Building drinks packages: how to get the best margin

For a lot of caterers, the drinks package is where most of the margin disappears, or where it comes from, depending on how you set it up. This article covers when a flat rate per person works better, when billing by consumption is the smarter move, how to apply corkage without putting guests offside, and how to use wine pairing to lift the average spend.

Flat rate per person or billing by consumption: when to choose which

A per-person drinks package gives the client certainty upfront and gives you predictable revenue, but you carry the risk if guests drink more than average. Billing by consumption puts that risk on the client, but it needs tight tracking during the event, or you end up in a dispute afterward about numbers nobody can check anymore.

A flat rate per person works best for an event with a predictable drinking pattern: a two-hour drinks reception, a wedding with a fixed programme. Billing by consumption makes more sense for an event where the length or guest count can run over, like a corporate party with no firm end time. Some caterers combine the two: a fixed base amount for the first round, with consumption billed afterward for whatever's ordered next.

With billing by consumption, agree upfront who's counting and on what. A tally sheet behind the bar, a tap that counts pours, or a till that logs each order: pick one method and set it down in the quote, so you don't end the night with two counts that don't match.

Corkage: how to apply it without the hassle

You charge corkage when a client brings their own wine or drinks, to make up for the margin you'd otherwise have made on that drink. It only becomes a problem if you haven't agreed it upfront. Put the amount per bottle clearly in your quote, along with the reason you charge it: the service, the glassware and the pouring are still your work, even when the client supplies the bottle.

A common rule of thumb among caterers is €8 to €15 per bottle, depending on the type of event and the amount of work involved. With a large number of bottles, you might consider a lower rate per bottle past a certain count, so it stays worthwhile for the client to work through you rather than arrange everything themselves.

Wine pairing as a margin lever, not just a flavour tip

A well-thought-out wine pairing sells itself: guests torn between two wines will go for the pricier one sooner if you explain why it suits the menu better. Work this out in the quote, not on the spot at the venue. A short note per course, with a recommended wine, raises the odds that the client picks the fuller (and more profitable) drinks package instead of the basic one.

The same goes for spirits and cocktails at a reception: a few targeted suggestions work better than a long menu nobody can make sense of.

Mocktails: count them as a full part of the offer

A non-alcoholic package isn't a side extra you throw in for free anymore. At any event with a broad guest list, some guests won't be drinking, and a well-built mocktail offer earns just as much margin as the alcoholic package, as long as you price it that way. So build it into your drinks quote as standard, rather than treating it as an afterthought.

With a mocktail, factor in the work too, not just the cost of ingredients. Fresh herbs, a cut garnish and a shaker take just as many steps behind the bar as a cocktail, while the ingredient cost is lower. That's exactly where the margin sits if you price it right.

A concrete worked example

Say you've got a two-hour drinks package, with wine, beer, soft drinks and a mocktail option.

• Drinks cost per person: €6.50
• Margin mark-up (around 60%): €4.00
• Selling price per person: €10.50

With 80 guests, that package brings in €840 in revenue, against €520 in cost. Always work through margins like this before you put a price in your quote, rather than picking a round number that "feels about right".

Set your bar staff cost against that. Two bar staff working four hours each eat up a good chunk of that difference, so a package that looks good on paper can still land at zero with too much service on it. So work out drinks and staffing together in the same quote.

Frequently asked questions

What's a typical margin on a drinks package?

Most caterers work with a mark-up of 50 to 70% above the drinks' cost price, depending on the type of drinks and the amount of service involved. Spirits and cocktails typically bring in a higher margin than beer or soft drinks.

Should I always charge corkage if a client brings their own drinks?

It's not compulsory, but without a corkage fee you lose the margin you'd normally make on that drink, while still providing the service and the glassware. Most caterers charge it as standard, and put it in the quote upfront so the client isn't caught out.

When is billing by consumption better than a flat rate per person?

Billing by consumption works better for an event where the length or guest count might run over, like a corporate party with no firm end time. Just make sure you've got clear tracking through the evening, or you'll end up in a dispute over the final bill afterward.

Is it worth pricing a non-alcoholic package separately?

Yes. A non-alcoholic package offered for free or at cost leaves margin on the table that you could just as easily take. Price it as a full part of your drinks menu, with the same attention to presentation as the alcoholic package.

What exactly goes in the quote for a drinks package?

The length of the package, which drinks are included and which aren't, the amount per person, and what happens if the party runs over. If you charge corkage, put that amount per bottle in too. That way, everything that could lead to a dispute is in writing before the evening starts.

Catermonkey works out your drinks package from your cost prices, so you see the margin per guest before you send the quote. If the guest count goes up, the whole calculation shifts with it.

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