@pizzablogger - I'm getting the impression that selling alcohol, particularly draft beer, can make a difference in terms of profitability so I was planning to serve a limited selection of beer and wine. Beyond that it's work in progress...
Beer and wine not only offers your customers more options, but is a nice increase to profitability. The increase in profitability from beer and wine
may allow you more flexability with regards to what hours you need to be open. And a beer and wine license (not liquor) may be easier to obtain than a full service license (beer,wine,liquor) in your area. It is down here.
Remember that most online Beer Calculators do not take spillage into account. Spillage is beer lost to spilling, theft, malfunctioning equipment, etc. Spillage rates are typically 10% to 20% for restaurants. Good training, regular maintenance of your tap lines, making sure every comped drink has a dupe or is entered into a POS system, installing a camera system throughout your restaurant and doing regular inventory counts will help keep spillage down.
A profit example on a standard "Keg" (1/2 keg, or 15.50 gallons):
A popular India Pale Ale (actual Baltimore area keg price)½ Keg Price: $140.00
Gallons Per Keg: 15.50
Fluid Ounces Per Gallon: 128
Ounces Per Keg: 15.50 x 128 = 1,984
Loss/Spillage Percent: 15%
Net, Usable Ounces Per Keg: 1,984 x .85 = 1,686
Ounces Per Draft Serving = 16
Total Net Servings Per Keg = 1,686 ÷ 16 = 105
Cost Per Serving: $140.00 ÷ 105 = $1.33
Menu Price Per Serving: $6.00
Profit Per Serving: $6.00 - $1.33 = $4.67
Profit Per Keg: $4.67 x 105 servings = $490.35Many restaurants include the sales tax in their menu pricing and doing so in your business plan calculations will show that you have done your due diligence. When including sales tax as part of the total per serving price, it would look like this:
Sales Tax on Alcohol (in Maryland) = 9%
Menu Price Per Serving: $6.00
Tax Included Calculation: $6.00 ÷ 1.09 = $5.50 Mark-Up Price
Price Breakdown:
Cost Per Serving: $1.33
Mark-Up Per Serving: $4.17
Mark-Up Price: $1.33 + $4.17 = $5.50
Tax Per Serving: $0.50
Total Menu Price: $6.00
Net Profit Calculation
Mark-Up Per Serving: $4.17
Total Profit Per Keg: $4.17 x 105 servings = $437.85Of course, these net profit calculations do not take into account the costs of dispensing system gas re-fills, maintenance, etc.
For draft beer, generally assume installation costs
per tap are going to run you between $750 to $1,000. If you are going to open your joint in an area where your demographic is likely to drink a variety of good/craft beers, it would be wise to open with several taps on hand. Lovers of good beer will travel out of their neighborhood if an establishment offers a compelling selection of beers on draft.
If the neighborhood you are looking to open up in has residential trash recycling, it would behoove you to go out the morning of recycling day and walk the neighborhood. A casual glance into each recycling bin (assuming the bins are open containers without lids) as you walk by can provide a wealth of information into what types of beers (major manufacturer, craft beer, domestic, import, etc.) as well as the specific brands that are popular. Dittos for wine.
Blah, blah. --K
