🎉🎉Try our QR Code Menu ordering for free!! Learn More🎉🎉

English US / العربية

Restaurants and bars have to keep track of a lot of different costs, from food costs to labor costs. But one of the most important – and often overlooked – cost categories is liquor costs. So, how do restaurants and bars figure out liquor costs? Keep reading to learn all about it.  

When it comes to bars and restaurants, liquor costs can have a big impact on the bottom line. Fortunately, there are a few different methods that establishments can use to figure out how much they should be spending on liquor. 

A Comprehensive Guide: How Do Restaurants And Bars Figure Out Liquor Costs 

To figure out liquor costs, restaurants and bars use a liquor cost formula. This formula takes into account the cost of the liquor, the size of the drink, and the amount of time it takes to make the drink. The liquor cost formula is: Cost of Liquor x Drink Size x Time to Make = Liquor Cost. 

For example, if a restaurant buys a bottle of vodka for $30 and it makes 1.5-ounce drinks, it would take 30 minutes to make a drink, and the cost would be: $30 x 1.5 oz x 30 min = $45. To calculate your liquor costs, use this liquor cost calculator. 

To keep track of how much liquor is being used and to make sure that the correct amount is being charged to customers, restaurants and bars use liquor inventory software. 

This software can track how much liquor is being used, what types of drinks are being made, and how much each drink costs. liquor inventory software can also help restaurants and bars to keep track of their liquor cost formula so that they can be sure that they are charging the correct amount for each drink. 

liquor costs

Restaurants and bars can use different methods to price their drinks, but the most common way is to use a three-tiered pricing system. This system takes into account the cost of the liquor, the type of drink, and the size of the drink. 

The three tiers are premium, call, and house. 

  • Premium drinks are made with the most expensive liquor and are usually the most costly to make. 
  • Call drinks are made with mid-priced liquor and are typically less expensive than premium drinks. 
  • House drinks are made with the least expensive liquor and are usually the least expensive to make. 

How To Balance Out The Liquor Costs? 

The cost of liquor can be a major expense for many businesses, especially those in the hospitality industry. There are a variety of factors that contribute to the cost of liquor, including production costs, taxation, and distribution fees.  

Additionally, the type of liquor purchased can also have an impact on the cost. For example, premium brands often cost more than budget-friendly options. Fortunately, there are a few ways to help reduce the cost of liquor without sacrificing quality. One way is to purchase in bulk.  

This can often help to lower the per-unit cost of the liquor. Another way to reduce costs is to take advantage of discounts and promotions offered by suppliers. By being proactive and doing some research, it is possible to find ways to save money on liquor costs

Behind-The-Bar Theft Prevention 

Restaurants and bars can lose a lot of money to liquor theft. In this blog post, we will discuss how establishments can prevent theft and figure out liquor costs. Read on for tips that will help you keep your business safe and profitable! 

Liquor theft is a serious problem for many restaurants and bars. Not only does it cost the business money, but it can also lead to legal problems if the liquor is sold to minors or intoxicated people. There are a few things that businesses can do to prevent liquor theft: 

1. Keep track of inventory. This may seem like an obvious step, but it’s important to know exactly how much liquor you have on hand at all times. This way, you’ll be able to notice if anything is missing right away. 

2. Use security cameras. Many businesses use security cameras to deter thieves and catch them in the act. If you don’t have security cameras, consider investing in them. 

3. Lock up liquor. This is another obvious step, but it’s important to make sure that all of your liquor is locked up when not in use. This will make it more difficult for thieves to access the liquor and will also help to prevent accidents. 

4. Train staff. It’s important to train your staff on how to properly handle and store liquor. They should also be aware of the signs of intoxication and be able to spot anyone who may be trying to steal liquor. 

You may also like to read The 6 Best Liquor Store Pos Systems In 2022

5. Invest in a good POS system. A POS (point of sale) system can help you keep track of sales and inventory, which can be helpful in spotting theft. Make sure to choose a system that meets the needs of your business. 

6. Get insurance. Liquor theft is a risk that all businesses face, so it’s important to have insurance in case of theft or damage. 

7. Work with the police. If you do experience liquor theft, make sure to report it to the police. They may be able to help you catch the thief and get your liquor back. 

Liquor theft is a serious problem, but there are steps that businesses can take to prevent it. By following these tips, you can keep your business safe and profitable. 

FAQs: How Do Restaurants And Bars Figure Out Liquor Costs 

Q: How Is The Price Of Liquor Determined? 

A: The price of liquor is determined by the state in which the liquor is sold. The state sets a minimum price that all retailers must charge for liquor. 

Q: Why Do Some Restaurants And Bars Charge More For Liquor Than Others? 

A: Some restaurants and bars charge more for liquor because they have higher overhead costs. They may also mark up their prices to make a profit. 

Q: How Can I Find Out What The Cost Of Liquor Is In My State? 

A: You can contact your state’s alcohol beverage control board or visit their website to find out the cost of liquor in your state. 

Q: My State Doesn’t Have A Minimum Price For Liquor. How Is The Cost Determined? 

A: If your state does not have a minimum price for liquor, the retailer can charge any price they want. However, most retailers will charge a competitive price to sell their products. 

Q: What Should Beverage Cost Be In A Bar? 

A: There is no definitive answer to this question. However, a good rule of thumb is that liquor should make up about 30-35% of a bar’s total sales. This number will vary depending on the type of bar, the location, and the clientele. 


It can be hard to keep track of all the different liquor costs, but with a little bit of knowledge and organization, you can easily figure out your liquor cost percentage. We hope you liked this article – please share it if you did! And don’t forget to check back soon for more of our informative content