Are you worried about the depleted inventory, pour cost and the gross profits of your cocktail business?
Then this Cocktail Cost Calculator will help you in hunting shrinkages. You can determine whether the bartenders are recording correct sales of liquor and beverage stock by monitoring the cost per pour of a drink. The template helps your audit staff in calculating the cost of all the ingredients used in preparing the cocktail. The cost of a pour is the actual cost incurred in preparation of the cocktail. You can print this template and use it as a manual for preparing cocktails or as a price guide.
For cocktail business gross profit is more important than pour cost and to earn a profit you need to account for a lot of varied costs that affect the final cost of a cocktail like cost of all the individual drinks mixed, cost of other ingredients used, labour cost incurred and many other overhead costs. In order to earn a profit; it is very important to calculate the pour cost of a drink accurately.
Cocktail Cost Calculatorfor Excel® 2003+ & Google Docs
Using the template
Begin by downloading the template and setting up your company. This template provides a provision to select the default currency by selecting a country currency from the drop down menu of the currency symbol under the country specific settings. It also has a volume conversion table that will help you in calculating the cost of a cocktail in spite of the fact that different mixes show different measures for a single bottle.
Once the settings are specified a beverage price list can be created. The list is divided under the various categories like regular beverage, mixing beverage, fizz beverage, mixes, juices and garnish. The table provides a detailed description of the cost and measure of all the drinks and other ingredient separately. Every available drink is added to the list along with its size, UOM (unit of measure), total cost and the cost under different per unit measures. Whereas the garnish list provides the name of the garnish, its total size, UOM, total cost, portions and cost per portion.
Once the beverage price list is successfully created, you can use the Cocktail Cost Calculator to determine the gross profit and gross profit margin %. The cost calculator sheet helps you in calculating the retail price of the cocktail, its total cost, gross profit earned for the cocktail and total gross profit margin earned. The template can be easily introduced into the business and the workforce be trained to use it.
This template provides the exact cost incurred in the preparation of a cocktail and serves as a guide for actual preparation. This helps the cocktail business in earning gross profit margins and monitoring shrinkages which is important for the success of a flourishing business. You can calculate the cost of any cocktail accurately using the spreadsheet.
How to calculate Cost of a cocktail?
A cocktail is a mix of varied drinks mixed in different proportions so in order to determine the cost, you need to know the cost of a per unit of each drink poured to be able to calculate the right cost of a cocktail. This is calculated using the Beverage Price list spreadsheet. The total cost and the unit wise cost of a drink is specified under different measures.
What is the gross profit & gross profit margins?
Gross Profit of a cocktail is calculated by subtracting the total cost of a cocktail from its retail cost. The total cost is the actual cost of a cocktail that is incurred while mixing the different ingredients and retail price is the price at which the cocktail is sold at the counter. The gross profit determine if your business is earning a profit or not.
Gross Profit margin is calculated by dividing the gross profit earned by the retail price and multiplying the result by 100. The more the gross profit margin the better is the business prospects.
We recommend you to watch the deviation in costs for various inventory periods. For high selling counters, you need to increase the frequency of audits. You also need to factor out the normal occurrences such as complementary drinks, spillage and inventory transfers happening from outlet to another.
Instructions on how to use this Cocktail Cost Calculator template is provided within the template itself, in a form of a links to the topics and also as a pop up comments and are always available as you go along.
Functions used in template
- IF(logical_test, [value_if_true], [value_if_false])
- OR (logical1, [logical2], [logical3], ...)
- SUM(number1, [number2], [number3], [number4], ...)