In the restaurant business, alcohol is the single best margin generator. If you are going to have a profit, this is where the money is made. As an owner, you need to understand the value of alcohol sales and the associated costs. This aspect of operations not only generates high contribution margins, it covers its share of costs and ultimately adds to the bottom line.
Sales of alcohol are frequently the number one source of profit in the food service industry. Monitoring of alcohol costs as a ratio to sales is an internal control over employee abuse.