Is an Open Bar Really Worth It? Let’s Do the Math

Planning a group outing in NYC? You’ve probably debated whether an open bar is worth the cost. Let’s break it down.

What Is an Open Bar?

An open bar means paying a fixed price per person for unlimited drinks over a set time. Prices vary based on what’s included—some cover only well liquor, beer, and wine, while others include top-shelf spirits or cocktails.

Here are the three main variations:

• Standard Open Bar: Includes basic mixed drinks, domestic beer, and house wine.
• Premium Open Bar: Features top-shelf liquors and better beer/wine options.
• Beer & Wine Open Bar: The cheapest option, covering only beer and wine.

The Dive Bar Scenario

At a dive bar in NYC, an open bar generally costs $45–$65 per person for two hours before tax and tip. Let’s assume drinks cost:

• Beer: $10
• Well drinks: $14
• Shots: $8-$12

For the open bar to be worth it at a $55/person rate, each person would need to drink:

• 6 beers ($10 each = $60)
• 4 well drinks ($14 each = $56)
• 3 well drinks and 2 shots ($14 × 3 + $10 = $52)

For a group that drinks steadily, this could be a decent deal. But if your guests are more casual drinkers, they might not hit the numbers to justify the cost.

The Upscale Bar Scenario

At a higher-end NYC bar, open bar rates jump to $65–$95 per person for two hours before tax and tip. Drink prices here are usually:

• Cocktails: $17
• Wine: $14 per glass
• Top-shelf liquor: $20-$25 per drink
• Beer: $12

At an $80/person rate, to break even, you’d need to drink:

• 5 cocktails ($17 each = $85)
• 6 glasses of wine ($14 each = $84)
• 4 top-shelf drinks ($20 each = $80)
• 7 beers ($12 each = $84)

An open bar makes the most sense if your group prefers cocktails or top-shelf liquor. But if your guests lean toward beer or wine, you might not get enough value.

Other Factors to Consider

1. Taxes & Gratuity Add Up: NYC venues typically add 20% gratuity and 8.875% tax, increasing the total cost significantly.
2. The Host Usually Pays Upfront: Most bars require the host to prepay for the open bar package based on the expected guest count, which can be a big financial commitment. However, some venues offer flexibility, such as allowing guests to pay individually.
3. Venue Policies: Some bars have rules against double-fisting or taking shots.
4. Drink Speed: If service is slow, you might not get enough drinks to make it worthwhile.
5. Flat Rate vs. Individual Consumption: If some guests drink a lot while others barely touch their glass, an open bar may not be cost-effective for the whole group.

So, Is an Open Bar Worth It?

It depends on the vibe of your event. If your group drinks consistently and prefers cocktails or higher-end drinks, an open bar can be a good deal—especially at an upscale venue. But if guests are casual drinkers, or if beer and wine are the main choices, paying per drink is likely the better option.

We hope this helps!
Share this with a friend who’s always planning events, or with someone who could use a little extra guidance when navigating event packages.