Inflation, as well as increasing costs, are affecting the hospitality industry and also your wallet. You don’t have to stop drinking at your favourite bars. We’re here for you to master the art of finding affordable drinks.
This guide is for anyone who wants to learn about bar economics. It’s not just for college students or young professionals.
Bar Menu Templates
These bar menu templates can be used to design or refresh your menu.
Why is bar alcohol so expensive?
Have you ever wondered why a simple vodka soda costs $12 at a rooftop bar but only $5 at your local dive?
Most bars mark up alcohol by 200-400%. Fancy cocktails have the highest margins. You’ll be charged based on several factors:
- Cost of the product: This is the base cost for spirits, mixers and garnishes
- Costs are higher for complex cocktails that require specialized preparation
- Venue overhead: High rent in prime locations passes on to consumers
- Enjoy happy hours and leverage pricing at slower times
- Brand positioning: luxury venues charge higher prices as part of the experience
You can identify the value of a bar by identifying these factors.
Draft Beer: Your budget’s best friend
Draft beer is the best way to get both quality and affordability at a bar.
Why does draft beer cost less?
Draft beer reduces packaging waste and transportation costs. It also allows for bulk purchases by establishments. You will benefit from lower prices.
Domestic Draft Options
Domestic drafts are still the most affordable option for budget drinking, even though craft beer is the talk of the town.
- Standard drafts are usually priced between $3 and $6 during regular business hours
- Prices can be as low as $2 at competitive happy hours
The following are the most affordable options:
- Bud Light
- Miller Lite
- PBR
- Coors Light
- Yuengling (especially in Eastern markets)
In spite of inflation, the prices of domestic draft beers have increased at a lower rate than those for most other alcohol categories. This makes them more attractive to cost-conscious consumers.
The Economics of Pitchers
Shared pitchers deliver exceptional value for groups. Standard pitchers contain about five 12-ounce servings and cost only 20-30% more than three individual drafts.
The volume discount is especially pronounced for domestic options. Pitcher specials can bring the cost per ounce down to levels close enough to retail prices.
Craft Beer on a Budget
You can enjoy premium craft beer at a lower price. You can do it by using these methods:
- Visit brewery taprooms to avoid intermediary markups.
- Order flights to sample multiple brews and avoid the investment of a full-pour
- Take advantage of weekday discounts: Many establishments that specialize in crafts offer substantial discounts during slower times.
- Consider taking-home programs for crawlers/growlers: They often offer better value per ounce.
The Power of Well Drinks
The “well” spirit is the base of many budget-friendly mixed drinks in America.
What’s inside the well?
The “well” is the place where the bartender keeps their house spirits. They usually include:
- Vodka: Brands like Burnett’s Smirnoff or similar
- Gin: London Dry styles, such as Gordon’s and Seagram’s.
- Rum: White rum, usually from Cruzan or Don Q
- Tequila is generally a mix to (not 100% Agave) produced by producers such as Montezuma
- Whiskey is usually a blended whiskey like Canadian Club, Old Crow or Old Fashioned.
Best value well drinks
The simplest Well Drinks are often the best since they reduce both ingredient costs and preparation times.
You can get these classic cocktails at any bar.
- Vodka Soda – A low-cost and simple option that uses vodka, soda and lime.
- Rum and Coke is a sweet, popular mix of rum and cola.
- Whiskey Ginger: A basic whiskey with spicy ginger ale.
- Gin and Tonic – While slightly more costly, this is still a budget-friendly option.
- Tequila Soda is a lighter, less sugary alternative to traditional margaritas.
Pro tip: Ask for “well vodka soda“ (or “house gin & tonic”) to avoid paying for premium spirits. This subtle difference can save you $2-4 per drink.
Classic cocktails for a low-cost price
Let’s face it – the prices of craft cocktails have skyrocketed. You can easily spend $15-20 on a fancy cocktail in trendy bars. Here’s the good thing: You don’t need to spend a fortune on a high-quality cocktail.
Budget-friendly classic cocktails have been designed to be popular. These drinks are popular because of their amazing flavours that can be achieved with only a few ingredients.
- Daiquiri: Just lime juice and sugar. This classic shows that you don’t have to use a lot of ingredients to make something amazing.
- Old-Fashioned: While the whiskey can add a little to the price, this cocktail is made with whiskey, sugar, bitters, and citrus peel. It has complex flavours without any fancy ingredients. This is a great choice for those who want to drink something with a lot of spirit.
- Moscow Mule: This gingery cocktail is essentially just vodka, lime, and ginger beer. The copper mug serves only as a showpiece (and to maintain the temperature), but it delivers flavour.
- Paloma: This refreshing drink combines tequila and grapefruit soda to create a beverage that is much cheaper than a premium Margarita.
- Tom Collins is a fizzy lemony gin drink that tastes like adult Lemonade. It consists of gin, sugar, soda water, and lemon juice—that’s all! It’s refreshing, classic, and cheap.
The perfect balance of simplicity and flavour has allowed these drinks to endure for decades. These simple recipes require less preparation time from bartenders and are cheaper for you.
Navigation of the wine list
In bar settings, wine is usually marked up the most. Bottles are often sold at prices between 300% and 400% above retail.
There are several ways to make wine more affordable:
Wine selection strategy
- House wines are a great way to learn about new wines. Forget everything you thought you knew. Many bars are now sourcing quality options at a surprising value.
- Discover emerging wine regions. Skip the expensive Napa Cabernets or Burgundy Pinots. Look for wine from emerging areas such as Portugal, Greece or South Africa. These regions produce excellent wines, but they may not command premium prices.
- Consider alternative serving sizes. Many bars and restaurants serve half-bottles or wine flights, so you can enjoy quality wines without having to pay full price for a bottle.
- Wine bar deals: Many wine-focused venues provide themed discount nights to boost business during slow periods. To catch these deals, follow your favourite spots on Facebook.
Shared bottles are sometimes more economical than buying by the glass, especially for groups of four.
Bar strategies that save money
Master Happy Hour
There is no better way to maximize your drinking budget than by mastering the art of happy hour. The Happy Hour scene includes:
- Happy Hour: 4–7 pm on weekdays
- Reverse happy hour: Late-night deals (after 9 pm)
- Weekly steals: Deeper Discounts Monday through Wednesday
- Weekend specials: Daytime deals during brunch hours
Watch out for:
- Menus for happy hour with reduced prices
- BOGO offers can reduce your beverage costs by half
- Specials on flights to taste wine, beer or spirits
Don’t forget to tip!
Budget drinking doesn’t have to mean cutting back on gratuities. Smart savings are based on what you choose, not on cutting back on gratuities.
Standard Rates
- Beer, wine or basic mixed drinks are $1-2 each.
- Spend More Than 15% on Your Total Tab
- $2-3 for complex cocktails (Mojitos, Old Fashioneds)
- Even cheap drinks are only $1.
By Venue:
- Dive Bars: $1-2 per drink
- Fancy Cocktail Bars: 18-20% total
- Tipping well at the beginning of the night will ensure better service throughout.
Bartenders are often able to earn more money by sharing tips.
The tipping of good tippers can result in free drinks or stronger pours. They may also receive insider information about specials.
Drink Smarter, Not Harder
Budget drinking doesn’t mean just cutting costs. It’s also about knowing what the real value is.
Combining smart drinking habits, strategic decisions, and perfect timing will allow you to have a great experience without paying premium prices. Knowledge is the key to success in a business based on markups.
