Since 2019, beverage margins have become more critical than ever for restaurant profitability. Most operators focus only on purchase prices, overlooking VAT calculations and varying glass sizes. Here's your roadmap to identifying which drinks deliver the highest profit per glass.
Gather all necessary data
You'll need three specific numbers for each drink: purchase price per bottle, menu selling price per glass, and total glasses yielded from one bottle.
- Purchase price per bottle (your supplier invoice amount)
- Selling price per glass on your menu
- Number of glasses per bottle (varies by pour size)
💡 Standard glasses per bottle:
- Wine (0.75L) in 15cl glass: 5 glasses
- Beer (0.33L) bottle: 1 glass
- Spirits (0.7L) in 4cl shot: 17.5 glasses
- Prosecco (0.75L) in 12cl: 6.25 glasses
Calculate the cost price per glass
Divide your purchase price by glasses per bottle. This reveals your true cost per serving.
Formula: Cost price per glass = Purchase price bottle ÷ Number of glasses per bottle
💡 Cost price example:
Wine bottle costs €12.00, yields 5 glasses at 15cl each:
Cost per glass: €12.00 ÷ 5 = €2.40
Calculate the margin per glass
Your margin equals selling price minus cost price. But here's where operators mess up - always use selling price excluding VAT.
Formula: Margin per glass = Selling price excl. VAT - Cost price per glass
⚠️ VAT calculation alert:
Alcoholic drinks carry 21% VAT. That €6.00 wine glass? It's actually €4.96 excl. VAT (€6.00 ÷ 1.21).
Compare different drinks
Build a spreadsheet listing every drink with its margin per glass. You'll instantly spot your profit champions and underperformers.
💡 Margin comparison:
- House wine: €2.40 cost, €4.96 excl. VAT = €2.56 margin
- Craft beer: €1.80 cost, €4.13 excl. VAT = €2.33 margin
- Prosecco: €3.20 cost, €6.61 excl. VAT = €3.41 margin
Prosecco delivers €0.85 more profit per glass than house wine.
Balance margin with popularity
From years of working in professional kitchens, I've seen operators chase high margins while ignoring volume. A lower-margin drink that sells 50 glasses weekly often outperforms a high-margin drink selling just 5 glasses.
- Calculate: margin per glass × weekly glass sales
- This shows total profit contribution per drink
- Target drinks with strong margins AND solid volume
Optimize your drinks menu
Armed with these numbers, you can make data-driven decisions. Push high-margin drinks, adjust pricing on weak performers, or source better alternatives.
✨ Pro tip:
Position your top 3 highest-margin drinks prominently on menus and train staff to suggest them. Train servers to upsell these specific drinks during the first 2 weeks of each month for maximum impact.
How do you calculate the highest margin per glass? (step by step)
Gather purchase prices and selling prices
Note down for each drink the purchase price per bottle and the selling price per glass on your menu. Also determine how many glasses you get from one bottle based on your standard pour size.
Calculate cost price per glass
Divide the purchase price of the bottle by the number of glasses you get from it. This gives you the actual cost price per glass that you need to cover.
Calculate margin per glass
Subtract the cost price per glass from the selling price excluding VAT. For alcoholic drinks, calculate: menu price ÷ 1.21 for the price excl. 21% VAT.
Create a comparison overview
List all drinks in order from highest to lowest margin per glass. Also look at sales volumes to calculate the total profit contribution per drink.
✨ Pro tip
Analyze your top 8 highest-volume drinks every 6 weeks to spot margin trends. If these core performers maintain strong margins, you've secured 75% of your beverage profits without complex menu overhauls.
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 the margin calculation?
Always calculate using selling price excluding VAT. For alcoholic drinks with 21% VAT, divide your menu price by 1.21 to get the excluding VAT amount.
What if I use different glass sizes?
Calculate separately for each pour size. A 12cl wine glass has different cost dynamics than 15cl from the same bottle. Divide bottle volume by your actual pour to get accurate glass counts.
How often should I update these calculations?
Review every quarter or whenever supplier prices change. Wine and craft beer prices fluctuate frequently, so staying current protects your margins.
What constitutes a good drink margin?
Alcoholic drinks should hit 60-75% margins, meaning cost represents 25-40% of selling price excluding VAT. Wine typically achieves 70%, beer around 65%.
Should spillage factor into my calculations?
For spirits and cocktails, absolutely. Add 5-10% spillage by multiplying cost per glass by 1.05 to 1.10. Bottled beer and wine rarely require spillage adjustments.
How do I handle drinks with seasonal pricing?
Track margins for peak and off-season periods separately. Wine prices can swing 15-20% seasonally, so calculate margins for both scenarios to maintain profitability year-round.
What about cocktails with multiple ingredients?
Sum the cost of all ingredients per serving, including garnishes and mixers. A mojito needs rum, lime juice, mint, sugar, and soda water - calculate each component's cost per cocktail portion.
📚 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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