Most bartenders think they know what their cocktails cost - they're usually wrong by 30% or more. That premium gin and tonic you're selling might be eating into profits without you realizing it. Here's how to calculate the real cost price and protect your margins.
Why calculate cost price for cocktails?
A cocktail seems simple: gin, tonic, ice cubes, lime. But the real costs hide in the details. Premium gin costs €35 per bottle, but how much goes into each cocktail? And what about the garnish, ice, and prep time?
⚠️ Note:
Alcoholic beverages fall under 21% VAT, not 9% like food. Always calculate your selling price excluding VAT for your pour cost calculation.
The formula for cocktail cost price
For cocktails we use pour cost - the equivalent of food cost but for drinks:
Pour cost % = (Ingredient costs / Selling price excl. VAT) × 100
A typical pour cost for cocktails runs between 18% and 25%. Hit above 25% and you're not earning enough per cocktail.
💡 Example: Premium gin and tonic
You sell a gin and tonic for €12.10 (incl. 21% VAT).
- Premium gin (5cl): €2.33
- Fever Tree tonic (15cl): €0.75
- Lime (2 wedges): €0.15
- Ice cubes: €0.05
Total ingredient costs: €3.28
Selling price excl. VAT: €12.10 / 1.21 = €10.00
Pour cost: (€3.28 / €10.00) × 100 = 32.8%
That's too high! Aim for a maximum of 25%.
Count all ingredients
With cocktails you easily forget small ingredients. But they add up fast:
- Spirits: Calculate per centiliter (70cl bottle = 70 portions of 1cl)
- Mixers: Tonic, soda, fruit juices - calculate per milliliter
- Garnish: Lime, lemon, olives, cherries
- Ice: Also costs money (freezer electricity, water, time)
- Special ingredients: Bitters, syrups, fresh herbs
💡 Example: Mojito cost price
Popular cocktail, but watch out for fresh ingredients:
- White rum (5cl): €1.85
- Fresh mint (5 leaves): €0.25
- Lime (half fruit): €0.30
- Cane sugar: €0.10
- Soda water (10cl): €0.15
- Ice: €0.05
Total: €2.70 per mojito
Pass through premium ingredients
Premium gin costs more, so your cocktail becomes pricier. But you can pass this through in your selling price:
- Standard gin: €18/bottle → €1.29 per 5cl
- Premium gin: €35/bottle → €2.50 per 5cl
- Super premium: €55/bottle → €3.93 per 5cl
The difference of €1.21 per cocktail you can pass through. At 25% pour cost this means €4.84 higher selling price.
💡 Example: Premium vs. standard
Hendricks gin and tonic vs. standard gin and tonic:
- Standard cost price: €2.04 → selling price €9.92 (incl. VAT)
- Premium cost price: €3.28 → selling price €15.93 (incl. VAT)
Difference: €6.01 - that justifies the premium price.
Optimize your cocktail menu
Not all cocktails deliver equal profits. From analyzing actual purchasing data across different restaurant types, the patterns are clear. Check your pour cost per cocktail and optimize accordingly:
- 18-22% pour cost: Highly profitable - promote these cocktails
- 22-25% pour cost: Good profitability - standard menu
- 25-30% pour cost: Moderate - consider price increase
- Above 30%: Loss-making - adjust or remove
⚠️ Note:
Don't forget labor costs. A complex cocktail that takes 5 minutes to make costs more than a simple gin and tonic that takes 30 seconds. Factor this into your pricing.
Digital cost price calculation
Manually calculating all cocktails eats up hours. Tools like KitchenNmbrs let you:
- Manage all ingredients and prices centrally
- Automatically calculate pour cost per cocktail
- Immediately see which cocktails deliver the most profit
- Adjust prices when suppliers become pricier
This saves hours of calculating and prevents costly mistakes in your pricing.
How do you calculate the cost price of your cocktail?
List all ingredients
Note each ingredient with exact quantity: gin (5cl), tonic (15cl), lime (2 wedges), ice, any garnish. Don't forget anything, not even the smallest ingredients like bitters or syrup.
Calculate costs per ingredient
Divide the purchase price by the number of portions. A €35 gin bottle (70cl) gives 14 portions of 5cl = €2.50 per portion. Add up all ingredient costs.
Calculate the pour cost percentage
Divide the total ingredient costs by your selling price excluding VAT and multiply by 100. For alcoholic beverages this is 21% VAT, so €12.10 incl. becomes €10.00 excl. VAT.
✨ Pro tip
Track your pour cost on premium gin cocktails weekly for 4 weeks straight. You'll spot patterns in over-pouring that can cost you €200+ monthly per bartender.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
What is a good pour cost for cocktails?
A typical pour cost runs between 18% and 25%. Below 22% is highly profitable, above 25% you're probably losing money on that cocktail.
Should I include VAT in my cocktail cost price?
No, always calculate excluding VAT. Alcoholic beverages carry 21% VAT. A cocktail of €12.10 incl. VAT equals €10.00 excl. VAT for your calculation.
How do I calculate the costs of fresh ingredients like mint?
Weigh or count how much you use per cocktail. A bunch of mint for €1.50 gives about 30 cocktails = €0.05 per cocktail. For fresh mint in mojitos calculate around €0.25 per cocktail.
What if my supplier raises gin prices?
Update your cost price calculation immediately and adjust your selling prices if needed. A €5 increase per bottle of gin means €0.36 more per cocktail at 5cl portions.
📚 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.
Calculate your cocktail costs down to the ml
Drink margins seem high, but spillage and free pours eat them up. KitchenNmbrs calculates the exact cost price of every cocktail and drink. Try it free.
Start free trial →