Picture this: you're confidently pricing your draft beer based on the keg cost, only to discover months later that hidden expenses are silently eating 20-30% of your margins. Most operators focus solely on the beer's purchase price per hectoliter. Yet keg rental, CO2, cooling, and rinsing losses create a web of additional costs that transform what seemed profitable into barely breaking even.
All cost items for draft beer
Calculating accurate cost price means accounting for more than just beer. You've got 5 distinct cost items:
- Beer itself: purchase price per hectoliter
- Keg costs: rental, transport, cleaning
- CO2: carbon dioxide for pressure and pouring
- Cooling: energy for draft tap installation
- Rinsing loss: beer that's wasted when rinsing lines
Step 1: Calculate beer costs per glass
Begin with the beer's purchase price. One hectoliter (100 liters) yields roughly 400 glasses of 25cl.
💡 Example:
Heineken keg 50 liters costs €85 at purchase:
- 50 liters = 200 glasses of 25cl
- Beer costs per glass: €85 / 200 = €0.425
Step 2: Add keg costs and transport
Keg rental comes from the brewery. You'll typically pay €8-12 per keg covering rental, transport and cleaning. Distribute these costs across every glass from that keg.
💡 Example:
Keg costs €10 per 50-liter keg:
- €10 / 200 glasses = €0.05 per glass
- Total so far: €0.425 + €0.05 = €0.475 per glass
Step 3: Add CO2 and cooling
CO2 runs approximately €0.01-0.02 per glass. Cooling your tap installation averages €0.03-0.05 per glass, varying with energy costs and tap quantity.
💡 Example:
Extra costs per glass:
- CO2: €0.015
- Cooling: €0.04
- Subtotal: €0.475 + €0.015 + €0.04 = €0.53 per glass
Step 4: Calculate rinsing loss
Daily line rinsing (mandatory for quality) wastes beer. Factor in 3-5% loss on total beer purchases.
⚠️ Note:
Operators consistently overlook rinsing loss, but it accumulates fast. At 5% loss your cost price jumps 5% higher than anticipated.
Account for rinsing loss by dividing your cost price by 0.95 (at 5% loss):
💡 Example:
Cost price after rinsing loss:
- €0.53 / 0.95 = €0.558 per glass
- Total cost price: €0.56 per 25cl glass
From cost price to selling price
Maintain healthy beer margins by keeping pour cost between 18-25%. This functions as beer's equivalent to food cost percentage.
Formula: Minimum selling price excl. VAT = Cost price / (Pour cost % / 100)
💡 Example:
At 22% pour cost and €0.56 cost price:
- Minimum price excl. VAT: €0.56 / 0.22 = €2.55
- Price incl. 21% VAT: €2.55 × 1.21 = €3.09
- Rounded: €3.10 per glass
⚠️ Note:
Alcoholic beverages carry 21% VAT, not 9% like food. Always calculate with 21% for beer, wine and spirits.
Keep track of cost price per beer brand
Different beer brands carry different purchase prices. Premium beers cost more, but you can charge premium prices too. From years of working in professional kitchens, I've seen operators boost overall margins by 15% simply by tracking cost price per brand and adjusting accordingly.
Systems like KitchenNmbrs let you set cost price per drink and automatically calculate pour cost, including additional costs such as kegs and CO2.
How do you calculate draft beer cost price? (step by step)
Calculate basic costs per glass
Divide the purchase price of the keg by the number of glasses. A 50-liter keg yields approximately 200 glasses of 25cl. Add keg costs (€8-12) to the beer price.
Add CO2 and cooling
Calculate €0.01-0.02 per glass for CO2 and €0.03-0.05 for cooling of the tap installation. These costs vary per café, but are always present.
Compensate for rinsing loss
Divide your total cost price by 0.95 to account for 5% rinsing loss. This beer is lost when daily rinsing lines but still costs you money.
✨ Pro tip
Audit your CO2 consumption every 6 weeks by tracking cylinders used versus beer sold. Leaky connections can double your CO2 costs without obvious signs.
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
How many glasses do I get from a 50-liter keg?
Roughly 200 glasses of 25cl, accounting for 5% rinsing loss. Without loss it would be exactly 200 glasses, but rinsing and foam always waste some beer.
What is a good pour cost for draft beer?
Between 18-25% works for most operations. Premium beers can hit 18-20%, regular beers often run 22-25%. Below 18% and beer becomes overpriced; above 25% and you're barely profitable.
Should I include VAT in my beer cost price?
Calculate cost price excluding VAT. Alcoholic beverages fall under 21% VAT rates. You purchase excluding VAT and sell including 21% VAT.
📚 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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