Are you charging enough for wine by the glass to actually turn a profit? Most restaurants follow standard formulas without knowing if their margins match industry benchmarks. Here's what realistic wine margins look like and how to calculate yours correctly.
Common wine margins in restaurants
Most restaurants target a margin of 60% to 75% on wine per glass. Your cost price should represent 25% to 40% of your selling price.
- Fine dining: 60-70% margin (higher quality, more service)
- Casual dining: 65-75% margin (standard for bistros and restaurants)
- Bar/café: 70-80% margin (lower overhead on wine)
- Hotel restaurant: 70-85% margin (captive audience)
💡 Example calculation:
You buy a bottle of Sauvignon Blanc for €8.50 and pour 5 glasses per bottle.
- Cost price per glass: €8.50 ÷ 5 = €1.70
- Selling price per glass: €6.50 (incl. 21% VAT)
- Selling price excl. VAT: €6.50 ÷ 1.21 = €5.37
Margin: (€5.37 - €1.70) ÷ €5.37 × 100 = 68%
Why wine margins exceed food margins
Wine delivers higher margins than food for practical reasons:
- Zero prep time: Wine only needs uncorking and pouring
- Minimal waste: Opened bottles stay fresh for days
- Low labor costs: Pouring takes seconds compared to cooking
- Storage requirements: Wine does require inventory space
Something most kitchen managers discover too late: wine margins can single-handedly save a struggling food cost percentage. But you need to track them separately from food costs.
VAT on wine: watch your calculation
⚠️ Attention:
Alcoholic beverages carry 21% VAT, not 9% like food. Always calculate margins using prices excluding VAT.
The formula for your net wine margin:
Margin % = (Selling price excl. VAT - Cost price) ÷ Selling price excl. VAT × 100
How many glasses from one bottle?
Glass count per bottle directly impacts your cost per glass:
- Standard glass (125ml): 6 glasses per bottle
- Large glass (150ml): 5 glasses per bottle
- Small glass (100ml): 7.5 glasses per bottle
💡 Example impact of glass size:
Chardonnay bottle €12.00 cost, €7.50 per glass selling price (incl. VAT):
- 125ml glass: €12 ÷ 6 = €2.00 cost price → 68% margin
- 150ml glass: €12 ÷ 5 = €2.40 cost price → 61% margin
Glass size alone creates a 7 percentage point margin difference!
Red flags for low margins
If your wine margin drops below 60%, you're likely losing money. Common culprits for weak margins:
- Expensive purchasing: You're overpaying your supplier
- Underpriced glasses: Your selling price is too low
- VAT miscalculation: You're using 9% instead of 21%
- Oversized pours: You're serving more than standard portions
Wine purchasing: bottle vs. per glass calculation
Some restaurants buy premium bottles and charge accordingly. Others stick with affordable house wines at standard margins.
💡 Comparison of strategies:
Strategy A - Affordable house wine:
- Cost: €6.50 per bottle
- Per glass: €1.30 cost price
- Selling: €5.50 per glass → 76% margin
Strategy B - Quality wine:
- Cost: €15.00 per bottle
- Per glass: €3.00 cost price
- Selling: €9.50 per glass → 68% margin
Seasonal factors and wine purchasing
Wine prices stay more stable than food prices, but fluctuations still occur:
- Harvest quality: Poor harvests drive up prices the following year
- Currency shifts: Euro/dollar rates affect imported wine costs
- Seasonal demand: Rosé peaks in summer, reds in winter
How do you calculate your wine margin per glass?
Calculate your cost price per glass
Divide the purchase price of the bottle by the number of glasses you pour from it. With 125ml glasses you get 6 glasses from a 750ml bottle.
Convert your selling price to excl. VAT
Divide your menu price by 1.21 to get the price excluding 21% VAT. Wine always has 21% VAT, not 9%.
Calculate your margin percentage
Use the formula: (Selling price excl. VAT - Cost price) ÷ Selling price excl. VAT × 100. A healthy wine margin is between 60% and 75%.
✨ Pro tip
Track your wine margins weekly for the first 3 months after any menu change. Small adjustments in pour size or pricing during this window can boost annual wine profits by 15-20%.
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 calculate 9% or 21% VAT on wine?
Alcoholic beverages always carry 21% VAT, even in restaurants. Only food and non-alcoholic beverages qualify for the 9% rate.
How many glasses do I get from one bottle of wine?
With standard 125ml glasses you get 6 glasses from a 750ml bottle. Large glasses (150ml) yield 5 glasses per bottle.
Is 80% margin on wine too high?
80% margin works in specific situations like hotels or captive audiences, but most restaurants stick to 60-75% for customer fairness and market competitiveness.
Why is wine margin higher than food margin?
Wine requires zero preparation, produces minimal waste, and demands low labor costs. This allows for higher margins than the typical 28-35% on food items.
How often should I adjust my wine prices?
Review wine margins quarterly since wine prices change less frequently than food costs. Most suppliers adjust pricing 1-2 times annually.
What's the minimum margin I need to stay profitable on wine?
Never go below 60% margin on wine by the glass. Anything lower typically means you're subsidizing customer drinks instead of generating profit.
Should I offer different glass sizes to optimize margins?
Offering multiple glass sizes can work, but stick to consistent pours within each size category. Train staff to measure accurately since over-pouring kills margins fast.
📚 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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