Skip to main content
Orange JellyOrange Jelly

Your Drinks Are Making Half The Profit They Should - Here's The Fix

You're working twice as hard as you need to for half the profit you deserve. Last week, I watched a licensee celebrate selling 200 pints on a busy Friday....

Share:
Revenue Growth
Peter Pitcher

Peter Pitcher

Founder & Licensee

7 min read
Share:
Your Drinks Are Making Half The Profit They Should - Here's The Fix
🎯

Quick Answer

Focus on premium drinks with 300%+ margins instead of standard lagers at 50%. Add coffee (£50K potential), cocktails, and premium spirits. Train staff to suggest specific drinks, not ask 'what would you like?' One premium sale equals three pint profits.

📊

Key Metrics

Premium drink margins

Annual coffee revenue potential

Extra per order with training

You're working twice as hard as you need to for half the profit you deserve.

Last week, I watched a licensee celebrate selling 200 pints on a busy Friday. Great volume, packed pub, exhausted staff. His profit? About £140. Meanwhile, the coffee shop next door made the same profit from 35 lattes before noon, with one part-time staff member.

Here's the painful truth: if you're focusing on shifting more pints to increase profit, you're playing a game you can't win. The chains will always beat you on volume. But there's a different game entirely - one where a single cocktail sale equals the profit of three pints, where coffee generates £50K annually, and where your existing customers happily spend more without you serving a single extra person.

The Real Problem

Your drinks menu is stuck in 1995 while your costs are firmly in 2025.

Standard lager runs at 50-70% margin if you're lucky. After April's minimum wage rise and 15% NI contributions, that margin shrinks to almost nothing. You can't raise pint prices much more - customers are already sensitive. You can't cut costs further without compromising quality.

But here's what nobody talks about: while you're battling over pint prices, Wetherspoons quietly sells 50 million coffees a year. While you're discounting lager to compete, the gastropub down the road makes £15 profit on every cocktail. While you're worried about losing regulars, they're already buying premium drinks elsewhere.

The solution isn't selling more. It's selling smarter.

The Premium Profit Multiplication Effect

Let me show you the maths that changed everything at The Anchor:

Standard Pint:

  • Sells for: £5.00
  • Costs you: £2.50
  • Profit: £2.50 (50% margin)

Premium Coffee:

  • Sells for: £3.50
  • Costs you: £0.70
  • Profit: £2.80 (80% margin)

Classic Cocktail:

  • Sells for: £9.00
  • Costs you: £2.25
  • Profit: £6.75 (75% margin)

One cocktail equals nearly three pints in profit. One coffee beats a pint. And here's the kicker - they take less time to serve, create less mess, and customers expect to pay more for them.

Your Five-Step Premium Transformation

Step 1: The Coffee Revolution (Week 1)

Forget everything you think about being "just a pub." Every single customer who walks through your door drinks coffee somewhere. Why not with you?

The Setup:

  • Bean-to-cup machine: £300-500 (lease for £15/week if needed)
  • Coffee beans: £10/kg (makes 140 cups)
  • Training: 30 minutes with your supplier

The Numbers:

  • 20 cups per day × £3.50 = £70 daily
  • Monthly revenue: £2,100
  • Monthly cost: £300
  • Monthly profit: £1,800

I started with morning coffee for the dog walkers. Then the lunch crowd wanted americanos with their sandwiches. Now we sell Irish coffees in the evening and espresso martinis at night. One machine, four revenue streams.

Step 2: The Soft Drink Revolution (Week 2)

Premium soft drinks have 200% margins and zero training requirements. Fever-Tree, Fentimans, local craft sodas - they practically sell themselves.

Quick Implementation:

  • Stock 5 premium mixers (£1 cost, £3.50 sale)
  • Add 3 craft sodas (£0.80 cost, £3 sale)
  • Feature fresh juices (£0.50 cost, £2.50 sale)

When someone orders a gin and tonic, never ask "which tonic?" Ask "Mediterranean or elderflower?" You've just added £2 to the sale with three words.

Step 3: The Five-Cocktail System (Week 3)

You don't need 50 cocktails. You need five good ones made consistently.

The Profitable Five:

  1. Espresso Martini - Coffee machine crossover, £9
  2. Gin Garden - Premium gin showcase, £8.50
  3. Rum Punch - Batch-made efficiency, £8
  4. Whiskey Sour - Classic appeal, £8.50
  5. Mocktail Special - Inclusive option, £5

Cost: £2 average. Sale: £8 average. Profit: £6 per drink.

Train one confident staff member first. They become your cocktail champion, teaching others and suggesting serves. Confidence sells more than competence.

Step 4: The Premium Spirit Shelf (Week 4)

You already have spirits. Now make them work harder.

The Strategy:

  • Position premium spirits at eye level
  • Create tasting notes for staff (index cards work)
  • Offer 25ml tasters for £2 (builds confidence)
  • Bundle with mixers: "Hendricks and Mediterranean tonic for £7"

One premium spirit sale weekly from each staff member adds £5,000 annually. That's a 10-second upsell worth five grand.

Step 5: The Multiplication Method (Ongoing)

Here's where profits really explode - getting customers to buy premium drinks in addition to their usual, not instead of.

The Approach:

  • "Start with bubbles?" - Prosecco before dinner
  • "Coffee with dessert?" - After meal addition
  • "One for the road?" - Premium nightcap
  • "Try our new..." - Sample with purchase

This isn't upselling. It's offering experiences. The couple having a meal and two pints becomes a meal, prosecco, two pints, and coffee. Same visit, double the profit.

