What does it mean to “upcharge” a drink?

To "upcharge" a drink refers to the practice of charging a higher price for premium substitutes or upgraded versions of a standard drink. This can occur in several contexts, such as when a customer opts for top-shelf liquor instead of well liquor, or if they choose to add an extra ingredient or a flavored syrup that enhances the drink's quality or taste. The rationale behind this is that premium products often come at a higher cost to the establishment, which in turn is reflected in the price charged to the customer. Additionally, upcharging allows bartenders to maintain profit margins while offering customers the option to enhance their drinking experience.

In contrast, offering a drink at a discounted price represents a promotion rather than an upcharge. Serving a larger drink does not constitute an upcharge either; it pertains more to drink size or volume rather than price adjustments for ingredients. Finally, mixing drinks with less alcohol could actually fall under a different pricing strategy where the drink is less expensive due to its lower alcohol content, thus moving away from the concept of an upcharge.