Non-alcoholic drinks often deliver little margin, but are important for your guests. Many hospitality entrepreneurs struggle with this balance: you want a good selection, but barely earn anything from it. Here are all your options to handle this more smartly.
Why non-alcoholic drinks generate so little
The problem lies in the cost structure. A bottle of non-alcoholic beer costs you €1.20 to buy and you sell it for €3.50. That seems like a nice margin, but:
- Selling price excl. 9% VAT: €3.21
- Margin: €3.21 - €1.20 = €2.01 per bottle
- But: alcoholic drinks deliver €4-6 margin per glass
The difference becomes even bigger with soft drinks on tap versus premium cocktails.
💡 Example comparison:
Margin per drink:
- Cola (bottle): €2.50 - €0.80 = €1.70
- Non-alcoholic beer: €3.50 - €1.20 = €2.30
- Regular beer: €4.50 - €1.40 = €3.10
- House wine: €6.00 - €1.80 = €4.20
- Cocktail: €12.00 - €3.50 = €8.50
Difference: non-alcoholic options deliver 40-70% less margin
Option 1: Raise your prices
The most direct solution is adjusting your prices. Many establishments charge too little for non-alcoholic alternatives.
- Non-alcoholic beer: €4.50 instead of €3.50
- Mocktails: €8-10 instead of €6
- Fresh juices: €5-6 instead of €4
Guests who consciously choose non-alcoholic are often willing to pay more for quality.
⚠️ Watch out:
Test price increases carefully. Start with 10-15% and see how guests react. Too big jumps can scare them away.
Option 2: Find cheaper supplies
Look for suppliers with better prices or switch to other brands. Especially with non-alcoholic beer, there are big price differences between brands.
- House brands: often 20-30% cheaper than A-brands
- Wholesale: better prices with larger purchases
- Tap installation: much cheaper for soft drinks than bottles
💡 Example savings:
Non-alcoholic beer per bottle:
- A-brand: €1.20 cost
- House brand: €0.85 cost
- Savings: €0.35 per bottle
At 50 bottles/week: €910 savings per year
Option 3: Apply a mix strategy
Accept lower margins on non-alcoholic drinks, but compensate by:
- Higher food margin: add 2-3% extra food cost
- Push premium alcoholic drinks: with groups where some do drink
- Promote mocktails: higher margin than bottles
This strategy works especially well if non-alcoholic guests also order food. After managing kitchen operations for nearly a decade, I've seen this approach save many restaurants from having to cut their non-alcoholic selection entirely.
Option 4: Make your own creations
Homemade mocktails and lemonades have much better margins than ready-made products.
💡 Example homemade lemonade:
Ingredients per glass:
- Lemon juice: €0.30
- Sugar syrup: €0.15
- Sparkling water: €0.40
- Garnish: €0.20
Cost price: €1.05 → sell €6.00 → margin €4.95
Option 5: Adjust your assortment
Focus on non-alcoholic options with the best margin potential:
- Coffee/tea specialties: high margin, especially espresso-based
- Fresh juices: better margin than bottles
- Kombucha/specialty drinks: premium pricing possible
- Homemade iced tea: much cheaper than bottles
Remove options that are structurally unprofitable.
⚠️ Watch out:
Keep at least 3-4 non-alcoholic options. Too few choices can drive guests away, especially in groups with mixed preferences.
Run the numbers
Which option works best depends on your situation. Calculate what each choice means for your total margin.
With a system like KitchenNmbrs you can calculate the exact margin per drink and see which adjustments have the most impact on your overall result.
How do you choose the best strategy? (step by step)
Analyze your current margins
Calculate the exact margin per non-alcoholic drink. Include all costs: purchasing, VAT, any waste. Compare this with your alcoholic drinks to see the difference.
Check your competition
See what similar establishments charge for non-alcoholic options. This gives you insight into how much pricing room you have without losing guests.
Test one adjustment at a time
Start with the easiest option: cheaper supplies or a small price increase. Measure the effect on sales and margin for 4-6 weeks before moving forward.
✨ Pro tip
Track your non-alcoholic drink sales for 30 days to identify your top 2 performers. Focus all margin improvements on these winners first - they'll deliver the biggest impact on your bottom line.
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
Can I price non-alcoholic drinks the same as alcoholic ones?
That depends on your concept and target audience. Premium restaurants can often do this, while cafes see more price sensitivity. Test carefully with small increases.
What margin is normal on non-alcoholic drinks?
Standard is 60-75% margin on non-alcoholic drinks, versus 75-85% on alcoholic drinks. The difference comes from higher purchase prices per unit.
Are homemade mocktails always more profitable?
Usually, but also factor in labor costs. A mocktail that takes 5 minutes to make needs to generate enough extra margin to justify that time.
How do I prevent guests from leaving due to higher prices?
Increase gradually (10-15% at a time) and communicate the quality. Fresh ingredients and nice presentation justify higher prices.
Should I remove all low-margin non-alcoholic options?
No, you need variety for inclusivity and group dining. But prioritize the 3-4 options with the highest margins and best guest appeal.
What's the minimum number of non-alcoholic options I should offer?
Keep at least 3-4 different types: one premium mocktail, one non-alcoholic beer, and 1-2 soft drink options. This covers most preferences without overwhelming your inventory.
How often should I review my non-alcoholic drink margins?
Review quarterly, especially after supplier price changes or seasonal menu updates. Track which options sell well versus which just take up space on your menu.
📚 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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