What is Pour Cost Percentage and How to Calculate it

What is Pour Cost Percentage and How to Calculate it

For those of you new to this whole bar managing thing, or if you’re a bartender who keeps hearing, “Goddammit, the pour cost percentage is too high,” and you find yourself nodding and pretending to know what that means, I’m here to help. In fact, we’re not only going to go over how to figure your overall pour cost percentage, but how to figure it for individual products so you can price them properly. So let’s go ahead and find out exactly what this pour cost percentage crap is all about. WHAT THE HELL IS POUR COST % EXACTLY? Pour cost % measures the gross margin of profit on your products and goods. “And what the hell does that mean?” That means if your pour cost % for your beer, liquor and wine is 21%, that the bar made 79% in gross profit from those products. In five-year-old terms: At 21% pour cost, for every $1 you sell, the bar gets $0.79. Got it? I...
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Bartending Schools: The Real Truth From TheRealBarman

Bartending Schools: The Real Truth From TheRealBarman

The following article is based on a survey I did four years ago in which I asked 47 bar owners and managers what they thought about bartending school and how relevant they are to finding a bartending job. And without my knowledge, the results of this post showed up in a Consumer Affairs article online, which I was a bit shocked by, as Consumer Affairs of course is one of the biggest online websites out there. Who would have thunk it? You can read the article here: Are Bartending Schools Really Necessary? by Daryl Nelson. If you want to watch an updated video on what I think of bartending schools today, check it out here. Should You Go to Bartending School?  As I take on this ever-increasing (and quite frankly, unexpected) role of helping people obtain a bartending job, I find that people can’t let go of the idea that going to bartending school is the answer to all of their prayers.     Despite my warnings and admonishments and downright...
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4 Steps to Setting Pars in Your Bar

4 Steps to Setting Pars in Your Bar

In a previous article we talked about determining how much stock you should have on-hand using the 15% rule, and now we’re going to talk about how to set your pars to keep those levels right where they should be week after week so that you can free up capital and run lean numbers month after month. I find that many managers I work with have a vague idea in their heads what needs to be ordered for the week, but as I mentioned in the last article, these same managers are screwing this process up because they believe they need more on-hand than is necessary. WAY MORE. Don’t take this process of setting up pars lightly. Setting pars can be a bit time-consuming, but it is a process that needs to be set-up if you want to run your place like a business and not just a bar. STEP 1: VIEW HISTORICAL DATA If you have a quality inventory management system, setting pars is...
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