Margin on a bottle of champagne…

Quick answer

Most restaurants price table wine carefully but throw caution to the wind with champagne. While table wine margins hover around 60-65%, champagne can easily hit 70-75% because guests expect premium pricing on bubbles.

Most restaurants price table wine carefully but throw caution to the wind with champagne. While table wine margins hover around 60-65%, champagne can easily hit 70-75% because guests expect premium pricing on bubbles. The calculation differences between these categories can make or break your beverage profitability.

Why champagne delivers better margins

Champagne operates in a different pricing universe than table wine. Guests anticipate higher prices and rarely shop around for champagne deals. This pricing flexibility creates opportunities for substantially better margins.

? Example champagne vs. table wine:

Champagne Veuve Clicquot:

Cost: €35.00
Selling price: €140.00 (incl. 21% VAT)
Selling price excl. VAT: €115.70
Margin: €115.70 - €35.00 = €80.70
Margin %: (€80.70 / €115.70) × 100 = 69.7%

Sauvignon Blanc table wine:

Cost: €8.50
Selling price: €28.00 (incl. 21% VAT)
Selling price excl. VAT: €23.14
Margin: €23.14 - €8.50 = €14.64
Margin %: (€14.64 / €23.14) × 100 = 63.3%

The formula for wine margin

All alcoholic beverages carry 21% VAT in the Netherlands. You'll want to calculate using the VAT-exclusive price for accurate margin assessment.

Margin percentage = ((Selling price excl. VAT - Cost price) / Selling price excl. VAT) × 100

Absolute margin = Selling price excl. VAT - Cost price

⚠️ Note:

Alcohol carries 21% VAT, not 9% like food. A bottle priced at €50 incl. VAT equals €41.32 excl. VAT (€50 / 1.21).

Standard margins by wine type

Each wine category has distinct margin benchmarks:

Champagne/prosecco: 65-75% margin
Table wine by the glass: 70-80% margin
Table wine by the bottle: 60-70% margin
Premium wines (€50+): 55-65% margin
House wine: 65-75% margin

Strategy: champagne as a profit driver

Champagne can become your highest-margin beverage category with strategic positioning. From tracking this across dozens of restaurants, I've seen bubbles consistently outperform other categories because guests associate special occasions with premium pricing.

? Example annual revenue impact:

Restaurant with 50 covers/evening, 6 days/week:

10% of tables order champagne (5 bottles/evening)
Margin per bottle: €80.70
Per week: 5 × 6 × €80.70 = €2,421
Per year: €2,421 × 52 = €125,892 extra margin

Champagne alone generates €125,892 in margin per year.

Optimizing your wine list

Position champagne strategically on your menu. Place an expensive champagne (€200+) at the top to make other options appear reasonable. This anchoring effect guides purchasing decisions.

Start with a premium champagne (€180-250)
Follow with your 'recommended' champagne (€80-120)
End with an accessible option (€50-80)

The middle option gets chosen most frequently and delivers optimal balance between volume and margin.

How do you calculate the margin on champagne vs. table wine?

Gather your cost prices and selling prices

Note the cost price per bottle (what you pay your supplier) and your menu price including VAT. Make sure you have the exact amounts, not estimates.

Calculate the selling price excluding VAT

Divide your menu price by 1.21 to get the price excluding 21% VAT. For example: €121 incl. VAT becomes €100 excl. VAT (€121 / 1.21).

Calculate absolute margin and margin percentage

Subtract your cost price from the selling price excl. VAT to get the absolute margin. Then divide the absolute margin by the selling price excl. VAT and multiply by 100 for the percentage.

✨ Pro tip

Track your champagne-to-table-wine sales ratio weekly for 8 weeks. If champagne represents less than 12% of your wine revenue, you're likely underpricing your bubbles and missing significant margin opportunities.

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Frequently asked questions

Why does champagne have a higher margin than table wine?

Champagne functions as a prestige product where guests show less price sensitivity. They anticipate premium pricing and rarely comparison shop between establishments, creating space for superior margins.

Should I include VAT in my margin calculation?

Always calculate using VAT-exclusive pricing. Alcohol carries 21% VAT in the Netherlands, so including VAT in your calculations will artificially deflate your actual margin percentages.

What is a normal margin on wine by the glass?

Wine by the glass typically achieves 70-80% margins, higher than bottle sales. You'll extract 4-5 glasses from one bottle while purchasing that bottle for the equivalent of 2-3 glass prices.

How do I price champagne against premium still wines?

Champagne can carry 5-10% higher margins than premium still wines at similar price points. Guests accept this premium because they view champagne as inherently more luxurious than even expensive table wines.

ℹ️ This article was prepared based on official sources and professional expertise. While we strive for current and accurate information, the content may differ from the most recent regulations. Always consult the official authorities for binding standards.

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.

8 years kitchen manager at 1NUL8 Group Rotterdam

Expertise: food cost management HACCP kitchen management restaurant operations food safety compliance

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