Bar / Brewery
Bars and breweries enjoy high gross margins on drinks (70-80% on draft beer, 80%+ on cocktails) but face high rent and licensing costs. Breweries add capital-intensive equipment. Revenue is heavily influenced by location, hours, and entertainment programming.
Key Benchmarks for Bar / Brewery
Net Profit Margin
7–15%
After all expenses, taxes, and overhead
Gross Margin
60–80%
Revenue minus cost of goods sold
Labor Cost
~25% of revenue
Total labor as a share of top-line revenue
Overhead
~25% of revenue
Rent, utilities, insurance, admin costs
Break-Even Timeline
~24 months
Average time for a new business to break even
Cost Split
50% fixed / 50% variable
Typical fixed vs variable cost ratio
Recommended Calculators for Bar / Brewery
Break-Even Calculator
Find exactly how many units or how much revenue you need to cover all costs.
Markup & Margin Calculator
Understand the difference between markup and margin to set the right price.
Cash Flow Forecast
Project your cash position over 12 months with growth and seasonal inputs.
Can I Afford to Hire?
Combines break-even, employee cost, and cash flow into one clear hiring answer.
What Bar / Brewery Business Owners Should Know
Margins matter more than revenue. A bar / brewery business with 15% net margins on $500K revenue is healthier than one with 7% margins on $1M. Use the Markup & Margin calculator to find your sweet spot.
Know your break-even number. Most bar / brewery businesses take ~24 months to break even. The Break-Even calculator shows exactly how many sales you need.
Labor is your biggest lever. At ~25% of revenue, labor costs in bar / brewery are significant. Before hiring, run the Can I Afford to Hire? calculator.
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