Most restaurants lose 15-20% more profit on beverages than they realize. Food typically runs 28-35% cost, but your 'pour cost' for beverages should sit between 18-25%. Calculating your complete beverage menu reveals which drinks actually generate profit and which drain your margins.
Why calculate beverages differently than food?
Beverages require minimal labor (no prep work) but face unique cost challenges:
- VAT difference: Alcoholic beverages 21%, non-alcoholic 9%
- Lower pour cost: Beverages can be 18-25% instead of 30%+
- Loss from pouring: Overpour, tasting, returns
- Shelf life: Opened bottles have limited shelf life
⚠️ Note:
Always calculate with the correct VAT. Beer, wine and spirits have 21% VAT, not 9% like food.
Entering beverages in a food cost calculator
Start with your basic ingredients for beverages:
- Wines: Enter per bottle with number of glasses per bottle
- Beers: Per bottle/glass with purchase price per unit
- Spirits: Per bottle with number of cl per serving
- Mixers: Juices, soft drinks, garnish per unit
💡 Example:
Bottle of house white wine, €8.50 purchase price:
- Number of glasses per bottle: 6
- Cost price per glass: €8.50 ÷ 6 = €1.42
- Selling price: €6.50 incl. 21% VAT
- Excl. VAT: €6.50 ÷ 1.21 = €5.37
Pour cost: (€1.42 ÷ €5.37) × 100 = 26.4%
Calculating cocktails and mixed drinks
For cocktails, include every ingredient - even garnish and ice:
- Spirits: Calculate per cl (for example 4cl gin from a 70cl bottle)
- Mixers: Juices, syrup, bitters per ml
- Garnish: Lime, olives, mint per piece
- Ice: Often negligible costs, but still count them
💡 Gin & Tonic Example:
Ingredients per cocktail:
- 4cl gin (bottle €28, 70cl): €1.60
- 15cl tonic (bottle €1.20, 20cl): €0.90
- Lime slice: €0.15
- Ice: €0.05
Total cost price: €2.70 per cocktail
Optimizing your wine list with cost data
Use the calculations to make your wine list more profitable:
- Sort by margin: Which wines generate the most profit?
- Check popularity: Combine margin with sales figures
- Compare price ranges: Do you earn more from expensive or cheap wines?
- Consider seasons: Rosé in summer, red wine in winter
💡 Example analysis:
House wine vs. premium wine:
- House wine: €1.42 cost price, €6.50 sales = €5.08 margin
- Premium: €3.20 cost price, €12.00 sales = €6.72 margin
- Premium generates €1.64 more per glass
But: house wine sells 3x more. Total per day more important than margin per glass.
Including loss and overpour
Beverages face specific loss items that eat into your margins - a mistake that costs the average restaurant EUR 200-400 per month:
- Overpour: 5-10% extra from generous pouring
- Tasting: For guests or own use
- Returns/complaints: Wrong order, taste not good
- Evaporation: Opened bottles lose alcohol
⚠️ Note:
Include 5-8% loss in your cost price. A glass of wine at €1.42 becomes €1.42 × 1.08 = €1.53 actual cost price.
How do you calculate your beverage menu in KitchenNmbrs?
Enter all beverages as ingredients
Create ingredients for each wine, beer, spirit and mixer. Fill in the purchase price and the number of servings per package (glasses per bottle, cl per bottle).
Create recipes for each drink
Create recipes for wines per glass, beers and cocktails. Add all ingredients with the correct quantities per serving.
Set selling prices and check the pour cost
Enter your menu prices and view the automatically calculated pour cost. Aim for 18-25% for beverages, 20-28% for cocktails.
Analyze and optimize your mix
Use the overview to see which drinks generate the most profit. Promote profitable beverages and consider price adjustments for drinks with too low margins.
✨ Pro tip
Track your top 12 beverages for the next 30 days - once those margins are optimized, you've fixed 85% of your beverage profitability. Focus there first before tackling your entire drink menu.
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 beverage cost price?
Yes, but note: alcoholic beverages have 21% VAT, non-alcoholic 9%. Always calculate with the price excluding VAT for your pour cost calculation.
What is a good pour cost for wine?
For wine per glass, 20-28% is standard. House wine can be higher (up to 30%), premium wines often lower (18-25%). Cocktails can be up to 25-30% due to labor intensity.
How do I include loss from overpour?
Add 5-8% to your cost price for normal loss. With a cost price of €2.00, that becomes €2.00 × 1.08 = €2.16 actual cost price including loss.
Can I also calculate beer packages?
Yes, enter the package as an ingredient with the total purchase price and number of beers. The system automatically calculates the cost price per beer.
📚 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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