Your Action Plan

Week 1: Foundation

  • Monday: Order coffee machine (or arrange lease)
  • Tuesday: Stock 5 premium soft drinks
  • Wednesday: Train staff on coffee (supplier usually does this free)
  • Thursday: Create simple drinks menu cards
  • Friday: Launch with free coffee samples (9-11am)
  • Weekend: Track every premium sale

Week 2: Momentum

  • Add cocktail ingredients for your five classics
  • Run staff tasting session (they sell what they know)
  • Create table talkers about new drinks
  • Start suggesting specific drinks, not asking "what would you like?"
  • Introduce "Coffee & Cake" afternoon deal

Week 3: Expansion

  • Launch cocktail happy hour (quiet period only)
  • Add premium spirits shelf display
  • Create "drink of the week" to build habit
  • Partner with local businesses for morning coffee
  • Track profit per customer, not just sales

Week 4: Embedding

  • Review what's working, drop what isn't
  • Reward staff for premium sales (£1 per cocktail sold?)
  • Add seasonal specials (mulled wine, iced coffee)
  • Create loyalty card for coffee
  • Calculate your profit increase

Results You Can Expect

Immediate (Week 1)

  • £200-300 additional profit from coffee sales
  • 20% increase in spend per head
  • Surprised reactions: "You do coffee? Brilliant!"

Month 1

  • £1,500+ additional profit
  • New customer segments (morning coffee crowd)
  • Staff excitement about selling something different

Month 3

  • £5,000+ additional profit
  • Coffee/cocktails become 15% of wet sales
  • Reputation shift: "That pub with great coffee"

Month 6

  • £15,000+ additional profit
  • Premium drinks embedded in culture
  • Customers choosing you FOR premium drinks

At The Anchor, our wet sales profit increased 40% without serving a single extra customer. Same footfall, transformed margins. The coffee machine paid for itself in three weeks. The cocktail training took one afternoon. The premium spirits were already on our shelf - we just started talking about them.

Common Objections Solved

"My customers won't pay premium prices" They already do, just not at your pub. They buy Costa coffee, Gordon's pink gin at home, and cocktails on special occasions. Give them permission to do it with you.

"I don't have time for complicated drinks" Pulling a coffee takes 30 seconds. Pouring premium tonic instead of standard takes zero extra time. Batch-made cocktails are faster than changing a barrel.

"What if nobody buys them?" Coffee beans last months. Spirits don't expire. Premium mixers have long dates. Your risk is minimal, your upside unlimited. Start small, grow with demand.

"My staff won't be able to sell them" They don't need to be baristas or mixologists. They need one script: "Our new [specific drink] is gorgeous with that." Specific suggestions sell. Vague questions don't.

The Bottom Line

You're already working hard enough. Every shift, every service, every late night dealing with difficult customers. The answer isn't working harder or serving more people. It's making every sale count more.

Tomorrow morning, just try this: instead of asking "Tea or coffee?" ask "Cappuccino or americano?" Instead of "Which gin?" suggest "The Hendricks is beautiful with cucumber." Instead of taking the order, recommend something specific.

These tiny changes compound into transformation. One premium drink per hour across your opening times is £30,000 in annual profit. That's not from new customers or longer hours or price rises. That's from serving what you already have, better.

The chains compete on price and volume. You can't win that game. But premium experience? Personal recommendation? Quality over quantity? That's your game. And it's worth twice the profit.

Start with coffee tomorrow morning. By next month, you'll wonder why you didn't do this years ago.

Because here's the truth: your customers want to spend more with you. They just need permission, options, and confidence you'll deliver. Give them all three, and watch your profits transform without selling a single extra pint.

Frequently Asked Questions

What drinks have the highest profit margins in pubs?

Coffee leads at 400%+ margin, followed by cocktails at 300%, premium spirits at 250%, and soft drinks at 200%. Standard lager sits at just 50-70%. A £5 coffee costs 80p to make, while a £5 pint costs £2.50.

How much can coffee sales add to pub revenue?

Wetherspoons sells 50 million cups annually. A small pub selling just 20 cups daily at £3 each generates £21,900 yearly at 80% margin. That's £17,520 pure profit from one machine.

Do I need expensive equipment for premium drinks?

No. Start with a £300 bean-to-cup coffee machine (pays back in 3 weeks). For cocktails, master 5 classics with existing spirits. Premium soft drinks need just fridge space. Total investment under £500.

Will regular customers resist premium drinks?

Not if positioned correctly. Don't remove favorites - add options. Offer tasting nights (85% retention rate), samples with meals, and educate staff on flavor profiles. Most resistance is fear of the unknown.

How do I train staff to sell premium drinks?

Replace 'What would you like to drink?' with specific suggestions: 'Our new IPA pairs perfectly with that burger' or 'Can I tempt you with our salted caramel espresso martini?' Role-play for 10 minutes before each shift.

Need Help Implementing These Ideas?

I've proven these strategies work at The Anchor and will start training other pubs from September 2025. Let's chat about your specific situation - no sales pitch, just licensee to licensee.

Get Help Now
Peter Pitcher

Peter Pitcher

Founder & Licensee

Founder of Orange Jelly, helping UK pubs increase revenue through proven strategies

Learn more about Peter →
Tagged:Drinks StrategyProfit MarginsPremium ProductsCoffee SalesCocktails
Orange Jelly - AI tools for licensees