Money Making Cocktails: Which Drinks Help With Restaurant Profit Margins?
As a restaurant or bar owner or bartender, you know that the key to success is not just serving great drinks, but also making a profit with money making cocktails. While having a diverse menu with various drinks is important, it’s also crucial to know which drinks will bring in the most profit. This article will explore the top high-profit cocktails that will help boost your bottom line.
Why Are High-Profit Cocktails Important?
High-profit cocktails are essential for any bar or restaurant because they generate the most revenue. These drinks have a higher profit margin, meaning the cost of ingredients is significantly lower than the price you charge. This allows you to make more money with each sale and increase overall profits.
Understanding Profit Margins
Before we dive into the top high-profit cocktails, it’s essential to understand how profit margins work. A profit margin is the percentage of revenue left after all expenses have been paid. For example, if a cocktail costs $5 to make and you sell it for $10, your profit margin is 50%.
To calculate the profit margin, use the following formula:
Profit Margin = (Revenue – Cost of Goods Sold) / Revenue
Knowing your profit margins for each drink on your menu is crucial for making informed decisions about which cocktails to promote and which ones to remove.
Top High-Profit, Money Making Cocktails
Now that you understand the importance of high-profit cocktails, let’s look at the top drinks that will bring in the most profit for your bar.
Margarita
The classic margarita is a fan favorite and a top high-profit cocktail. With just three simple ingredients – tequila, triple sec, and lime juice – this drink has a low cost of goods sold and a high selling price. You can also offer margarita variations, such as a frozen or flavored version, to appeal to a wider audience.
Old-Fashioned
The old-fashioned is a timeless cocktail that has stood the test of time. Made with whiskey, bitters, sugar, and a twist of citrus, this drink has a high profit margin due to its simple ingredients and high selling price. You can also offer variations of the old-fashioned, such as a smoked or flavored version, to add a unique twist to this classic drink.
Moscow Mule
The Moscow mule has become increasingly popular, making it a top high-profit cocktail. Made with vodka, ginger beer, and lime juice, this drink has a low cost of goods sold and a high selling price. You can also offer variations of the Moscow mule, such as a flavored or spicy version, to cater to different tastes.
Mojito
The mojito is a refreshing and popular cocktail that is perfect for summer. Made with rum, mint, lime juice, and soda water, this drink has a low cost of goods sold and a high selling price. You can also offer variations of the mojito, such as a fruity or spicy version, to appeal to a wider audience.
Long Island Iced Tea
The Long Island iced tea is a strong and popular cocktail that will bring in a high profit. Made with a mix of spirits, including vodka, gin, rum, tequila, and triple sec, this drink has a low cost of goods sold and a high selling price. You can also offer variations of the Long Island iced tea, such as a flavored or fruity version, to cater to different tastes.
Promoting High-Profit Drinks
Promoting them effectively is essential now that you know which cocktails will bring in the most profit. Here are some tips for promoting high-profit cocktails at your bar.
Create a Signature Cocktail Menu
One way to promote high-profit cocktails is to create a signature cocktail menu. This menu can feature your top high-profit drinks, along with unique and creative variations of these cocktails. You can also include fun and catchy names for each drink to make them more memorable. Not only are these money makers but they offer a distinct experience for your guests.
Offer Specials and Discounts
Another way to promote high-profit cocktails is to offer specials and discounts. For example, you can have a “cocktail of the week” promotion, where you feature a different high-profit cocktail each week at a discounted price. This will not only attract customers but also encourage them to try new drinks and potentially become regulars.
Train Your Staff
Training your staff on the importance of promoting high-profit cocktails is crucial. They should be knowledgeable about the ingredients and flavors of each drink and be able to make recommendations to customers. You can also incentivize your staff to sell more high-profit cocktails by offering bonuses or rewards for top sellers.
High-profit cocktails are essential for any bar or restaurant looking to increase their profits. Understanding profit margins and promoting the right drinks can boost your bottom line and keep your customers coming back for more. Consider adding some of these top high-profit cocktails to your menus, both for traditional dining and your events, and see the difference it can make for your business.
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