The most common approach is a standard markup. Typically, a bar will mark up liquor by 400% to 500% . While this sounds exorbitant to a consumer, it is necessary to cover the high failure rate of hospitality businesses.
"You just did." She pointed to the corner of the bar where he'd been sitting. In the condensation from his glass, he'd unconsciously drawn a smiley face. "That's hope. And hope's on the house."
Where does the rest of the money go? It is allocated into three main buckets: bartender prices
Twenty minutes later, when he stood to go, he tried to leave his last eleven dollars on the bar. She slid nine of them back.
"I didn't have a third."
Smart bar managers adjust prices based on popularity. If a specific gin is flying off the shelf, the price might be nudged up to maximize margins. Conversely, a slow-moving whiskey might be priced aggressively to move inventory.
Nobody ever argued.
"The price?"