Staff drinks can be a significant cost item if you don't have a clear policy for them. Many hospitality entrepreneurs underestimate the impact: with 5 employees each having 2 drinks per day, you're quickly losing €3,000-€5,000 per year in revenue. Setting up a fair policy and calculating exactly what it costs you prevents financial surprises.
Why a drinks policy matters
Without clear rules, gray areas emerge. One employee grabs a cola, another has a beer after their shift, and yet another shares drinks with friends. Before you know it, you're losing hundreds of euros per month without realizing it.
⚠️ Note:
Staff drinks are fiscally considered a working condition. With large quantities, the Tax Authority can view this as wages in kind, on which you must pay tax.
Different policy options
There are different ways to handle staff drinks. Each has pros and cons:
- Completely free: Simple, but most expensive option
- Limited free: For example, 2 drinks per shift
- Staff price: 50% discount on cost price
- At cost price: No margin, but cost-covering
- Fully self-pay: Cheapest, but can be demotivating
Calculate the real costs
The cost of staff drinks consists of more than just the purchase price. You also lose the margin you'd normally make on those drinks.
💡 Example calculation:
5 employees, each 2 drinks per workday, 6 days per week:
- Cola cost price: €0.35 per glass
- Cola selling price: €2.50 (excl. 9% VAT = €2.29)
- Lost margin per glass: €2.29 - €0.35 = €1.94
- Per week: 5 × 2 × 6 × €1.94 = €116.40
Annual lost revenue: €6,053
Handle alcoholic drinks separately
Different rules apply to alcoholic drinks. Beer and wine have a higher cost price and 21% VAT instead of 9%. Additionally, there are employment law aspects: alcohol during work hours is usually not permitted.
💡 Example beer policy:
Beer only after end of shift, maximum 1 per day:
- Beer cost price: €1.20 per glass
- Beer selling price: €3.50 (excl. 21% VAT = €2.89)
- Lost margin: €2.89 - €1.20 = €1.69 per beer
- 5 employees × 6 days = €50.70 per week
Annually: €2,636 lost revenue
Set up a fair policy
A good staff drinks policy is clear, fair, and achievable. Put it in writing and discuss it with your team. Transparency prevents disputes later.
- Which drinks: Water always free, soft drinks limited, alcohol only after shift
- How much: For example, 2 non-alcoholic drinks per shift
- When: During breaks and after end of shift
- Registration: How you track what's consumed
- Exceptions: What applies during long shifts or hot days
Digital registration vs. trust
You can track staff drinks in different ways. Some entrepreneurs work on trust, others register everything digitally. The choice depends on your team size and company culture. But here's a pattern we see repeatedly in restaurant financials: establishments without any tracking system consistently underestimate their actual staff consumption by 40-60%.
⚠️ Note:
Without registration, you don't know what staff drinks really cost you. This makes it difficult to calculate your food cost and margins correctly.
Impact on your total margin
Staff drinks affect your total drinks margin. If you normally have 20% pour cost on drinks, uncontrolled staff drinks can quickly push this to 25-30%.
💡 Impact on pour cost:
Restaurant with €8,000 drinks sales per month:
- Normal pour cost: 20% = €1,600 cost of goods
- €500 staff drinks (cost value) extra
- New pour cost: (€1,600 + €500) / €8,000 = 26.3%
Your margin drops by 6.3 percentage points
Sample policy for different business types
The ideal drinks policy depends on your type of business. A fine dining restaurant has different rules than a brown café.
- Restaurant: Water free, 1 soft drink per shift, alcohol at cost price
- Café/bar: 2 drinks free per shift, beer allowed after closing
- Fast casual: Limited to water and 1 soft drink, strict registration
- Catering: More flexibility during long events, water always unlimited
How do you set up a staff drinks policy? (step by step)
Calculate your current costs
Track for 2 weeks what your staff drinks. Calculate both cost price and lost margin. This gives you a realistic picture of the real costs.
Determine your policy per drink type
Distinguish between water (always free), soft drinks (limited free), and alcohol (only after shift). Set limits that are fair but keep your costs manageable.
Register and evaluate monthly
Track what's consumed and calculate the impact on your margin monthly. Adjust the policy if costs get too high or if the team is dissatisfied.
✨ Pro tip
Review your staff drinks costs every 6 weeks to catch consumption creep early. Most operators who ignore this see their beverage costs gradually increase by 2-3% annually without realizing why.
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
How much can I spend on staff drinks?
A rule of thumb is maximum 1-2% of your total personnel costs. With €10,000 in payroll per month, €100-€200 on staff drinks would be reasonable.
Do I have to pay VAT on free staff drinks?
Small quantities (such as 1-2 drinks per shift) usually fall under the exemption. With structurally high amounts, the Tax Authority can view this as wages in kind.
Can I completely ban alcohol for staff?
Yes, as an employer you can ban alcohol during work hours. You can also set rules about alcohol consumption on your business premises after closing.
How do I prevent disputes about the drinks policy?
Involve your team in setting up the policy. Explain why rules are necessary and be transparent about costs. A written policy prevents misunderstandings.
Can I have different rules for different positions?
Yes, you can make distinctions between positions. For example, more drinks for chefs working in a hot kitchen, or different rules for management versus staff.
What's the best way to handle energy drinks and premium beverages?
Treat these separately due to higher costs - typically €2-4 cost price versus €0.35 for cola. Consider charging staff half the cost price or limiting to one per week.
Should I adjust the policy during busy holiday periods?
Many operators increase allowances during December or summer rushes due to longer shifts and higher stress. Just factor the extra €200-400 monthly cost into your holiday budgets.
📚 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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