Are your mocktails actually making you money, or just keeping customers happy? Mocktails often deliver higher profit margins than alcoholic drinks since you skip excise taxes and work with cheaper base ingredients. But many restaurant owners miscalculate by overlooking packaging costs and labor time.
Why mocktails are financially interesting
Mocktails are gaining serious traction. More guests want to cut back on alcohol while still enjoying something special. And that's great news for your bottom line—mocktails can be incredibly profitable.
- No excise taxes (alcoholic drinks carry extra tax burden)
- VAT of 9% instead of 21% (for dine-in service)
- Inexpensive base ingredients (juices, syrups, fresh herbs)
- Premium pricing justified by presentation and experience
💡 Example:
Virgin Mojito selling for €8.50 (incl. 9% VAT):
- Lime: €0.30
- Fresh mint: €0.25
- Cane sugar: €0.10
- Soda water: €0.15
- Ice: €0.05
Total ingredient costs: €0.85
The correct formula for drink margins
Drinks follow the same logic as food costing, but we use different terms. Instead of 'food cost,' you'll calculate 'pour cost'—the percentage of your selling price that goes toward ingredients.
Pour cost % = (Ingredient costs / Selling price excl. VAT) × 100
💡 Example calculation:
Virgin Mojito at €8.50 incl. VAT:
- Selling price excl. VAT: €8.50 / 1.09 = €7.80
- Ingredient costs: €0.85
- Pour cost: (€0.85 / €7.80) × 100 = 10.9%
That's an outstanding margin!
Hidden costs you need to include
But here's what catches most operators off guard: mocktails appear cheap until you factor in the hidden expenses that can slash your margins.
Labor intensity
Mocktails typically demand 2-3 minutes more prep time than pulling a beer tap. At €15 per hour (including employer contributions), that adds €0.50 to €0.75 in labor per drink. It's the kind of thing you only learn after closing your first month at a loss.
Garnish and presentation
Mocktails depend heavily on visual appeal. Don't forget to account for:
- Specialty glassware (higher dishwashing costs)
- Fresh garnish: fruit wheels, herb sprigs, decorative elements
- Paper straws, cocktail picks, premium napkins
- Extra ice (mocktails often need more than standard pours)
⚠️ Note:
Always work with prices excluding VAT. Restaurant mocktails carry 9% VAT, not the 21% applied to alcoholic beverages. Takeaway orders also get 9% VAT.
Benchmarks for mocktail margins
Target pour costs for mocktails typically run 15% to 25%. That's actually better than alcoholic drinks (18-25%) since you avoid excise taxes entirely.
💡 Example comparison:
Both priced at €8.50:
- Mocktail: €0.85 ingredients = 10.9% pour cost
- Gin and tonic: €2.10 ingredients = 26.9% pour cost
The mocktail delivers €1.25 more profit per glass!
Pricing strategy for mocktails
Many operators undervalue mocktails by pricing them way below alcoholic cocktails. That's leaving money on the table. Customers pay for the experience and craftsmanship, not just alcohol content.
Rule of thumb: Set mocktail prices at 70-85% of your alcoholic cocktails. They cost less to produce but often require identical preparation time and creativity. A food cost calculator (like KitchenNmbrs) can help you model different pricing scenarios quickly.
How do you calculate the margin on mocktails? (step by step)
Gather all ingredient costs
Make a list of all ingredients per mocktail: juices, syrups, fresh fruit, herbs, soda water, ice. Also include garnish such as mint leaves, lime wedges and decoration.
Calculate the selling price excl. VAT
Divide your menu price by 1.09 to get the price excluding 9% VAT. Mocktails in restaurants have 9% VAT, not 21% like alcoholic drinks.
Calculate the pour cost percentage
Divide the total ingredient costs by the selling price excl. VAT and multiply by 100. A good pour cost for mocktails is between 15% and 25%.
✨ Pro tip
Track your pour costs on mocktails weekly for the first 6 weeks after launch. If any drinks consistently hit above 25% pour cost, either adjust portions or raise prices—most guests won't balk at a €0.50 increase for quality presentation.
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 VAT rate applies to mocktails in restaurants?
Mocktails served for dine-in get 9% VAT, same as food and non-alcoholic beverages. Takeaway orders also qualify for 9% VAT. Only alcoholic drinks get hit with 21% VAT.
Should I factor labor costs into my mocktail margin calculations?
For quick margin checks, most operators only count ingredient costs. But mocktails can be labor-intensive—budget 2-3 extra minutes per drink compared to simple pours. That hidden labor cost can impact your real profitability.
How should I price mocktails relative to alcoholic cocktails?
Price mocktails at 70-85% of comparable alcoholic cocktails. They cost less to make but often need the same prep time and skill. Guests pay for the experience and presentation, not just the alcohol content.
📚 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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