Determining pricing for cocktails, a seemingly basic process in the bar business, can be far difficult than anyone would imagine. Sure, you’re house Aviation spec is bangin’, but what happens if you’re preferred gin doesn’t come in on today’s liquor order? What if citrus prices skyrocket? What if you work in a market where the ceiling doesn’t allow for double-digit cocktail prices? We’d bet you a bottle of vintage crème de violette that Hugo Ensslin, the first person to publish a recipe for the Aviation AND head bartender at the New York City’s Hotel Wallick, cared just as much about the cost of his cocktails as he did the famous cocktail’s house spec.

2. GENERATIONS OF COCKTAIL COST
“The chief point is to be liberal in the allowance
for expenses, and there is then the possibility of
greater profits than were expected.”
–Harry Johnson’s Bartenders’ Manual and a Guide
for Hotels and Restaurants, 1882

3. ELEMENTS OF COCKTAIL COST
PRIMARY COSTS:
1. PRIMARY INGREDIENTS – ALCOHOL, PRODUCE, SYRUPS, BITTERS,
ICE,
GARNISH, ETC.
2. SERVICE ITEMS– GLASSWARE, STRAWS, BEVERAGE NAPKINS,
COCKTAILS PICKS, ETC.
SECONDARY COSTS:
1. PRICE VARIANCES – HAPPY HOUR, PROMOTIONS, ETC.
2. MARGIN OF ERROR & WASTE – FREE POURING, JIGGER ERROR,
SPILLS,
BAR COMPS, ETC.
3. SERVICE LABOR – TIME REQUIRED TO SERVE THE COCKTAIL

4. PRIMARY COSTS: SPIRITS
LITER : OUNCE RATIOS
.750 LITER = 25.36052
1 LITER = 33.81402 OUNCES
1.75 LITER = 59.17454
STANDARD DAIQUIRI RECIPE
2 OUNCES PLANTATION 3 STAR RUM = $0.82
.75 OUNCES LIME JUICE
.25 ONCES SIMPLE SYRUP
1 LIME WEDGE
1 BEVERAGE NAPKIN
GLASSWARE SERVICE COST
COST OF PLANTATION 3 STAR RUM
(OZ)
1 LITER = $13.80
$13.80 / 33.81402 = $0.40811474

5. PRIMARY COSTS: SPIRITS
TIPS FOR REDUCING COST:
1. BRAND SUPPORT: WHEN AVAILABLE (AND LEGAL IN YOUR STATE)
GET SOME. BUT, SERIOUSLY…DON’T BE A SELLOUT OR
COMPROMISE YOU BAR’S IDENTITY.
2. BUY HANDLES (1.75 LITERS). INFUSIONS, BLENDS OF SPIRITS, OR
GROW SOME MUSCLES. A HANDLE OF BEEFEATER FITS IN A
STANDARD SPEEDRAIL.
3. GET PRODUCTS ON CLOSE-OUT. BRANDS SWITCH DISTRIBUTORS
FREQUENTLY, AND IT DOESN’T MEAN THEY ARE INFERIOR
PRODUCTS. BUY AT A DISCOUNT!
4. USE PIERRE FERRAND…THANKS TO OUR SPONSOR! ALSO, THIS
ISN’T JUST A PLUG…BRANDS LIKE PIERRE FERRAND, WHO ARE
LARGE ENOUGH TO WIDELY DISTRUBUTE A QUALITY PRODUCT FOR
A FAIR PRICE, BUT AT THE SAME TIME DON’T BUILD HUGE
ADVERTISING BUDGETS INTO YOUR PRICE PER BOTTLE, ARE IDEAL
FOR COCKTAIL BARS.

