Homemade soft drinks can be a real profit maker for your restaurant. However, many entrepreneurs underestimate hidden costs such as syrup, CO2, cups and labor. In this article, you'll learn step-by-step how to calculate the full cost price of your own soft drink concept.
All cost components of homemade soft drinks
A homemade soft drink consists of more than just syrup and water. For a correct cost price calculation, you add up all components:
- Syrup or concentrate - the flavor base
- Sparkling water or CO2 - for the bubbles
- Tableware - glass, straw, garnish
- Labor time - mixing and serving
- Overhead - energy, equipment depreciation
💡 Example: Homemade lemonade
For 1 glass of fresh lemonade (300ml):
- Lemon syrup: €0.35
- Sparkling water: €0.15
- Glass + straw: €0.20
- Garnish (mint, lemon): €0.25
- Labor time (2 min): €0.40
Total cost price: €1.35
Calculate syrup and concentrate costs
The basis of your soft drink is the syrup. Calculate how much syrup you use per glass and what it costs:
- Concentration ratio - usually 1:7 to 1:10 (1 part syrup, 7-10 parts water)
- Portion size - how many ml syrup per 300ml glass
- Purchase price per liter - what you pay for the syrup
Formula: Syrup per glass = (Glass volume / (Concentration + 1)) × Syrup price per ml
💡 Example: Cola syrup calculation
Concentration ratio 1:8, 300ml glass:
- Syrup per glass: 300ml / 9 = 33ml
- Syrup costs €12 per liter = €0.012 per ml
- Syrup costs: 33ml × €0.012 = €0.40
Sparkling water and CO2 costs
For carbonated drinks you need sparkling water. You can buy this or make it yourself with a CO2 system:
- Purchased sparkling water - €0.30 to €0.60 per liter
- Homemade with CO2 - €0.15 to €0.25 per liter
- CO2 cartridges - approximately €0.05 per glass
⚠️ Note:
A CO2 system requires an investment of €500-1500, but becomes cheaper at more than 50 glasses per day.
Tableware and presentation costs
Tableware and presentation also cost money. Include these in your cost price:
- Glasses - depreciation €0.10-0.20 per use
- Straws - €0.03-0.08 per piece
- Garnish - mint, lemon, ice: €0.15-0.30
- Napkins - €0.02-0.05 per set
Labor time and overhead
Don't forget the time it takes to make the drinks. This varies per concept:
💡 Example: Labor time calculation
Making fresh lemonade takes 2 minutes:
- Hourly wage staff: €12 per hour = €0.20 per minute
- Labor time: 2 minutes × €0.20 = €0.40
- Overhead (25%): €0.40 × 1.25 = €0.50
VAT and determining selling price
Soft drinks fall under 9% VAT. Calculate your minimum selling price based on desired margin:
Minimum selling price excl. VAT = Cost price / (Desired margin % / 100)
💡 Example: From cost price to selling price
Cost price €1.35, desired margin 25%:
- Minimum price excl. VAT: €1.35 / 0.25 = €5.40
- Price incl. 9% VAT: €5.40 × 1.09 = €5.89
- Round to: €5.95
How do you calculate the cost price of homemade soft drinks? (step by step)
Determine the recipe and concentration
Decide how much syrup you use per glass. Test different ratios (1:7 to 1:10) and choose the best taste. Note exactly how many ml syrup per 300ml glass.
Calculate all ingredient costs
Add up: syrup (ml × price per ml), sparkling water (€0.15-0.25 per glass), garnish (€0.15-0.30), and tableware (€0.15-0.25). Don't forget ice, straws or napkins.
Add labor time and overhead
Calculate how many minutes it takes to make. Multiply by your hourly wage and add 25% overhead for energy and equipment depreciation.
✨ Pro tip
Check your cost price monthly by dividing your total syrup purchases by the number of glasses sold. This way you'll see if your calculation matches reality.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
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Frequently asked questions
Should I include VAT in the cost price calculation of soft drinks?
No, always calculate without VAT. Soft drinks have 9% VAT. First calculate your cost price and desired margin excl. VAT, then add 9% for the final price.
What is a normal margin on homemade soft drinks?
A healthy margin is between 20-30% of the selling price. This means that ingredients, labor and overhead together should be a maximum of 20-30% of your selling price.
How often should I adjust my soft drink prices?
Check your purchase prices for syrup and CO2 every 3 months. If suppliers raise their prices, adjust your cost price calculation to maintain your margin.
Is homemade always cheaper than purchased soft drinks?
Not always. At less than 30 glasses per day, purchased may be more cost-effective. Calculate both options and don't forget labor time and equipment investments.
What costs do entrepreneurs often forget with soft drinks?
Labor time, depreciation of glasses, garnish and overhead. Also, the investment in CO2 systems is often not included in the cost price per glass.
📚 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
- Warenwetbesluit Bereiding en behandeling van levensmiddelen (2024) — Official source
- WHO — Foodborne diseases estimates (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.
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