Beer and snack combo packages require splitting your margin calculations between two different VAT rates. You're dealing with alcoholic beverages at 21% VAT and food at 9% VAT. Each component needs separate calculation to get accurate profitability data.
Why combo packages are complicated
Beer packages with snacks involve two products under different VAT categories:
- Beer: 21% VAT (alcoholic)
- Snack garnish: 9% VAT (food)
Too many bars calculate one average margin and miss which component drives actual profit.
⚠️ Heads up:
Don't calculate with mixed VAT rates. Always separate beer (21%) from food (9%).
Step 1: Calculate the costs per component
Start by listing purchase prices for both components:
💡 Example: Beer package €8.50
Package price: €8.50 incl. VAT
- Beer (0.25L): purchase price €1.20
- 8 snack balls: purchase price €1.80
- Mustard + mayo: purchase price €0.15
Total purchase: €3.15
Step 2: Split the selling price by VAT rate
Divide the €8.50 between beer (21% VAT) and food (9% VAT) based on your internal pricing:
💡 Example: VAT split
Split total €8.50:
- Beer portion: €4.50 incl. 21% VAT = €3.72 excl.
- Food portion: €4.00 incl. 9% VAT = €3.67 excl.
Check: €3.72 + €3.67 = €7.39 excl. VAT total
Step 3: Calculate the margin per component
Now calculate margin for each component separately:
Formula: Margin % = ((Selling price excl. VAT - Purchase costs) / Selling price excl. VAT) × 100
💡 Example: Margin calculation
Beer margin:
- Sales excl. VAT: €3.72
- Purchase: €1.20
- Margin: ((€3.72 - €1.20) / €3.72) × 100 = 67.7%
Food margin:
- Sales excl. VAT: €3.67
- Purchase: €1.95
- Margin: ((€3.67 - €1.95) / €3.67) × 100 = 46.9%
Calculate total package margin
For total margin, combine all amounts:
Total margin % = ((Total sales excl. VAT - Total purchase) / Total sales excl. VAT) × 100
💡 Example: Total margin
- Total sales excl. VAT: €7.39
- Total purchase: €3.15
- Total margin: ((€7.39 - €3.15) / €7.39) × 100 = 57.4%
Profit per package: €4.24
What do these numbers tell you?
This example shows beer generates much more (67.7%) than food (46.9%). That's typical:
- Beverages typically hit 60-75% margin
- Fried snacks typically reach 40-55% margin
- Combination usually lands between 50-65% total margin
⚠️ Heads up:
If your total margin drops below 45%, you're not earning enough. That's the kind of thing you only learn after closing your first month at a loss. Check purchase prices or raise selling prices.
How often should you recalculate this?
Review combo package margins every 3 months minimum:
- Supplier beer prices fluctuate regularly
- Frozen products get price increases frequently
- During peak seasons (World Cup) you can increase prices
Food cost management tools like KitchenNmbrs let you track both components separately and spot margin drops immediately.
How do you calculate the margin on a beer package? (step by step)
Gather all purchase prices
Note the purchase price of the beer, the snack balls, and all garnishes (mustard, mayo). Add these together for the total purchase costs of the package.
Split the selling price by VAT rate
Divide your package price into a beer portion (21% VAT) and a food portion (9% VAT). Convert both portions to prices excluding VAT.
Calculate the margin per component
Use the formula: ((Selling price excl. VAT - Purchase costs) / Selling price excl. VAT) × 100 for both the beer and the food.
Calculate the total package margin
Add all sales and purchase amounts together and apply the same formula to the totals. This gives you the overall margin of the combo package.
✨ Pro tip
Track your top 3 combo packages weekly for the first 6 months. If those margins stay above 55%, you've got your bar's profit foundation locked down.
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 margin calculation?
No, always calculate using prices excluding VAT. VAT gets passed to the Tax Authority, not your revenue.
What if I don't want to split the package price?
You're creating VAT return errors. Tax law requires separating 9% VAT revenue from 21% VAT revenue. Splitting isn't optional.
What margin is normal for a beer package?
Total margins between 50-65% are standard. Below 45% means you're probably undercharging for the package.
How often should I adjust my package prices?
Review every 3 months minimum since beer and frozen product costs change regularly. Price adjustments should follow cost increases.
Can I use different package prices throughout the week?
Yes, many bars price differently for happy hour, weekdays, and weekends. Calculate margins separately for each price point to maintain profitability.
What happens if my beer supplier changes their pricing mid-contract?
Recalculate immediately since beer typically drives 60% of your package profit. A 10% beer cost increase can drop your total margin by 3-4 percentage points.
📚 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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