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How to evaluate your percentage of lost beer

Step 1:  Measure the amount of beer contained in each glass size with a graduated container.

You cannot use the glass size as specified by the glass manufacturer.

Step 2: Calculate your cost per serving. Look on your kegs invoices and find the keg size and price.

Ex: \$105 and 1984 oz. (Half Barrel US).

Cost per oz. = \$105/1984 = 0.059 (5.9 cents per Oz.)

Cost for a pint (16 Oz.): 14.5 Oz. X 5.9 cents = \$0.855

Step 3: Calculate your pour cost percentage

Selling price (minus taxes): \$ 5.00

Pour cost percentage pint: \$0.855/\$5.00 = 0.171 (17.1%)

Step 4: Look for your gross revenues for pint sales and calculate your target beer cost.

Ex: \$16,000 per month and multiply by the pour cost percentage: \$16K x 17.1% = \$ 2736

\$2736/\$105 = 26.05 kegs

Step 5: Compare with the actual beer purchases.

If you purchased 30 kegs you are missing 4 kegs.

4/30 = 13.33%

13.33% is your percentage of lost beer.

or 4/25 = 16%

You bought 16% more beer than you should have

Step 6: Estimate the value

Value at cost: 4 X \$105 = \$420 (\$5184/year)

Value retail: 1984 Oz. X 4 = 7936 Oz. total lost

7936 / 14.5 Oz. = 547.3 pints

Potential resell value: \$2736.55 (\$32,838.60/year) 