Most bar owners think they can eyeball cocktail costs and still hit 65% margins. They're wrong. Estimating your pour cost without precise calculations means you're likely losing money on every drink you serve.
What does 65% margin mean for cocktails?
With cocktails, you work with pour cost - the equivalent of food cost but for beverages. A margin of 65% means your pour cost can be a maximum of 35%.
💡 Example:
You sell a Mojito for €12.00 incl. 21% VAT:
- Selling price excl. VAT: €12.00 ÷ 1.21 = €9.92
- At 35% pour cost: max ingredient costs €3.47
- Your margin: €9.92 - €3.47 = €6.45 (65%)
Calculate the cost price of each cocktail
Add up ALL ingredients, even the small ones. Many bars forget to include limes, syrup and garnish in their calculations. From tracking this across dozens of restaurants, I've seen bars consistently underestimate costs by 15-20% just from missing these "minor" ingredients.
💡 Example Mojito cost price:
- White rum (6cl): €1.80
- Fresh mint (10 leaves): €0.30
- Lime (½ piece): €0.25
- Cane sugar (1 tsp): €0.05
- Soda water (10cl): €0.15
- Ice: €0.10
Total: €2.65 (27% pour cost - well within 35%)
Choose your spirits strategically
Premium spirits give higher margins because guests are willing to pay more, but your pour cost percentage stays the same.
- House spirits: Cheap, low selling price, low margin in euros
- Premium spirits: More expensive, higher selling price, higher margin in euros
- Top shelf: Much more expensive, but guests accept high prices
⚠️ Note:
Alcoholic beverages have 21% VAT, not 9%. Always calculate your cocktail prices excl. VAT for your pour cost calculation.
Optimize your menu engineering
Not all cocktails need to be equally profitable. Use appealing cocktails to attract guests, and earn on other drinks.
- Signature cocktails: High margin, unique, justifies premium price
- Classics: Well-known cocktails, competitive prices, average margin
- Loss leaders: Happy hour specials, lower margin but more volume
Control your purchasing and portioning
The calculation won't matter if your bartender pours too generously. Standardize your recipes and train your team.
💡 Example portion control:
Jigger of 6cl for spirits - not "by eye":
- 1cl too much rum per cocktail = €0.30 extra costs
- At 50 cocktails/day = €15/day loss
- Per year: €5,475 leaking away from over-pouring
Monitor your results weekly
Track your bestsellers every week. If your pour cost exceeds 35%, adjust your recipe or price. Tools like KitchenNmbrs can automate these calculations and alert you before margins slip.
How do you create a cocktail menu with 65% margin? (step by step)
Calculate the cost price of each cocktail
Add up all ingredients: spirits, mixers, garnish, ice. Don't forget any component, not even the small ones like syrup or lemon juice. Use your actual purchase prices.
Determine your minimum selling price
Divide your ingredient costs by 0.35 to get your minimum price excl. VAT. Then multiply by 1.21 for the price incl. 21% VAT on your menu.
Test and optimize your menu
Start with 8-12 cocktails and monitor which ones sell best. Replace underperforming cocktails and increase prices if your pour cost gets too high.
✨ Pro tip
Track your 3 bestselling cocktails daily for 2 weeks straight. If those stay under 30% pour cost, you'll easily hit your 65% margin target across the entire menu.
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 ice count toward the cost price of cocktails?
Yes, budget approximately €0.10 per cocktail for ice. It seems small, but with many cocktails it adds up and affects your pour cost percentage.
What if guests think my cocktail prices are too high?
Offer different price levels: house cocktails, premium and signature. That way every guest has a choice and you maintain your margin on the more expensive options.
How often should I adjust my cocktail prices?
Track your purchase prices and pour cost monthly. Adjust prices if your supplier raises spirit prices or if your pour cost exceeds 35%.
Can I use different margins for different cocktail types?
Yes, signature cocktails can have 70% margin, classics 60-65%, and happy hour specials 50%. Make sure your average stays above 65%.
📚 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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