A drinks menu isn’t a product catalogue – it’s a sales tool. If you run a bar or restaurant and treat the menu as just a list, you’re leaving money on the table. This guide shows how to bring structure, costing and design together so that your drinks menu actively contributes to revenue.
1. Why the drinks menu determines your cost of goods
The average cost of goods for drinks in German hospitality is between 20 and 30 percent of net turnover. Every percentage point you optimise there goes straight into profit. The drinks menu is the lever: what you list, in what order and at what price influences what guests order – and therefore your cost of goods.
In concrete terms: a cocktail with an 18 percent cost of goods and a draught beer with 28 percent can both be on your menu. If you make the cocktail more attractive through placement, description and price, you shift the mix – without any guest noticing. That’s menu engineering in practice.
More on this topic: Menu engineering: higher profit through targeted menu optimisation
2. Structure: what belongs on a drinks menu?
A clean structure makes the guest’s decision easier – and steers it at the same time. The classic layout for a bar or restaurant menu:
| Category | Typical content | Note |
|---|---|---|
| Aperitifs & welcome drinks | Sekt, prosecco, Aperol Spritz, gin and tonic | Entry products that steer the first choice |
| Cocktails & mixed drinks | Signature cocktails, classics, alcohol-free | Highest margin – so place them prominently |
| Spirits | Whisky, gin, rum, vodka, tequila, cognac | By category, then ascending by price |
| Wine | Red, white, rosé, sparkling | State vintage and origin, show the price per glass |
| Beer | Draught, bottled, alcohol-free | Draught beer has a higher margin than bottled beer |
| Soft drinks | Soft drinks, juices, water, mocktails | Growing segment – don’t neglect it |
| Hot drinks | Coffee, tea, hot chocolate | Relevant for restaurants, cafés, lobby bars |
| Digestifs | Grappa, amaro, whisky, port | Increases the average bill |
Not every menu needs every category. A cocktail bar may leave out wine, while a restaurant puts wine front and centre. Decide based on your concept what belongs on it – and what doesn’t.
3. Pricing: how to set the right prices
The price on the menu is the result of a calculation, not gut feeling. The basic formula:
Selling price (net) = cost of goods ÷ cost-of-goods ratio
Example gin and tonic:
| Item | Value |
|---|---|
| Ingredients | 4 cl gin + tonic + ice + garnish |
| Cost of goods (net) | €3.20 |
| Target cost-of-goods ratio | 22% |
| Net selling price (3.20 ÷ 0.22) | €14.55 |
| Gross selling price (+ 19% VAT) | €17.31 |
| Rounded menu price | €17.50 – €18.00 |
The following are common benchmarks for the cost-of-goods ratio in hospitality:
| Drinks category | Typical cost-of-goods ratio |
|---|---|
| Cocktails & mixed drinks | 15–22% |
| Spirits, neat | 18–25% |
| Wine (bottle) | 25–35% |
| Wine (glass) | 18–25% |
| Draught beer | 20–28% |
| Beer (bottle) | 25–35% |
| Soft drinks | 10–18% |
| Coffee | 8–15% |
Important: the target ratio isn’t a universal value – it depends on location, concept and price positioning. A hotel bar in Munich can achieve different margins from a neighbourhood pub in Leipzig. First calculate your target cost of goods, then check whether the resulting price works in the market.
More on costing: Pricing in hospitality: free Excel template
4. Recipes as the basis: why costing doesn’t work without a recipe
For pricing you need an exact cost of goods per drink. You only get that through a standardised recipe. Without a recipe you’re costing with estimates – and estimates create variation.
A complete drinks recipe contains:
- All ingredients with exact quantities (in cl or ml)
- Purchase price per unit (net)
- Calculated cost of goods per portion
- Preparation notes (stirring, shaking, layering, etc.)
- Garnish (this has a price too)
If you manage recipes and costing centrally, you always have the current cost of goods per drink. More on this: Recipe management, costing and stocktaking: three pillars of hospitality success
5. Drinks menus for bars – what’s different
Bars have specific requirements for menu design. Four points that make the difference in practice:
Signature cocktails first. Your own creations often have a better margin than classics. Place them right at the top – not in an appendix.
Treat alcohol-free as equal. The share of non-alcoholic drinks is growing. Treat alcohol-free drinks as full-fledged products.
Spirits by shelf, not alphabetically. When a bottle is empty, the bartender knows straight away what’s missing.
Prices per glass for wine are a must. Guests often order wine by the glass when the price is transparent.
6. Drinks menus for restaurants
In restaurants, the drinks menu is often an appendix to the food menu – a mistake. Drinks typically account for 25–40 percent of total revenue.
Wine pairing per course. Place wine recommendations directly next to each course. That increases sales by the glass without active selling.
Aperitif offer before the meal. A simple selection (two to three options) on the menu makes recommending easier.
Coffee and digestif at the end. The average bill rises significantly when both are actively offered.
