A table orders two wines and two beers totaling €20, but you're unsure if that generated €12 or €16 in profit. This uncertainty around beverage cost per table affects countless restaurants daily. Most establishments can't pinpoint their exact drink costs per table, creating invisible profit leaks.
What is beverage cost?
Beverage cost (also called 'pour cost') shows the percentage of your drink price spent on purchasing. Just like food cost for dishes, this reveals your actual profit margin on beverages.
💡 Example:
A table of 4 people orders:
- 2 glasses of wine at €6.50 = €13.00
- 2 beers at €3.50 = €7.00
Total drink sales: €20.00 (excl. VAT: €16.53)
Purchasing costs: €4.20
Beverage cost: (€4.20 / €16.53) × 100 = 25.4%
VAT on alcoholic beverages
Note: Alcoholic beverages carry 21% VAT, not 9%! This difference significantly impacts your calculations.
⚠️ Attention:
A beer priced at €3.50 incl. VAT equals €2.89 excl. VAT (€3.50 / 1.21). Many operators calculate using €3.50, which artificially deflates their beverage cost.
The formula for beverage cost
The basic formula is:
Beverage cost % = (Purchasing costs drinks / Drink sales excl. VAT) × 100
For alcoholic beverages:
- Sales price excl. VAT = Menu price / 1.21
- Non-alcoholic in restaurant = Menu price / 1.09
- Purchasing price per glass = Bottle price / number of glasses per bottle
Calculation per drink type
Wine per glass:
💡 Wine example:
A bottle of wine costs €8.50, you pour 5 glasses per bottle
- Cost price per glass: €8.50 / 5 = €1.70
- Sales price: €6.50 incl. VAT = €5.37 excl. VAT
- Beverage cost: (€1.70 / €5.37) × 100 = 31.7%
Draft beer:
💡 Beer example:
A 50 liter draft keg costs €85, you pour 200 glasses of 0.25L
- Cost price per glass: €85 / 200 = €0.43
- Sales price: €3.50 incl. VAT = €2.89 excl. VAT
- Beverage cost: (€0.43 / €2.89) × 100 = 14.9%
Calculate average per table
For a complete table calculation, add up all drinks:
- Record all drink sales from the table
- Calculate total sales value excl. VAT
- Add up all purchasing costs
- Divide purchasing costs by sales value excl. VAT
Normal beverage cost percentages
Standard percentages per drink type:
- Draft beer: 15-20%
- Bottled beer: 25-35%
- Wine per glass: 25-35%
- Cocktails: 18-25%
- Soft drinks: 15-25%
An average beverage cost for bars or restaurants typically falls between 20-30%. However, most kitchen managers discover too late that their actual costs run 3-5% higher than calculated due to spillage and over-pouring.
Where things often go wrong
Many operators make these errors:
- Calculate with price incl. VAT instead of excl. VAT
- Forget that alcohol carries 21% VAT
- Don't track how many glasses come from a bottle
- Don't account for spillage (what goes beside the glass)
⚠️ Attention:
For cocktails, include all ingredients: the spirit, mixers, garnish, ice and even the straw. These small items are frequently overlooked.
Track digitally
Many bars use systems to track this automatically. Apps can set cost prices per drink and calculate beverage costs automatically, eliminating manual VAT calculations.
How do you calculate beverage cost per table? (step by step)
Gather all drink sales from the table
Note all drinks the table ordered with the sales prices. Pay attention to the difference between alcoholic (21% VAT) and non-alcoholic (9% VAT).
Calculate the total sales value excl. VAT
Divide alcoholic drinks by 1.21 and non-alcoholic by 1.09 to get the price excl. VAT. Add all amounts excl. VAT together.
Calculate the purchasing costs per drink
For wine: bottle price / number of glasses per bottle. For beer: keg price / number of glasses per keg. For cocktails: add up all ingredients.
Add up all purchasing costs
Sum all individual purchasing costs of the drinks this table consumed. This is your total beverage cost for this table.
Divide purchasing costs by sales value and multiply by 100
Beverage cost % = (Total purchasing costs / Total sales value excl. VAT) × 100. This gives you the percentage for this specific table.
✨ Pro tip
Track your beverage cost on Friday and Saturday nights for 4 consecutive weeks. These high-volume shifts reveal your true costs including spillage and over-pouring that slower periods might hide.
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 my beverage cost calculation?
No, always calculate with prices excl. VAT. Alcoholic beverages have 21% VAT, so divide by 1.21. Non-alcoholic beverages in restaurants have 9% VAT.
What is a normal beverage cost for a restaurant?
For restaurants, the average beverage cost is between 20-30%. Draft beer is often around 15-20%, wine per glass around 25-35%.
How do I calculate the cost price of a cocktail?
Add up all ingredients: the spirit, mixers, fresh fruit, ice, garnish and even straws. Many bars forget the small ingredients, making their cost price too low.
How many glasses do I get from a bottle of wine?
From a standard 75cl bottle you get approximately 5 glasses of 15cl. With more generous pouring (18cl) you get 4 glasses per bottle.
Should I include spillage in my calculation?
Yes, spillage (what goes beside the glass) increases your actual cost price. With draft beer, often 2-5% is lost due to foam and spilling.
How often should I recalculate beverage costs?
Review your beverage costs monthly, or immediately after supplier price changes. Seasonal cocktail menus require fresh calculations since ingredient costs fluctuate significantly.
📚 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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