Most restaurant owners think they're making money on free-flow drinks packages until they actually crunch the numbers. The hidden costs pile up fast—overconsumption, waste, extra staff, and that 21% VAT rate many forget about. Here's how to calculate what these packages really cost you.
What's included in a free-flow drinks package?
A standard drinks package consists of various types of beverages that are served unlimited. The composition determines your costs:
- Beer: Pilsner, craft beer, alcohol-free
- Wine: White, red, rosé, sparkling
- Soft drinks: Cola, juice, water
- Hot beverages: Coffee, tea (optional)
Calculate your purchase costs per beverage type
Start with the purchase prices from your supplier. Convert everything to costs per glass:
💡 Example purchase prices:
- Pilsner (30L keg): €45 = €0.30 per glass (0.2L)
- House wine (3L bag-in-box): €12 = €1.00 per glass (0.15L)
- Cola (1.5L bottle): €1.20 = €0.12 per glass (0.2L)
- Coffee (1kg beans): €8 = €0.08 per cup
Don't forget additional costs for each beverage: CO2 for draft beer, lemon for wine, milk for coffee.
Account for overconsumption
With free-flow drinks, people consume way more than with individual orders. Calculate with these averages per person per 2 hours:
- Beer: 3-4 glasses
- Wine: 2-3 glasses
- Soft drinks: 1-2 glasses
- Coffee: 1-2 cups
⚠️ Note:
These are averages. An after-work drinks session (5:00 PM-7:00 PM) has different consumption than a Friday afternoon drinks (3:00 PM-6:00 PM). Adjust your calculation based on timing and target audience.
Calculate waste and leftovers
With free-flow, there's always waste—something most kitchen managers discover too late after their first big group booking. Account for these percentages on top of your consumption:
- Draft beer: 5-10% (foam, discarding last remainder)
- Wine: 10-15% (open bottles, tasting)
- Soft drinks: 5% (leftovers, spills)
💡 Example calculation 50 people, 2 hours:
Expected consumption + waste:
- Beer: 175 glasses × €0.30 = €52.50
- Wine: 125 glasses × €1.00 = €125.00
- Soft drinks: 75 glasses × €0.12 = €9.00
- Coffee: 75 cups × €0.08 = €6.00
Total purchase costs: €192.50 = €3.85 per person
Add staff and other costs
Free-flow requires more staff than regular service. Calculate with:
- Extra bartender: €25-30 per hour
- Glasses and tableware: €0.50-1.00 per person
- Cleaning afterwards: 30 minutes extra
Calculate your selling price
For a healthy margin, work with 20-25% pour cost (the beverage equivalent of food cost). This means your purchase costs should be a maximum of 25% of your selling price.
💡 Price calculation:
Total costs per person: €6.50 (€3.85 purchases + €2.65 staff/other)
At 25% pour cost: €6.50 ÷ 0.25 = €26.00 excl. VAT
Selling price: €26.00 × 1.21 = €31.46 incl. 21% VAT
⚠️ Note:
Alcoholic beverages fall under 21% VAT, not 9%. Even with packages that include soft drinks and coffee, 21% VAT applies if alcohol is the main component.
Vary your packages
Offer different levels to create more margin:
- Basic: Pilsner, house wine, soft drinks (€25-30)
- Premium: + craft beer, better wine (€35-40)
- Deluxe: + prosecco, cocktails (€45-55)
A food cost calculator can automatically track the pour cost of each package and show you which packages generate the highest profits.
How do you calculate the costs of a free-flow drinks package?
Gather all purchase prices
Note the purchase prices of beer, wine, soft drinks and coffee from your supplier. Convert everything to costs per glass or cup. Don't forget additional costs: CO2, lemon, milk.
Calculate expected consumption per person
Calculate with an average of 3-4 glasses of beer, 2-3 glasses of wine and 1-2 soft drinks per person per 2 hours. Add 5-15% waste to this, depending on the beverage type.
Add staff and other costs
Calculate €2-3 per person for extra staff, glasses and cleaning. Divide your total costs by 0.25 for a healthy 25% pour cost and multiply by 1.21 for the price including 21% VAT.
✨ Pro tip
Recalculate your package costs every 3 months based on actual consumption data from past events. Most operators discover their wine waste is 20% higher than expected, significantly impacting profitability.
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
What VAT applies to free-flow drinks packages?
21% VAT, because alcoholic beverages are the main component. Even if soft drinks and coffee are included in the package, the higher rate applies to the entire package.
How much do people drink on average at a free-flow drinks event?
Per person per 2 hours: 3-4 glasses of beer, 2-3 glasses of wine, 1-2 soft drinks. This depends on the time of day, target audience and duration of the event.
What is a healthy pour cost for drinks packages?
20-25% is standard. This means your purchase costs should be a maximum of a quarter of your selling price. Lower is possible, but becomes difficult with free-flow due to higher consumption.
Should I account for waste?
Yes, calculate 5-10% waste for beer, 10-15% for wine and 5% for soft drinks. With free-flow, there's always more waste than with individual orders.
Can I offer different package levels?
That's smart. Offer basic (pilsner, house wine), premium (+ craft beer) and deluxe (+ prosecco) options. Higher packages often have better margins because guests don't drink more, but pay more.
How do I handle groups with different drinking preferences?
Split your calculation by demographics—corporate events typically consume less alcohol than birthday parties. Track consumption patterns over 6 months to build accurate forecasting models.
📚 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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