Pizza Today - March 2017 - 22

with KEITH COFFMAN

on tap

Craft Beer Pricing and Promotions
the next quarter to keep the menu prices
looking more organized, so I would sell
this beer for $4.75.
As mentioned in a previous
article, half-barrel kegs are always
going to be the lowest priced per
fluid ounce. Sixth barrels, quarter bar-

I

t's International Pizza Expo
Month! Hopefully, I'll get to meet
many of you in Vegas and, hopefully, we can enjoy a pint or two at The
New Operator Reception, Beer & Bull
or at The World Pizza Games Finals &
Block Party. This will be my sixth Pizza
Expo. I have learned something new every
year at Expo that has helped me make my
restaurant better.
This month I am going to give you a
broad overview on pricing and promoting
the craft beer that you are now carrying for your customers. First, let's tackle
pricing. In some tourist trap markets,
such as The Strip in Vegas or downtown
Nashville, you may see restaurants and
bars charging astronomical prices for craft
beer. That may work in an area where
demand surges based on the increasing
influx of visitors, but in the markets where
most of us are doing business, that simply
2 2 / P I Z Z AT O D AY. C O M / M A R C H 2 0 1 7

won't fly.
Most restaurants and bars across the
United States sell their craft beer at 25- to
40-percent cost of goods sold (COGS).
This isn't just an arbitrary number that
operators have pulled out of the sky. Selling at a 25- to 40-percent COGS takes
into account your overhead costs, which
we'll gauge at 35 to 40 percent. There's
5- to 10-percent waste in addition to your
profits.
Now, let's look at the math using 30
percent as our COGS. For this example,
divide the $175 cost of a half barrel of an
average IPA by 30 percent. The answer
to our equation is $583.33. Now divide
$583.33 by 1,984, which is the number
of ounces in a 15½ gallon half barrel keg.
Your fluid ounce price is $.294 (29 cents).
In our example, a 16-ounce pint of our
example IPA will cost your customers
$4.71. I personally like to round up to

rels and bottles are usually significantly
more expensive per ounce. For example, a
case of 24 bottles of Three Floyds Alpha
King costs $42.99. When we use the same
pricing formula that we did earlier, that
results in a $5.97 per bottle price for the
customer. A half-barrel keg of Alpha King
costs $180.99. When you crank that price
into our pricing formula, you get a $.305
per fluid ounce price. When compared to
a 12-ounce bottle, a 12-ounce draft pour
using our formula will cost your customer
$3.66. You can still make the margin that
you need and sell a 12-ounce draft of
Alpha King for $2.31 less than the bottle.
With that being said, it's good to keep
bottles on hand for those beers not available in kegs.
There are lots of pricing promotions
that you can take advantage of when
selling craft beer that will incentivize customers to come in during your off-peak
hours. Popular promotions that you can
utilize to drive business include happyhour specials, late-night specials, pint
nights, flight nights, ballgame specials
and growler specials. Pricing promotion
discounts are completely up to you as
the owner. I offer $1 drafts during happy
hour, half off pints of featured beers on
pint night, $2 off flights on flight night
and specials on the big, light beers during
NFL games and during the local college
games. I encourage you to create and try
several different pricing promotions for
yourself and see what works. ■

KEITH COFFMAN is the owner and operator
of Lost River Pizza Company.

