Most restaurateurs assume magnum bottles cost exactly double what regular bottles do - but that's rarely true. The price per liter often differs between bottle formats, creating margin opportunities you might miss. Calculate your margin by comparing purchase price with selling price, excluding that 21% VAT on alcohol.
Why magnum bottles work out differently
A magnum holds 1.5 liters - exactly double a standard 0.75-liter bottle. But here's where it gets interesting: the purchase price almost never doubles perfectly.
💡 Example:
Same wine, different formats:
- Regular bottle (0.75L): €18 purchase
- Magnum bottle (1.5L): €32 purchase
- Price per liter regular bottle: €18 ÷ 0.75 = €24/liter
- Price per liter magnum bottle: €32 ÷ 1.5 = €21.33/liter
The magnum is €2.67 per liter cheaper!
Calculate margin per format
For a real comparison, you need margin per liter. And don't forget - alcohol carries 21% VAT, so your actual selling price is lower than what guests see on the menu.
Margin percentage formula:
Margin % = ((Selling price excl. VAT - Purchase price) ÷ Selling price excl. VAT) × 100
💡 Example calculation:
You sell a regular bottle for €72.60 (incl. 21% VAT):
- Selling price excl. VAT: €72.60 ÷ 1.21 = €60
- Purchase price: €18
- Margin: ((€60 - €18) ÷ €60) × 100 = 70%
- Per liter: €60 ÷ 0.75 = €80 sales excl. VAT
💡 Example magnum:
You sell a magnum bottle for €121 (incl. 21% VAT):
- Selling price excl. VAT: €121 ÷ 1.21 = €100
- Purchase price: €32
- Margin: ((€100 - €32) ÷ €100) × 100 = 68%
- Per liter: €100 ÷ 1.5 = €66.67 sales excl. VAT
Which format generates more revenue?
Here's what the numbers show: you earn more per liter from regular bottles (€80 vs €66.67 per liter). But your absolute profit jumps with magnums.
- Regular bottle: €60 - €18 = €42 profit per bottle
- Magnum bottle: €100 - €32 = €68 profit per bottle
- Per liter profit: €42 ÷ 0.75 = €56/liter vs €68 ÷ 1.5 = €45.33/liter
From tracking this across dozens of restaurants, the magnum advantage becomes clear during busy periods - you're moving higher-value items with the same effort.
⚠️ Note:
Always calculate with selling price excluding 21% VAT. Alcohol carries higher VAT than food's 9% rate.
Strategic considerations
Magnums offer benefits beyond pure margin math:
- Higher bill: Guests rarely order a second bottle
- Less work: One magnum vs opening two bottles
- Experience: Magnums feel special, justify premium pricing
- Inventory: Fewer bottles for same volume
Most restaurants accept slightly lower margins on magnums because absolute profit per sale increases and it elevates the dining experience.
Practical tips for your wine list
Test both formats of identical wines to gauge guest preference. Magnums typically perform well with larger tables (4+ people) while couples gravitate toward regular bottles.
Using tools like a food cost calculator lets you compare margins side-by-side and track which format drives better revenue and profit.
How do you compare the profitability of magnums vs regular bottles?
Calculate the purchase price per liter
Divide the purchase price by the volume. Regular bottle: purchase price ÷ 0.75L. Magnum bottle: purchase price ÷ 1.5L. This gives you a fair comparison.
Convert your selling prices to excluding VAT
Divide your menu price by 1.21 (alcohol has 21% VAT). This is your actual selling price for margin calculation.
Compare margin percentage and absolute profit
Calculate both your margin percentage and your profit in euros per bottle. Also look at profit per liter to get a complete picture.
✨ Pro tip
Track magnum vs regular bottle performance for your top 5 wines over 8 weeks. You'll often find magnums outperform on Friday and Saturday nights when guests are celebrating.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Is a magnum bottle always cheaper to purchase?
Not always - check the price per liter first. Some suppliers charge nearly double for magnums, making them pricier than buying two regular bottles.
What margin is normal on wine in restaurants?
Standard wine margins fall between 65% and 75%. Cheaper wines typically carry higher margins, while premium wines have lower margins but deliver higher absolute profit.
Should I apply the same margin to magnums and regular bottles?
Not necessarily. Many restaurants use slightly lower margins on magnums since absolute profit is higher and it enhances the guest experience.
How do I price a magnum bottle compared to two regular bottles?
A common approach is 1.7 to 1.8 times the price of one regular bottle. This gives guests value while protecting your margin.
Do magnums sell well enough to justify the inventory?
Depends on your concept and clientele. Magnums excel with larger tables, fine dining settings, and special occasions.
How does wine storage cost differ between formats?
Magnums require the same storage space per bottle but deliver double the volume. This can reduce your storage cost per liter served.
📚 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.
Calculate your cocktail costs down to the ml
Drink margins seem high, but spillage and free pours eat them up. KitchenNmbrs calculates the exact cost price of every cocktail and drink. Try it free.
Start free trial →