Cover Charge ROI Calculator
Determine the financial impact of setting a cover charge. This calculator helps you analyze the trade-off between door revenue and potential lost bar revenue from fewer guests.
Find the cover charge that maximizes your total nightly profit, not just door revenue.
Understand how a cover charge affects attendance and overall bar spend.
Make informed decisions about your door policy based on financial modeling.
Results
Enter values and click Calculate to see results
Understanding Cover Charge ROI
A cover charge seems like a straightforward way to increase revenue, but it has a hidden cost: lost customers. Every dollar you charge at the door might deter potential guests who would have otherwise spent money at your bar. The true financial impact is a balancing act.
Calculation: This tool calculates your total revenue in both scenarios (with and without a cover) and determines the incremental profit or loss. The ROI is then calculated based on any additional costs incurred to manage the cover charge.
A positive result means the cover charge is financially beneficial. A negative result means the lost bar revenue from fewer patrons is greater than the revenue you gain from the cover charge itself.
Frequently Asked Questions
Need Help Optimizing Your Hospitality Business?
I help businesses grow through smarter SEO - let’s chat, free of charge.
Get Free SEO Consultation