What gross profit margins should we expect when supplying alcoholic beverages to hotel bars compared to regular bars?

Hotel bars typically operate on different margin structures than traditional bars, though the exact expectation depends on whether you're supplying to an in-room or bar operation.

**Margin expectations:** - Regular bars typically work off **65–75% gross profit** on wet sales - Hotel bars are more flexible since beverage sales are often secondary to room revenue, but members suggest aiming for at least **70% GP minimum** if supplying direct - When working backwards from the customer's selling price, assume they'll want around **50% of their retail selling price as GP**

**Direct supply considerations:** - If supplying direct to the hotel chain, build in a **wholesale buffer margin** (typically 15% or £5–6 per case) to protect yourself if the hotel later sources through a wholesaler instead. This prevents your pricing being undercut and endangering your listing - Be mindful of the supply chain: chains may transition from direct purchase to wholesaler fulfillment as volumes grow, so structure pricing accordingly

**Key caveat:** Members emphasized the importance of protecting your own margins early on to avoid being squeezed if distribution channels change. The exact GP% negotiable depending on volume and whether it's a room-service or in-bar placement.