How to increase restaurant sales: Can a water menu lead to additional revenue?
- 39 minutes ago
- 4 min read
When restaurants look for ways to increase revenue, they usually focus on food and beverages, such as wine and cocktails. Water, on the other hand, is often overlooked, as it is just something that has to be on the menu.
But what if water were viewed not merely as a necessity but as a thoughtfully curated experience that could contribute to increased revenue?
In this article, I present a calculated model for the fictional restaurant "Neptun's Table." It shows the potential of a professionally developed water concept.
First things first: The results must always be viewed in the context of the specific establishment. Additional cost factors must be considered on a case-by-case basis because they can vary significantly depending on the restaurant.
Example 1: Same number of bottles sold
The classic model
Like many other restaurants, Neptun’s Table offers two varieties of mineral water: still and sparkling. The waitstaff takes orders without making recommendations. They simply ask if the guest would like a bottle of water. Since only one brand is available, the decision is quick.
The cost is 7 AED per bottle, and the selling price is 24 AED. With an average of 100 guests per day, about 70 people order water.
Price structure:
Daily Turnover water: 1.680 AED
Costs: 490 AED
Profit: 1.190 AED
The SOMMCADEMY-Model
It's the same restaurant, with the same number of guests and the same level of culinary quality. At first, the number of bottles of water sold remains the same, even though upselling would be feasible.
The key difference lies in the concept and presentation. Water is no longer viewed as a standard product but as part of the overall dining experience.
Rather than offering a single brand, the restaurant provides a water menu featuring five carefully selected mineral waters. This selection is based on mineral content, sensory characteristics, and how well the water pairs with food and beverages. Service staff are trained to actively recommend suitable waters tailored to dishes and guests’ individual preferences.
Water menu example: SOMMCADEMY - Neptune´s Table
Pricing structure in the new model
Average purchase price: 9 AED
Average selling price: 29 AED
Assuming sales remain at 70 bottles per day, the results are as follows:
Daily revenue: 2,030 AED
Costs: 630 AED
Profit: 1,400 AED
This represents a 17.6% increase in profit compared to the traditional model.
Year-over-Year Comparison
Based on 312 operating days, the following trends emerge:
Revenue
Traditional: 524,160 AED
SOMMCADEMY Model: 633,360 AED
Difference: +109,200 AED in revenue
Profit
Traditional: 371,280 AED
SOMMCADEMY Model: 436,800 AED
Difference: +65,520 AED in profit
Result
The model shows that introducing a structured water concept featuring multiple mineral waters could increase profits by 65,520 AED.
Example 2: Increased number of bottles sold
Key factors:
In practice, other factors come into play that were not fully taken into account in this model calculation. These include, for example:
Storage and logistics costs
Menu adjustments
Ordering and inventory flow structures
Training costs for service staff
At the same time, additional opportunities exist that have not yet been factored into the calculation. These may include:
Higher recommendation rate: Trained staff actively recommend suitable water options. This increases the likelihood that guests will consciously choose water or try different types of water during their visit. For example, they might choose water as an aperitif to prepare their palate, with their main course, or for dessert or as a digestif.
The perceived added value increases significantly more than the actual product cost, leading to a higher contribution margin.
Higher guest satisfaction: Guests experience a new, curated element of the dining experience. This can positively influence the overall perception of the restaurant, particularly in fine dining and upscale hospitality.
Pricing structure in the new model
Average purchase price: 9 AED
Average selling price: 29 AED
Assuming sales increase to 108 bottles per day, the results are as follows:
Daily revenue: 3.132 AED
Costs: 972 AED
Profit: 2.160 AED
This represents a 81,5% increase in profit compared to the traditional model.
Year-over-Year Comparison
Based on 312 operating days, the following trends emerge:
Revenue
Traditional: 524,160 AED
SOMMCADEMY Model: 977.184 AED
Difference: +453.024 AED in revenue
Profit
Traditional: 371,280 AED
SOMMCADEMY Model: 673.920 AED
Difference: +302.640 AED in profit
Result
The model shows that introducing a structured water concept featuring multiple mineral waters could increase profits by 302.640 AED.
Why this concept can work
In the restaurant industry, this principle has long been established when it comes to wine. Guests don't just order "red wine." Instead, they receive recommendations and information about the wine's origin and grape variety, as well as pairing suggestions. This significantly increases the perceived value.
So why shouldn't this principle apply to natural mineral water as well?
An increasing number of guests are interested in health, origin, sustainability, and high-quality non-alcoholic alternatives. A curated water menu can precisely meet these needs.
Conclusion
This presentation is a theoretical model calculation. Actual results depend heavily on the concept, target audience, location, service quality, and implementation. Nevertheless, the example clearly shows that water has considerable untapped potential in many establishments and can increase restaurant sales.
The important thing is not the sale of the product itself, but rather how water is presented, explained, and integrated into the overall experience.
With that said: Drink water, #stayhydrated
Best regards
Timo Bausch
Certified Water Sommelier
About SOMMCADEMY
Water is more than just a basic necessity. It represents taste, health, and experience. A new awareness is emerging: Drinking mindfully, recognizing differences, and truly understanding quality. As a certified Water Sommelier, I founded SOMMCADEMY to share the diversity and unique characteristics of mineral water with the world. With SOMMCADEMY, you can experience water in a whole new way, as a sensory journey that will make your event truly special / Timo Bausch Founder of SOMMCADEMY
Experience water in a new way. Book your exclusive experience now in Dubai, Abu Dhabi, or anywhere in the world.