6. PRIMARY COSTS: JUICE & PRODUCE
CASE PRICE : LITER YIELD
1 CASE = 3.60 LITERS
1 LITER = 33.81402 OUNCES
STANDARD DAIQUIRI RECIPE
2 OUNCES PLANTATION 3 STAR RUM = $0.82 (OUNCE COST X 2)
.75 OUNCES LIME JUICE = $0.18 (OUNCE COST X .75)
.25 OUNCES SIMPLE SYRUP
1 LIME WEDGE
1 BEVERAGE NAPKIN
GLASSWARE SERVICE COST
COST OF LIME JUICE (OZ)
1 CASE = $22.36
$22.36 / 3.60 (L YIELD) = $6.22
(LITER)
$6.22 / 33.81402 = $0.18394737

7. PRIMARY COSTS: JUICE & PRODUCE
CASE PRICE : LITER YIELD
1 CASE = 200 LIMES
STANDARD DAIQUIRI RECIPE
2 OUNCES PLANTATION 3 STAR RUM = $0.82 (OUNCE COST X 2)
.75 OUNCES LIME JUICE = $0.18 (OUNCE COST X .75)
.25 OUNCES SIMPLE SYRUP
1 LIME WEDGE = $.02 (LIME WEDGE COST)
1 BEVERAGE NAPKIN
GLASSWARE SERVICE COST
COST OF LIME WEDGE (OZ)
1 CASE = $22.36
$22.36 / 200 LIMES = $0.1118 (LIME)
$0.12 / 6 = $0.02 (WEDGE)

8. PRIMARY COSTS: JUICE & PRODUCE
TIPS FOR REDUCING COST:
1. BUY SIZED LIMES FOR GARNISH, AND BUY PACKER LIMES FOR
JUICING.
2. TAKE WEEKLY PRICES FROM VARIOUS DISTRIBUTORS BEFORE
BUYING IF YOU’RE A SMALL OPERATION OR ONLY BUY FOR ONE BAR
PROGRAM.
3. BUY IN BULK THROUGH DISCOUNT CONTRACTS OR GROUP ORDERS
FOR MULTIPLE BARS PROGRAMS.
4. BUY PRODUCE IN FUTURES IF YOU GO THROUGH ENOUGH OF IT.
MOST BAR GROUPS WITH 6-8 OR MORE ESTABLISHMENTS ROTATE
AS MUCH CITRUS DAILY AS A GROCERY STORE, WHICH BUYS
WHOLESALE IN FUTURES.

9. PRIMARY COSTS: SYRUP & SIMILAR
POUNDS : KILOGRAMS
1 BAG = 50 LBS.
1LB. = .4535924 KILOGRAMS
STANDARD DAIQUIRI RECIPE
2 OUNCES PLANTATION 3 STAR RUM = $0.82 (OUNCE COST X 2)
.75 OUNCES LIME JUICE = $0.18 (OUNCE COST X .75)
.25 OUNCES SIMPLE SYRUP = $0.06 (OUNCE COST X.25)
1 LIME WEDGE = $0.02 (LIME WEDGE COST)
1 BEVERAGE NAPKIN
GLASSWARE SERVICE COST
COST OF SIMPLE SYRUP (OZ)
30 LBS. = 480 OUNCES SIMPLE
SYRUP
1 OUNCE = $0.06 (SEE NEXT SLIDE)

10. PRIMARY COSTS: SYRUP & SIMILAR

11. PRIMARY COSTS: SYRUP & SIMILAR

12. PRIMARY COSTS: SYRUP & SIMILAR
TIPS FOR REDUCING COST:
1. UNDERTAKE EASILY PREPARED INGREDIENTS DURING BAR SHIFTS.
2. PRODUCE PERISHABLE INGREDIENTS IN SMALLER QUALITIES TO
AVOID WASTE.
3. PRODUCE STABLE INGREDIENTS IN LARGER QUANTITIES TO
REDUCE LABOR COSTS.
4. CONSIDER NOT MAKING EVERYTHING IN HOUSE. THERE’S SOME
INCREDIBLE BOTTLED PRODUCTS MADE BY FOLKS WHO PROBABLY
MAKE A BETTER ORGEAT THAN YOU DO.

