The margin on beverages for a multi-course menu is calculated differently than for individual orders. You need to account for the total menu price, beverage costs per course and the correct VAT rates. In this article you'll learn step by step how to put together a profitable beverage arrangement.
What is a beverage margin on a multi-course menu?
With a multi-course menu and beverage package, you don't charge per glass, but one price for all beverages included with the menu. You calculate the margin over the total beverage package, not per individual glass.
💡 Example:
5-course menu with beverage package for €89.00 (incl. VAT):
- Menu food cost: €24.00
- Beverage package: €18.00 (aperitif, 3 wines, digestif)
- Menu price excl. VAT: €81.65
- Beverages only: €25.00 excl. VAT
Beverage margin: (€18.00 / €25.00) × 100 = 72%
VAT on beverage packages
Alcoholic beverages have 21% VAT, but with a multi-course menu, the mixed rate is often applied. If the package contains more food than beverages, you can charge 9% VAT on the whole.
⚠️ Note:
For a separate beverage package (without food), you always charge 21% VAT on alcoholic beverages. Check this with your accountant.
Calculate your cost of goods per course
Add up all the beverages you serve during the menu:
- Aperitif: Prosecco, gin and tonic, or cocktail
- With appetizer: Usually white wine or champagne
- With main course: Red or white wine, depending on the dish
- With dessert: Dessert wines, port, or liqueur
- Digestif: Cognac, whisky, or grappa
💡 Example cost of goods:
- Prosecco (1 glass): €2.10
- Sauvignon Blanc (1 glass): €3.20
- Cabernet Sauvignon (1 glass): €4.50
- Dessert wine (5cl): €2.80
- Cognac (2cl): €5.40
Total cost of goods: €18.00
Standard margins for beverage packages
Beverages traditionally have higher margins than food. For packages you can expect:
- Wine with menu: 65-75% margin
- Cocktails and premium beverages: 70-80% margin
- Champagne and sparkling wines: 60-70% margin
- Digestifs: 75-85% margin
This is higher than food cost because beverages have longer shelf life and require less labor to prepare than dishes.
Price your beverage package
Use this formula to calculate your minimum selling price:
Minimum price = Cost of goods / (1 - Desired margin)
💡 Example calculation:
Cost of goods: €18.00 | Desired margin: 70%
Minimum price excl. VAT: €18.00 / 0.30 = €60.00
With 9% VAT: €60.00 × 1.09 = €65.40
Check your overall profitability
Verify that your total menu (food + beverages) is profitable. Add up the food cost and beverage cost and compare with your total menu price.
- Total costs: Food cost + beverage cost + labor costs
- Total margin: Must be at least 60-65% for profitability
- Break-even: Calculate how many menus you need to sell to cover costs
⚠️ Note:
Don't forget labor costs. A 5-course menu with beverages requires more staff than à la carte service.
How do you calculate the margin on a beverage package? (step by step)
Determine all beverages per course
Make a list of every beverage you serve: aperitif, wines per course, digestif. Note the exact quantities (number of cl per glass).
Calculate total cost of goods
Add up all the cost of goods prices of the beverages per person. Don't forget the costs of garnish, ice cubes and mixers for cocktails.
Determine your desired margin
Choose a margin between 65-75% for wine and 70-80% for cocktails. Calculate your minimum selling price using the formula: cost of goods / (1 - margin).
Check overall profitability
Compare your total costs (food + beverages + labor) with your menu price. Your total margin must be at least 60-65%.
✨ Pro tip
Check your 3 most popular beverage packages every month. If the margin drops below 65% due to supplier price increases, adjust your menu price accordingly.
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 do I charge on a beverage package with a menu?
With a multi-course menu and beverages, you can often charge 9% VAT if the package contains more food than beverages. For a separate beverage package, you charge 21% VAT on alcohol.
What is a realistic margin on wine packages?
For wine packages with menus you can expect 65-75% margin. This is higher than food cost because wine has longer shelf life and requires less labor.
How do I calculate the cost of a glass of wine?
Divide the cost of a bottle by the number of glasses you pour from it. A 75cl bottle yields approximately 5 glasses of 15cl each.
Should I include labor costs in my beverage package?
Yes, especially for extensive packages. Serving different wines per course takes more time than à la carte service, so include this in your total cost price.
Can I use different margins for different types of beverages?
Yes, that's normal. Digestifs often have 75-85% margin, wines 65-75%, and champagne 60-70% due to higher cost of goods.
📚 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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