Unlike the people who drink them, not all cocktails are created equal. Or at least that's what their prices seem to indicate. The mixed drinks at one bar in one city might be double what they cost at a cocktail-conscious watering hole in another part of the country.
But it doesn't even take a supersonic bar-hop across America to observe this phenomenon. A house cocktail at New York City's Pouring Ribbons, an innovative establishment slinging impeccable drinks, will cost you $14. Not too far uptown, at the stately bar at the NoMad Hotel—where the drinks are similarly innovative and well executed—an original cocktail sells for $16. Then there's ZZ's Clam Bar, in Greenwich Village, where sipping on one of chief bartender Thomas Waugh's elegant liquid creations will set you back $20—or nearly 43 percent more than the cost of a drink at Pouring Ribbons.
Complicating things further, there are plenty of bars and restaurants that go out of their way, it would appear, to price their house cocktails consistently—say, all for $12 apiece—suggesting to a casual observer that, perhaps, all these drinks are an equal value.
I reached out to several managers of serious cocktail destinations in order to better understand what accounts for the broad swings in price we encounter from place to place as we ply the now-extensive craft-cocktail landscape, as well as why some cocktail menus are priced uniformly.
A cocktail by nature is a combination, in differing ratios, of a set of ingredients that each have costs, so many cocktail bars spend a lot of time and effort crunching the numbers behind their drinks. Setting prices for a cocktail-focused list can take a lot more work than menu-pricing might take at a wine or beer bar. That's certainly the impression I get from Jeffrey Morgenthaler, the bar manager at Clyde Common in Portland, Oregon. He approaches the pricing of his cocktail menu with a great deal of mathematical precision, coupled with a small dose of professional intuition.
In addition to bartending, Morgenthaler maintains a blog about his craft, and pricing strategy has been a recurring subject over the years. He's even released Microsoft Excel spreadsheets to his readers, many of whom are in the service industry, as instructional tools. The charts are basic versions of the ones he uses at Clyde Common to calculate pour cost and, by extension, sales prices for drinks.
Pour cost is pretty much what it sounds like: the cost a bar incurs by pouring a given cocktail. But pour cost is typically expressed as a percentage of the sale price of a drink rather than a raw number; so if it costs a bar $2 in goods to produce a drink that it sells for $10, the pour cost of that drink is 20 percent. "Some places need the pour cost to come in at 18 percent," Morgenthaler tells me, "others are fine with 25 percent. It all depends on the business operations." In other words, a bar might decide upon an acceptable range in which its pour costs must fall, given how other aspects of the business factor in, and then calculate the price of drinks based on that range. Between two drinks sold for the same price, the one with the higher pour cost earns the bar a smaller profit.
But it doesn't even take a supersonic bar-hop across America to observe this phenomenon. A house cocktail at New York City's Pouring Ribbons, an innovative establishment slinging impeccable drinks, will cost you $14. Not too far uptown, at the stately bar at the NoMad Hotel—where the drinks are similarly innovative and well executed—an original cocktail sells for $16. Then there's ZZ's Clam Bar, in Greenwich Village, where sipping on one of chief bartender Thomas Waugh's elegant liquid creations will set you back $20—or nearly 43 percent more than the cost of a drink at Pouring Ribbons.Complicating things further, there are plenty of bars and restaurants that go out of their way, it would appear, to price their house cocktails consistently—say, all for $12 apiece—suggesting to a casual observer that, perhaps, all these drinks are an equal value.
I reached out to several managers of serious cocktail destinations in order to better understand what accounts for the broad swings in price we encounter from place to place as we ply the now-extensive craft-cocktail landscape, as well as why some cocktail menus are priced uniformly.
A cocktail by nature is a combination, in differing ratios, of a set of ingredients that each have costs, so many cocktail bars spend a lot of time and effort crunching the numbers behind their drinks. Setting prices for a cocktail-focused list can take a lot more work than menu-pricing might take at a wine or beer bar. That's certainly the impression I get from Jeffrey Morgenthaler, the bar manager at Clyde Common in Portland, Oregon. He approaches the pricing of his cocktail menu with a great deal of mathematical precision, coupled with a small dose of professional intuition.
In addition to bartending, Morgenthaler maintains a blog about his craft, and pricing strategy has been a recurring subject over the years. He's even released Microsoft Excel spreadsheets to his readers, many of whom are in the service industry, as instructional tools. The charts are basic versions of the ones he uses at Clyde Common to calculate pour cost and, by extension, sales prices for drinks.
Pour cost is pretty much what it sounds like: the cost a bar incurs by pouring a given cocktail. But pour cost is typically expressed as a percentage of the sale price of a drink rather than a raw number; so if it costs a bar $2 in goods to produce a drink that it sells for $10, the pour cost of that drink is 20 percent. "Some places need the pour cost to come in at 18 percent," Morgenthaler tells me, "others are fine with 25 percent. It all depends on the business operations." In other words, a bar might decide upon an acceptable range in which its pour costs must fall, given how other aspects of the business factor in, and then calculate the price of drinks based on that range. Between two drinks sold for the same price, the one with the higher pour cost earns the bar a smaller profit.
by Roger Kamholz, Serious Eats | Read more:
Image: Alice Gao
