Work out beverage cost percentage instantly with clear inputs, formula shown and shareable results.
Beverage cost percentage is cost of sales over beverage revenue, and it should run well below food cost — commonly 18-25% overall. Stock turnover matters alongside it because slow-moving wine and spirits tie up cash and are the easiest stock to lose track of.
Beverage cost percentage
Cost % = Beverage cost of sales / Beverage revenue x 100
Stock turnover
Turnover = Cost of sales / Average stock
Because there is little preparation and almost no yield loss, and the perceived value of a drink supports a much higher markup than the ingredient cost.
Over-pouring, unrecorded staff drinks, spillage and theft. Regular stocktakes with a variance investigation threshold are the control.