Pricing

Food cost and wine cost, two numbers operators mix up

Kitchen food cost is not pour cost on wine. Why one beverage-cost % strangles by-the-glass. Italian restaurants, euros, 10% IVA.

Written by Marco Azzari on

Food cost (the costo delle materie prime in the kitchen) and wine pour cost are both "what we paid versus what we sold." They are not interchangeable, and chasing one beverage-cost percentage is how a good glass programme gets killed in a review.

This is for F&B and for owners who hear "food cost" from a commercialista or a consultant and apply it to the bar.

Same family, different animal

Kitchen food cost asks: of the food revenue, how much did the ingredients take. It is dragged around by yield, theft, waste, menu mix, and whether you still garnish like it is 2015.

Wine pour cost asks the same shape of question for wine revenue. Mix matters more than people admit: glasses, bottles, house, prestige. A week of bottles at a heavy cost % can hide a month of glasses that actually pay.

IVA at table is 10% on both. That does not make the target % the same. A healthy kitchen % can be a disastrous wine % and the other way around. Compare each line to itself over time, and to the contribution in euros.

The single-number trap

Finance likes one "beverage cost." You will be asked why it is 2% over plan. If the honest answer is "we sold more glasses of the wine that pays," and the slide still looks red, you have the wrong KPI.

Argue mix and contribution, or someone will tell you to cut the glass list. Markup versus margin. Price by the glass.

Calculators

A food cost calculator is a spreadsheet with discipline, not an app with a personality. True cost, IVA included, recipe or bottle, selling price, what is left. If you came here for a widget, do the three-line version on wine-list pricing tonight. A public calculator on this site only exists if we ship one. Until then, do not trust a US widget that assumes 4× and no IVA.

Kitchen-side engineering (stars, plough-horses) is menu engineering. Terms: glossary.

About the author

Marco Azzari

Founder of Wine CFO · Wine List Engineer for restaurants in Italy

I help restaurants, hotels and bars in Italy earn more from the wine they already sell. I price lists wine by wine, cost by-the-glass programmes on their real yield, rebuild selections around the food menu, and rewrite lines so guests understand what they're ordering. Every Wine Profit Checkup goes across my desk personally.

More about Wine CFO

Read next