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PFT #24 - The Reason Alcohol at Bars and Restaurants are Expensive

Updated: Mar 5, 2022

This week’s topic has to do with the price mark up on drinks at bars and restaurants.

It is no secret that when you eat and drink at an establishment, the price will be much higher. In short, you are paying for a service.

Restaurants factor in each ingredient of the drink to calculate the entire cost. The standard markup, known as the pour cost, for a cocktail is typically between 18 - 24%. For example, the ingredients in a sidecar are Maker’s Mark, Cointreau and lemon.

-The drink has three shots plus a lemon the total cost is $2.64. -Now, add on the pour cost at .22% and the price you pay is $12.

Wow, that’s wild!

Now when it comes to wine, your local establishments like to pour-it-on as well. Oftentimes the markup is between 400-500%.

Last week, we were out to eat and I ordered a glass of wine that was $15.

A bottle of wine contains around five servings. Restaurants serve five ounce glasses, making the whole bottle $75.

That same bottle at the grocery store costs $21. So the math speaks for itself.

Drink at home and pay $4.20 per glass as opposed to $15.

Wow, that’s a $10.80 difference. Those pour costs really add up.

Listen, we’re the first to tell you that we love to eat out and have a few drinks. It’s easy to have dinner and spend $120 on the credit card; and 50% or more of that is alcohol.

However, If you are someone that is looking to keep your costs in check here a few options: #1) Don’t drink at all

#2) Have one drink a piece and split the second one #3) Have one drink a piece and make the your own when you get home

The bottom line is that dining out with alcohol is expensive. It can really put a dent in your budget if you do it often. So depending on which option that you choose, there is a good chance you can save 50% or more.

Episode Link:

Why drinks are expensive at the bar


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