The margin on soft drinks determines how much you keep per glass after deducting purchase costs. Many hospitality entrepreneurs only calculate with the syrup, but forget VAT, CO2 and other costs. In this article you'll learn step by step how to calculate the real margin on soft drinks.
What does a glass of soft drink really cost?
A glass of cola seems cheap - syrup costs little. But there are more costs involved than you think:
- Syrup or concentrate
- CO2 for carbonation
- Water (with own mixing system)
- Ice (energy for ice machine)
- Straw, napkin
- Glass (depreciation and breakage)
💡 Example: Cola from tap system
Glass of cola (0.25L) sold for €2.75 incl. VAT:
- Syrup: €0.18
- CO2: €0.03
- Ice: €0.02
- Straw/napkin: €0.02
Total purchase costs: €0.25
Processing VAT correctly
Soft drinks in restaurants fall under 9% VAT. For your margin calculation, you always calculate with the price excluding VAT.
⚠️ Note:
Never calculate with the price including VAT. Then your margin looks higher than it really is. €2.75 incl. VAT = €2.52 excl. VAT at 9%.
The formula for drink margin
Just like with food, you use a percentage to calculate your margin:
Drink margin % = (Purchase costs / Sales price excl. VAT) × 100
💡 Example calculation:
Cola for €2.75 incl. VAT with €0.25 purchase costs:
- Sales price excl. VAT: €2.75 ÷ 1.09 = €2.52
- Drink margin: (€0.25 ÷ €2.52) × 100 = 9.9%
You keep 90.1% as margin
Standard margins per drink type
Different drinks have different margins:
- Soft drink from tap: 8-15% purchase costs
- Soft drink from bottle: 25-35% purchase costs
- Freshly squeezed juice: 20-30% purchase costs
- Coffee/tea: 15-25% purchase costs
- Water (bottle): 20-30% purchase costs
💡 Comparison: Tap vs Bottle
Cola 0.25L sold for €2.75:
- From tap: €0.25 purchase = 9.9% costs
- From bottle: €0.65 purchase = 25.8% costs
Tap delivers €0.40 more margin per glass
Hidden costs you forget
Many entrepreneurs only calculate with the syrup, but forget:
- Equipment: Depreciation of tap system, ice machine
- Maintenance: Cleaning pipes, replacing filters
- Energy: Cooling syrup, ice production
- Breakage: Glasses that break
- Overfilling: Too full glasses by staff
Impact on annual basis
Small differences in drink margin have big impact:
💡 Impact calculation:
Restaurant with 50 soft drinks per day:
- 5% difference in margin = €0.13 per glass
- Per day: 50 × €0.13 = €6.50
- Per year: €6.50 × 300 days = €1,950
Almost €2,000 difference per year
How do you calculate the margin on soft drinks? (step by step)
Gather all purchase costs
Add up: syrup/concentrate, CO2, water, ice, straw, napkin and part of the glass costs. Don't forget energy for cooling and ice production either.
Calculate sales price excluding VAT
Divide your menu price by 1.09 to go from including to excluding 9% VAT. €2.75 incl. becomes €2.52 excl. VAT.
Apply the formula
Divide purchase costs by sales price excl. VAT and multiply by 100. At €0.25 purchase on €2.52 sales = 9.9% costs, so 90.1% margin.
✨ Pro tip
Check your drink margin on your 3 best-selling soft drinks. If those are good, you have 80% of your drink profit under control.
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 margin calculation?
No, always calculate with the price excluding VAT. Soft drinks in restaurants have 9% VAT. Divide your menu price by 1.09 for the price excl. VAT.
What is a good margin on soft drinks?
For soft drinks from tap, purchase costs of 8-15% are normal, so 85-92% margin. Bottles are more expensive: 25-35% purchase costs, so 65-75% margin.
What costs do I often forget with soft drinks?
CO2, energy for ice production, depreciation of the tap system, cleaning of pipes and glass breakage. Together these can mean 20-30% additional costs.
Is tap always cheaper than bottles?
Usually yes. Tap has lower purchase costs but higher investments (installation). With more than 30 glasses per day, tap is almost always more profitable.
How often should I adjust my drink prices?
Check every 6 months if your supplier has raised prices. Syrup and CO2 can increase 10-20% per year, especially due to energy costs.
📚 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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