Pour Cost % = This is calculated by dividing the cost of the ounces poured
by the amount of dollars
collected (liquor cost / liquor sales). It is also referred to as liquor cost
percentage.
Shrinkage % = Shrinkage shows how far off the actual pour cost is from what
it should have been.
Shrinkage Goal = In this, we have a 2.50% leeway. If the shrinkage is lower
than 2.50%
The number of inventory days is based upon locations. If the company has more
than one location
(i.e. front and back bar), then it is possible that the number of days could
be greater than the number
of actual days(i.e. 20 days at the front bar and 20 days at the back bar for
a total of 40 days.)