Restaurants

Drinks, sides and extras: where restaurants make margin

How much a lemonade, a side of fries or a dessert leaves you next to the main dish, and how to sell them in your restaurant without discounting the meal.

Updated 5 min read

In a restaurant, the main dish brings people in and pays most of the bill, but drinks, sides, desserts and add-ons usually leave more margin on every dollar sold. They are made in batches, they do not take another table and they do not need another server. A table that orders only mains leaves you the contribution of the mains; if it also orders lemonades and a dessert, that table's contribution can rise by half or more without a single extra guest.

Look at dollars, not just percentages

The usual mistake is ranking the menu by margin percentage. A lemonade can leave you 85% and a burger 67%, but the burger leaves $9.40 and the lemonade $3.40. Rent and wages are paid in dollars, not percentages.

So look at every item by its contribution margin in dollars: price before tax minus the cost of its ingredients. That shows what really adds to each bill. The main and the extra do not compete: the extra sits on top.

Why extras earn so well

  • They are made in batches. A jug of lemonade or a tray of brownies covers the whole night. The work per glass or per piece is tiny.
  • They do not take a table. The table is already seated. Dessert does not cost you a turn; it adds ten minutes.
  • They do not need more staff. The server who took the order offers the drink.

Watch the exceptions. A juice squeezed to order has fruit waste and bar time. A dessert thrown out at close loses what the others earned. And a soda you buy and resell leaves few dollars: the guide on reselling sodas and water shows what to charge for it.

Worked example: a burger bar

You took these costs from your own recipes and invoices. Menu prices before tax:

ItemPriceCostContributionMargin
Burger$14.00$4.60$9.4067.1%
Side of fries$4.50$0.90$3.6080.0%
House lemonade$4.00$0.60$3.4085.0%
Canned soda$3.00$1.10$1.9063.3%
Brownie$5.00$1.30$3.7074.0%
Add bacon$2.00$0.70$1.3065.0%

A table of two that orders only burgers:

  • 2 × $9.40 = $18.80 of contribution
  • Per cover: 18.80 ÷ 2 = $9.40

The same table, adding fries to share, two lemonades and one brownie:

  • 18.80 + 3.60 + (2 × 3.40) + 3.70 = $32.90
  • Per cover: 32.90 ÷ 2 = $16.45

That is $14.10 more from that table, 75% more contribution, from the same two guests at the same table. If you seat 40 tables like that in a night and get the extras at a quarter of them, that is 10 × 14.10 = $141 more that night.

Look at the soda: it leaves $1.50 less than the lemonade. If the server asks "fresh lemonade?" instead of "anything to drink?", more tables pick the one that leaves you more.

How to sell them without discounting the meal

Have the server suggest something specific. "Fries for the table?" sells more than "anything else?". And when clearing plates: "We have warm brownies tonight."

Put them next to the dish on the menu. "Smash burger. Add bacon $2." The written suggestion works even when the server is slammed.

If you build a combo, take the discount off the extras. Burger, fries and lemonade for $20 instead of $22.50 separately. The combo's contribution is 20.00 − (4.60 + 0.90 + 0.60) = $13.90. Against a burger alone ($9.40) you gain $4.50. Against a guest who would have bought all three anyway ($16.40) you lose $2.50. The combo pays if at least 2 in every 5 people who order it would otherwise have had the burger alone. Never cut the burger's own price inside the combo: it is the price that anchors your menu in the guest's head.

Price every extra from its own cost. Extra bacon or an extra patty has a recipe and a cost. The markup and margin tool gives you the price that leaves the margin you want.

Count what you give away. Free bread, chips and salsa, the house pickles: they cost something. Work out the cost per table and add it to your plate cost, or to your cost per cover if every table gets it.

Measure how often they sell

Take a week of tickets and count how many include a made drink, a dessert or an add-on. If 100 tickets have 35 with a drink and 10 with dessert, those are your starting numbers. Train the team, change the menu, and count again in two weeks.

That also lifts your average ticket without touching menu prices. The guide on covers and average ticket shows how to track it month by month.

What to push and what to drop

Not every extra deserves a place on the menu. A dessert hardly anyone orders and that you bin twice a week is a loss. A drink that leaves little but everyone orders stays, even if you do not push it. To decide what to push, keep or drop, see menu engineering and the guide on which products to keep, push or drop.

Do it with the calculator

In the food cost calculator you enter the recipe for your lemonade, desserts and sides just like a main dish, and it gives you the cost per glass or portion and the contribution each one leaves at its menu price.

Frequently asked questions

Do drinks really make more margin than food?

They often make a higher percentage, but not always more dollars. A canned soda you resell can leave less money than a lemonade you make. Compare each item's contribution in dollars, using your own costs.

Should I give bread or chips to every table for free?

It is a service decision, not a free gift. Work out what it costs per table and add it to your cost per cover. If you give it, do it because you chose to with the number in front of you.

How do I know if my extras are selling well?

Count the share of tickets that include a drink, a dessert or an add-on. Measure a week, train the team, then measure again. That share is yours, and it is the number to move.