Beverages usually have a higher profit markup compared to food. That’s why restaurant businesses often incentivize clients to order additional drinks. Unlike wine sold by the glass, spirits have a lower profit margin. That’s especially true for premium drinks that come at a high price. However, building your establishment’s liquor menu is crucial as spirits are still among the most preferred options for many guests. By strategically designing a well-thought-out liquor menu, restaurants and bars can improve the dining experience for their guests while increasing profitability. In the following article, we’ll share some liquor menu ideas as well as the role of spirits as part of the overall beverage menu. In addition, check out our posts on how to manage bar inventory and how to do menu design for restaurants.
Key takeaway: Liquor menu is a part of an establishment’s beverage menu. Upscale venues or hospitality businesses that specialize in serving spirits might have a standalone liquor menu. The main types of spirits included in these menus are whiskey, rum, tequila, gin, and vodka. The menu often includes a combination of well, call, and premium brands.
What Is a Liquor Menu
A liquor menu is a section of the overall drinks menu that showcases a selection of spirits available to order neat or on the rocks. Most establishments list primarily call and premium spirits in their liquor menu. Well drinks are primarily used to make cocktails, but they can be included in the spirits menu as well.
Some bars might have a standalone liquor menu. That’s common for establishments that offer a wide variety of spirits or upscale venues that specialize in rare bottles and super-premium drinks.
What to Include in a Liquor Menu
The types of drinks included in a spirits menu vary a lot depending on the type of establishment. For example, a fine dining restaurant might offer whiskey, cognac, and vodka. On the other hand, a bar or a nightclub is likely to sell large quantities of tequila and gin as well. Here are the most common spirit types that can be found in a liquor menu.
- Vodka;
- Whiskey (including Scotch, bourbon, and other types);
- Rum;
- Brandy and cognac;
- Gin;
- Liqueurs.
In addition to listing the brand and the price, most hospitality businesses also list the ABV (alcohol by volume). Writing a short description about the origin of the distillery, its history, and the notes can make the drink more lucrative and incentivize clients to try new and premium spirits. Pricing of spirits is usually per serving (1.5 ounces).
In recent years, bar and restaurant managers have tried innovative ways to incentivize beverage sales. Offering spirit flights or other bundles can be a great way to increase sales of premium liquor and boost the dining experience for guests. That’s why some liquor menus also include tequila, rum, or whiskey flights. Another way to increase sales of spirits is to include them in pre-set combinations. Examples of such bundles include as steak and rum pairing or whiskey and nuts (a popular combination in bars and nightclubs).
Well and Top Shelf Beverages in a Liquor Menu
One of the secrets to restaurant success is to offer a combination of well and top-shelf spirits. Well liquors, also known as house liquors, are basic and affordable spirits that are used as ingredients in mixed drinks. They are also used for promotions such as happy hour deals or budget-friendly bundles. Although house spirits have a brand, it’s not a well-known one.
On the other hand, top-shelf liquors are premium brands that are displayed on visible shelves behind the bar. They are usually served neat, on the rocks, or used in upscale mixed drinks. Choosing the right top-shelf spirits should be done strategically, as these brands often play an important role in a liquor menu.
Other Items to Include in a Restaurant Drinks Menu
As we mentioned, businesses in the food and beverage industry have better profit margin on drinks compared to meals. That’s why building a well-thought-out beverage menu is crucial. Here are some of the main categories in a drinks menu.
- Beer (draft and bottled or canned options);
- Wine (sold by the glass or bottles);
- Cocktails and alcohol-free mixed drinks (read more about the role of mocktails in restaurants);
- Soft drinks, juices, and water;
- Tea and coffee (read about espresso drinks in restaurants);
In recent years, infused and functional beverages have become popular as well. Business owners can benefit from that trend by offering kombucha or CBD drinks at a higher premium. Make sure to be adaptable when it comes to beverages. Using QR codes for restaurant menus and restaurant data analytics solutions allows managers in the restaurant industry to easily change menus and adapt based on sales data and customer preferences.
Frequently Asked Questions about Restaurant Liquor Menus
From guides on how to boost restaurant customer acquisition to resources on restaurant inventory management and beverage inventory software, you’ll find plenty of useful information on BlueCart and BinWise. Check out our answers to common questions regarding restaurant liquor menus.
What Are the Trends in Liquor Consumption?
In recent years, ordering spirits neat or on the rocks has become less popular. That’s because of the full-bodied, strong, and overwhelming taste of most spirits. However, consumption of whiskey, tequila, and other types of liquor is still high. In addition to customers ordering their favorite spirits, these drinks are often used as ingredients in mixed drinks. The high profit margin on cocktails is the reason why food service businesses aim to increase their mixed drinks sales. Sales of ready-to-drink premixed spirits are also on the rise. Nevertheless, the overall trend in the liquor industry in the West is for reduced consumption.
How to Price Liquor and Other Drinks?
Price management depends on the type and the strategy of different bars and restaurants. Generally speaking, most establishments have a higher profit markup on well drinks and a lower one on top-shelf liquor. In order to improve bar profitability, managers often incentivize customers to order mixed drinks. The main factors that impact the pricing of liquor (and other beverages) are the following:
- Demographic and target audience;
- Consumer preferences based on sales data;
- Pricing of competitors;
- Atmosphere and style of the establishment;
- Discount and bar marketing strategies, such as restaurant promotions, happy hours, or other promos.
How to Increase Profits and Revenue from Beverages?
Drinks are often the most profitable menu items. Encouraging customers to order a beverage or offering restaurant bundles can help significantly in maximizing revenue and profits. Having a cocktail menu or training servers to upsell cocktail and food pairing options is another way to increase a food service company’s profits.
A growing number of customers wish to try new flavors or craft drinks, such as different types of craft beers. That’s why offering drink flights or organizing tasting events can be a great way to simultaneously improve customer satisfaction, increase revenue, and boost brand awareness.
BlueCart: The Software to Boost Restaurant or Bar Performance
From functionalities related to bar inventory management to a wholesale marketplace where companies can find suppliers, BlueCart is the right option for all food service businesses. Our platform allows businesses in the hospitality industry to calculate the profitability of different menu items, determine the cost of goods sold, manage stock levels, and more. If you wish to benefit from BlueCart’s tools, simply sign up as a buyer and witness the different ways our platform can help you.
Wholesale distribution companies can also use BlueCart’s features to improve the efficiency of their processes and increase wholesale sales. If you’re a supplier, schedule a demo to see BlueCart’s tools for wholesalers.