| Restaurants that serve just about any type of | | | | very beginning of the reporting period. For |
| beverage can usually benefit from beverage | | | | instance, if the beginning inventory level for |
| costing, but restaurants that serve alcoholic | | | | whiskey is $250, and at the end of the reporting |
| beverages are the best candidates for beverage | | | | period, the inventory level is valued at $170, then |
| costing analysis for increased profitability. | | | | the inventory adjustment is the $80 difference. |
| Beverages are one of the easier ways to | | | | You then apply this difference to the total |
| maximize profits for your restaurant due to the | | | | purchases for the reporting period, thus giving you |
| lower costs and far greater profit margins than | | | | your total cost for beverage sales. Then you can |
| with food. | | | | figure out your beverage cost percentage by |
| How To Calculate Beverage Costs | | | | using the National Restaurant Association's |
| Similar to calculating food costs, you need to | | | | calculation method, which is "Beverage Cost = |
| designate a time frame where you will analyze | | | | Cost of Beverage Sales/Beverage Sales". Once |
| the beverage costs for your restaurant. This can | | | | you have this information, you can analyze your |
| be one week, one month or several months. | | | | total sales and costs and make adjustments for |
| Typically, the longer time you allow for analysis, | | | | increasing profit and efficiency. Typical figures for |
| the better and more accurate the information | | | | a restaurant's beverage cost percentage are 30% |
| you will gain from the report. Usually, non alcoholic | | | | - 32%. You can then compare the performance |
| beverages like soda, coffee, juice, water etc, are | | | | during the reporting period to previous |
| not included in your beverage costing calculations, | | | | performances and this will allow you to identify |
| instead these should be included in your food | | | | any problems or trends, thus allowing you to |
| costing analysis. | | | | tightly control and decrease beverage costs. |
| After the reporting period, you'll then need to | | | | Further Controlling Beverage Costs |
| total the beverage sales for each variety of | | | | There are some additional ways to control |
| beverage, such as beer, wine, mixed drinks, etc. | | | | beverage costs, however, including restocking only |
| You'll then need to figure out your total beverage | | | | as needed bottle by bottle, keeping tight control |
| purchases from that same time period, which will | | | | of inventory with proper theft controls, |
| be your cost of beverage sales. You'll then need | | | | implementing a consistent method for your |
| to determine your inventory adjustment. This | | | | bartenders to complete sales and update tabs |
| means you compare the inventory at the end of | | | | swiftly, utilizing accurate pouring methods and |
| your reporting period to the inventory at the | | | | using consistent drink recipes. |