Pricing
Food cost and wine cost, two numbers operators mix up
Kitchen GP is not pour cost on wine. Why one drinks-cost % strangles by-the-glass. UK restaurants, pounds, 20% VAT.
Written by Marco Azzari on
Food cost (or kitchen GP, as most UK operators say it) and wine pour cost are both "what we paid versus what we sold." They are not interchangeable, and chasing one drinks GP percentage is how a good glass programme gets killed in a review.
This is for F&B and for owners who hear "aim for 70% GP" from an accountant 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.
VAT in the room is 20% 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 cash margin in pounds.
The single-number trap
Finance likes one "drinks GP." You will be asked why it is 2% under 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 cash margin, 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, VAT 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 prices before tax.
Kitchen-side engineering (stars, plough-horses) is menu engineering. Terms: glossary.
About the author
Marco Azzari
Founder of Wine CFO · Wine List Engineer for UK restaurants
I help restaurants, hotels and bars across the UK 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.
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