Gross profit on beverages - calculator 2026

Quick answer

A restaurant owner recently discovered they were losing €300 monthly just from inconsistent beer pours. Most hospitality entrepreneurs can't pinpoint their exact profit per bottle of wine or beer.

A restaurant owner recently discovered they were losing €300 monthly just from inconsistent beer pours. Most hospitality entrepreneurs can't pinpoint their exact profit per bottle of wine or beer. Here's how to calculate gross profit on all your beverages step by step.

What is gross profit on beverages?

Gross profit represents what's left after subtracting purchase costs from your selling price. Beverages typically deliver higher percentages than food since they last longer and need minimal processing.

? Example:

You buy a bottle of wine for €8.00 and sell it for €32.00 (incl. 21% VAT).

Selling price excl. VAT: €32.00 / 1.21 = €26.45
Purchase price: €8.00
Gross profit: €26.45 - €8.00 = €18.45

Gross profit percentage: (€18.45 / €26.45) × 100 = 69.8%

The formula for calculating gross profit

You can calculate gross profit two ways:

Gross profit in euros = Selling price excl. VAT - Purchase price
Gross profit percentage = (Gross profit / Selling price excl. VAT) × 100

⚠️ Note:

Always work with selling prices EXCLUDING VAT. Alcoholic beverages carry 21% VAT, while non-alcoholic beverages in hospitality have 9% VAT.

Calculating different types of beverages

Bottle of wine

? Example bottle of wine:

Purchase price: €12.50 per bottle

Selling price: €48.00 incl. 21% VAT

Selling price excl. VAT: €48.00 / 1.21 = €39.67
Gross profit: €39.67 - €12.50 = €27.17
Gross profit percentage: 68.5%

Beer per glass

With beer, calculate per individual glass. You'll need to determine how many glasses each keg produces.

? Example beer:

50 liter keg for €85.00 → 200 glasses of 0.25L

Purchase price per glass: €85.00 / 200 = €0.43
Selling price: €3.50 incl. 21% VAT = €2.89 excl. VAT
Gross profit per glass: €2.89 - €0.43 = €2.46
Gross profit percentage: 85.1%

Soft drink

Soft drinks in hospitality carry 9% VAT (not 21% like alcohol).

? Example soft drink:

Cola from postmix: €0.18 per glass

Selling price: €3.25 incl. 9% VAT = €2.98 excl. VAT
Gross profit: €2.98 - €0.18 = €2.80
Gross profit percentage: 94.0%

Standard gross profit margins per beverage type

Here are typical hospitality margins for comparison:

Beer: 80-90%
Wine per glass: 70-85%
Wine per bottle: 65-75%
Soft drink: 90-95%
Coffee: 85-92%
Cocktails: 75-85%

These percentages exceed food margins because beverages require minimal processing and last longer.

Where does your beverage profit leak away?

I've seen this mistake cost the average restaurant EUR 200-400 per month - inconsistent portion control and waste tracking. Here are the main culprits:

Overly generous pours: Pouring 0.28L instead of 0.25L loses you 12% in sales
Spillage and waste: Every discarded bottle costs the full purchase price
Theft: Staff giving away free drinks or consuming them
Wrong VAT: Alcohol carries 21% VAT, not 9%

⚠️ Note:

A 10% difference in beverage profit can mean thousands of euros annually. So monitor your margins closely.

How do you calculate gross profit on beverages? (step by step)

Gather your purchase prices

Note the purchase price of your beverages. For beer and soft drinks from tap: divide the keg price by the number of glasses you get from it.

Calculate selling price excluding VAT

Divide your menu price by 1.21 (alcohol) or 1.09 (soft drink). This is your actual selling price without VAT.

Subtract purchase price from selling price

Selling price excl. VAT minus purchase price = gross profit in euros. Divide this by selling price excl. VAT and multiply by 100 for the percentage.

✨ Pro tip

Track your beverage margins on the top 3 selling drinks weekly for 4 weeks. These typically represent 60-70% of your total beverage revenue.

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Frequently asked questions

Should I include VAT in my gross profit calculation?

No, always calculate using prices excluding VAT. VAT isn't profit - you pass it to tax authorities. Alcohol carries 21% VAT, while soft drinks in hospitality have 9%.

What constitutes a good gross profit on beverages?

Beer and soft drinks can achieve 80-95% gross profit, wine typically 65-85%. These exceed food margins because beverages need minimal processing and have longer shelf lives.

How do I calculate beer cost from a keg?

Divide the keg price by total glasses it produces. A 50L keg typically yields around 200 glasses of 0.25L, but verify this with your supplier since it varies.

Why does my calculated profit differ from actual profit?

Spillage, generous pours, theft, and product waste reduce actual profit below calculations. Factor in broken glasses and other operational losses too.

Should I include staff drinks in my calculation?

Yes, free staff drinks cost you the purchase price. Include this in total costs or establish a maximum allowance per employee to control expenses.

How often should I review my beverage pricing?

Check monthly for supplier price adjustments. Beer and wine prices fluctuate regularly, directly affecting your profit margins and requiring pricing updates.

ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

Sources consulted

EU Verordening 852/2004 — Levensmiddelenhygiëne (2004) — Official source
EU Verordening 853/2004 — Hygiënevoorschriften voor levensmiddelen van dierlijke oorsprong (2004) — Official source
EU Verordening 1169/2011 — Voedselinformatie aan consumenten (2011) — Official source
NVWA — Hygiënecode voor de horeca (2024) — Official source
NVWA — Allergenen in voedsel (2024) — Official source
Codex Alimentarius — International Food Standards (2024) — Official source
FSA — Safer food, better business (HACCP) (2024) — Official source
BVL — Lebensmittelhygiene (HACCP) (2024) — Official source

Food Standards Agency (FSA) — https://www.food.gov.uk

The HACCP standards shown in this application are for informational purposes only. KitchenNmbrs does not guarantee that displayed values are current or complete. Always consult the FSA or your local authority for the latest regulations.

Written by

Jeffrey Smit

Founder & CEO of KitchenNmbrs

Jeffrey Smit built KitchenNmbrs from 8 years of hands-on experience as kitchen manager at 1NUL8 Group in Rotterdam. His mission: give every restaurant owner control over food cost.

8 years kitchen manager at 1NUL8 Group Rotterdam

Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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How do I calculate my gross profit on beverages?