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 Message 6419 of 22774 in Behind the Bar
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Subject: Re: Has anyone ever noticed....
From: Natrone
Posted: Fri Apr 8. 2005, 02:54 UTC
Followup to: "Re: Has anyone ever noticed...."  by freelivin91  (Thu Apr 7. 2005, 06:12 UTC)
> The owner of my restaurant doesn't believe me that if he sells Grey 
> Goose martini's for $5 each, he'll still turn a profit on the bottle, 
> even if that's all that's poured from it.  Do you see what I'm 
> working with here?

I think I've seen you make this point before, but the same flaw is in your 
arguement.  By "turn a profit" you mean that he'll bring in more revenue from 
the GG bottle than what he paid for it, I assume.  But that isn't all money 
that goes in his pocket, he has to pay all of the bills (as Josh described 
below) and that's why you can lose money even if you take in $100 for a bottle 
that costs $30.  


>our martini's are actually 4 ounces.
>
>32/4 = 8.
>
>8 x 7 = $56.  It's not a huge profit, but it's still profit.  Not that this 
>guy will believe me.

Suppose that you started charging customers cost for shots - does that mean 
your bar would break even?  Of course it wouldn't, but that's the sort of 
logic you're employing here when you insist that any revenue generated beyond 
the price of the bottle is profit.  


What are you paying for a bottle of Grey Goose (1L)?  Let's say $30.  

30/56 = 54%.  

That's a ridiculously high liquor cost.  At my bar it runs around 19-20%.  I 
am in a hotel bar so I'm guessing that it's lower than in most others but I 
doubt you will find anyplace that has a liquor cost over 30%, probably few run 
over 25%.  

Your boss/owner isn't being stupid or greedy, he just has a better grasp on 
the economics of the bar business than you do.  


  


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