What is drink pricing?
Divide the ingredient cost of a drink by the target beverage cost percentage as a decimal. A $2.50 drink at a 20% target suggests a $12.50 price.
See it in action.
Here's an example using the numbers already in the calculator:
- 01Gather your numbers.
Ingredient cost per drink: $2.5; Target beverage cost: 20 %.
- 02Apply the formula.
Drink ingredient cost ÷ (target beverage cost percentage ÷ 100).
- 03Review the result.
Your estimated suggested drink price is $12.50. Adjust the inputs to explore your own scenario.
Make the most of your numbers.
- Use figures from the same time period and keep your units consistent.
- Update your inputs regularly as prices, demand, and operating costs change.
- Use the result as a planning guide alongside your own business context and professional advice.
Frequently asked questions.
What does the drink pricing calculator tell me?+
Divide the ingredient cost of a drink by the target beverage cost percentage as a decimal. A $2.50 drink at a 20% target suggests a $12.50 price.
How often should I review this number?+
Review it whenever the underlying costs or assumptions change, and compare results consistently over time. The right frequency depends on your operation.
Is this result a substitute for financial advice?+
No. This calculator is an estimate for planning and education. Check your assumptions and consult a qualified professional when making financial or compliance decisions.