13. PRIMARY COSTS: SERVICE ITEMS
CASE : UNIT
1 CASE = 3000 FOUR-PLY NAPKINS
STANDARD DAIQUIRI RECIPE
2 OUNCES PLANTATION 3 STAR RUM = $0.82 (OUNCE COST X 2)
.75 OUNCES LIME JUICE = $0.18 (OUNCE COST X .75)
.25 OUNCES SIMPLE SYRUP = $0.06 (OUNCE COST X.25)
1 LIME WEDGE = $0.02 (LIME WEDGE COST)
1 BEVERAGE NAPKIN = $0.02
GLASSWARE SERVICE COST
COST OF SIMPLE SYRUP (OZ)
1 CASE = $53.38
$53.38 / 3000 = $0.01779333 (UNIT)

14. PRIMARY COSTS: SERVICE ITEMS
CASE : UNIT
1 CASE = 36 5.5 OZ COUPES
STANDARD DAIQUIRI RECIPE
2 OUNCES PLANTATION 3 STAR RUM = $0.82 (OUNCE COST X 2)
.75 OUNCES LIME JUICE = $0.18 (OUNCE COST X .75)
.25 OUNCES SIMPLE SYRUP = $0.06 (OUNCE COST X.25)
1 LIME WEDGE = $0.02 (LIME WEDGE COST)
1 BEVERAGE NAPKIN = $0.02
GLASSWARE SERVICE COST = $0.07
COST OF GLASS SERVICE (PER
COCKTAIL)
1 CASE = 36 COUPES
$111.60 / 36 = $3.10 (UNIT)
COUPES SERVED MONTHLY = 1,650
COUPES BROKEN = 34
34/1,650 = 2.06% (BREAKAGE
CHANCE)
2.06% X $3.10 = $0.06387879

15. PRIMARY COSTS: SERVICE ITEMS
TIPS FOR REDUCING COST:
1. BUY GLASSWARE IN BULK AND STORE IT FOR EXTENDED PERIODS
IF YOU CAN AFFORD TO DO SO. OTHERWISE, GROUP ORDER WITH
OTHER BARS.
2. PURSUE NON-TRADITIONAL GLASSWARE SOURCES LIKE
ALIBABA.COM.
3. AVOID ITEMS THAT PEOPLE WHO ARE INTOXICATED ARE LIKELY TO
STEAL.
4. SERIOUSLY QUESTION IF YOUR DESIRES FOR EVERYTHING TO BE AS
PRETTY, BRANDED, OR DURABLE AS POSSIBLE MATCHES WITH
YOUR GUESTS’ EXPECTATIONS FOR PRICING, ADVERTISING, OR
QUALITY.

16. PRIMARY COSTS SUMMARY: DAIQUIRI
STANDARD DAIQUIRI RECIPE
2 OUNCES PLANTATION 3 STAR RUM = $0.82 (OUNCE COST X 2)
.75 OUNCES LIME JUICE = $0.18 (OUNCE COST X .75)
.25 OUNCES SIMPLE SYRUP = $0.06 (OUNCE COST X.25)
1 LIME WEDGE = $0.02 (LIME WEDGE COST)
1 BEVERAGE NAPKIN = $0.02
GLASSWARE SERVICE COST = $0.07
TOTAL PRIMARY COSTS = $1.17
COCKTAIL PRICE = $8.00
TOTAL COSTS OF GOOD SOLD % = 14.625%
NET PER COCKTAIL = $6.83

17. SECONDARY COSTS: PRICE VARIANCES
STANDARD DAIQUIRI RECIPE
2 OUNCES PLANTATION 3 STAR RUM = $0.82 (OUNCE COST X 2)
.75 OUNCES LIME JUICE = $0.18 (OUNCE COST X .75)
.25 OUNCES SIMPLE SYRUP = $0.06 (OUNCE COST X.25)
1 LIME WEDGE = $0.02 (LIME WEDGE COST)
1 BEVERAGE NAPKIN = $0.02
GLASSWARE SERVICE COST = $0.07
TOTAL PRIMARY COSTS = $1.17
COCKTAIL PRICE = $8.00 HAPPY HOUR PRICE = $5.00
COST % = 14.625 HAPPY HOUR COST % = 23.40
NET PER COCKTAIL: $6.83 NET PER COCKTAIL: $3.83
$6.83 - $3.83 = $3.00 (LOSS). $3.00/$3.83 = 78% (BREAK-EVEN %).
THE DAIQUIRI HAPPY HOUR MUST THEREFORE GENERATE A 78% INCREASE
IN SALES TO NET THE SAME PROFITS THAT THE BAR WOULD AT STANDARD
PRICING.

