A single glass of Chardonnay priced at €6.50 instead of €5.50 can add €1,200 monthly revenue for an average restaurant. Most hospitality owners guess at wine prices, either leaving money on the table or pricing themselves out of sales. The exact formula for calculating wine prices based on your target margin is simpler than you think.
Why wine prices matter so much
Wine delivers high profit margins, but only if you price it correctly. Price too low and you're giving away profit. Price too high and guests stick to water with their meals.
⚠️ Note:
Alcoholic beverages carry 21% VAT, not 9%. Always calculate with the price excluding VAT for your margin calculation.
The basic formula for wine prices
For wine, you don't use the food cost formula, but the pour cost formula:
Selling price excl. VAT = Cost per glass / (Pour cost % / 100)
Then add 21% VAT for the menu price.
? Example:
You buy a bottle of wine for €12.00. The bottle contains 5 glasses.
- Cost per glass: €12.00 / 5 = €2.40
- Desired pour cost: 20%
- Selling price excl. VAT: €2.40 / 0.20 = €12.00
- Menu price: €12.00 × 1.21 = €14.52
Rounded: €14.50 per glass
Common pour cost percentages
For wine, most restaurants use these percentages:
- House wine: 18-22% (lower margin, more volume)
- Wines by the glass: 20-25%
- Premium wines: 25-30%
- Champagne/sparkling: 30-35%
The more exclusive the wine, the higher your margin can be.
Calculate glasses per bottle
This depends on your glass size:
- Small glasses (125ml): 6 glasses per bottle
- Standard glasses (150ml): 5 glasses per bottle
- Large glasses (175ml): 4.3 glasses per bottle
? Example calculation:
Sauvignon Blanc bottle for €15.00, 150ml glasses, 22% pour cost:
- Number of glasses: 750ml / 150ml = 5 glasses
- Cost per glass: €15.00 / 5 = €3.00
- Selling price excl. VAT: €3.00 / 0.22 = €13.64
- Menu price: €13.64 × 1.21 = €16.50
Final price: €16.50 per glass
Different strategies per wine type
House wine by the glass: Lower margin, focus on volume. Many guests choose this as their safe option.
Wines by the bottle: Usually slightly lower margin than by the glass, because you're selling more volume.
Premium selection: Higher margin allowed. Guests ordering this are less price-sensitive.
? Practical wine list example:
Restaurant with different margins:
- House red/white wine: €4.50 per glass (20% pour cost)
- Sauvignon Blanc: €6.50 per glass (23% pour cost)
- Barolo: €12.50 per glass (28% pour cost)
- Champagne: €9.50 per glass (32% pour cost)
Variation in margin creates balance between volume and profit.
Bottle sales vs. glass sales
Many restaurants follow this rule:
Bottle price = 3.5 to 4 × price per glass
This encourages bottle sales (more revenue per table) while you still earn well. Based on real restaurant P&L data, establishments that master this ratio see 15-20% higher wine revenue per cover.
⚠️ Note:
Always account for potential losses: a glass that spills, tastings for guests, or a bottle that yields slightly fewer glasses than expected.
Seasonal adjustments
Wine prices can vary due to:
- Harvest years: Poor harvest = higher purchase prices
- Currency: French/Italian wines become more expensive if the euro weakens
- Transport: Fuel prices affect your purchase prices
So check at least twice per year if your wine prices still match your purchase prices.
Related articles
How do you calculate the selling price per glass of wine? (step by step)
Calculate the cost per glass
Divide the purchase price of the bottle by the number of glasses you get from it. With 150ml glasses you get 5 glasses from a 750ml bottle.
Determine your desired pour cost percentage
For house wine usually 18-22%, for premium wines 25-30%. The more exclusive the wine, the higher your margin can be.
Calculate the selling price excluding VAT
Divide the cost per glass by your pour cost percentage. For example: €3.00 per glass / 0.22 = €13.64 excl. VAT.
Add 21% VAT for the menu price
Multiply by 1.21 for the final price. €13.64 × 1.21 = €16.50. This is your menu price per glass.
✨ Pro tip
Recalculate your 3 top-selling by-the-glass wines every 8 weeks using your latest invoices. Supplier price changes can quietly erode margins by 3-5% without you noticing.
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 is a good pour cost for wine?
How many glasses do I get from one bottle of wine?
Should I include VAT in my wine price calculation?
How do I determine the bottle price relative to glasses?
What if my wine supplier changes prices mid-season?
How do I handle wine wastage in my calculations?
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
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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