Picture this: your bar's packed every night, but your drink profits keep shrinking despite strong sales. Most bar owners obsess over purchase prices while ignoring how different drinks generate wildly different margins. The secret lies in balancing what customers want with what actually makes you money.
Understand your pour cost per drink type
Pour cost works exactly like food cost but for beverages. It's the percentage of your selling price (excluding VAT) that goes toward purchasing alcohol. You want this number low for healthy margins, but it shifts dramatically between drink categories.
💡 Example pour cost calculation:
You sell a glass of red wine for €6.50 incl. 21% VAT
- Selling price excl. VAT: €6.50 / 1.21 = €5.37
- Purchase price per glass: €1.20
- Pour cost: (€1.20 / €5.37) × 100 = 22.3%
That's a healthy margin for wine.
Standard pour cost percentages per drink type
Different beverages carry different margin expectations. From analyzing actual purchasing data across different restaurant types, here's what successful bars maintain:
- Beer: 20-25% pour cost
- Wine per glass: 18-25% pour cost
- Spirits/hard liquor: 15-20% pour cost
- Cocktails: 18-25% pour cost (including all ingredients)
- Non-alcoholic: 15-25% pour cost
⚠️ Note:
Alcoholic drinks carry 21% VAT, not 9%. Always calculate excluding VAT for accurate pour cost calculations.
Calculate cocktail costs completely
Cocktails require counting every single ingredient, not just the primary spirit. Too many bar owners skip this step and wonder why their margins disappear.
💡 Example Mojito cost price:
Selling price €9.50 incl. 21% VAT = €7.85 excl. VAT
- White rum (5cl): €0.90
- Fresh mint: €0.15
- Lime (half): €0.25
- Cane sugar syrup: €0.10
- Soda water: €0.05
- Ice: €0.05
Total cost price: €1.50 = 19.1% pour cost
Balance popularity with profitability
Apply menu engineering principles to your drink selection. Sort drinks into four categories: popular profitable drinks (promote heavily), popular but less profitable drinks (raise prices), profitable but unpopular drinks (improve promotion), and drinks that are both unpopular and unprofitable (remove them).
Use anchor prices strategically
Place several premium options on your menu deliberately. They don't need high sales volume—they make your mid-range selections appear more reasonable. A €120 champagne bottle makes that €35 wine seem like a smart choice.
💡 Example anchor strategy:
- Premium whisky: €12.50 per glass (anchor)
- Good whisky: €8.50 per glass (sweet spot)
- Basic whisky: €6.50 per glass
Most guests choose the middle option.
Monitor your mix and adjust
Track which drinks dominate your sales and their profit contribution. If cheap beers represent 70% of your drink volume, consider making premium options more appealing or introducing happy hour pricing during slower periods.
How do you balance your drink menu? (step by step)
Calculate the pour cost of all your drinks
Go through your entire menu and calculate for each drink: (purchase price per serving / selling price excl. 21% VAT) × 100. With cocktails, make sure you count all ingredients.
Analyze popularity vs profitability
Make a list of your 10 best-selling drinks and their pour cost percentage. Drinks with high sales but pour cost above 25% are costing you money.
Adjust prices or replace drinks
Raise the price of popular but unprofitable drinks by 5-10%. Drinks that are both unpopular and unprofitable can be replaced with alternatives with better margins.
✨ Pro tip
Review your top 7 best-selling drinks every 6 weeks to ensure they maintain healthy margins. If those drinks stay profitable, you've secured roughly 80% of your beverage profit.
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 healthy average pour cost for my entire bar?
A healthy total pour cost runs between 18% and 25% of your drink revenue. Above 25% means you're likely losing money on beverages.
Should I include VAT in my pour cost calculation?
Never include VAT in pour cost calculations. Alcoholic drinks carry 21% VAT, so divide your menu price by 1.21 to get the excluding-VAT price.
How often should I adjust my drink prices?
Review your purchase prices and pour cost percentages every 3 months minimum. Suppliers raise prices regularly, so you need to adjust accordingly to maintain margins.
How do I calculate the cost price of a cocktail with many ingredients?
Add up every single ingredient: all spirits, mixers, fruit, herbs, and even ice. Don't overlook smaller ingredients—they accumulate quickly across multiple cocktails.
📚 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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