📝 Bar, drinks & cocktails · ⏱️ 2 min read

How do I create an overview of all drink margins on my...

📝 KitchenNmbrs — · updated 06 Apr 2026

Quick answer
Most bar owners can't tell you which drinks actually make money and which ones drain profits. Your drink margins reveal the truth about cocktail profitability. Here's how to build a complete overview of every drink margin, ranked from most to least profitable.

Most bar owners can't tell you which drinks actually make money and which ones drain profits. Your drink margins reveal the truth about cocktail profitability. Here's how to build a complete overview of every drink margin, ranked from most to least profitable.

What is a drink margin (pour cost)?

Pour cost represents the percentage of your selling price consumed by drink ingredients. It's the beverage equivalent of food cost - lower percentages mean higher profits.

? Example:

You sell a Mojito for €12.10 (incl. 21% VAT):

  • Selling price excl. VAT: €12.10 / 1.21 = €10.00
  • Ingredients (rum, mint, lime, sugar, soda water): €2.20

Pour cost: (€2.20 / €10.00) × 100 = 22%

Gather all drink prices and ingredient costs

Each menu item requires three critical data points:

  • Selling price excluding VAT: Alcoholic drinks carry 21% VAT, non-alcoholic beverages 9%
  • Complete ingredient costs: Spirits, mixers, garnish, ice, straws
  • Precise quantities: Milliliters of rum, grams of lime, etc.

⚠️ Note:

Alcoholic drinks carry 21% VAT, not 9%. A €3.00 beer includes €0.52 in taxes (€3.00 / 1.21 = €2.48 net price).

Calculate the pour cost per drink

Apply this formula to every beverage:

Pour cost % = (Ingredient costs / Selling price excl. VAT) × 100

? Example calculation:

Gin Tonic:

  • Sales: €8.50 incl. VAT → €7.02 excl. VAT
  • Gin (5cl): €1.80
  • Tonic (20cl): €0.40
  • Lime + ice: €0.25

Total costs: €2.45

Pour cost: (€2.45 / €7.02) × 100 = 34.9%

Create your overview and sort

Compile all beverages with their pour cost percentages. Rank from lowest to highest percentage - remember, lower means more profitable. Most kitchen managers discover too late that their assumed "money-makers" actually hemorrhage cash.

? Example overview:

  • White wine glass: 18% (highest profit)
  • Draft beer: 22%
  • Mojito: 24%
  • Whiskey neat: 28%
  • Cocktail with premium spirits: 35% (lowest profit)

Common benchmarks for drink margins

Different beverage categories have established margin ranges:

  • Wine per glass: 15-25%
  • Draft beer: 18-25%
  • Simple cocktails: 20-28%
  • Premium cocktails: 25-35%
  • Spirits neat: 20-30%

⚠️ Note:

Beverages exceeding 35% pour cost rarely generate sufficient revenue. Evaluate whether pricing is inadequate or ingredient sourcing is too expensive.

What do you do with this information?

Your ranked overview enables strategic decisions:

  • Promote profitable drinks: Feature low pour cost beverages prominently on menus
  • Reprice poor performers: Increase prices on drinks exceeding 35% pour cost
  • Replace loss-makers: Remove consistently underperforming beverages from rotation
  • Train staff: Equip them to recommend profitable alternatives

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How do you create a drink margin overview? (step by step)

1

Create a list of all drinks

Note every drink on your menu with the selling price including VAT. Don't forget specials, wines by the glass, or seasonal drinks.

2

Calculate selling price excluding VAT

For alcohol: divide by 1.21 (21% VAT). For non-alcoholic: divide by 1.09 (9% VAT). This is your actual selling price.

3

Add up all ingredient costs

Calculate what each ingredient costs per serving: spirits, mixers, garnish, ice. Don't forget small things like straws or cocktail picks.

4

Calculate pour cost percentage

Divide ingredient costs by selling price excl. VAT and multiply by 100. This gives you the pour cost percentage per drink.

5

Sort from low to high

Put drinks with the lowest pour cost at the top (most profitable) and highest at the bottom (least profitable). Now you can directly see your best and worst performers.

✨ Pro tip

Calculate margins for your top 8 selling drinks within the next 48 hours. These beverages likely represent 75% of your total drink revenue, so fixing their profitability gives you immediate impact.

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 count ice and garnish in the costs?
Absolutely. Ice, lime wedges, olives, straws - every component that accompanies the drink affects your actual costs. Many bars overlook these "small" expenses, but they add up quickly.
What is a good pour cost for cocktails?
Simple cocktails should hit 20-28%, while premium cocktails with expensive spirits can reach 25-35%. Anything above 35% becomes difficult to justify profitability-wise.
How often should I check my drink margins?
Review margins every 3 months minimum, or immediately after supplier price changes. Liquor costs fluctuate frequently, especially for imported spirits and specialty ingredients.
Why do wines often have better margins than cocktails?
Wine involves buying bottles and pouring 5-6 glasses with minimal waste. Cocktails require mixing multiple ingredients, each with separate margins and potential spillage.
Should I calculate 9% or 21% VAT for my drinks?
Alcoholic beverages (beer, wine, spirits) always carry 21% VAT. Non-alcoholic drinks (sodas, coffee) served in restaurants use 9% VAT.
How do I handle seasonal cocktails with fluctuating ingredient costs?
Track seasonal ingredients separately and adjust pricing quarterly. Fresh fruit and herb costs can swing 40-60% between seasons, dramatically affecting your margins.

kennisbank.ingredients_in_article

Lime kennisbank.ingredient_card_meta Mint kennisbank.ingredient_card_meta
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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