$10 used to be the magic number.
A decade ago, that was a typical price for a craft cocktail. Since then, that number has climbed and climbed — $14 to $16 is normal now, and in cities like New York and Los Angeles, no one blinks at $20.
Why have cocktails gotten so expensive? Restaurant operators cite several reasons: rising rents, the increased demand for quality ingredients, and most importantly, the cost of labor, which includes hiring skilled bartenders and paying for the time required to make elegant, complicated concoctions.
Serving high-end cocktails can do wonders for a restaurant’s bottom line, bringing in a 15-25 percent profit (compared to the 4-6 percent margin most operators see overall). But what if customers start to feel cocktail price fatigue?
How to Overcome Customers’ Price Objections
Offer a taste. Take a tip from your local ice cream parlor: If patrons are unsure about investing in a high-end cocktail, can you let them sample it? That’s what The Rye Bar at Washington’s Rosewood Hotel does for its famous Barrel Aged Manhattan.
“The first-timers, they approach it, of course, with the mentality of, ‘It’s $22,’” head bartender Angel Cervantes told The Washington Post. “Of course, they ask, ‘Is it really worth it?’ We always give people little tastings, and they decide.” Offering a sip is easy for this particular drink, however, because it’s made ahead of time and aged for six weeks in a charred bourbon barrel.
Make it personal. Patrons don’t buy high-end cocktails just to get a buzz. The true motivator is the experience: When they’re drinking a carefully crafted, beautifully presented drink, they feel special. The 18th Room, a speakeasy in Chelsea, New York City, elevates the experience by making one-of-a-kind, customized drinks: “When people enter the space, which has a faux coffee supply storefront, a host creates a profile for them with taste preferences that is then electronically sent to the bar team so that the custom cocktails can start coming together right away,” Eater NY explains.
Start with a freebie. Another thing The 18th Room does to woo bar patrons is offer them an amuse-bouche cocktail when they arrive, on the house — and not a tiny one, either! Bartenders also serve free bar snacks (coconut popcorn). When you surprise guests with a gift, they may be inclined to spend more.
Take a flight. A customer who might balk at paying $18 for a single cocktail will gladly fork over much more than that for a thoughtfully composed flight — especially if it’s an experience they won’t forget. In 2018, José Andrés’ acclaimed barmini in Washington introduced the Nostalgia Flight, a playful series of cocktails based on childhood memories. The “Gotta Catch ‘Em All” required guests to select a Pokemon card that determined the liquor in their drink; the “Abracadabra” magically changed color from blue to purple in the glass. It was kitschy, it was silly, and it was a hit — even at $95 for seven cocktails.
Ways To Satisfy the Price-Conscious Cocktail Consumer
If your customers just aren’t going for the high-end cocktails, it’s time to rethink your bar program. Outside of major cities, people won’t pay New York prices, and so your ceiling may be $12 or $14. Drinks at the high end of the range must have the wow factor, with beautiful presentation, unusual ingredients or eye-catching garnishes.
When reviewing the cocktail menu, look for ways to streamline operations. One effective way to add fresh flavor without requiring bartenders to fuss over every drink is house-made infusions. Whether made by steeping or with a vacuum chamber sealer, liquors and simple syrups infused with fresh herbs, fruits or spices can be made in large batches and used to add depth to drinks.
How do you balance cocktail costs with guests’ expectations? Tell us about it! We’re always looking for restaurant and bar innovators to feature in this space.
