Calculating beverage margins for multi-course menus trips up many restaurant owners who treat them like individual drink orders. You must factor in total menu pricing, per-course beverage costs and proper VAT rates. Master this calculation to create profitable beverage arrangements.
What is a beverage margin on a multi-course menu?
Multi-course menus with beverage packages use one fixed price for all drinks included, not per-glass pricing. Your margin calculation covers the entire beverage package rather than individual glasses.
? 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 carry 21% VAT, but multi-course menus often qualify for mixed rates. If your package contains more food value than beverages, you can apply 9% VAT to everything.
⚠️ Note:
Separate beverage packages (without food) always get 21% VAT on alcoholic drinks. Verify this with your accountant.
Calculate your cost of goods per course
Total up every beverage served throughout 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 deliver higher margins than food. For packages you should target:
- Wine with menu: 65-75% margin
- Cocktails and premium beverages: 70-80% margin
- Champagne and sparkling wines: 60-70% margin
- Digestifs: 75-85% margin
These margins exceed food costs because beverages last longer and need less labor preparation than dishes. However, many restaurants make a mistake that costs them EUR 200-400 per month by not adjusting beverage package prices after supplier increases while updating individual wine prices regularly.
Price your beverage package
Use this formula for 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 complete menu (food + beverages) stays profitable. Add food costs and beverage costs, then compare against your total menu price.
- Total costs: Food cost + beverage cost + labor costs
- Total margin: Must hit at least 60-65% for profitability
- Break-even: Calculate required menu sales to cover costs
⚠️ Note:
Don't overlook labor costs. A 5-course menu with beverages demands 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
Audit your 5 top-selling beverage packages every 6 weeks after supplier invoices arrive. If margins drop below 68% due to cost increases, raise your package price by €3-5 immediately.
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?
What is a realistic margin on wine packages?
How do I calculate the cost of a glass of wine?
Should I include labor costs in my beverage package?
Can I use different margins for different types of beverages?
How often should I recalculate beverage package costs?
What happens if my total menu margin drops below 60%?
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
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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