How do you avoid losing money on unlimited drink packages while keeping customers happy? Many hospitality entrepreneurs miscalculate their open bar pricing and watch profits disappear with every event. The key lies in understanding consumption patterns, accurate pour costs, and building in proper safety margins.
The basics: what does an open bar really cost?
An open bar charges per person per time period, not per drink. You'll need to estimate average consumption during that timeframe and add your margin on top.
💡 Example 2-hour drinks reception:
Average consumption per person in 2 hours:
- 3 beers at €2.50 = €7.50
- 1 wine at €3.00 = €3.00
- 1 soft drink at €1.50 = €1.50
Total pour cost: €12.00 per person
Calculate pour cost for different drinks
Your pour cost represents what each drink actually costs you, including VAT paid to suppliers.
- Beer: €2.00 - €3.50 per glass (depending on draft vs. bottle)
- Wine: €2.50 - €4.00 per glass (from €15-24 bottle excl. VAT)
- Soft drinks: €1.00 - €2.00 per glass
- Coffee/tea: €0.75 - €1.25 per cup
⚠️ Important:
Always calculate using supplier prices, including VAT you remit. For alcohol that's 21% VAT, not 9%!
Consumption patterns by duration
Duration directly impacts consumption. Here's what we typically see:
- 1 hour: 1.5-2 drinks per person
- 2 hours: 3-4 drinks per person
- 3 hours: 4-6 drinks per person
- Whole evening (4+ hours): 6-8 drinks per person
💡 Example calculation 3 hours:
50 people, 3-hour open bar:
- Average 5 drinks per person = 250 drinks
- 60% beer (€2.50), 25% wine (€3.00), 15% soft drinks (€1.50)
- Weighted average: €2.48 per drink
Pour cost: 250 × €2.48 = €620 for 50 people
Safety margin and risks
Some guests consume far more than average. That's why you always build in a 20-30% safety buffer above your calculated pour cost. A pattern we see repeatedly in restaurant financials shows venues that skip this margin often operate at losses during drink events.
- Business drinks: 20% margin (more controlled atmosphere)
- Weddings/parties: 30% margin (celebratory occasions)
- Friday happy hour/informal: 25% margin (balanced approach)
From pour cost to selling price
Your total costs extend beyond just beverages. Factor in these elements:
- Drinks (pour cost): base calculation
- Staff: additional bartender(s) during open bar
- Materials: extra glassware, napkins, garnish
- Margin: your profit on the package
💡 Complete calculation:
Open bar 2 hours, 40 people:
- Pour cost: €12.00 per person
- Safety margin 25%: €3.00
- Extra staff: €2.00 per person
- Desired margin 40%: €6.80
Selling price: €23.80 per person per 2 hours
Offer different packages
Many operators create tiered options to manage risk:
- Basic: beer, wine, soft drinks (lowest pour cost)
- Standard: + coffee, tea, juices
- Premium: + craft beers, better wines
- Deluxe: + spirits, cocktails (highest pour cost)
⚠️ Watch out for spirits:
Adding spirits dramatically increases pour cost. A whisky-cola costs you €4-6, while beer costs €2.50. Calculate this carefully!
How do you calculate a profitable open bar price? (step by step)
Determine average consumption per person per hour
Count how many drinks someone takes on average per hour. For a business drinks reception this is 1.5-2 per hour, for a party 2-2.5 per hour. Multiply by the number of hours.
Calculate the weighted average pour cost
Estimate what percentage beer, wine, and soft drinks will be consumed. Calculate the average cost price: (% beer × cost price beer) + (% wine × cost price wine) + (% soft drinks × cost price soft drinks).
Add safety margin and other costs
Calculate 20-30% safety margin for heavy drinkers. Add extra staff and material costs. Add your desired profit margin on top for the final selling price per person per hour.
✨ Pro tip
Track actual consumption at each event and compare it to your estimates within 48 hours. After analyzing 8-12 events, you'll spot patterns that let you adjust pricing more accurately and stay competitive.
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
What if guests drink much more than expected?
That's why you always add a safety margin of 20-30%. For business events this is usually sufficient. For parties you can agree on a maximum number of hours or add a 'fair use' clause.
Do I need to calculate VAT on my open bar price?
Yes, your selling price includes 9% VAT (on-premise hospitality). But note: the alcohol you buy has 21% VAT. So calculate with your actual purchase prices including that 21%.
How do I prevent losing money on heavy drinkers?
Build in a safety margin of at least 25%. Also consider a maximum number of hours or a 'reasonable use' clause in your contract. Some entrepreneurs set a maximum of 8-10 drinks per person.
What pour cost percentage is normal for an open bar?
For an open bar your pour cost can be higher than normal sales, because you don't have service costs per drink. 35-45% pour cost is normal, versus 18-25% for individual sales.
📚 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 →