Building drinks packages: how to get the best margin
A drinks package is where a lot of caterers either lose most of their margin, or make it, depending on how you set it up. This article shows you when a flat per-head rate works better than billing on actual consumption, how to charge corkage without upsetting guests, and how to use wine pairings to lift average spend.
Flat rate per head or billing on consumption: when to choose which
A flat rate per head gives the client clarity upfront and gives you predictable revenue, but you carry the risk if guests drink more than average. Billing on actual consumption shifts that risk to the client, but requires tight tracking during the event, or you end up arguing afterwards about numbers nobody can verify anymore.
A flat rate per head works best for events with a predictable drinking pattern: a two-hour reception, a wedding with a set programme. Consumption billing makes more sense for events where duration or guest numbers can run over, like a corporate party with no fixed end time. Some caterers combine the two: a flat base rate for the first round, with consumption billing for anything ordered afterwards.
Corkage: how to charge 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 those drinks. It only becomes a problem if you haven't agreed it upfront. Put the per-bottle amount clearly in your quote, along with the reason you charge it: service, glassware and pouring remain your job either way, even if the client supplies the bottle.
Most caterers work with a guideline of around £7 to £13 per bottle, depending on the type of event and how much service is involved. For larger quantities, consider a lower rate per bottle above a certain number, so it stays attractive for the client to work through you rather than arranging everything themselves.
Wine pairing as a margin lever, not just a taste tip
A well thought-out wine pairing sells itself: guests torn between two wines pick the pricier one faster once you explain why it suits the menu better. Work this out in the quote, not on the day. A short note per course, with a recommended wine, raises the odds the client picks the fuller (and more profitable) drinks package instead of the basic one.
The same applies to spirits and cocktails at a reception: a few targeted suggestions work better than a long list nobody can navigate.
Mocktails: count them as a proper part of the package
A non-alcoholic package is no longer a side note you throw in for free. Every event with a broad guest list has some people who don't drink, and a well-built mocktail offering deserves just as much margin as the alcoholic package, provided you price it that way too. Build it into your drinks quote as standard, rather than treating it as an afterthought.
A concrete worked example
Say you're running a two-hour reception package, with wine, beer, soft drinks and a mocktail option.
- Drinks cost per head: £5.50
- Margin mark-up (roughly 60%): £3.30
- Selling price per head: £8.80
For 80 guests, that package brings in £704 in revenue, with £440 in margin above the drinks cost. Always run this kind of margin calculation before you settle on a price in your quote, rather than picking a round number that "feels about right".
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, depending on the type of drinks and how much service is involved. Spirits and cocktails usually deliver a higher margin than beer or soft drinks.
Do I always have to charge corkage when a client brings their own drinks?
It's not compulsory, but without corkage you lose the margin you'd normally make on those drinks while still providing service and glassware. Most caterers charge it as standard, and set it out in the quote upfront so the client isn't caught off guard.
When is consumption billing better than a flat rate per head?
Consumption billing works better for events where duration or guest numbers can run over, like a corporate party with no fixed end time. Make sure you track consumption clearly during the event though, or you'll end up disputing the final bill afterwards.
Is it worth pricing a non-alcoholic package separately?
Yes. A non-alcoholic package you offer for free or at cost leaves margin on the table you could just as easily capture. Price it as a proper part of your drinks menu, with the same attention to presentation as the alcoholic package.
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