An open bar seems expensive, but pricing it comes down to math. Most operators wing it and lose money. But smart pricing requires estimating guest consumption, calculating drink costs, and building in your target margin.
What is an open bar arrangement?
With an open bar, guests pay a fixed amount and can drink unlimited beverages for a set period. You're taking on all the risk: heavy drinkers hurt your profits while light drinkers boost them.
The secret lies in accurate consumption estimates and smart pricing based on those numbers.
Calculate your average drink costs
For an open bar, you'll need an average cost price per drink. Start by listing all beverages you're offering:
- Beer: €2.50 cost, €5.50 selling price
- Wine: €4.00 per glass cost, €7.50 selling price
- Soft drink: €1.20 cost, €3.50 selling price
- Spirits: €3.50 cost, €8.00 selling price
💡 Example calculation average:
Expected distribution at a corporate happy hour:
- 40% beer (€2.50 cost)
- 30% wine (€4.00 cost)
- 20% soft drink (€1.20 cost)
- 10% spirits (€3.50 cost)
Average cost per drink: (0.4 × €2.50) + (0.3 × €4.00) + (0.2 × €1.20) + (0.1 × €3.50) = €2.89
Estimate consumption per person per hour
Consumption varies wildly based on event type, timing, and crowd. Here's what we see in practice:
- Corporate happy hour (after work): 2-3 drinks per hour
- Wedding/party (evening): 3-4 drinks per hour
- Lunch arrangement: 1-2 drinks per hour
- Anniversary/gala: 2-3 drinks per hour
⚠️ Note:
Always use the upper consumption limit. Better to price slightly high than lose money on heavy drinkers. You can discount later if needed.
Calculate your minimum price
Here's the formula for your minimum price per person:
Minimum price = (Average cost × Expected consumption × Hours) / (1 - Desired margin %)
💡 Example corporate happy hour:
Open bar for 3 hours, expecting 2.5 drinks per hour:
- Average cost: €2.89 per drink
- Consumption: 2.5 × 3 = 7.5 drinks per person
- Total cost: €2.89 × 7.5 = €21.68
- Desired margin: 65% (pour cost 35%)
Minimum price: €21.68 / 0.35 = €61.94 per person
Add VAT and safety margin
Your calculation excludes VAT. Alcoholic beverages get hit with 21% VAT:
Price including VAT = Minimum price × 1.21
Then add a 10-15% safety margin for unexpected costs and consumption spikes. Based on real restaurant P&L data, operators who skip this buffer often see open bar events drag down monthly profits by 3-8%.
💡 Final calculation:
From €61.94 to final price:
- €61.94 × 1.21 (VAT) = €74.95
- €74.95 × 1.15 (safety margin) = €86.19
- Rounded: €87.50 per person
Final price: €87.50 per person for 3 hours open bar
Check against benchmarks
Compare your price with standard rates in your region:
- Corporate happy hour: €25-35 per hour per person
- Wedding/party: €30-45 per hour per person
- Lunch arrangement: €15-25 per hour per person
Way higher than competitors? Double-check your consumption estimates. Much lower? You might be leaving money on the table.
How do you calculate the minimum price for an open bar?
Calculate your average drink costs
Make a list of all drinks you're offering with their cost price. Estimate the distribution (40% beer, 30% wine, etc.) and calculate the weighted average of your cost per drink.
Estimate consumption per person
Determine how many drinks your guests will average per hour. This depends on the type of event: corporate happy hour (2-3/hour), party (3-4/hour), lunch (1-2/hour).
Calculate minimum price including margin
Multiply average cost × consumption × hours. Divide by (1 - desired margin %) for your minimum price excl. VAT. Add 21% VAT and a safety margin of 10-15%.
✨ Pro tip
Track actual consumption during your first 3 open bar events and compare against estimates. Most operators find their initial guesses are 20-30% off, allowing you to fine-tune pricing 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 if guests drink more than expected?
That's why you build in a 10-15% safety margin during calculations. You can also set time limits or negotiate additional charges after a certain consumption threshold per person.
How do I calculate cocktail costs in an open bar?
Add up every ingredient: base spirit, mixers, garnish, ice. Most cocktails run €4-7 in ingredient costs. Weight cocktails heavily in your average since they're pricier than beer or wine.
Can I charge different prices for different drink types?
Absolutely - offer tiered packages like basic (beer/wine/soft drinks only) or premium (includes spirits). Make inclusions crystal clear upfront to avoid disputes.
📚 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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