18. SECONDARY COSTS: MARGIN OF ERROR,
SPILLS & WASTE
1. RATIO MEASUREMENT: FREE POURING VERSUS JIGGERS
A. FREE POURING = MORE EFFICIENT DURING RUSHES, HIGHER
MARGIN OF ERROR. BETTER FOR HIGH-VOLUME ENVIRONMENTS
LIKE NIGHTCLUBS.
B. JIGGERS = LESS EFFICIENT DURING RUSHES, LOWER MARGIN OF
ERROR. BETTER FOR SLOWER-PACED, PRODUCT-FOCUSED
COCKTAIL BARS.
2. SPILLS & WASTE: MISPOURS, GUEST MISTAKES, GUEST DISLIKES,
ETC.
3. DRINK DEVELOPMENT: COST OF COCKTAIL CREATION & TRAINING.
4. COMPLIMENTARY DRINKS: REWARDS FOR REGULARS

19. SECONDARY COSTS: SERVICE LABOR

20. ETHICS OF PRICING: SPIRITS SALES
1. COST % MODELS: CONSISTENT SCALES VS. PROGRESSIVE SCALES
A. CONSISTENT SCALE = GUESTS PAY A PERCENTAGE MARKUP THAT
MAINTAINS A CONSISTENT COST OF GOODS SOLD % REGARDLESS
OF PRICING.
B. PROGRESSIVE SCALE = GUESTS PAY A PERCENTAGE MARKUP
THAT IS HIGHER FOR LOWER-PRICED ITEMS LOWER FOR HIGHER-
PRICED ITEMS.
ETHICAL CONCERNS:
-IS IT FAIR TO REWARD THE WEALTHY FOR SPENDING MORE?
-IS IT THE OBLIGATION OF THE BAR OPERATOR TO BE CONSISTENT
WITHIN THE CONFINES OF EITHER CHOSEN COST % MODEL?
-SHOULD THE BAR OWNER FAVOR CERTAIN BRANDS BY INCREASING
THE COST % OF THE SPIRITS SOLD TO MAKE THEM MORE ATTRACTIVE
TO GUESTS?

21. ETHICS OF PRICING: COST % PRICING

22. ETHICS OF PRICING: COCKTAIL SALES
1. COCKTAIL MENU MODELS: CONSISTENT PRICES VS. INDIVIDUAL
PRICES
A. CONSISTENT PRICES = ALL COCKTAILS MAINTAIN A CONSISTENT
PRICE REGARDLESS OF COST OF GOODS FOR CREATING THE
DRINK.
I.E. “ALL DRINKS $12”
B. INDIVIDUAL PRICES = ALL COCKTAILS ARE PRICED INDEPENDENTLY
ACCORDING TO THE SUBJECTIVE DECISIONS OF THE HOUSE.
ETHICAL CONCERNS:
-IS IT FAIR FOR THE PERSON HAVING A VODKA COCKTAIL THAT COSTS
$1.53 TO MAKE TO PAY THE EXACT SAME PRICE AS THE SAZERAC
DRINKER WITH MORE STREET CRED WHO’S COCKTAIL COSTS $2.53 TO
MAKE?
-DO BAR OWNERS REGULARLY TAKE ADVANTAGE OF LESS-SAVVY
CONSUMERS BY SERVING THEM A LESS VALUABLE COCKTAIL FOR THE
SAME OR HIGHER PRICES THAN MORE VALUABLE COCKTAILS?

23. ANVIL’S BREAK-EVEN BOTTLE SERIES