7. Designing your drinks menu: 7 practical tips
1. Less is more. A menu with 120 items overwhelms guests. 30–60 well-chosen items convert better.
2. Set price anchors. Deliberately place an expensive product in each category. It makes the mid-priced options seem cheaper.
3. No currency symbols near prices. The € symbol increases the perceived pain of spending. Use numbers without a symbol.
4. Descriptions sell. Short, sensory descriptions demonstrably increase the order rate of premium drinks.
5. Use seasonality. A seasonal recommendation creates footfall and increases the margin on cheaper seasonal products.
6. Implement allergen labelling correctly. The EU Food Information Regulation (LMIV) also applies to drinks. Mistakes create liability risks.
7. Update the menu regularly. A monthly price review is standard – not the exception.
8. Free drinks menu template
A drinks menu can be created in various formats:
| Format | Advantages | Disadvantages |
|---|---|---|
| Excel / Google Sheets | Free, flexible, calculation formulas possible | No design functions, cumbersome when making changes |
| Word / Google Docs | Simple layout, printable | No costing |
| Canva / InDesign | Professional design, print quality | Costing not integrated |
| Hospitality software | Costing linked to recipes, cost of goods calculated automatically | Monthly costs |
Template 1: menu structure
This structure can be transferred directly into Excel, Word or Canva. The item counts are guide values for a medium-sized venue – going well beyond them lengthens the guest’s decision time without selling more.
| Order | Category | Items (guide value) | What belongs here |
|---|---|---|---|
| 1 | Signature drinks / recommendations | 3–5 | Highest margin, your own signature, placed at the top |
| 2 | Aperitifs & long drinks | 6–10 | Entry drinks, quick to prepare |
| 3 | Cocktails (classics) | 8–12 | Familiar names that give guests confidence |
| 4 | Draught and bottled beer | 4–8 | Staggered by size, regional anchors |
| 5 | Wine (by the glass / bottle) | 6–12 | By the glass first, then by the bottle |
| 6 | Alcohol-free | 6–10 | Its own category, not an afterthought |
| 7 | Hot drinks | 4–6 | At the end, closing sale |
| 8 | Digestifs & neat spirits | 4–8 | Sorted by category, not alphabetically |
Template 2: costing row per item
These eight columns are enough to cost every item properly. Columns 6 and 7 are calculated, not estimated.
| Column | Field | Example | Formula |
|---|---|---|---|
| 1 | Item | Gin and tonic | – |
| 2 | Serving size | 5 cl gin + 200 ml tonic | – |
| 3 | Net purchase price, base | €0.90 | Bottle purchase price ÷ serving size |
| 4 | Net purchase price, filler | €0.55 | Filler purchase price ÷ quantity |
| 5 | Garnish / ice | €0.15 | Flat rate per drink |
| 6 | Total cost of goods | €1.60 | Sum of columns 3–5 |
| 7 | Net selling price | €6.40 | Column 6 ÷ target ratio (here 25%) |
| 8 | Gross selling price | €7.62 | Column 7 × 1.19 (drinks: 19%) |
For the ongoing stock tracking behind this costing, you can also use our free Excel template for drinks stock.
9. When is software for recipe and menu management worth it?
As long as you have fewer than 20 items on the menu and price changes are rare, Excel is enough. As soon as you adjust prices regularly or maintain several menus, the manual effort grows quickly.
BarBrain recipe management links recipe costings directly to the purchase price. If the purchase price of a gin changes, the cost of goods for all affected cocktails updates automatically. Recipe management is available as an add-on for €29 per month.
More on this: Food cost formula: how to calculate your cost of goods correctly
10. Frequently asked questions
How many items should a drinks menu have?
As a rule of thumb: as many as necessary, as few as possible. For a cocktail bar, 30–50 items is realistic; for a restaurant, a maximum of 60–80.
Do I have to label allergens on the drinks menu?
Yes. The EU Food Information Regulation (LMIV) also applies to drinks. Sulphites, gluten and lactose must be shown either directly on the menu or be available on request.
How often should I update the drinks menu?
Review pricing monthly, seasonal changes quarterly. A complete rebuild only when the concept changes or when more than 30 percent of items are replaced.
How do I calculate the price of wine by the glass?
Bottle purchase price (net) ÷ number of glasses. Example: 0.75 l bottle, 0.2 l per glass = 3.75 glasses. Purchase price €8.00 ÷ 3.75 = €2.13 per glass. With a 25% target ratio = €8.53 net, approx. €10.15 gross.
Do I need a separate wine list?
Only if wine is a central element of your concept. Wine restaurants and upscale venues benefit from one; simpler venues can manage with an integrated list.
Can BarBrain help with drinks costing?
Yes. With recipe management (add-on, €29 per month), BarBrain connects recipe management, purchase prices and stocktake data. If a purchase price changes, all affected recipes update automatically. Book a demo and then test it free and without obligation for 30 days.
About the author
Nico Loy
Business Development Manager
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