Over 65% of bars report higher absolute profits from craft beer despite elevated pour costs. The calculation differs significantly from standard drink margins. Smart calculation reveals which beer varieties actually drive profit in your establishment.
The difference between craft beer and mass-market beer margins
Beer margins work differently than cocktails. You'll focus on pour cost - what percentage of your selling price goes toward purchasing.
💡 Example mass-market beer:
Heineken bottle of 25cl:
- Purchase price: €0.85
- Selling price: €3.50 incl. 21% VAT
- Selling price excl. VAT: €2.89
Pour cost: (€0.85 / €2.89) × 100 = 29.4%
💡 Example craft beer:
IPA from local brewery 33cl:
- Purchase price: €2.40
- Selling price: €6.50 incl. 21% VAT
- Selling price excl. VAT: €5.37
Pour cost: (€2.40 / €5.37) × 100 = 44.7%
Why craft beer can still be interesting
Higher pour costs don't tell the whole story. You're often earning more euros per glass. Looking at the examples above:
- Mass-market beer: €2.89 - €0.85 = €2.04 profit per bottle
- Craft beer: €5.37 - €2.40 = €2.97 profit per bottle
That craft beer delivers €0.93 more profit, even with the elevated pour cost. One of the most common blind spots in kitchen management involves focusing solely on percentages while ignoring absolute dollar amounts.
⚠️ Note:
Always calculate using price excl. 21% VAT. Alcoholic beverages fall under high VAT rates, not the 9% food rate.
Standard margins in practice
Healthy bar margins follow these guidelines:
- Mass-market beer: 25-35% pour cost
- Craft beer: 35-50% pour cost
- Specialty beer: 40-55% pour cost
Higher pour costs on specialty varieties get offset by increased absolute profit per glass and premium positioning.
Include volume and turnover speed
Turnover speed matters significantly. You might move 50 glasses of mass-market beer nightly, but only 8 craft beers. Total bar revenue requires factoring both elements:
💡 Example evening revenue:
Mass-market beer: 50 × €2.04 = €102 profit
Craft beer: 8 × €2.97 = €24 profit
Mass-market generates higher total profit through volume.
Digital tracking of beer prices
Supplier beer prices shift regularly. Digital systems help track purchase prices and instantly reveal pour costs per brand. This prevents unknowingly operating at losses on expensive specialty varieties.
How do you calculate the margin on beer? (step by step)
Gather purchase price and selling price
Note the purchase price per bottle/glass and your menu price including 21% VAT. Also check the volume (25cl, 33cl, 50cl) as that affects your calculation.
Calculate selling price excluding VAT
Divide your menu price by 1.21 to get the price excl. VAT. For example: €3.50 / 1.21 = €2.89 excl. VAT.
Calculate pour cost percentage
Divide purchase price by selling price excl. VAT and multiply by 100. Formula: (Purchase price / Selling price excl. VAT) × 100 = pour cost %.
✨ Pro tip
Track your top 3 beer performers every 2 weeks for pour cost drift. Specialty IPAs and seasonal varieties can jump 15-20% in cost without warning, killing your margins overnight.
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 beer margins?
Never calculate including VAT. Alcoholic beverages fall under 21% VAT, so divide menu prices by 1.21. Including VAT makes your margins appear artificially low.
What pour cost is normal for specialty beers?
Specialty beers typically run 35-50% pour cost. That's higher than mass-market varieties (25-35%), but you're earning more euros per glass due to premium pricing. Focus on absolute profit, not just percentages.
How often should I check my beer prices?
Review purchase prices monthly minimum. Breweries adjust pricing frequently, and you can't afford running losses on popular selections. Price volatility hits craft varieties hardest.
📚 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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