By JOSH KEOWN


http://www.PIZZATODAY.COM

Pizza Today - March 2017

Table of Contents for the Digital Edition of Pizza Today - March 2017

Pizza Today - March 2017
Commentary
Contents
Contributors
Expo Spotlight
Interact
Conversation
Man on the Street
Respecting the Craft
On Tap
Destinations
Knead to Know
Menu Strategies
Tabletop Condiments
Brand With Merchandise
Speeding Up Service
America’s No. 1 Topping: Pepperoni
Neo vs. Neapolitan
How To Change Products
Dessert Pizzas
Up-to-Date Financials
Upgrading Tech
Analyzing Competition
What is Baker’s Lung?
Start Up Stories
Community Partnerships
Vital Sanitization
Road to Expo: Doug Ferriman and George Hadjis
Unemployment Claims
Pizza Today on the Road: Theo’s, New Orleans, LA
Pizza Today on the Road: Pupatella, Arlington, VA.
Pizza Today on the Road: Pizzeria Paradiso, Washington D.C.
Preferred Supplier
Pizza Today Yellow Pages
The Marketplace
Reader’s Resource
Trending Recipe
Pizza Today - March 2017 - CT1
Pizza Today - March 2017 - CT2
Pizza Today - March 2017 - Pizza Today - March 2017
Pizza Today - March 2017 - Cover2
Pizza Today - March 2017 - Commentary
Pizza Today - March 2017 - 4
Pizza Today - March 2017 - 5
Pizza Today - March 2017 - Contents
Pizza Today - March 2017 - 7
Pizza Today - March 2017 - 8
Pizza Today - March 2017 - 9
Pizza Today - March 2017 - Contributors
Pizza Today - March 2017 - 11
Pizza Today - March 2017 - Expo Spotlight
Pizza Today - March 2017 - 13
Pizza Today - March 2017 - Interact
Pizza Today - March 2017 - 15
Pizza Today - March 2017 - Conversation
Pizza Today - March 2017 - 17
Pizza Today - March 2017 - Man on the Street
Pizza Today - March 2017 - 19
Pizza Today - March 2017 - Respecting the Craft
Pizza Today - March 2017 - 21
Pizza Today - March 2017 - On Tap
Pizza Today - March 2017 - 23
Pizza Today - March 2017 - Destinations
Pizza Today - March 2017 - 25
Pizza Today - March 2017 - Knead to Know
Pizza Today - March 2017 - 27
Pizza Today - March 2017 - 28
Pizza Today - March 2017 - 29
Pizza Today - March 2017 - 30
Pizza Today - March 2017 - 31
Pizza Today - March 2017 - Menu Strategies
Pizza Today - March 2017 - 33
Pizza Today - March 2017 - 34
Pizza Today - March 2017 - 35
Pizza Today - March 2017 - Tabletop Condiments
Pizza Today - March 2017 - 37
Pizza Today - March 2017 - 38
Pizza Today - March 2017 - 39
Pizza Today - March 2017 - Brand With Merchandise
Pizza Today - March 2017 - 41
Pizza Today - March 2017 - 42
Pizza Today - March 2017 - 43
Pizza Today - March 2017 - Speeding Up Service
Pizza Today - March 2017 - 45
Pizza Today - March 2017 - 46
Pizza Today - March 2017 - 47
Pizza Today - March 2017 - America’s No. 1 Topping: Pepperoni
Pizza Today - March 2017 - 49
Pizza Today - March 2017 - 50
Pizza Today - March 2017 - 51
Pizza Today - March 2017 - Neo vs. Neapolitan
Pizza Today - March 2017 - 53
Pizza Today - March 2017 - 54
Pizza Today - March 2017 - 55
Pizza Today - March 2017 - How To Change Products
Pizza Today - March 2017 - 57
Pizza Today - March 2017 - 58
Pizza Today - March 2017 - 59
Pizza Today - March 2017 - Dessert Pizzas
Pizza Today - March 2017 - 61
Pizza Today - March 2017 - 62
Pizza Today - March 2017 - 63
Pizza Today - March 2017 - 64
Pizza Today - March 2017 - 65
Pizza Today - March 2017 - Up-to-Date Financials
Pizza Today - March 2017 - 67
Pizza Today - March 2017 - 68
Pizza Today - March 2017 - 69
Pizza Today - March 2017 - Upgrading Tech
