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📝 Bar, drinks & cocktails · ⏱️ 2 min read

How do I calculate whether switching from keg to bottle improves my margin?

📝 KitchenNmbrs · updated 17 Mar 2026

Most bar owners assume kegs are always more profitable than bottles - but the math often tells a different story. Hidden costs like transport fees, tapping labor, and storage requirements can flip your expected margins upside down. Smart operators calculate every expense before making the switch.

What are the real costs of keg versus bottle?

Kegs carry hidden expenses beyond the beer itself: deposit fees, delivery charges, and labor time for tapping. Bottles present different cost challenges - storage space, refrigeration demands, and typically higher per-liter purchase prices.

💡 Example: Heineken comparison

Keg 50 liters:

  • Beer: €85.00
  • Deposit: €30.00 (refundable)
  • Transport: €15.00 per delivery
  • Tapping time: 10 minutes × €15/hour = €2.50

Bottles 50x 0.33cl:

  • Purchase: €45.00 (50 bottles)
  • Extra cooling space: €5.00/month
  • Opening time: 2 minutes × €15/hour = €0.50

Calculate your pour cost per glass

Pour cost works exactly like food cost but for beverages. Target pour costs for beer should stay between 18% and 25% for healthy profits.

Pour cost formula:
Pour cost % = (Purchase price per glass / Selling price excl. VAT) × 100

⚠️ Note:

Alcoholic beverages carry 21% VAT, not 9%! A €3.00 beer equals €2.48 excluding VAT (€3.00 / 1.21).

Compare total monthly costs

Skip the purchase price trap - calculate every cost that hits your bottom line:

  • Keg: deposit, transport costs, tapping time, CO2 consumption
  • Bottle: extra cooling space, opening time, waste disposal
  • Both: loss from leakage, foam, spillage

💡 Example: Monthly costs (500 glasses)

Keg (10 barrels of 50L):

  • Beer: €850.00
  • Transport: €150.00 (10 deliveries)
  • Tapping time: €25.00
  • CO2: €20.00

Total keg: €1,045.00 = €2.09 per glass

Bottles (500 units):

  • Purchase: €450.00
  • Extra cooling: €25.00
  • Opening time: €5.00
  • Waste disposal: €10.00

Total bottle: €490.00 = €0.98 per glass

Calculate the impact on your margin

Cost differences per glass translate directly into profit changes. At a €3.00 selling price (€2.48 excl. VAT), you'll see dramatic margin shifts:

  • Keg: €2.09 / €2.48 = 84% pour cost (dangerously high!)
  • Bottle: €0.98 / €2.48 = 40% pour cost (still elevated)

From analyzing actual purchasing data across different restaurant types, this example would generate €555.00 additional monthly profit with bottles (€1.11 difference × 500 glasses).

Include quality and customer experience

Numbers don't tell the complete story. Factor in these elements:

  • Freshness: Draught beer typically delivers superior taste
  • Customer perception: Tap beer commands premium positioning
  • Speed: Tapping outpaces bottle opening during rush periods
  • Image: Tap handles project professional bar operations

⚠️ Note:

Lower pour costs mean nothing if reduced quality tanks your sales volume.

Digital tracking of drink costs

Systems like tools for beverage costing automatically calculate drink costs and pour percentages per product. You'll instantly spot which decisions boost margins without manual calculations.

How do you calculate whether switching is worth it? (step by step)

1

Gather all costs from both options

Note not only the purchase price, but also deposit, transport, labor time, extra cooling and all other additional costs. Calculate per month or per 100 glasses for a fair comparison.

2

Calculate the cost price per glass

Divide all monthly costs by the number of glasses you sell. Don't forget to include loss from foam, leakage or spillage in your calculation.

3

Calculate the pour cost percentage

Divide your cost price per glass by your selling price excl. 21% VAT and multiply by 100. A healthy pour cost for beer is between 18% and 25%.

4

Weigh numbers against quality

Don't just look at the numbers, but also at freshness, customer perception and service speed. Sometimes a slightly higher cost price is worth it for better quality and more sales.

✨ Pro tip

Track your pour cost on your top 3 beer sellers for 30 days. If those stay under 25%, you've got 80% of your beverage profitability locked down.

Calculate this yourself?

In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.

Try KitchenNmbrs free →

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Frequently asked questions

Should I calculate 9% or 21% VAT for beer?

Alcoholic beverages always carry 21% VAT, regardless of your establishment type. A €3.00 beer equals €2.48 excluding VAT (€3.00 / 1.21).

What's a normal pour cost for beer?

Target pour costs between 18% and 25% for healthy beer profits. Anything above 30% typically means you're losing money on beer sales.

How do I factor in loss from foam and spillage?

Build in 5-10% loss for properly poured beer. A 50L keg yields 45-47.5L in actual sales, which increases your true cost per glass.

ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

📚 Sources consulted

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.

JS

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.

🏆 8 years kitchen manager at 1NUL8 Group Rotterdam
Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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