Picture this: you're pricing a Pinot Grigio that guests can order by the glass or bottle, but your margins don't add up. Wine requires accounting for different purchase prices, pouring losses, and 21% VAT on alcohol. Both margins need separate calculations to stay profitable.
Why wine margin differs from food cost
Wine presents unique challenges you won't face with food items:
- 21% VAT instead of 9% (always calculate excl. VAT!)
- Pouring loss: 5-10% due to tasting, drips, oxidation
- Double sales: same bottle sold by the glass and by the bottle
- Glass size: usually 125ml or 150ml per glass
⚠️ Note:
Always calculate with the price excl. 21% VAT. A wine of €6.00 incl. VAT is €4.96 excl. VAT (€6.00 / 1.21).
Step 1: Calculate your actual purchase price per glass
Your purchase price per glass runs higher than expected because of pouring loss:
💡 Example:
Bottle of wine €12.00 purchase, 6 glasses of 125ml per bottle:
- Purchase price per glass (theoretical): €12.00 / 6 = €2.00
- With 8% pouring loss: €2.00 / 0.92 = €2.17
Actual purchase price per glass: €2.17
Step 2: Calculate margin per glass
Use the formula for drink margin (also called 'pour cost'):
Drink margin % = (Purchase price per glass / Selling price excl. VAT) × 100
💡 Example:
Glass of wine €6.00 incl. 21% VAT on menu:
- Selling price excl. VAT: €6.00 / 1.21 = €4.96
- Purchase price per glass: €2.17 (from step 1)
- Drink margin: (€2.17 / €4.96) × 100 = 43.8%
This runs high - target 25-35% for wine.
Step 3: Calculate margin per bottle
For whole bottles you calculate without pouring loss, but watch your pricing strategy:
💡 Example:
Same bottle for €28.00 incl. VAT:
- Selling price excl. VAT: €28.00 / 1.21 = €23.14
- Purchase price bottle: €12.00
- Drink margin: (€12.00 / €23.14) × 100 = 51.9%
Too high! Standard margin for bottles: 35-45%.
Optimize your pricing
The key is balancing both margins. Most restaurants follow these guidelines:
- Bottle = 4x glass price: If a glass costs €6, sell the bottle for €24
- Glass = 20-25% of bottle price: Bottle €30 → glass €6-7.50
- Check both margins: ensure they fall within your target range
⚠️ Note:
If you price glasses too low to push bottles, you'll lose money on every glass sold. Calculate both margins independently.
Account for different wine types
Different wine categories need different margin targets:
- House wine: 25-30% margin, focus on volume
- Mid-range: 30-40% margin, most sold
- Premium: 40-50% margin, smaller volumes
- Champagne/sparkling: 45-55% margin, special occasions
Based on real restaurant P&L data, establishments using tools like KitchenNmbrs see 15% better wine margin control by automatically calculating both formats with pouring loss and VAT corrections built in.
How do you calculate wine margin step by step?
Determine your actual purchase price per glass
Divide your bottle price by number of glasses per bottle, and correct for 5-10% pouring loss. A bottle of €12 with 6 glasses becomes €2.17 per glass at 8% loss.
Calculate selling prices excluding VAT
Divide your menu price by 1.21 for the price excl. 21% VAT. A glass of €6.00 becomes €4.96 excl. VAT for your margin calculation.
Calculate both margins and optimize
Use (purchase price / selling price excl. VAT) × 100 for both. Aim for 25-35% for glasses and 35-45% for bottles, and adjust prices where needed.
✨ Pro tip
Review your wine margins every 3 weeks and adjust immediately when supplier prices shift. Track your actual pouring loss by measuring 20 bottles over a month - most operators underestimate waste by 2-3%.
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?
No, always calculate with prices excluding VAT. Alcoholic beverages carry 21% VAT, so divide your menu price by 1.21 for the actual selling price.
How much pouring loss should I account for with wine?
Account for 5-10% pouring loss due to tasting, drips and oxidation. With professional pouring you can use 5-8%, with less experienced staff rather 8-10%.
Why is my bottle cheaper per glass than individual glasses?
That's expected behavior. Guests anticipate a discount on whole bottles. The rule of thumb: bottle = 4x glass price, so both margins work but bottles carry slightly lower margins.
What is a good wine margin for restaurants?
For glasses: 25-35%, for bottles: 35-45%. Premium wines can run higher (up to 50%), while house wines often stay lower (25-30%) to drive volume.
How many glasses do I get from one bottle of wine?
With 125ml glasses you get 6 glasses from a 75cl bottle. With 150ml glasses it's 5 glasses. Always account for pouring loss in your calculations.
Should I price wine glasses to encourage bottle sales?
Don't sacrifice glass profitability for bottle sales. Calculate margins separately and price each format to hit your target margins. Both should remain profitable independently.
📚 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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