Have you ever sipped an $8 Gin and Tonic and felt like you were somehow getting screwed? Well, chances are good that you were. Drinks are a very high profit item for restaurants and bars. To give a better idea of the true costs check out the Cocktail Calculator that Rob whipped up over on Cockeyed. I have to admit I spent about 20 minutes playing with different combinations to see the results. True geek fun.
To give an example, one of my perennial favorites the Gin and Tonic contains about 36 cents worth of ingredients when made with well spirits. That’s even cheaper than my budget recipe that rang in at 83 cents.
Comments
4 responses to “Real Drink Costs”
It’s true. You’ve discovered the bar operator’s secret. That said, while the profit margins on wet stock can be high, the sale price of a drink covers more than its own cost.
I’ll also point out that there have been times when I’ve been happy to pay $8 (which is, what, £6/7?) for a gin and tonic…
Absolutely Jon. I too have willingly paid $8 for a G&T on a number of occasions and have no intention of stopping that practice either!
-R
So which one is the best deal for a buyer?
Jon brings up the best point – costs that must be paid past the ingredients. Wage and income taxes for the bartender, property lease, insurance, utilities etc. All said and done, I wouldn’t be surprised if the ‘true’ profit (the money leftover for the bar owner to pocket) on an $8 G&T is $1.50 or less.
Alcohol is cheap, yes… but running a business is costly!