PRINCIPLES OF FOOD, BEVERAGE, AND LABOR COST CONTROLS

ESTABLISHING STANDARDS AND STANDARD PROCEDURES FOR PRODUCTION � 433
sales prices to be posted at the bar or listed in a menu, depending on the type
of establishment. It is generally considered good practice to maintain a complete
list of current standard sales prices in the manager ’ s office. Success with
some of the techniques to be discussed in Chapter 16 requires that one have
access to an accurate list of sales prices.
Selling prices for similar alcoholic drinks obviously vary considerably
among establishments. Reasons for the differences include the cost and
quantity of the ingredients, the ambience of the establishment, the expectations
of the clientele, and the desired cost - to - sales ratio. In most establishments,
the cost - to - sales ratio for cocktails and mixed drinks will run between
15 to 25 percent, for beer 25 to 35 percent, and for wine 40 to 50 percent.
The techniques for maintaining up - to - date lists of standard sales prices
are many and varied. As in so many other cases, the simplest is often the best.
Many recommend that current sales prices for cocktails and mixed drinks be
maintained on the recipe detail and cost cards, and that those for straight
drinks be kept on an expanded version of the list first shown in Figure 15.5 .
This expanded version is illustrated in Figure 15.8 .
It is absolutely essential in any bar operation that the sales price be
standardized for each drink sold, for straight drinks as well as for cocktails
and other mixed drinks. When sales prices are standardized, customers can
be properly charged for the drinks they order, and the prices will not vary
from day to day. The possibilities for customer satisfaction are increased:
The customer who has been charged $4.50 for a particular drink on Tuesday
has reasonable assurance that an identical charge will be made for the same
drink on Wednesday. In some places, a list of standardized drink prices can
be found posted on a sign over the bar. In others, they may be printed in the
menu. These signs and menus eliminate any possible arguments over drink
prices.
Establishing the standard price of wine is relatively easy. After all, wine
is served only two ways: by the bottle or by the glass. Each bottle has a known
cost to the establishment. Thus the price charged to a customer is a function
of that cost. In most establishments, the bottle price typically represents a
100 to 120 percent markup over cost, so the price is easily determined. For
wines served by the glass, establishments typically establish the price per
bottle and divide it by the number of glasses in that bottle. For, example, if
a bottle of Merlot is priced at $20 and there are four glasses poured from that
bottle, each glass would be priced at $5.
Pricing of premium wines can be more complicated, because these
wines are typically purchased when young and increase in value as they age.