You can have a packed dining room and still struggle to turn a decent profit. The culprit? Your food-to-drink revenue mix, since beverages deliver far superior margins. Split your revenue streams and you'll pinpoint exactly where profits hide.
Why this split matters
Beverages typically deliver 60-80% margins, while food hovers around 65-70% gross margin. A restaurant leaning heavily on food sales must generate significantly more revenue to match the profits of establishments with strong beverage programs.
💡 Example:
Restaurant A: €1000 revenue, of which €600 food and €400 drinks
- Food: €600 × 30% food cost = €180 costs → €420 gross profit
- Drinks: €400 × 25% drink cost = €100 costs → €300 gross profit
Total gross profit: €720 (72%)
💡 Comparison:
Restaurant B: €1000 revenue, of which €800 food and €200 drinks
- Food: €800 × 30% food cost = €240 costs → €560 gross profit
- Drinks: €200 × 25% drink cost = €50 costs → €150 gross profit
Total gross profit: €710 (71%)
Restaurant A nets €10 more per €1000 in sales, purely from optimized beverage ratios.
How to calculate the split
You'll need three key figures for this analysis:
- Food revenue: everything that comes from the kitchen
- Drink revenue: all alcoholic and non-alcoholic beverages
- Costs per category: food purchases vs. drink purchases
The formula for gross margin per category:
Gross margin % = ((Revenue - Purchase costs) / Revenue) × 100
⚠️ Note:
Always calculate with prices excluding VAT for an accurate picture. Most POS systems can split this automatically.
What the numbers tell you
Once you've crunched the split, opportunities become crystal clear. But there's one of the most common blind spots in kitchen management - restaurants often don't realize how dramatically their profit structure shifts based on these ratios:
- High food revenue, low drinks: focus on drink suggestions and wine list
- Low food revenue, high drinks: you're actually a café with a kitchen
- Both low: check your prices and portion sizes
💡 Real-world example:
A bistro discovered their drink revenue was only 25% of total revenue. On average that's 35-40%.
By actively recommending wine with meals, their drink revenue rose to 32%. That generated €15,000 in extra gross profit per year.
Benchmarks by restaurant type
Typical food vs. drink ratios:
- Fine dining: 60% food, 40% drinks
- Bistro/brasserie: 65% food, 35% drinks
- Café with kitchen: 45% food, 55% drinks
- Family restaurant: 75% food, 25% drinks
If you're significantly off these benchmarks, there's likely room for improvement.
How to track this
Most modern POS systems can make this split automatically. If you don't have a digital system yet, you can track it manually:
- Record your food and drink revenue daily
- Track your purchases by category
- Calculate your margins weekly
Apps like KitchenNmbrs can automate this analysis by connecting your POS data to your cost prices.
How do you calculate the food-drink split? (step by step)
Gather your revenue figures
Split your total revenue into food and drinks. Use your POS system or count manually. Calculate with amounts excluding VAT for an accurate picture.
Calculate your purchase costs per category
Add up all food purchases together (including ingredients, garnish, sauces). Add up all drink purchases separately (wine, beer, soft drinks, coffee).
Calculate the gross margin per category
Use the formula: (Revenue - Purchase costs) / Revenue × 100. Do this separately for food and drinks. Compare with the benchmarks for your type of restaurant.
✨ Pro tip
Pull your last 30 days of sales data and identify which 8 dishes generate the highest food revenue but lowest beverage attachment rates. Target these specific items for wine pairing suggestions during your next service period.
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
What if my drink revenue is much lower than the benchmark?
Then you're probably missing out on profit. Focus on your wine list, suggestions with dishes and aperitif/digestif. Every extra euro in drinks often generates 60-80 cents in gross profit.
Should I count coffee as food or drinks?
Coffee counts as drinks, as do tea and other hot beverages. These often have very high margins (80-90%) and are therefore important for your overall picture.
How often should I do this analysis?
Monthly is sufficient for most restaurants. That way you see trends and can adjust. During busy periods (summer/winter) you can check more often.
What if I mainly do delivery?
With delivery, drink revenue is usually lower (15-25%) because people drink less with home delivery. Then focus extra on your food cost to stay profitable.
📚 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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