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GROSS PROFIT CALCULATIONS
How to Calculate GP on Beer, Wine and Spirits
Take the VAT off the selling price first. Leave it in and your GP looks better than it really is.
GP % = (selling price ex VAT - cost) ÷ selling price ex VAT × 100
PINT OF LAGER
11 gallon keg costing £150 = 88 pints = £1.70 a pint
Selling price £5.50, or £4.58 excl. VAT
GP: (£4.58 - £1.70) ÷ £4.58 = 62.8%
Don't leave the VAT in otherwise it will show 69.0%. That's six points of GP that don't exist.
175ml GLASS OF WINE
Bottle costing £6.00 = 4.3 glasses = £1.40 a glass
Selling price £7.50, or £6.25 ex VAT
GP: (£6.25 - £1.40) ÷ £6.25 = 77.6%
25ml SPIRIT MEASURE
70cl bottle costing £15.00 = 28 measures = 54p a measure
Selling price £4.00, or £3.33 ex VAT
GP: (£3.33 - £0.54) ÷ £3.33 = 83.9%
The percentage isn't the whole story.
The wine makes £4.85 cash on every glass, while the pint makes £2.88.
A percentage doesn't pay the bills. Cash does.
ALSO AVAILABLE...
BUSINESS STRESS TEST
A quick health check on where your food and beverage business might be losing profit.
Enter your revenue, GP%, stock, wastage, and control figures, and it benchmarks them against industry standards, flagging GP gaps, stock variance, wastage, voids, discounts, and comps. It then rolls it into a single traffic-light risk score. Where stockholding is running long, it also estimates the cash tied up in excess stock.
MENU ENGINEERING DASHBOARD
The classic menu engineering model!!
This classifies every dish as a Star, Puzzle, Ploughhorse, or Dog based on how well it sells versus how much profit it makes, applied to each course rather than the menu as a whole.
Add your items, prices, and costs, and it plots popularity against margin, then tells you what to do with each dish: keep it, reposition it, or cut it.
These tools have separate links which are available by making contact - Click the button below to get the ball rolling