A fine dining restaurant charging 300% on wine looks greedy, while a casual bistro with the same margin seems perfectly reasonable. Your wine margins need to match your establishment type and customer expectations. Most restaurants operate between 200-400%, but the sweet spot depends entirely on your positioning.
Common wine margins by restaurant type
Wine margins shift dramatically based on your establishment and clientele:
- Fine dining: 300-500% margin
- Casual dining: 250-350% margin
- Bistro/brasserie: 200-300% margin
- Casual eatery: 200-250% margin
- Hotel restaurant: 400-600% margin
? Example:
A bottle of wine you purchase for €8.00:
- Purchase price: €8.00
- Selling price: €28.00 (incl. 21% VAT)
- Excl. VAT: €23.14
Margin: 189% - that's on the low side for restaurants
How do you calculate your wine margin?
Wine margin calculations work differently than food cost percentages. You'll want to focus on margin percentage:
Margin % = ((Selling price excl. VAT - Purchase price) / Purchase price) × 100
? Example calculation:
Bottle of wine:
- Purchase price: €12.00
- Menu price: €42.00 (incl. 21% VAT)
- Excl. VAT: €34.71
Margin: ((€34.71 - €12.00) / €12.00) × 100 = 189%
⚠️ Note:
Wine carries 21% VAT, not 9% like food. Always calculate your margin excluding VAT.
From my experience, one of the most common blind spots in kitchen management is forgetting to factor VAT differences into wine pricing - it can throw your entire profit calculation off by 10-15%.
Why are wine margins so high?
Those margins might seem steep, but wine comes with hidden costs that food doesn't:
- Storage costs: Wine sits in your cellar for months
- Breakage and oxidation: Bottles break or spoil
- Service: Sommelier, wine advice, tastings
- Glassware: Breakage and replacement
- Licenses: Liquor license costs money
Wine by the glass vs. by the bottle
Individual glasses often carry different margins than full bottles:
? Example by the glass:
A €15 bottle yields 5 glasses:
- Cost per glass: €3.00
- Selling price: €8.50 (incl. 21% VAT)
- Excl. VAT: €7.02
Margin per glass: 134% - lower than whole bottle
But you'll typically move more glasses than bottles, so total revenue often comes out ahead.
Regional differences
Location dramatically affects what margins you can charge:
- Amsterdam city center: 350-500% possible
- Provincial city: 200-300% normal
- Village restaurant: 150-250% realistic
- Tourist areas: 300-400% common
⚠️ Note:
Study what your competitors charge. Margins that are too aggressive drive guests away, margins that are too conservative leave money on the table.
Building your wine list
Smart wine lists use tiered margin strategies:
- House wine: 200-250% margin, accessible price
- Mid-range: 250-350% margin, quality/price balance
- Premium: 300-500% margin, experience and status
Tracking systems can show you which bottles generate the most revenue per margin tier.
How do you calculate your wine margin? (step by step)
Gather your purchase price
Take the price you pay your wine supplier, including transport but excluding VAT. This is your actual cost per bottle.
Calculate selling price excl. VAT
Divide your menu price by 1.21 to get the price excl. 21% VAT. Wine always has 21% VAT, even in restaurants.
Apply the margin formula
Margin % = ((Selling price excl. VAT - Purchase price) / Purchase price) × 100. This gives you the margin percentage on that bottle.
✨ Pro tip
Track your wine margins by season - summer rosés and winter reds often command different margins based on demand patterns. Adjust pricing quarterly for maximum profitability.
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Frequently asked questions
What is a normal margin on house wine?
Why do hotels have higher wine margins?
Should I apply the same margin to all wines?
What about wine by the glass?
When are my wine margins too low?
How do I compete with supermarket prices?
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
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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