Percentage?
A healthy and profitable pour cost for draft beer typically falls between 18% and 24%. Costs above 25% suggest issues with pricing, inventory control, or excessive waste.
How does waste affect the true cost?
Waste directly increases your true cost per serving. A 5% waste rate means you effectively pay 5% more for every pint you successfully sell, as you must cover the cost of the lost product.
Should I include taxes in the Cost of Unit?
Yes, the “Cost of Unit” should be the landed cost—the total amount you pay to acquire the product, including all applicable taxes and mandatory surcharges.
Why is Pour Cost a better metric than raw COGS?
While COGS (Cost of Goods Sold) gives a total picture, Pour Cost % is an item-level metric that directly informs your menu engineering and pricing strategy by linking the cost of a single item to its selling price.