Beer and Wine COGS

[NicksPizza]

I am adding beer this week to my menu. I have some tentative pricing set for the beer menu and want to check with those here that offer bottled beer. Kegs are not an option yet . . . that is an add-on later. I am looking at two levels of beers, one is going to be American standards at possibly 28% COG ($2.75/bottle) . . . then a “Premium” line that is 30% to 35% COG ($3.50/bottle). Does this fit the current pricing models? I am so woefully removed from dine-out beer these days.

I am on a mission this week and weekend to check prices in the area and be around that base. Any other input on my pricing?

 

[Patriot_sPizza]

I think your pricing is a bit steep…yes, ya make mo’ money w/hard liq, but I believe you’ll sell more @ a reduced price…

remember, there is little shrinkage and it will not never be a large dollar contributor to overall sales or net profit…

so mark it up accordingly & move the inventory…

also, look at the tax issue in your state - here in Fla is a joke IMHO

 

[bodegahwy]

I have to disagree with PP on pretty much every point.

“it will not never be a large dollar contributor to overall sales or net profit”

??Huh? Beer and wine sales should be something like 20-30% of sales and a solid profit center. Considering there is no prep or spoilage and very little waste and the sale is an add-on, profit is excellent. Also, shrinkage is a MAJOR issue with beer to the extent that many places keep the stock under lock and key.

I would suggest that you price according to your market rather than according to a cost structure. People will come to you for your food and pay the price for the beer if they want to drink it as long as the price is in line with prices in your area. Lower prices will not sell more beer as long as the beer sales are tied to meals. Wine is an excellent ticket driver. My wife and I will spend twice or three times as much on wine as we ever would on beer with a meal and that is not including what we would spend on wine for fine dining. At a middle priced italian place we would buy a $20-$30 bottle where we would only order one or two beers each at the most.

 

[paul7979]

NicksPizza

I am on a mission this week and weekend to check prices in the area and be around that base. Any other input on my pricing?

Sounds like you’re in for a rough weekend Nick. Need a hand going around ordering beers to check prices?

 

[royster13]

I remember the days I was an adjuster and had a strip bar as a client…I had to do on site investigations…Some days it was hard to go to work…lol… :roll:

 

[15thStreetPizzaandPu]

Nick,

As you know we are in GA as well, just on the south side. We have domestic BOTTLED beer @ $2.75 and import BOTTLED beer @ $3.75. Not that this pricing will work for everyone, but we are pretty close…

If you can get draft the profit is much better! We sell a 16oz domestic DRAFT for $3.75 and a 16oz import draft for $4.25. Yes we add 4oz per serving but the profit margin is SO much higher!

Beer/wine sales is a true profit center for us and we have a drink special for every day of the week.

 

[PIZZAMAGOO]

I am with bodegahwy all the way. Really be careful on the shrinkage front as well, especially if you have a bunch of underage people working in your place!!! They will drink in the walk-in cooler, stuff it in their pants and drink in the bathroom, put it in the garbage and go dumpster diving for it later, pretty much you name it and they will do it to get their hands on some booze and free booze at that!!!