How Much Should a Bar Charge for a Drink?
There's no one-size-fits-all answer, but there is a formula. Here's how to calculate exactly how much to charge for every drink on your menu.
The Basic Formula
Start with the pour cost formula:
Ingredient Cost / Target Pour Cost % = Menu Price
At 20% pour cost, you multiply ingredient cost by 5 to get the menu price. At 25%, multiply by 4. The lower your pour cost target, the higher your margin.
Pricing by Drink Category
- Well liquor drink: 15-18% pour cost. Cost: ~$1.20. Price: $7-8
- Call liquor drink: 20% pour cost. Cost: ~$2.00. Price: $10
- Premium cocktail: 22-28% pour cost. Cost: ~$3.50. Price: $13-16
- Craft cocktail: 25-30% pour cost. Cost: ~$4.50. Price: $15-18
- Wine by the glass: 20-25% pour cost. Cost: ~$2.50. Price: $10-12
- Draft beer: 20-25% pour cost. Cost: ~$1.50. Price: $6-8
Spend Friend calculates exact costs for every recipe and suggests prices based on your target pour costs. Try our free Pour Cost Calculator to test scenarios. See our guide on cocktail pricing strategy for bars for more.
Factors Beyond the Formula
- Location: A Manhattan cocktail bar charges more than a rural pub
- Ambiance: Upscale settings command premium prices
- Competition: Know what nearby bars charge for similar drinks
- Portion size: Larger pours justify higher prices
- Brand prestige: Named spirits (Patrón vs well tequila) command premiums
Happy Hour Pricing
Happy hour discounts should still maintain profitability. Target 25-30% pour cost during happy hour (vs 20% normal). A $10 cocktail at 20% pour cost can be discounted to $7 at 29% pour cost—still profitable, and it drives traffic during slow periods. Learn more about bar cost control strategies.