The margin on wine pairings determines whether you make money or lose it. Many restaurants underprice their pairings because they only look at the wine cost. Here's how to calculate a healthy margin that accounts for all costs.
Most restaurants think wine pairing margins are just about the bottle cost - that's completely wrong. Your pairing profitability depends on hidden costs like extra glassware, extended service time, and inventory risk. A proper margin calculation reveals whether you're actually making money or subsidizing your guests' wine education.
What is a realistic margin on wine pairings?
For wine pairings, restaurants typically work with a margin between 60% and 75%. This sounds high, but there are more costs involved than just the wine.
💡 Example:
4-course wine pairing for €45.00 per person:
- Wine cost: €12.00 per person
- Selling price excl. VAT: €45.00 / 1.09 = €41.28
- Margin: (€41.28 - €12.00) / €41.28 = 71%
This is a healthy margin for a wine pairing.
What costs should you include?
Wine pairings involve more costs than just the wine itself:
- Wine cost: The price you pay your supplier
- Staff: Extra time for explanations and service
- Glasses: Often multiple glasses per person
- Dishwashing: More glasses means more washing
- Knowledge: Investment in wine expertise and training
- Inventory risk: Not all bottles always sell
⚠️ Note:
Always calculate with your selling price excluding VAT. Wine pairings fall under 9% VAT.
How do you calculate your minimum selling price?
Use this formula to check if your pairing is profitable:
Minimum selling price excl. VAT = Wine cost / (1 - Desired margin)
💡 Example calculation:
You want 70% margin on a pairing with €15 wine cost:
- Minimum price excl. VAT: €15 / (1 - 0.70) = €50.00
- Price incl. 9% VAT: €50.00 × 1.09 = €54.50
You need to charge at least €54.50 to achieve 70% margin.
Different types of pairings
The margin varies by pairing type:
- Basic wine pairing (3 glasses): 65-70% margin
- Premium pairing (4-5 glasses): 70-75% margin
- Champagne pairing: 60-65% margin (higher purchase price)
- Wine and food pairing: 70-80% margin (more added value)
💡 Real-world example:
Restaurant with 3-course wine pairing:
- Wine cost: €8.50 per person
- Selling price: €32.00 incl. VAT
- Excl. VAT: €29.36
- Margin: (€29.36 - €8.50) / €29.36 = 71%
This margin is healthy and accounts for all extra costs.
What if your margin is too low?
If you're below 60% margin, you have several options:
- Raise your price: Often the smartest solution
- Find cheaper wines: Without compromising quality
- Adjust the pairing: Fewer glasses or different wines
- Create added value: More storytelling, better presentation of the wines
From tracking this across dozens of restaurants, I've seen that price adjustments work better than cost-cutting. Food cost calculators help you quickly run different scenarios to see what works for your profitability.
How do you calculate the right margin on wine pairings?
Calculate your total wine cost per person
Add up all the wines you serve per person. Calculate with the price you pay your supplier, including any discounts.
Determine your desired margin percentage
Choose a margin between 60-75% depending on your pairing type. Premium pairings can support a higher margin than basic pairings.
Calculate your minimum selling price
Use the formula: Wine cost / (1 - Desired margin). Multiply the result by 1.09 for the price including VAT.
Check if your price is market-competitive
Compare your price with competitors in your area. If you're significantly more expensive, you need to offer extra value or adjust your margin.
✨ Pro tip
Track your actual wine costs against supplier invoices every 6 weeks - not monthly. Wine distributors often adjust pricing mid-month, and catching these changes early prevents your 70% margin from silently dropping to 65%.
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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
Why is the margin on wine higher than on food?
Wine has lower processing costs but higher service costs. You're paying for expertise, presentation, and the wine experience. Plus you have inventory risk and investment in wine knowledge.
Can I use different margins for different wine pairings?
Absolutely, and you should. Premium pairings can support 70-75% margin, basic pairings often 60-65%. Adjust your margin based on the added value you provide.
How do I handle expensive wines in my pairing?
With expensive wines you can often work with a slightly lower margin, because the absolute amount is still good. A 60% margin on an expensive wine generates more than 75% on a cheap one.
Should I include VAT in my margin calculation?
No, always calculate with prices excluding VAT. Wine pairings fall under 9% VAT. Your selling price of €32.00 becomes €29.36 for your margin calculation.
📚 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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