Most restaurant owners assume expensive drinks automatically mean higher profits. But that €15 premium wine glass might earn you just €0.80, while your €4 house beer delivers €2.40. The numbers often surprise even seasoned operators.
What is margin per glass?
Margin per glass is the amount left over after you subtract the cost of goods sold from your selling price (excluding VAT). This gives you direct insight into which drinks generate the most revenue.
💡 Example:
You sell house wine for €5.50 per glass (incl. 21% VAT):
- Selling price excl. VAT: €5.50 / 1.21 = €4.55
- Cost of goods per glass: €1.20
- Margin per glass: €4.55 - €1.20 = €3.35
Margin percentage: 73.6%
Calculate the cost of goods per glass
For wine, divide the bottle price by the number of glasses. A standard bottle (750ml) yields 5 to 6 glasses of 125-150ml. For beer, calculate per bottle or per liter from the tap.
💡 Example calculation:
A bottle of wine costs €12, you pour 6 glasses per bottle:
- Cost per glass: €12 / 6 = €2.00
- Selling price €8.50 incl. VAT = €7.02 excl. VAT
- Margin per glass: €7.02 - €2.00 = €5.02
That's a margin of 71.5%
Compare different drink categories
Create an overview of your main drinks per category. Calculate the margin per glass and sort from low to high. This reveals which drinks generate the least revenue immediately.
- Wine: Typical margin 65-75%
- Beer: Typical margin 70-80%
- Soft drinks: Typical margin 85-90%
- Cocktails: Typical margin 60-70%
- Coffee: Typical margin 80-85%
⚠️ Note:
Always calculate with the selling price excluding VAT. Alcoholic drinks have 21% VAT, not 9%!
Which drinks often have low margins?
Some drink categories consistently deliver less per glass. Pay special attention to these categories in your calculation - they're one of the most common blind spots in kitchen management:
- Premium wines: High cost of goods, but customers won't always pay proportionally more
- Craft beers: Expensive purchase price, limited markup possible
- Fresh juices: High raw material costs and limited shelf life
- Cocktails with many ingredients: Many small cost items add up quickly
💡 Example low margin:
You sell premium wine for €12.00 per glass:
- Selling price excl. VAT: €12.00 / 1.21 = €9.92
- Bottle costs €45, yields 5 glasses = €9.00 per glass
- Margin per glass: €9.92 - €9.00 = €0.92
That's only 9.3% margin - far too low!
What do you do with low-margin drinks?
If you find drinks with a margin below 50%, you've got three options: raise the price, buy cheaper, or remove from the menu. Also consider popularity - a popular drink with low margin may attract customers who order more elsewhere.
Food cost calculators help automate these calculations for all your drinks, so you immediately see which ones generate the least revenue.
How do you calculate margin per glass? (step by step)
Gather your drink data
Make a list of your main drinks with cost prices. For wine: price per bottle and number of glasses per bottle. For beer: price per bottle or per liter from the tap.
Calculate cost per glass
Divide the cost price by the number of glasses. Bottle of wine €15 yields 6 glasses = €2.50 per glass. Don't forget to include garnish costs for cocktails.
Calculate margin per glass
Subtract the cost price from your selling price excluding VAT. Selling price €8.50 incl. VAT = €7.02 excl. VAT. Minus €2.50 cost = €4.52 margin per glass.
Sort from low to high
Rank all your drinks by margin per glass. The bottom 20% are your problem cases. Check if you can adjust these or need to remove them.
✨ Pro tip
Analyze your 8 highest-volume drinks every 6 weeks - these typically represent 70% of your beverage revenue. Focus your pricing adjustments here first.
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
How many glasses do I get from a bottle of wine?
A standard bottle (750ml) yields 5-6 glasses of 125-150ml. For accurate calculation, measure how many ml you actually pour per glass.
What is a good margin for drinks?
For most drinks, 60-80% margin is typical. Below 50% becomes difficult to cover your fixed costs.
Should I count cocktail garnish?
Yes, count all ingredients: alcohol, mixers, syrups, fruit, herbs. The straw and umbrella also cost money.
How often should I check my margins?
Check your top 10 drinks at least every 3 months. Suppliers regularly raise prices, causing your margin to gradually decline.
📚 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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