Part 2: How to Reduce Your Bar's Pour Cost

Part 2: How to Reduce Your Bar's Pour Cost

A high Actual Pour Cost compared to your Ideal Pour Cost signals that you are losing product to waste, over-pouring, or theft (this difference is called Variance or Shrinkage).

To reduce your pour cost, focus on eliminating this variance:

1. Master Inventory and Variance Tracking

• Take Weekly Inventory: Monthly counts hide problems. Taking inventory (and reconciling it with POS sales) weekly helps you quickly spot and stop profit leaks.

• Track Variance Religiously: Use inventory software to compare what your POS says you should have sold against what your inventory count shows you actually used. The product with the highest unaccounted usage is where you need to focus your investigation (e.g., if you are missing 4 bottles of Grey Goose, that is your problem area).

• Weigh Open Bottles: For the most accurate counts, use a bar scale instead of the "eyeball" method for partially empty bottles.

2. Enforce Strict Portion Control

• Mandate Jiggers/Measured Pourers: The single biggest cause of high pour cost is over-pouring (a "heavy pour"). Mandate the use of jiggers or measured pour spouts for all liquor and wine pours. This ensures consistency for the customer and maximizes profit for the bar.

• Standardize All Recipes: Every cocktail, even the simple ones, needs a precise, written recipe. This eliminates guesswork and ensures that every bartender makes the drink at the same cost.

• Train and Test: Conduct regular "pour tests" with your staff to ensure they are pouring the exact standard shot size (e.g., 1.5 oz or 2 oz every time.

3. Combat Shrinkage and Theft

• Theft Policy: Implement a clear, zero-tolerance policy for staff theft, including free drinks, undercharging, and false voids.

• POS Oversight: Monitor comps, voids, and "no-sale" button use on your POS system. High comp or void rates on specific products or by specific employees can indicate theft or improper service.

• Secure Storage: Ensure all high-value items are under lock and key and that receiving protocols are strict to verify that what you paid for is what you received.

4. Optimize Purchasing and Menu Pricing

• Audit Invoice Prices: Check every invoice against the agreed-upon price. Small, unannounced price increases on your best-selling items can significantly inflate your pour cost over time.

• Negotiate Bulk/Volume Discounts: Leverage your purchasing volume to negotiate better pricing with your distributors for your most popular products.

• Menu Engineering: Use your ideal pour cost data to design your menu. Promote Stars (high profit, high popularity) and either increase the price or reduce the cost of Plow Horses (high popularity, low profit).