How to Create a Bar Menu That is Appetising and Profitable

Crafting a bar menu that entices customers and maximises profitability requires strategic thinking. It’s not just about what you offer, but how you present it, price it, and tailor it to your clientele. Whether you’re running a high-end cocktail bar or a neighbourhood pub, profitability
should be at the core of your bar menu design.

We’ve detailed how to make a bar profitable in one of our previous blogs, but here are some
more focused strategies on how to create a bar menu that boosts your bottom line

Optimise Your Drink Selection for Cost Efficiency

One of the biggest mistakes bar owners make is offering an overwhelming selection of drinks. While variety is important, having too many options can lead to increased costs, waste, and operational inefficiencies. Focus on a well-curated selection that highlights your bar’s strengths and helps manage costs.

Focus on Core Spirits and Ingredients

Create a base of versatile, popular spirits that can be used across multiple cocktails. For example, one bottle of vodka can be the star of a Martini, Bloody Mary, or Cosmopolitan. By reducing the variety of spirits, you can buy in bulk, which lowers costs, reduces storage space, and prevents overstocking on less popular items.

At the same time, think about mixers and garnishes. Can you use the same citrus fruits for multiple cocktails? Does one syrup or flavoured liqueur have the versatility to complement
several drinks? Efficiency in ingredients not only minimises waste but also makes stock
management easier, which directly impacts profitability.

Feature Signature Cocktails

Having a few house-made signature cocktails can set your bar apart and become a brand signature. More importantly, they give you control over the cost of ingredients.

A good profit margin on common cocktails is about 80%, which on average is 10-15% higher than food. By crafting a unique cocktail with ingredients that you can source affordably, you not only create a memorable drink for customers but also ensure a healthy profit margin. 

Strategically Price Your Drinks

Pricing your drinks effectively is one of the most critical factors in ensuring a profitable bar menu. The key is to balance perceived value with profit margins, ensuring your drinks are priced competitively while still bringing in a strong return.

Understand the Ideal Pour Cost

Your pour cost (or beverage cost) is a key metric in determining how to price drinks. It’s the cost of the ingredients used to make a drink divided by the price at which it’s sold.

To optimise profitability, aim to lower your pour costs without sacrificing quality. You can do this by offering tiered options, such as well drinks, mid-range, and premium cocktails. This way, you can cater to different price points while maintaining attractive margins on each level. Another
way would be to highlight lower-cost cocktails during promotions or happy hours. These drinks can offer value to customers while still bringing in a high profit margin.

Implement Psychological Pricing

Pricing techniques like “charm pricing” (e.g., pricing at £8.90 instead of £9.00) can help make your drinks seem more affordable. Additionally, group cocktails in price brackets to give customers a sense of value. Many customers will happily pay extra for what they perceive as a
premium experience.

Utilise Menu Design for Profitability

Designing your bar menu in a way that subtly guides customers toward more profitable choices is an art form. Clever menu design is how to create a bar menu that increases the likelihood of customers choosing higher-margin items. 

Highlight High-Margin Drinks

Use visual cues like boxes, bold fonts, or icons to draw attention to your most profitable drinks. If you’ve done the work to optimise your signature cocktails or have high-margin wines or beers, make sure they stand out on the menu. Positioning these drinks at the top or bottom of a section, where the eye naturally falls, can also increase their visibility.

Limit Low-Profit Items

If certain drinks yield low returns, they can drag down your overall profitability, therefore you should limit their prominence on the menu or consider removing them altogether. Instead, make space for beverages that offer higher profit margins, even if they aren’t your top sellers by
volume. The goal is to get a balance between volume and margin that works for your business.

Leverage Seasonal and Themed Menus

Introducing limited-time offers based on seasons or special occasions create a sense of urgency and excitement among customers.

Seasonal Ingredients for Cost Savings

By focusing on ingredients that are in season, you can keep costs down while offering something new. For example, during summer, fruits like watermelon, strawberries, or cucumbers can be used in cocktails, and during winter, spices like cinnamon or nutmeg might feature in your drinks. Seasonal produce is typically cheaper and easier to source locally, helping improve your profit margins.

Create Themed Promotions

Special promotions, whether for Halloween, Christmas, or a major sports event, can drive traffic and sales. For these events, you can increase the perceived value by offering exclusive cocktails with a small upcharge, boosting your profitability

How the Engine Room Can Help Your Pub Business

A good bar menu is a fundamental aspect of enticing customers, but it can be difficult to ensure that your business is consistently turning a profit. The Engine Room specialises in making what was once difficult into an average easy-going task for your business.

Our bar consultants work as an extension of your team to assist you in both the operational and financial facets of running a thriving bar.

Get in touch on 020 3960 5137 or enquiries@the-engineroom.co.uk to explore how to create a bar menu that helps your profits soar.