What’s Behind Increasingly Insane Cocktail Prices These Days?

…Annoyed that the industry standard has become a $20 and up cocktail, I went to test out the “Inflation Proof” offerings at Kimpton Eventi’s Back Bar. The menu of all $12 cocktails was put together by Jason Hedges of LT Hospitality.

Hedges explains that his idea is “to give people something that is well-made and affordable”—and not just at happy hour. As beverage director for a large restaurant group, he has the purchasing power to buy certain brands in bulk, essentially subsidizing the “Inflation Proof” section of the menu. The result is drinks like a Yuzu 75 with Roku gin and a Desert Paloma made with bacanora (an earthy, agave-based spirit from the Mexican state of Sonora) instead of tequila; my Dirty Martini used olive oil-washed Stoli vodka.

And that’s when I spotted the “Extra Fancy” section of the menu, featuring a $55 old fashioned made with Pappy Van Winkle, and I lost my mind all over again.

While it may not be unusual to see such a wide range of prices on food menus, on drinks menus—and at dedicated cocktails bars, specifically—prices have traditionally been kept within a fairly tight range. (I wouldn’t bat an eye at $55 prime rib next to a $12 soup of the day).

That’s now changing. As food and drink inflation curtails spending across the board—even the rich have hit their limit with $4,000 Cognac—bars have had to rethink their menus so as to not lose increasingly price-sensitive consumers while still milking max profitability from those looking to splurge. All of which is reshaping drink menus in sneaky ways beyond mere top-shelf surcharges.