Bar Cost with Gross Profit Margin Percentage

25/10/2022 09:39

Bar Cost with Gross Profit Margin Percentage

 

Bar Cost

You can use these formulas for any bar business. When preparing the bar cost, collect all daily bar receipts for the whole week/ month.

Bar Cost Summary Report

Figure - 1           

Bar Cost Transaction Report

  • Description           Liquor     Wine       Beer      Total
  • Open. Invty           100          50          200         350
  • Deliveries              200        100          150         450
  • Consumption         200          50          100         350
  • Closing Invty          100        100         250         450
  • Bar Sales            1.000        200         450      1.650
  • Bar Cost                  20%      25%        22%    21.21%

 

Figure - 2           

Bar Cost Summary Report

  • Opening Bar Invty. in Cost Price                        350
  • Beverage Deliveries in Cost Price                      450
  • Bar Consumption in Cost Price                          350
  • Closing Bar Inventory in Cost Price                    450
  • Total Sales in Selling Price                              1,650
  • Bar Cost                                                          21.21%

 

Figure - 3           

Bar Consumption / Bar Sales = Bar Cost
  • Total Bar Consumption in Cost Price                 350
  • Total Sales in Selling Price                              1,650
  • Bar Cost is                                                      21.21%

 

Figure - 4           

  • Bar Cost for the month is                             21.21%
 
 
 
 
 

How to make menu costing

Menu Costing - is a preparation of beverage menu cost for every bar product to be sell. Make sure that all operating expenses and miscellaneous are included. The menu costing and selling price are the most important task to make a profits.

MARGARITA

  • 45           ml           Tequila Silver                 0.50
  • 20           ml           Triple Sec Liqueur         0.25
  • 45           ml           Lemon Juice                  0.15
  • Miscellaneous                                              0.10
  • Total menu in cost price                           1.00

Preparing menu or selling price:

  • Beverage Menu in cost price                       1.00
  • Beverage Markup                                           20%
  • Marketing flow                                                25%
  • Given Percentage                                         100%

$1.00 X 20 X 25 / 100 = Selling Price

Formulas:         

  • $1.00 X 20 = 20
  • 20 X 25      = 500
  • 500 / 100   = $5.00          
  • Selling Price is $5.00    

 Gross Profit Margin Percentage

  • Summary: $5.00 - $1.00 = $4.00
  • Gross Profit: $4.00
  • Total Sales Revenue: $5.00
  • Gross Profit $4.00  Divided by  Total Sales Revenue $5.00 = 0.80

Gross Profit percentage Computation 0.80 x 100 = 80%

 Gross Profit Margin Percentage = 0.80%

Bar Cost Sample Tips;  

  • Cocktail Cost / Selling Price = Bar Cost
  • $1.00 / $5.00 = 20%       
  • Bar Cost is 20%

 

Note:  

  • When making cocktail menu, you must study location and adjust beverage mark up and marketing flow. Marketing flow is a percentage for low and high price of the product in the market.
  • The standard markup of beverage is 19% to 25%, and marketing flow is defending against the feasibility study of your business, Given Percentage is a percentage of 100 percent to be used as calculation/ deviation to get your selling price in the right direction.
  • You can use this formulas for actual bar operations; just adjust the best for your business selling prices.
  • Direct percentage caculation of the selling price likes times 500% or more is not recommended, "because, you can't control the marketing flow of the market daily/weekly and monthly
 
 
 
.......................................................................................................................................................................................................
 
 

 

Gross Profit Margin Percentage

  • Summary : $5 - $1 = $4
  • Gross Profit $4
  • Total Sales Revenue $5
  • Gross Profit $4 devided by Total sales Revenue $5 = 0.80
  • Gross Profit Percentage Computation 0.80 x 100 = 80%
  • Gross Profit Margin Percentage is 0.80%

Tags:

| |

Back