How to set cold drink prices

Table of content

  1. Introduction
  2. The love for drinks
  3. Delicious drinks to make at home
  4. How to set Cold Drink Prices
  5. Drink Price Breakdown in Practice

Introduction

A very common beverage option is cold drinks. Be it mocktail, cocktail, chill sodas, alcoholic  or carbonated drinks, cold drinks are well loved by the people. Some of the famous companies which produce these beverages are Coca-Cola, Sprite, Pepsi, Dr. Pepper, Mountain Dew, and 7-Up. Production, marketing, and distribution of flavor- and sugar-sweetened, mostly carbonated, non-alcoholic chill sodas make up this sector of the economy. Soft drink history in the US demonstrates significant commercial innovations. This includes the evolution of consumer tastes as well as product development, franchising, and mass marketing.

Historically, Europeans thought natural mineral waters had therapeutic benefits. As an alternative to the regularly contaminated public water supply, they frequently preferred them.

Joseph Priestly, a British chemist, created a method to create carbonate around the year 1772. Jacob was the first to commercially produce synthetic mineral waters. The first known US manufacturer of soda water (as it was known back then) was Yale.

Although chill sodas are refreshing, there is nothing more refreshing than eating a full course traditional Indian meal and having a huge glass of lassi or chaas right after. If you ever want to experience this fabulous lunch, then head over to Delhi Deli. We at Delhi Deli would absolutely love to have you dine with us.

Read More: Guide to start a soft drink business

The love for drinks

It’s not only cold drinks that people love. People also absolutely adore various beverages, with tea and coffee being the two most widely consumed. The world of today has become increasingly digital and globalized. Everyone wants to share online posts about their expensive beverages because of the rise in social media usage and its numerous trends. When discussing upscale beverages, Starbucks is the most well-known brand that comes to mind. Gordon Bowker, Jerry Baldwin, and Zev Siegl founded Starbucks, which opened its first location in 1971. They all shared two traits: they all came from academic backgrounds and enjoyed drinking coffee and tea. Do you like Starbucks?

 

Some fun facts about Starbucks: 

  1. The Starbucks master baristas don a black apron.
  2. “Moby Dick” served as inspiration for the name.
  3. It is possible to combine more than 87,000 different drinks.
  4. The typical customer goes to Starbucks at least six times per month.
  5. Due to the lattes being underfilled, they have been sued.
  6. It can be too expensive to visit Starbucks every day. Therefore, we have a fix. With the help of the recipes below, you can make some delectable and healthy drinks at home!

Delicious drinks to make at home

cold drink
Pink Drink Recipe

Key ingredients of the drink include strawberries, tea, coconut milk, and ice. This drink uses frozen strawberries, so there is no need for additional sweeteners. But if you need extra sweetness, feel free to use honey. Use the puree of frozen strawberries. To elevate the drink, we can use vanilla syrup. To acquire maximum flavor from the tea, let it steep for five minutes. Over brewing will cause it to taste too bitter. Alternatively, not steeping it enough will make the tea not impart as much flavor in the drink. You can switch to any other type of milk if you don’t like coconut milk. 

 

Caramel Brulee Latte

The actual recipe for this beverage calls for whole-fat milk and caramel, both of which are high in calories. This drink has up to 410 calories in one cup. By omitting the whipped cream and adding only certain sauces and syrups, you can reduce this calorie count. Selecting a sugar-free vanilla syrup in addition to a sugar-free caramel sauce can help reduce the calorie count to only 120 calories. The recipe is simple and consists of espresso or any strongly brewed coffee, skim milk, caramel sauce, vanilla syrup, and whipped cream.

 

Salted Caramel Mocha 

Ingredients for the Mocha sauce are sugar and cocoa powder. caramel sauce, unsalted butter, heavy cream, and sea salt. For the drink, we will use Espresso, Milk, Homemade mocha sauce, caramel or toffee syrup, sea salt and whipped cream. Steps to make the drink start with making the mocha sauce, making the caramel sauce, brewing the espresso, streaming the milk, adding everything to a mug, and topping it with whipped cream. You can also prep these sauces and store them in jars.

In addition to these beverages, a long glass of lassi may be just what you need. Visit Delhi Deli to savor the best traditional foods and beverages. Your presence would be appreciated.

How to Set Cold Drink Price

Choosing or setting a Cold Drink price for your restaurant can be tricky. If you price it to be too expensive, you will drive the customers away. If you price it too low, then you won’t survive in business for a long time. One of the most crucial parts of a restaurant is creating a good list of cold drinks including mocktails and cocktails. There are certain aspects that the business will need to consider when figuring out how to price the drinks, like the rent and overhead. However, there are some additional elements that we will highlight for you. 

Calculating the liquor cost

In order to calculate this, you can use the formula Bottle Price/ Ounces in bottle = Liquor cost per ounce

Calculating the pour cost or the beverage cost

To calculate this, you can use the formula Cost to make the drink/ Price you will sell it for = Pour Cost. Most of the places will set the pour cost at 20% or 25% while the others will set it at 22% for wine, 20% for beer and 14% for liquor. These prices can be adjusted to the percentage that works best for your establishment.

Calculating the cold drink price

You can use this formula to calculate: Liquor cost/ Pour cost in decimals = Drink price

Factor in the garnish prices

This can be done by pricing out each ingredient or setting a flat rate that will be added on to the cost of the drink in a manner similar to how you would calculate the cost of the liquor.

Factoring in the shrinkage variance

To cover the cost of lost products due to expiration or any damages, the majority of bars will charge an additional 20% fee.

Rounding up to the nearest quarter

It’s possible that the result of all these calculations won’t be a perfectly rounded number. In order to make the price more visually appealing, round to the nearest quarter to create a cleaner menu.

Evaluating and adjusting 

It’s possible that the costs you find are not always the most economical for your target market. You can use a profit and loss statement to track changes you make and how they affect your clientele in order to determine the most profitable menu prices for your restaurant.

Drink Price Breakdown in Practice

To help visualize the above calculation, let’s go over the pricing breakdown of a standard beverage. To begin with, let’s take a 25-ounce bottle of liquor costs ₹2000 (Note: This is just an example of how the pricing works) Liquor cost: ₹2000 purchase cost/ 25 oz per bottle = ₹80 per ounce