How Do You Calculate Beverage Cost Percentage?

Calculate beverage cost percentage by dividing beverage cost of goods sold by beverage sales and multiplying the result by 100.

Beverage Cost % = Beverage COGS ÷ Beverage Sales × 100

Example:

A restaurant records:

Beverage sales: $80,000
Beverage COGS: $20,000

The calculation is:

$20,000 ÷ $80,000 × 100 = 25%

The beverage cost percentage is 25%.

The calculation itself is straightforward.

The more important step is understanding what changed when the percentage moves.

A higher number may come from premium wine sales, pricing changes, product mix, waste, purchasing issues, or an unusual high-cost transaction.

The formula identifies the result.

Management requires understanding the cause.