Picture this scenario: you're staring at a stack of supplier catalogs, wondering which drinks will actually make you money. Building a beverage menu isn't about choosing what sounds fancy or what your supplier pushes hardest. It's about finding that sweet spot where guest satisfaction meets solid profit margins.
The basics: calculating pour cost per drink
Similar to food cost calculations, you need to determine the pour cost for every beverage. This percentage shows how much of your selling price goes directly to the drink's cost.
💡 Example pour cost calculation:
A bottle of wine costs you €8.50 to purchase and you sell a glass (0.15L) for €6.50:
- Selling price excl. 21% VAT: €6.50 / 1.21 = €5.37
- Cost per glass: €8.50 / 5 glasses = €1.70
- Pour cost: (€1.70 / €5.37) × 100 = 31.7%
This represents a solid pour cost for wine.
Standard pour cost percentages by drink type
Each drink category operates within specific margin ranges. Here's what you should aim for:
- Beer: 20-28% pour cost
- Wine by the glass: 25-35% pour cost
- Spirits/hard liquor: 18-25% pour cost
- Cocktails: 20-30% pour cost (including all ingredients)
- Soft drinks: 15-25% pour cost
- Coffee: 10-20% pour cost
⚠️ Note:
Alcoholic beverages carry 21% VAT, not 9%. Always calculate excluding VAT for accurate pour cost analysis.
Measuring popularity: the 80/20 rule
Most bars follow the 80/20 principle: roughly 20% of your drink offerings generate 80% of beverage revenue. These top performers deserve prime real estate on your menu.
Track popularity using:
- Weekly sales volume - raw numbers tell the story
- Share of total beverage sales - relative performance matters
- Seasonal patterns - rosé peaks in summer, hot drinks dominate winter
- Daypart performance - coffee rules mornings, cocktails own evenings
Most kitchen managers discover too late that tracking these metrics weekly prevents costly inventory mistakes and reveals hidden profit opportunities.
The four quadrants: stars, puzzles, plowhorses, and dogs
Menu engineering applies to beverages just like food items. You'll categorize each drink into one of four buckets:
💡 Example drink classification:
- Stars: Popular + Profitable (Heineken, house wine)
- Plowhorses: Popular + Low margin (premium beers, expensive wines)
- Puzzles: Low volume + Profitable (specialty cocktails)
- Dogs: Low volume + Low margin (slow-moving spirits)
Stars deserve prominent menu placement and active promotion. Plowhorses need price adjustments or cheaper sourcing. Puzzles require better marketing to boost sales. Dogs should get eliminated from your lineup.
Practical tips for composition
Begin with a focused menu and expand strategically. Excessive options overwhelm guests and inflate inventory costs unnecessarily.
- Beer: 1-2 draft options, maximum 3-4 bottles
- Wine: 2-3 whites, 2-3 reds, 1-2 rosé, 1 sparkling
- Spirits: Core collection (gin, vodka, whisky, rum) plus 1-2 premium choices
- Cocktails: 6-8 classics your staff can execute consistently
⚠️ Note:
Extensive menus might impress initially, but they drive up purchasing costs and waste. Stick to manageable selections.
Incorporating seasons and trends
Seasonal adjustments keep your menu fresh, but maintain core offerings for consistency. Guests want familiar favorites alongside new discoveries.
Summer modifications might include:
- Increased rosé and white wine selection
- Fresh fruit-based cocktails
- Light beers (wheat beer, radler)
- Iced coffee specialties
Winter adaptations:
- Expanded red wine and port options
- Hot cocktails (mulled wine, hot toddy)
- Darker beer varieties
- Coffee-liqueur combinations
Optimizing suppliers and purchasing
Your beverage menu dictates supplier relationships. Consolidating vendors typically improves purchasing power and simplifies operations.
💡 Example supplier strategy:
Rather than juggling 5 different suppliers:
- 1 primary supplier for beer + standard wine (80% volume)
- 1 wine specialist for premium selections (15% volume)
- 1 spirits supplier for cocktail components (5% volume)
This approach strengthens negotiating position and streamlines management.
How do you create a profitable beverage menu? (step by step)
Analyze your current sales
Look at your sales figures from the past 3 months. Which drinks do you sell the most? Calculate the pour cost for each drink and divide them into four quadrants: popular/not popular and profitable/not profitable.
Determine your basic assortment
Start with your 'stars' - popular and profitable drinks. Add the absolute basics that every guest expects (pilsner, house wine, coffee). Keep it limited: better 20 drinks that sell well than 50 that sit idle.
Optimize prices and purchasing
For your 'plowhorses' (popular but not profitable): raise the price or find cheaper alternatives. For your 'puzzles' (profitable but not popular): promote these drinks more actively or replace them with alternatives.
✨ Pro tip
Track your slowest-moving 5 beverages every Tuesday morning - anything sitting unsold for 8+ weeks is bleeding money and needs immediate menu removal.
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 is a good pour cost for cocktails?
Target 20-30% pour cost for cocktails, including all components: spirits, mixers, garnish, and ice. Premium cocktails with expensive ingredients can reach 30%, while simpler drinks should stay under 25%.
How often should I adjust my beverage menu?
Review sales data monthly, but limit menu changes to seasonal updates (4 times yearly maximum). Frequent changes confuse customers and increase inventory risk. Price adjustments can happen more often based on supplier cost changes.
Should I include VAT in my pour cost calculation?
Never include VAT in pour cost calculations. Alcoholic beverages carry 21% VAT, so a €3.00 beer equals €2.48 excluding VAT for calculation purposes. Non-alcoholic restaurant drinks have 9% VAT.
How many different wines should I offer?
Most bars and restaurants succeed with 6-10 wine options: 2-3 whites, 2-3 reds, 1-2 rosé, and 1 sparkling wine. Larger selections increase inventory costs and waste risk unless you specialize in wine.
📚 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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