Local Bars Hate This Trick

Cynthia May

2 min read

·

18-01-2025

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For years, savvy drinkers have employed a simple strategy to stretch their budgets at their favorite watering holes: the "well" drink. Ordering a well drink – essentially, the house brand of liquor – is a classic way to save money compared to ordering a specific brand. But local bars are starting to feel the pinch, and some are quietly implementing strategies to counteract this age-old cost-saving technique.

The Economics of the Well Drink

The "well" system is based on economics of scale. Bars purchase bulk liquor at significantly lower prices than the brands you'd find on a premium shelf. This allows them to offer drinks at a lower price point, making them more attractive to budget-conscious patrons. The profit margins are smaller, but the higher volume of sales compensates.

Why Bars Are Pushing Back

However, the increasing popularity of well drinks presents a challenge for many bars. While volume sales help, the thinner profit margins on each individual drink can eat into overall revenue, especially when coupled with rising operating costs like rent and staff wages. Some argue this is impacting their ability to offer other services and maintain the overall quality of their establishment.

Strategies to Counter the Well Drink Trend

So, what are bars doing? Some are subtly increasing the prices of well drinks, while others are cleverly promoting their signature cocktails or premium spirit options. Many are focusing on upselling – encouraging customers to try higher-margin items through suggestive selling or highlighting daily specials. This incentivizes customers to spend more, boosting overall revenue and maintaining profitability.

Another trend is the increased emphasis on the overall experience. Rather than just focusing on the price of the drink, bars are focusing on atmosphere, entertainment, and unique offerings to entice customers to spend more. This approach values the complete experience over just the cost of the alcohol itself.

The Future of the Well Drink

The well drink remains a popular option for many, but its long-term viability might depend on how successfully bars adapt to shifting economic realities. The rise in operating costs and the desire to remain profitable are driving a subtle shift in the bar industry. While we might not see the complete demise of the well drink, its future seems to be intertwined with the strategies bars employ to stay afloat and cater to a wide range of customer preferences. Expect more creative cocktails, themed nights, and potentially a gradual increase in the price of the trusty well drink.