Building a wine list requires balancing purchase price with selling price for optimal profitability. Many hospitality entrepreneurs guess their wine prices, leaving money on the table or pricing themselves out of the market. You'll discover how to build a profitable wine list using your desired margin calculations.
The basics: calculating wine margin
Wine follows different margin rules than food. While food uses cost percentages for dishes, wine typically uses fixed multiplication factors or absolute margins.
💡 Example:
You purchase a bottle for €8.00 (excl. VAT).
- Method 1 - Factor 3.5: €8.00 × 3.5 = €28.00 excl. VAT
- Method 2 - Fixed margin: €8.00 + €18.00 = €26.00 excl. VAT
- Selling price incl. 21% VAT: €28.00 × 1.21 = €33.88
Your wine margin becomes: €20.00 on €28.00 = 71%
Common margins by price range
Every wine can't carry identical margins. Expensive wines often show lower percentage margins but deliver higher absolute profit.
- House wine (€15-25): Factor 3.0-4.0 (margin 67-75%)
- Mid-range (€25-45): Factor 2.5-3.5 (margin 60-71%)
- Premium (€45+): Factor 2.0-2.8 (margin 50-64%)
⚠️ Note:
Always calculate using prices excluding VAT. Wine carries 21% VAT, not 9% like food. Many entrepreneurs overlook this distinction.
Processing VAT correctly
Wine always carries 21% VAT, even when served in your restaurant. This differs from food, which has 9% VAT. One of the most common blind spots in kitchen management is mixing up these VAT rates during pricing calculations.
💡 Example VAT calculation:
You want €35.00 incl. VAT for a bottle.
- Price excl. VAT: €35.00 ÷ 1.21 = €28.93
- VAT amount: €35.00 - €28.93 = €6.07
- Purchase was €8.00, so margin: €20.93 (72%)
Wine list structure by category
A solid wine list offers different price ranges to serve all guests. Follow the rule of three: affordable, middle, premium.
- Entry-level wine: 20-30% of your list, lowest price removes barriers
- Mid-range: 50-60% of your list, where you generate most profit
- Premium: 20-30% of your list, for special occasions
Glass sales vs bottle sales
Wine by the glass carries different margins than bottles. You typically calculate 4-5 glasses per bottle, but often only sell 3-4 glasses before the bottle must go.
💡 Example glass sales:
Bottle purchase €8.00, sale €28.00.
- Per glass sale: €28.00 ÷ 4 = €7.00 excl. VAT
- Incl. 21% VAT: €7.00 × 1.21 = €8.47 per glass
- If you sell 4 glasses: €28.00 revenue (matches bottle)
- If you sell 3 glasses: €21.00 revenue (€7.00 less)
Season and purchasing timing
Wine prices fluctuate less than fresh products but do shift due to exchange rates and harvests. Plan your purchasing and adjust prices accordingly.
- Review your margins every quarter
- Purchase popular wines in larger quantities for better buying prices
- Adjust menu prices with new wine list (twice per year)
⚠️ Note:
Too many different wines creates slow turnover and spoilage risk. Better 20 solid wines than 50 different ones.
How do you build a wine list? (step by step)
Determine your price ranges and target margins
Choose 3 price ranges: entry-level (factor 3.5-4.0), mid-range (factor 2.5-3.5), premium (factor 2.0-2.8). Calculate per range what you can purchase at most to achieve your desired selling price.
Select wines per category
Choose 2-3 red wines, 2-3 white wines, 1 rosé and 1 sparkling wine per price range. Pay attention to the purchase price versus your desired selling price including 21% VAT.
Calculate glass and bottle prices
Determine which wines you offer by the glass (usually the cheaper half). Calculate 4 glasses per bottle for your cost price, but expect 3-4 glasses sold in practice.
✨ Pro tip
Focus on your top 3 house wines and nail those margins within the first 30 days. These wines typically represent 60% of your total wine revenue.
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 margin is normal for wine in restaurants?
Standard wine margins range between 60-75%, depending on price tier. Cheaper wines often carry higher percentage margins, while expensive wines have lower percentages but generate more absolute profit.
Should I include VAT in my wine margin calculation?
No, always calculate excluding VAT for your margin analysis. Wine carries 21% VAT, and including it makes your margin appear lower than reality.
How many different wines should I have on my list?
For most restaurants, 15-25 wines work ideally. Too few choices limit guests, while too many create slow turnover and spoilage from opened bottles.
How often should I adjust my wine prices?
Review wine margins quarterly and adjust prices with new wine lists twice yearly. Wine prices stay more stable than food but shift due to exchange rates and harvest conditions.
📚 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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