Menu pricing is one of many evolving aspects of the food and beverage industry today. It’s not only a matter of pricing to offset historically high inflation and rising production costs: Breweries must manage guest and staff expectations in lieu of new cost-optimization strategies that pass increased costs onto guests.
Arryved POS, a loyal advocate and point of sale system for artisan craft beverage spots, recognizes the complexity of menu pricing decisions for breweries. The craft-forward POS recently teamed up with Patrick McDonald, The Beer Accountant and a CPA of 10+ years, to host Pricing for Profit: Benchmark Your Beer webinar.
The informative webinar speaks to brewery owners and stakeholders about balancing competitive menu prices with revenue growth, especially as the industry continues wading through various economic challenges.
Pricing for Profit is just a glimpse into the comprehensive content Arryved POS creates to elevate their small business partners. Earlier this year, the software company launched the Dual Pricing Program which helps merchants completely recover their payment processing costs. The innovative tool was met with overwhelming adoption and success: One brewery in particular is on track to profit an additional $38k per year from these offset costs!
“We don’t underestimate the power of partnerships in craft,” shares Loren Bendele, Arryved CEO. “A rising tide raises all ships. Our team is lucky to partner with people like Patrick to help educate and empower our customers to navigate the changing market conditions successfully using Arryved technology.”
So what insights stood out in Pricing for Profit?
- On-premise is for your profits: Gross profit margins are highest on-site, at upwards of 90% for flights and 5 ounce pours.
- Distribution is for your brand: Off-premise pricing, on the other hand, yields profit margins ranging from 40-70%. That said, Patrick highly recommends investing in distribution to build brand awareness.
- Offering both is best: Data proves that taprooms offering the same beer on draft as what’s available to-go effectively boosts sales of each!
Stream the on-demand webinar yourself or share it with your brewery friends: Pricing for Profit: Benchmark Your Beer webinar.
For more information visit www.arryved.com.
