A single miscalculated mojito can cost you €2,000 in annual profit. Most bar owners estimate their pour costs instead of tracking them precisely. You'll discover exactly how to monitor drink margins using spreadsheets or specialized apps.
What is a drink margin and why is it important?
The drink margin (also called pour cost) represents the percentage of your selling price that covers drink purchases. It functions identically to food cost, but applies to both alcoholic and non-alcoholic beverages.
💡 Example:
You sell a beer for €4.84 (incl. 21% VAT):
- Selling price excl. VAT: €4.00
- Purchase price per bottle: €0.80
- Pour cost: (€0.80 / €4.00) × 100 = 20%
A typical pour cost for beer is between 18-25%.
Standard drink margins range from 18-25% for alcoholic beverages. Cocktails often reach 30% due to additional ingredients and labor requirements.
⚠️ Note:
Alcoholic beverages carry 21% VAT, not 9%. Always use the price excluding VAT for accurate pour cost calculations.
What do you need to track drink margins?
Effective drink margin tracking requires these essential data points:
- Purchase prices per bottle/liter for every drink item
- Menu selling prices (excluding VAT)
- Pour volumes (milliliters per serving)
- Daily sales data (quantity sold per product)
- Inventory counts (opening and closing stock)
Spreadsheet setup for drink margin tracking
An effective spreadsheet contains these essential columns:
💡 Example spreadsheet setup:
- Column A: Product name (Heineken, White wine, etc.)
- Column B: Purchase price per bottle/liter
- Column C: Volume per bottle (ml)
- Column D: Pour volume per glass (ml)
- Column E: Cost per glass (=B/C*D)
- Column F: Selling price incl. VAT
- Column G: Selling price excl. VAT (=F/1.21 for alcohol)
- Column H: Pour cost % (=E/G*100)
Build formulas so calculations happen automatically. When you update purchase prices, you'll instantly see margin impacts.
Apps vs. spreadsheets: what works better?
Spreadsheets offer flexibility and zero cost, but come with significant limitations:
- Manual data entry consumes valuable time
- Human error increases with product volume
- Team access becomes complicated
- Sales integration doesn't exist
From years of working in professional kitchens, I've seen how specialized tools like KitchenNmbrs eliminate most manual work. You create a drink database with automatic pour cost calculations for every product.
💡 Example cocktail calculation:
Mojito sold for €12.10 (incl. 21% VAT):
- Rum (5cl): €1.20
- Lime (half): €0.15
- Mint: €0.10
- Sugar: €0.05
- Soda: €0.10
Total cost: €1.60
Selling price excl. VAT: €10.00
Pour cost: 16% - excellent margin!
Daily monitoring of your drink margins
Review these critical points weekly:
- Sales versus inventory depletion: Do sold quantities match missing stock?
- Supplier price fluctuations: Update purchase costs immediately when they change
- Category performance: Which drink types deliver the strongest margins?
- Waste tracking: How much disappears through spills, mistakes, or spoilage?
⚠️ Note:
Factor in waste and spillage. Add 3-5% buffer to your cost calculations for realistic margin expectations.
Signs that your drink margins aren't right
These warning signals indicate margin problems:
- High sales volume doesn't translate to expected profits
- Pour costs climb despite stable supplier pricing
- Massive gaps between calculated and actual inventory usage
- Unrecorded complimentary drinks from staff
A specialized app helps identify these patterns quickly through automated calculations and period-by-period margin analysis.
How do you set up drink margin tracking? (step by step)
Gather all basic data
Make a list of all your drinks with purchase prices, bottle volumes, and pour volumes. Also note your current selling prices including VAT.
Calculate cost per glass
Divide the purchase price by the bottle volume and multiply by your pour volume. For a bottle of wine at €12 (750ml) that you sell per 150ml glass: (€12/750) × 150 = €2.40 per glass.
Calculate your pour cost percentage
Divide the cost per glass by your selling price excluding VAT and multiply by 100. For alcoholic beverages, calculate: selling price ÷ 1.21 for the price excl. VAT.
Monitor your margins weekly
Check your pour cost per drink category each week and compare with your sales figures. Update purchase prices immediately if suppliers raise their prices.
✨ Pro tip
Track your top 3 cocktails and 2 beer brands every Tuesday morning. These 5 drinks typically represent 60% 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
Should I include VAT in my pour cost calculation?
No, always calculate using the selling price excluding VAT. For alcoholic beverages that's 21% VAT, so divide your menu price by 1.21.
What is a good pour cost for different drinks?
Beer and wine: 18-25%, spirits: 15-22%, cocktails: 20-30%, soft drinks: 10-18%. These serve as guidelines - your concept and pricing strategy matter most.
How often should I adjust my drink prices?
Review monthly whether suppliers have increased prices. Adjust your selling prices if your pour cost exceeds your target percentage.
Should I include spillage and waste in my calculation?
Yes, add 3-5% buffer to your cost price for spillage, tastings, and incorrect orders. This creates a more realistic picture of your actual margins.
Can't I just estimate what my drink margins are?
Estimating creates dangerous blind spots because small deviations create massive impact. A pour cost of 25% instead of 20% costs you €5,000 in profit on €100,000 in annual drink sales.
How do I calculate pour cost for cocktails with multiple ingredients?
Add up the cost of every ingredient (spirits, mixers, garnishes) to get total cost per drink. Then divide by your selling price excluding VAT and multiply by 100 for the percentage.
📚 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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