Most restaurant owners think drink packages are easy money – until they realize they're losing profit on every booking. The reality? You can underestimate consumption by 40% or more if you're not tracking the right metrics. Here's how to price packages that actually make money.
What is an all-inclusive drink package?
With an all-inclusive drink package, guests pay a fixed amount per person for unlimited drinks during a set period. This can be alcoholic drinks only, or a combination of alcoholic and non-alcoholic drinks.
- Fixed price per person
- Unlimited consumption during set time
- Pre-agreed drink selection
- Usually at group events or parties
Calculate your average drink consumption per person
The foundation of your calculation is knowing how much people actually drink on average. This varies dramatically depending on the type of event and target audience.
💡 Example average consumption:
Corporate drinks 3 hours, 40 people:
- Beer: 3.5 glasses per person
- Wine: 2.2 glasses per person
- Soft drink: 1.8 glasses per person
- Coffee: 1.5 cups per person
Total: 9 drinks per person in 3 hours
Standard guidelines per hour:
- Lunch/drinks: 2-3 drinks per hour
- Dinner with drinks: 1.5-2.5 drinks per hour
- Party/celebration: 2.5-4 drinks per hour
- Wedding reception: 2-3 drinks per hour
⚠️ Note:
These are averages. Some guests drink much more, others less. Always calculate based on the average consumption of your entire group.
Determine your purchase prices and pour cost
Pour cost is the equivalent of food cost, but for drinks. It's the percentage of your selling price that goes toward drink purchases.
Pour cost formula:
Pour cost % = (Drink purchase price / Selling price excl. VAT) × 100
💡 Example purchase prices:
- Beer (25cl): €0.85 purchase
- House wine (15cl): €1.20 purchase
- Soft drink (20cl): €0.45 purchase
- Coffee per cup: €0.35 purchase
Typical pour cost percentages:
- Beer: 18-25%
- Wine: 20-28%
- Soft drink: 15-22%
- Coffee: 12-18%
Here's a mistake that costs the average restaurant EUR 200-400 per month: not tracking actual consumption versus estimated consumption for packages. You'll spot patterns that completely change your pricing strategy.
Include all additional costs
Besides the drinks themselves, you have additional costs that are often forgotten:
- Extra staff: bartenders, servers
- Breakage: 2-5% of your total drink purchases
- Napkins, straws, garnish: €0.10-0.20 per drink
- Ice cubes: €0.05-0.10 per drink
- Cleaning afterward: extra time and costs
💡 Example additional costs calculation:
40 people, 3 hours, 360 total drinks:
- Extra bartender: €75 (3 hours × €25)
- Breakage: €12 (2% of €600 drink purchases)
- Napkins/garnish: €54 (360 × €0.15)
- Ice: €25
Total additional costs: €166 = €4.15 per person
Calculate your minimum selling price
Now you can work out what you need to charge minimum to stay profitable.
Formula:
(Average drink purchase costs per person + Additional costs per person) / Desired margin
💡 Complete calculation:
40 people, 3 hours drink package:
- Drink purchase costs: €15.00 per person
- Additional costs: €4.15 per person
- Total costs: €19.15 per person
- Desired margin: 65% (pour cost 35%)
Minimum price excl. VAT: €19.15 / 0.35 = €54.71
Selling price incl. 21% VAT: €54.71 × 1.21 = €66.20 per person
⚠️ Note VAT:
Alcoholic drinks fall under 21% VAT, not 9%. Calculate this correctly in your final price.
Check against the competition
Check what others charge for comparable packages in your region. Your price needs to be market-competitive, but also cost-covering.
- Call 3-5 comparable venues
- Check their websites and package brochures
- Note what is/isn't included
- Position your own package accordingly
How do you calculate the margin on a drink package? (step by step)
Determine the average consumption per person
Calculate how many drinks your guests consume on average per hour. Multiply this by the duration of the package. Use 2-3 drinks per hour as a starting point for drinks events.
Calculate the total purchase costs per person
Add up all drink purchase costs and divide by the number of people. Don't forget to include the ratio between beer, wine and soft drinks in your calculation.
Add additional costs (staff, breakage, materials)
Include extra staff, breakage (2-5%), napkins, ice and cleaning. Divide these costs by the number of guests for the cost per person.
Determine your desired margin and calculate the selling price
Divide your total costs per person by your desired margin (for example 35% pour cost). Multiply by 1.21 for the price including 21% VAT.
✨ Pro tip
Track actual consumption for your first 10 drink packages and compare against your estimates. Most venues find their initial calculations are off by 15-25%, which you can correct for future bookings.
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 should I apply to drink packages?
A pour cost of 25-35% is standard for drink packages. This means a margin of 65-75%. Make sure you also include additional costs like staff and breakage in your calculation.
How do I prevent guests from drinking too much with all-inclusive?
Set limits on spirits, provide plenty of food, train your staff to pour responsibly and agree on the maximum duration of the package.
Should I charge 9% or 21% VAT on drink packages?
Alcoholic drinks always fall under 21% VAT, even in packages. Non-alcoholic drinks for on-premises consumption fall under 9% VAT. With mixed packages, calculate the weighted average.
What if guests drink less than I calculated?
Then you have more margin. The risk is the other way around: guests who drink more. That's why it's smart to base your calculation on the upper limit of your expectation.
How do I factor breakage into my pricing?
Calculate 2-5% of your total drink purchases as breakage. At busy parties or with younger audiences, use the higher end; at quiet business events, use the lower end.
Should I offer different tiers of drink packages?
Yes, offering basic, standard and premium tiers lets you capture different budget levels. The premium tier with top-shelf spirits often has the highest margins.
How far in advance should I finalize package pricing?
Lock in your pricing at least 2 weeks before the event. This gives you time to adjust staffing and inventory while protecting against last-minute supplier price changes.
📚 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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