Pizza Today - March 2017 - 71
Pizza Today - March 2017 - 72
Pizza Today - March 2017 - 73
Pizza Today - March 2017 - Analyzing Competition
Pizza Today - March 2017 - 75
Pizza Today - March 2017 - 76
Pizza Today - March 2017 - 77
Pizza Today - March 2017 - What is Baker’s Lung?
Pizza Today - March 2017 - 79
Pizza Today - March 2017 - 80
Pizza Today - March 2017 - 81
Pizza Today - March 2017 - Start Up Stories
Pizza Today - March 2017 - 83
Pizza Today - March 2017 - 84
Pizza Today - March 2017 - 85
Pizza Today - March 2017 - Community Partnerships
Pizza Today - March 2017 - 87
Pizza Today - March 2017 - 88
Pizza Today - March 2017 - 89
Pizza Today - March 2017 - Vital Sanitization
Pizza Today - March 2017 - 91
Pizza Today - March 2017 - 92
Pizza Today - March 2017 - 93
Pizza Today - March 2017 - Road to Expo: Doug Ferriman and George Hadjis
Pizza Today - March 2017 - 95
Pizza Today - March 2017 - 96
Pizza Today - March 2017 - 97
Pizza Today - March 2017 - Unemployment Claims
Pizza Today - March 2017 - 99
Pizza Today - March 2017 - 100
Pizza Today - March 2017 - 101
Pizza Today - March 2017 - Pizza Today on the Road: Theo’s, New Orleans, LA
Pizza Today - March 2017 - 103
Pizza Today - March 2017 - 104
Pizza Today - March 2017 - 105
Pizza Today - March 2017 - 106
Pizza Today - March 2017 - 107
Pizza Today - March 2017 - 108
Pizza Today - March 2017 - 109
Pizza Today - March 2017 - Pizza Today on the Road: Pupatella, Arlington, VA.
Pizza Today - March 2017 - 111
Pizza Today - March 2017 - 112
Pizza Today - March 2017 - 113
Pizza Today - March 2017 - 114
Pizza Today - March 2017 - 115
Pizza Today - March 2017 - Pizza Today on the Road: Pizzeria Paradiso, Washington D.C.
Pizza Today - March 2017 - 117
Pizza Today - March 2017 - 118
Pizza Today - March 2017 - 119
Pizza Today - March 2017 - 120
Pizza Today - March 2017 - 121
Pizza Today - March 2017 - Preferred Supplier
Pizza Today - March 2017 - 123
Pizza Today - March 2017 - 124
Pizza Today - March 2017 - 125
Pizza Today - March 2017 - 126
Pizza Today - March 2017 - 127
Pizza Today - March 2017 - 128
Pizza Today - March 2017 - 129
Pizza Today - March 2017 - 130
Pizza Today - March 2017 - 131
Pizza Today - March 2017 - 132
Pizza Today - March 2017 - 133
Pizza Today - March 2017 - 134
Pizza Today - March 2017 - 135
Pizza Today - March 2017 - 136
Pizza Today - March 2017 - 137
Pizza Today - March 2017 - 138
Pizza Today - March 2017 - 139
Pizza Today - March 2017 - 140
Pizza Today - March 2017 - 141
Pizza Today - March 2017 - 142
Pizza Today - March 2017 - 143
Pizza Today - March 2017 - 144
Pizza Today - March 2017 - 145
Pizza Today - March 2017 - Pizza Today Yellow Pages
Pizza Today - March 2017 - 147
Pizza Today - March 2017 - 148
Pizza Today - March 2017 - 149
Pizza Today - March 2017 - 150
Pizza Today - March 2017 - 151
Pizza Today - March 2017 - 152
Pizza Today - March 2017 - 153
Pizza Today - March 2017 - 154
Pizza Today - March 2017 - The Marketplace
Pizza Today - March 2017 - 156
Pizza Today - March 2017 - 157
Pizza Today - March 2017 - 158
Pizza Today - March 2017 - 159
Pizza Today - March 2017 - 160
Pizza Today - March 2017 - 161
Pizza Today - March 2017 - 162
Pizza Today - March 2017 - 163
Pizza Today - March 2017 - 164
Pizza Today - March 2017 - 165
Pizza Today - March 2017 - 166
Pizza Today - March 2017 - 167
Pizza Today - March 2017 - 168
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