Setting Prices in Your Restaurant Bar
By David Scott Peters
Restaurant Tip of the Week
Use your answers to set the prices
Whether you are pricing a shot of liquor, a mixed drink, a bottle of beer, a glass of draft beer or a glass of wine, the process is the same. The following questions must be asked:
1. What does the bottle/keg cost?
2. What is the size of the bottle/keg?
3. What size is the glassware you have chosen to serve it in?
4. What is your standard pour?
5. What is the portion cost?
6. What does your competition charge?
7. What is your target pour cost percentage?
8. How will sales volume (mix) of this drink affect your cost of goods sold?
Now you must decide where you want to fall in your marketplace:
1. Lower than the competition to drive people to your restaurant
2. The same as the competition to have a level playing field
3. Higher than the competition to get a higher end consumer
Set your drink prices according to your answers to all of the questions above, and you’ll have a winning price mix every time.
David Scott Peters is a restaurant expert, coach, trainer and speaker, specializing in teaching independent restaurant owners how to use systems for increased sales and increased profits. He is the nationally acclaimed restaurant coach whose unique “SMART Systems” approach to boosting profits has earned him the title of, “The man who can walk into any restaurant in America and find $10,000 in undiscovered cash before he hits the back door – Guaranteed!” Visit www.TheRestaurantExpert.com for more. Learn more tips, tricks and secrets in David’s free five-part e-course, “How to Explode Your Restaurant Profits NOW!” Simply sign up to receive the e-course at TheRestaurantExpert.com.