Are your wine prices actually making money, or just covering costs? Most restaurant owners guess at wine margins, either leaving profits on the table or pricing themselves out of the market. The reality is that wine margins follow predictable patterns across different restaurant types.
Standard wine margins in restaurants
Wine margins per glass shift dramatically based on your restaurant's positioning and clientele. Here's what you should expect:
- Fine dining: 65-75% margin
- Casual dining: 60-70% margin
- Bistro/brasserie: 55-65% margin
- Café/eatery: 50-60% margin
💡 Example:
You buy a bottle of wine for €12.00 and get 5 glasses from it:
- Cost per glass: €12.00 ÷ 5 = €2.40
- Selling price per glass: €8.50 incl. 21% VAT
- Selling price excl. VAT: €8.50 ÷ 1.21 = €7.02
Margin: ((€7.02 - €2.40) ÷ €7.02) × 100 = 65.8%
Why wine margins exceed food margins
Wine delivers higher margins than food for straightforward operational reasons:
- Zero preparation: No kitchen staff, no cooking time, no energy costs
- No spoilage: Wine doesn't expire like fresh ingredients do
- Minimal labor: Pouring takes seconds compared to food preparation
- Profit compensation: Wine margins offset razor-thin food margins
⚠️ Note:
Always calculate using prices excluding 21% VAT. Alcoholic beverages get hit with the high VAT rate, not the 9% food rate.
The 4-5x multiplier rule
Hospitality veterans use a simple multiplier: charge 4 to 5 times your cost per glass. It's not scientific, but it works.
- Conservative approach: 4x the cost per glass
- Standard practice: 4.5x the cost per glass
- Premium locations: 5x or higher
💡 Example:
Chardonnay bottle at €15.00, 5 glasses per bottle:
- Cost per glass: €3.00
- 4x rule: €3.00 × 4 = €12.00 excl. VAT
- Menu price: €12.00 × 1.21 = €14.52 incl. VAT
Rounded: €14.50 per glass
Bottle vs. glass margin differences
A pattern we see repeatedly in restaurant financials shows bottle margins running lower than per-glass sales. Volume compensates for the reduced markup:
- Per glass: 60-75% margin (higher service, smaller quantity)
- Whole bottle: 40-55% margin (lower service, larger quantity)
That's exactly why restaurants push wine by the glass. More profit per milliliter served.
💡 Comparison example:
Same wine, different sales methods:
- Per glass (150ml): €8.50 → €42.50 for 750ml equivalent
- Whole bottle (750ml): €32.00
Difference: €10.50 more revenue per bottle with glass sales
Variables that impact your margins
Several factors determine what margins you can actually achieve in practice:
- Location: City center commands higher prices than suburbs
- Restaurant concept: Fine dining versus casual café
- Local competition: What are neighboring restaurants charging?
- Purchasing power: Direct from importer versus wholesaler markup
- Wine selection: Exclusive bottles versus common brands
Wine as your profit engine
Wine often generates more profit than food in successful restaurants:
- Food cost percentage: 28-35%
- Wine cost percentage: 25-40%
- Lower labor requirements for wine service
- Higher revenue density per square meter
A strategically managed wine program can transform struggling restaurants into profitable operations. Especially important for establishments dealing with tight food margins.
How do you calculate your wine margin per glass?
Calculate cost per glass
Divide the bottle's purchase price by the number of glasses you get from it. A standard bottle (750ml) yields 5 glasses of 150ml.
Determine selling price excluding VAT
Divide your menu price by 1.21 to get the price excluding 21% VAT. This is your actual selling price for the margin calculation.
Calculate the margin percentage
Subtract the cost from the selling price (excl. VAT), divide by selling price and multiply by 100. Formula: ((Selling price - Cost) ÷ Selling price) × 100.
✨ Pro tip
Track your wine margins weekly for 8 weeks straight. Restaurants that monitor wine profitability this frequently see 12-18% higher beverage revenue than those checking monthly.
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 many glasses should I pour from a 750ml bottle?
Most restaurants get 5 glasses at 150ml each from a standard bottle. Some establishments pour 125ml glasses and stretch it to 6 servings, but this can feel stingy to customers.
Should I calculate wine margins including or excluding VAT?
Always exclude VAT from your margin calculations. Wine gets hit with 21% VAT, so divide your menu price by 1.21 first. This gives you the actual selling price for margin math.
Why do restaurants make more money on wine than food?
Wine requires zero preparation, doesn't spoil, and needs minimal labor to serve. Food margins run 28-35% while wine margins hit 60-75%. Wine profits often subsidize thin food margins.
📚 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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