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How to Calculate and Improve Your Bar’s Profit Margin

7 Shifts

Reevaluating the prices of your drinks and knowing the types of drinks you sell can help you earn more for each bottle, as well as implementing portion control and even redesigning your menu. Calculate the cost of each drink on your menu, including the cost of the alcohol, garnishes, mixers, and anything else that goes into the drink.

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Untapped Areas of Profitability in a Full-Service Restaurant

Squirrel Systems

While menu pricing and food costs are critical factors, there are often overlooked opportunities that can significantly boost the bottom line. Implement QR code-based menus to promote high-margin drinks dynamically. Introduce wine pairings or tasting events with online booking options.

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Inside the World of Hospitality and Leisure Accounting

Paper Chase Accountancy

High Cash Volume and Diverse Payment Methods: These businesses handle a large volume of daily transactions, often involving cash, credit cards, online payments, and gift cards, requiring robust internal controls and reconciliation processes. Recipe costing: To understand the true cost of each menu item. Develop marketing strategies.

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Restaurant Profit Margin: 7 Ways To Actually Make Your Operation More Profitable

SpotOn

This is all the income from your food and beverage sales, catering, branded merchandise, packaged goods, venue hire, etc. Your Cost of Goods Sold are your food and beverage costs along with the cost of any merchandise you sell. As servers spend more time with guests, they upsell more often and are around to capture additional orders.

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MRM Research Roundup: Delivery Fraud, the Playground Effect, and Top 100 Places to Eat

Modern Restaurant Management

Turn Pricing into a Growth Strategy : A smarter approach to menu pricing can boost revenue and profitability without compromising guest experience. Another case showed how a bad actor was able to access 400 different accounts on a single device in order to consume thousands of dollars worth of promotions in just 30 days.

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MRM Research Roundup: To-Go Trends, State of the Plate, and Black Market Reservations

Modern Restaurant Management

Off-Premises Dining Is Essential Nearly 75 percent of all restaurant traffic now happens off-premises—meaning that almost three out of four restaurant orders are taken to go. More than 60 percent say they’re ordering off-premises more often than a year ago. Older adults still prefer in-person ordering.

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MRM Research Roundup: Cautious Optimism, Beyond the Burn, and the Taylor Swift Economy

Modern Restaurant Management

It also zooms in on current challenges faced by owners/operators, menu prices and inflation, and tech/AI implementation. While guests may still be feeling the pain of rising menu prices at restaurants, fewer restaurants said that they raised prices this year compared to last year.