A single cocktail with poor margins can cost your bar thousands annually. Most restaurants obsess over food costs while their drinks quietly drain profits. Here's how to spot and fix those margin killers.
What is pour cost and why does it matter?
Pour cost works like food cost, but for drinks. It shows what percentage of your drink price goes to ingredients. The lower the pour cost, the more profit stays in your pocket.
💡 Example:
You sell a gin and tonic for €8.50 (incl. 21% VAT):
- Selling price excl. VAT: €7.02
- Gin (4cl): €1.20
- Tonic (20cl): €0.40
- Garnish: €0.15
Pour cost: (€1.75 / €7.02) × 100 = 24.9%
Here's the crucial difference with food: alcoholic drinks carry 21% VAT, not 9%. Always calculate excluding VAT for accurate pour cost numbers.
Calculate the pour cost of your drinks
For each drink, you'll add up every ingredient that goes into it. Cocktails include:
- All spirits (gin, vodka, rum, etc.)
- Mixers (tonic, cola, fruit juice)
- Garnish (lime, olives, cherries)
- Ice (often forgotten, but it adds up)
- Syrups and bitters
Pour cost formula:
Pour cost % = (Total ingredient costs / Selling price excl. 21% VAT) × 100
💡 Example Mojito:
Selling price: €9.50 (excl. VAT: €7.85)
- White rum (5cl): €1.80
- Lime (half): €0.25
- Mint: €0.15
- Sugar: €0.05
- Soda: €0.20
Pour cost: (€2.45 / €7.85) × 100 = 31.2%
Benchmark: what's a good pour cost?
Target pour cost percentages by drink category:
- Beer: 20-25%
- Wine per glass: 22-28%
- Standard cocktails: 18-25%
- Premium cocktails: 15-22%
- Shots/spirits: 15-20%
⚠️ Watch out:
A pour cost above 30% usually means you're losing money on that drink. Factor in bartender wages, dishwashing costs, and overhead - there's nothing left.
Identify your problem drinks
List your 10 best-selling drinks and calculate their pour cost. Focus on popular drinks first - that's where you'll see the biggest impact on your bottom line. I've seen this mistake cost the average restaurant EUR 200-400 per month, especially with trendy cocktails where bartenders get creative with expensive ingredients without checking the math.
💡 Real-world example:
Bar X discovered their popular Espresso Martini had 35% pour cost:
- 50 sold per week
- 5% too high pour cost = €1.50 loss per cocktail
- Weekly loss: €75
- Annual loss: €3,900
Solution: raise price from €11 to €12.50
What to do about poor margins?
You've got three options if a drink isn't delivering enough margin:
- Raise the price: Often the simplest fix
- Adjust the recipe: Use cheaper ingredients or reduce portions
- Remove from menu: If it's not bringing in customers
Start with your least popular drinks that have poor margins. You can tweak or drop those without much customer impact.
Keep track with a system
Calculating pour cost eats up time, especially with extensive drink menus. Apps can track this automatically, just like with your dishes. You enter drinks and ingredients once, then instantly see which cocktails and wines aren't pulling their weight.
How do you check drink margins step by step?
List your top 10 drinks
Make a list of your 10 best-selling alcoholic drinks. Focus first on these popular items - that's where your biggest impact on profit is.
Calculate ingredient costs per drink
Add up all ingredients: spirits, mixers, garnish, ice. Don't forget anything - even that slice of lime costs money and counts toward your pour cost.
Calculate pour cost percentage
Divide ingredient costs by selling price excl. 21% VAT and multiply by 100. Anything above 30% is too high and costs you profit.
✨ Pro tip
Calculate pour cost on your 5 best-selling cocktails within the next 48 hours. These drinks likely represent 60-70% of your bar revenue, so fixing any margin issues here delivers immediate results.
Calculate this yourself?
In the KitchenNmbrs app you can do this in just a few clicks. 7 days free, no credit card.
Was this article helpful?
Frequently asked questions
Should I calculate 9% or 21% VAT for alcoholic drinks?
Alcoholic drinks always carry 21% VAT. Non-alcoholic drinks in your restaurant get 9% VAT. Always calculate excluding VAT for accurate pour cost numbers.
What if my cocktail has 35% pour cost?
That's dangerously high. You've got three options: bump up the price, tweak the recipe with cheaper ingredients, or drop the cocktail if it's not popular.
How often should I check my drink margins?
Review your top 10 drinks monthly. If suppliers hike prices or you add new cocktails, calculate pour cost immediately to avoid nasty surprises.
Does ice count in the ingredient costs?
Absolutely, ice costs money too. Factor in roughly €0.05-0.10 per cocktail for ice, depending on usage and what you pay for your ice machine and water.
What's a good pour cost for wine per glass?
For wine by the glass, target 22-28%. If you buy a bottle for €12 and pour 5 glasses, each glass costs €2.40 in product.
Should I worry about garnish costs in cocktails?
Yes, garnishes add up fast. Fresh fruit, olives, and herbs can push your pour cost up 2-5% per drink. Track them like any other ingredient.
How do I handle cocktails with expensive premium spirits?
Premium cocktails should hit 15-22% pour cost maximum. Price them accordingly - customers expect to pay more for top-shelf ingredients.
📚 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.
Calculate your cocktail costs down to the ml
Drink margins seem high, but spillage and free pours eat them up. KitchenNmbrs calculates the exact cost price of every cocktail and drink. Try it free.
Start free trial →