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How to price wine in a restaurant

On wine, margin is counted in cash more than in multipliers. A flat multiplier makes cheap wines very profitable and fine ones unsellable.

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A tapering multiplier

The selling price including VAT is the net purchase price times a multiplier that falls as the bottle moves up the range. The scale Margéo applies: up to €6 net, 4; up to €12 net, 3.5; up to €20 net, 3; up to €35 net, 2.6; above €35, 2.2.

The logic is cash: a bottle that sells earns, a bottle that stays in the cellar ties up cash and earns nothing, whatever its theoretical margin.

Worked example

Worked example: two bottles, one scale

Prices include 20% French VAT on alcoholic drinks; margins are net.

Bottle bought at €8.00 net — multiplier 3.5€28.00 · €15.33 margin
The glass, 5 glasses served per bottle€7.45
Bottle bought at €40.00 net — multiplier 2.2€88.00 · €33.33 margin
The same at the house multiplier of 4€160.00 · €93.33, on paper

At €160, the bottle never leaves the cellar: its theoretical margin is never realised. At €88, it earns €33.33 on every sale — more than twice the cheaper bottle.

Pricing the glass

price of a glass = bottle price ÷ glasses actually served × 1.33. Count the glasses actually served — five for 125 ml pours, not the theoretical 6.25 — and add a third: an open bottle oxidises if it does not go within two days, and the last of it is lost.

Track the cellar, not just the list

The price says nothing about rotation. Margéo tracks the cellar bottle by bottle, as a sum of deliveries, sales and breakage: you see what moves, what sleeps, and the real margin by the glass as well as by the bottle.

Frequently asked questions

What multiplier should be applied to wine in a restaurant?

Between 3 and 4 at the entry level, then tapering as the purchase price rises. A flat multiplier of 4 puts a bottle bought at €40 on the list at €160: it will not sell, and the cash margin lost exceeds the margin gained on cheap wines.

How do you price a glass of wine?

Divide the bottle's selling price by the number of glasses actually served — five to six for 125 ml pours, not the theoretical 6.25 — then add a margin for oxidation on open bottles that do not finish.

Flat multiplier or tapering multiplier?

Tapering. A restaurant's margin is measured in cash: better to make €45 on a bottle that leaves than €120 in theory on a bottle that sits in the cellar for three years.

And the rest of the year

These calculations, every month, without redoing them

Margéo reads your supplier invoices, imports your sales and recalculates recipe costs, prime cost and break-even with every document. The calculators behind these guides come with your account.