Beer margins can make or break your café's bottom line. While food costs get all the attention, it's actually your beer sales that keep the doors open. The difference between a 70% and 80% beer margin determines if you're scraping by or actually turning a profit.
Average beer margins in the Netherlands
Beer margins fluctuate based on your café style and brand selection, but here's what you should expect:
- Draft beer: 75-85% gross margin
- Bottled beer: 70-80% gross margin
- Specialty beers: 65-75% gross margin
- Premium brands: 80-90% gross margin
💡 Example draft beer:
A glass of Heineken (0.25L) you sell for €2.50 incl. 21% VAT
- Selling price excl. VAT: €2.50 / 1.21 = €2.07
- Cost per glass: €0.35
- Gross margin: (€2.07 - €0.35) / €2.07 = 83%
This represents a healthy margin for a standard café.
Difference between draft and bottled
Draft beer consistently outperforms bottled options on margins. You're purchasing in bulk at wholesale rates - that 50-liter keg delivers way better cost per liter than buying individual bottles.
💡 Draft vs. bottled comparison:
Draft beer (50L keg at €85):
- Cost per liter: €1.70
- Per glass (0.25L): €0.43
- Selling price: €2.50 incl. VAT (€2.07 excl.)
- Margin: 79%
Bottled beer (24x33cl at €18):
- Cost per bottle: €0.75
- Selling price: €2.75 incl. VAT (€2.27 excl.)
- Margin: 67%
Factors that affect your margin
Several variables directly impact what you'll earn per glass:
- Location: City center vs. suburbs
- Concept: Brown café vs. trendy bar
- Purchase volume: Higher volume = better prices
- Supplier: Brewery vs. wholesaler
- Season: Terrace season vs. winter months
⚠️ Watch out for VAT:
Beer carries 21% VAT, not 9%. Always calculate your margin excl. VAT - otherwise your numbers look way better than they actually are.
What constitutes a healthy beer margin?
For your café to stay profitable, you need these minimum margins:
- Draft beer: Minimum 75%
- Bottled: Minimum 65%
- Specialty: Minimum 60%
Falling short of these numbers? You're not generating enough profit per glass to handle rent, wages, and utilities. Most kitchen managers discover too late that weak beer margins create a financial black hole that's almost impossible to escape from.
💡 Break-even calculation:
At €8,000 fixed costs per month and 80% beer margin:
- Needed for fixed costs: €8,000 / 0.80 = €10,000 beer revenue
- At €2.50 per glass: 4,000 glasses per month
- That's 130 glasses per day
This demonstrates why high beer margins are essential.
How to improve your beer margin?
Three proven strategies to boost what you earn per glass:
- Smarter purchasing: Negotiate volume discounts
- Optimize your mix: Push draft beer over bottled
- Price adjustments: Make sure your pricing stays competitive but profitable
Cost tracking software shows your exact margin per beer brand and helps identify which ones actually make you money.
How do you calculate your beer margin? (step by step)
Calculate your selling price excl. VAT
Divide your menu price by 1.21 (because beer has 21% VAT). A beer of €2.50 becomes €2.50 / 1.21 = €2.07 excl. VAT.
Determine your cost price per glass
For draft beer: divide keg price by number of glasses from the keg. For bottled: divide crate price by number of bottles. Don't forget to account for spillage loss (2-3%).
Calculate your gross margin percentage
Formula: (Selling price excl. VAT - Cost price) / Selling price excl. VAT × 100. A healthy beer margin is between 75-85%.
✨ Pro tip
Monitor your draft beer margins for exactly 14 days - you'll likely discover that inconsistent pour sizes are costing you €150-250 monthly in lost profits.
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
Why do cafés maintain such high margins on beer?
Beer margins offset razor-thin food margins and cover your fixed expenses like rent and payroll. Without strong beer margins, most cafés would close within months.
Should I calculate margins including or excluding VAT?
Always exclude VAT from your margin calculations. That 21% goes straight to the tax office - it's not your money. Including VAT gives you a false sense of profitability.
How do I handle customers complaining about beer prices?
Focus on the experience you're providing - atmosphere, service, and quality matter more than being the cheapest option. Just don't let your prices drift too far above local competitors.
📚 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 →