Most restaurant owners think they know their wine margins—until they actually calculate them. While many estimate these figures, the reality often reveals money lost on expensive bottles and missed opportunities on crowd favorites. The difference between guessing and knowing can make or break your bar's profitability.
What is wine margin and why does it matter?
Wine margin represents the percentage of your selling price (excluding VAT) that remains after subtracting purchase costs. For wine, you'll work with 21% VAT rather than the 9% applied to food items.
💡 Example:
You sell a glass of wine for €6.05 including VAT:
- Selling price excluding VAT: €6.05 ÷ 1.21 = €5.00
- Purchase price per glass: €1.50
- Margin: €5.00 - €1.50 = €3.50
Margin %: (€3.50 ÷ €5.00) × 100 = 70%
Collect all wine sales and purchase prices
You'll need accurate data for meaningful results:
- Complete wine list with current selling prices
- Actual purchase prices per bottle from suppliers
- Glasses yielded per bottle (typically 5-6 from a 75cl bottle)
- Real sales volumes per wine from your POS data
⚠️ Note:
Focus on wines that actually moved. That €200 Burgundy sitting untouched will distort your real performance.
Calculate the margin per wine
Work through each wine systematically:
Per-glass formula:
Purchase price per glass = Bottle cost ÷ Glasses per bottle
Margin per glass = Selling price excl. VAT - Purchase price per glass
Margin % = (Margin per glass ÷ Selling price excl. VAT) × 100
💡 Sample calculation:
Sauvignon Blanc - moved 120 glasses last month:
- Bottle purchase price: €8.50
- Glasses per bottle: 6
- Purchase price per glass: €8.50 ÷ 6 = €1.42
- Selling price: €7.26 incl. VAT = €6.00 excl. VAT
- Margin per glass: €6.00 - €1.42 = €4.58
Margin %: (€4.58 ÷ €6.00) × 100 = 76.3%
Calculate the weighted average
Here's where most operators mess up—your average margin isn't just the mean of all percentages. Sales volume matters more than anything else.
Weighted average formula:
Total margin euros = Sum of (Margin per glass × Units sold)
Total revenue excl. VAT = Sum of (Selling price excl. VAT × Units sold)
Average margin % = (Total margin ÷ Total revenue) × 100
This calculation—the kind of thing you only learn after closing your first month at a loss—shows what your wine program actually contributes to the bottom line.
💡 Real-world example:
Three wines from March:
- Sauvignon Blanc: €4.58 margin × 120 glasses = €549.60
- Chardonnay: €3.20 margin × 80 glasses = €256.00
- Pinot Grigio: €5.10 margin × 60 glasses = €306.00
Total margin: €549.60 + €256.00 + €306.00 = €1,111.60
Total revenue excl. VAT: €720 + €400 + €360 = €1,480
Average margin: (€1,111.60 ÷ €1,480) × 100 = 75.1%
Benchmark your result
Industry standards for wine margins:
- By the glass: 70-80% margin
- Bottle service: 60-70% margin
- Fine dining establishments: 65-75% average
- Casual concepts: 70-80% average
Running below 65%? You're missing profit opportunities. Above 85%? Your pricing might be pushing guests away from wine altogether.
Optimize your wine list
Now you can make data-driven decisions:
- Reprice high-volume, low-margin wines strategically
- Push high-margin selections through staff training
- Drop underperforming bottles entirely
- Negotiate better terms with suppliers on volume purchases
⚠️ Note:
Price increases work better in small increments. Jump €1.50 overnight and regulars will definitely notice.
How do you calculate the average wine margin? (step by step)
Collect all wine data
Make a list of all wines on your list with bottle purchase price, selling price per glass, and number of glasses sold from last month. Get sales figures from your POS system.
Calculate margin per wine
For each wine: divide bottle price by number of glasses (usually 6), subtract this from selling price excl. VAT. This gives you the margin in euros per glass.
Calculate weighted average
Multiply margin per glass by quantity sold, add up all margins, divide by total revenue excl. VAT. This gives you the actual average margin percentage.
✨ Pro tip
Track your top 8 selling wines separately over the next 30 days. These wines typically generate 70-80% of your total wine revenue, so optimizing just these selections can transform your entire program's profitability.
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
Should I include VAT in my wine margin calculation?
Never include VAT in margin calculations. Wine carries 21% VAT, so that €6.05 glass becomes €5.00 excluding tax. Including VAT makes your margins look artificially low and skews your pricing decisions.
What if I pour different glass sizes for different wines?
Adjust your calculations accordingly. If you pour 15cl glasses instead of the standard 12.5cl, you'll get 5 glasses per bottle rather than 6. Always use your actual pour size, not industry averages.
How often should I recalculate my wine margins?
Monthly reviews work for most operations unless supplier prices change. But watch your top 10 selling wines closely—if those margins shift, recalculate immediately since they drive most of your wine revenue.
📚 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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