Draught Beer Profitability

Glacier Design specializes in helping businesses gain draught beer profitability through draught system installation and design

Is your business reaping the benefits of draught beer profitability? As one of the most popular and profitable products available to bars, it’s a no-brainer to incorporate a draught system into your beverage program. Cold draught beer, when poured from a well-kempt and maintained draught system, can help your bar gain more revenue than many other traditional cocktails or beverages. So, how much money can you make off one keg?

In this blog, we’ll walk you through how to calculate the potential profit of a beer keg to show just how profitable draught beer can be. You can replicate this with your own kegs as well if you’re curious about how much you’re getting out of your kegs. With the right equipment and delicious beer on tap, a draught system can help your bar yield more revenue and more beer-loving customers.

How to Determine Draught Beer Profitability

Determining your draught beer profitability can help paint a clearer picture of just how profitable this classic beverage can be. All it takes is a few simple calculations to find out how much your business could be raking in from a single keg.

Determining Keg Yield
First, you’ll need to determine how many pints of beer your keg will yield. Here is an example of how to determine a keg’s yield:

  • A half-barrel keg holds 1984 ounces of draught beer, served in 16-ounce pints at most bars.
  • Each pint includes a foamy head of about 1.5 ounces, leaving approximately 14.5 ounces of beer per pint.
  • By dividing the keg’s total ounces by the beer in each pint, the estimated yield of one keg is around 130 pints of draught beer, factoring in a slight rounding down for spillage.

Typically, a single keg pours around 130 pints of draught beer. That’s quite a lot of happy customers, but how do you determine the potential profit from the keg’s beer yield?

Determining Keg Revenue
To figure out how much money you could make from a keg of beer, you can follow this simple calculation.

  • First, multiply the cost of one pint of beer by the number of pints you get from a keg to determine its gross profit. For instance, if you sell a pint for $5.50 and a keg makes around 130 pints, the gross profit from that keg would be $715.

Next, you’ll need to factor in the wholesale cost of the keg itself, which we’ll assume to be $100 for this example.

  • Subtract the cost of the keg from the gross profit from the beer to determine your net profit. In this case, you would use this equation: $715 – $100 = $615. Your net profit in this example would be $615

That’s a profit margin of 86%, which is quite good in the bar and restaurant business. Selling draught beer can significantly boost your yearly earnings, especially since customers love having it on the menu.

While $615 in net profit might seem like a drop in the bucket, bear in mind that most bars go through several kegs a week and hundreds per year. Picture this: if you sell 5 kegs a week, your weekly net profit from draught beer sales will soar to $3,075. Keep up that momentum, and over the course of a year, selling 260 kegs, you’ll be looking at a whopping $159,900 in net profit!

Reap the Benefits of Draught Beer Profitability with Glacier Designs

At Glacier Design, we are big advocates for draught beer, having witnessed its sales benefits firsthand through our clients. Customers love it, and the potential profits are nothing to overlook. However, there are some important considerations to ensure your profits are maximized.

The key to steady profits from draught beer sales lies in reliable installation and regular maintenance and cleaning. If your draught beer system is not properly installed or balanced, issues like waste, spillage, and even spoilage may arise. Without regular maintenance and cleaning of beer lines and other components, the flavor of your beer can become compromised.

Your customers deserve to enjoy a refreshing, perfectly balanced beer every time they enter your doors. Weird flavors, excessive foam, or contaminants in their beer may have them choosing another venue. You don’t want to miss out on the high profitability of draught beer due to faulty installation or neglected maintenance.

At Glacier, we excel in draught beer system installation and maintenance. We’ve established ourselves as a leading provider of tap systems around the U.S. and a reliable resource for draught systems and bar equipment. If you’re considering a new draught system installation or seeking guidance on selecting the right system for your business, give us a call at 877-617-2337. Our passion is assisting business owners like you in serving top-quality beer and achieving success. Let’s collaborate to harness the potential profits of draught beer sales at your establishment.

Leave a Reply

Your email address will not be published. Required fields are marked *