Comments on: Are restaurants pushing wine for profit? http://www.drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/ wine talk that goes down easy Tue, 06 Jan 2009 18:41:46 +0000 http://wordpress.org/?v=abc hourly 1 By: Jack http://www.drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/comment-page-1/#comment-6960 Jack Thu, 12 Apr 2007 17:11:39 +0000 http://drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/#comment-6960 Well, sure, those restaurants with high mark-ups on wine view the wine as the profit-center. I decided not to go to The Fat Duck outside London in a month because their high wine prices so turned me off. For example a 2002 Araujo Sauvignon Blanc is more than $225. Well, sure, those restaurants with high mark-ups on wine view the wine as the profit-center. I decided not to go to The Fat Duck outside London in a month because their high wine prices so turned me off. For example a 2002 Araujo Sauvignon Blanc is more than $225.

]]> By: Christian http://www.drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/comment-page-1/#comment-6941 Christian Wed, 11 Apr 2007 14:44:18 +0000 http://drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/#comment-6941 As a percentage markup, the profits on cocktails are very high too. I'd guess higher on average than wine, based on the way they are pushed at many corporate mid-priced chain restaurants. However, aside from a some brandies and single malt scotches, there is a limit to how high the cocktail prices can go. Whereas for a bunch of tipsy investment bankers facing a wine list and coming off a big deal, there seems to be none. As a percentage markup, the profits on cocktails are very high too. I’d guess higher on average than wine, based on the way they are pushed at many corporate mid-priced chain restaurants. However, aside from a some brandies and single malt scotches, there is a limit to how high the cocktail prices can go. Whereas for a bunch of tipsy investment bankers facing a wine list and coming off a big deal, there seems to be none.

]]> By: Benito http://www.drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/comment-page-1/#comment-6242 Benito Tue, 03 Apr 2007 22:57:37 +0000 http://drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/#comment-6242 I've railed about this on my blog before, but I almost never order wine in restaurants. As to the above comment, there is something worse than spending $50 on a $30 bottle of wine: around here I've watched markups go from 100% to 200%, and it probably won't stop there. I've seen bottles that retail for $15 being sold for $45; and that's not taking into account the wholesale or case discount price of the wine in the first place. On top of that, it's not unusual for a glass of wine to be equal to the retail price of a full bottle. I know restaurants need to make a profit, and markups on alcohol are an easy way to do that. The problem I see is when the price is so high that it keeps younger and novice wine drinkers out of the game entirely and helps continue the horrible notion that wine is for the rich and sophisticated only. I’ve railed about this on my blog before, but I almost never order wine in restaurants. As to the above comment, there is something worse than spending $50 on a $30 bottle of wine: around here I’ve watched markups go from 100% to 200%, and it probably won’t stop there. I’ve seen bottles that retail for $15 being sold for $45; and that’s not taking into account the wholesale or case discount price of the wine in the first place.

On top of that, it’s not unusual for a glass of wine to be equal to the retail price of a full bottle. I know restaurants need to make a profit, and markups on alcohol are an easy way to do that. The problem I see is when the price is so high that it keeps younger and novice wine drinkers out of the game entirely and helps continue the horrible notion that wine is for the rich and sophisticated only.

]]> By: Adrian http://www.drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/comment-page-1/#comment-6241 Adrian Tue, 03 Apr 2007 22:05:53 +0000 http://drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/#comment-6241 I can definitely see the high profit margins on wine. I guess this doesn't fly in Australia... most restaurants allow you to bring your own bottle and have a cork fee. I personally love this policy, and wish it was adopted in the U.S. There is nothing worse than spending $50 on a bottle of $30 wine at a restaurant. I can definitely see the high profit margins on wine.

I guess this doesn’t fly in Australia… most restaurants allow you to bring your own bottle and have a cork fee. I personally love this policy, and wish it was adopted in the U.S. There is nothing worse than spending $50 on a bottle of $30 wine at a restaurant.

]]> By: Todd http://www.drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/comment-page-1/#comment-6240 Todd Tue, 03 Apr 2007 20:50:45 +0000 http://drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/#comment-6240 Being from CA and having been in a touring band. I've talked shop with many a club and bar owner. There are a few different types of alcohol licenses one may wish to request for their business. Selling, pouring and or selling and pouring. Also there is a beer/wine license that is "easier" to get versus the alcohol/beer/wine license. So the French Laundry actually may be telling the truth. Plus, their in the heart of the Napa Valley. Wines a bit easier to get since they could drive 5 minutes and pick up a case or two. Being from CA and having been in a touring band. I’ve talked shop with many a club and bar owner. There are a few different types of alcohol licenses one may wish to request for their business. Selling, pouring and or selling and pouring. Also there is a beer/wine license that is “easier” to get versus the alcohol/beer/wine license. So the French Laundry actually may be telling the truth. Plus, their in the heart of the Napa Valley. Wines a bit easier to get since they could drive 5 minutes and pick up a case or two.

]]> By: Mark http://www.drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/comment-page-1/#comment-4796 Mark Mon, 02 Apr 2007 11:57:54 +0000 http://drvino.com/2007/04/02/restaurant-profits-in-the-wine-cellar/#comment-4796 I think it's definitely the case that restaurants steer customers towards wine, and also create wine lists that encourage more expensive purchases (nobody wants, after all, to be seen buying a cheap bottle of wine...) The profits on wine must be astronomical. Even here in France, in restaurants within a few miles of the vineyards in question, bottles are habitually marked up by 100%, if not more. And when I'm in London, I often see bottles of Bordeaux wine that I know I can get retail for, say, £15 on the wine lists of restaurants for £40 or £50. For one, increasingly, I'd rather stay at home, cook up some nice food of my own and spend 40 euros on a classed growth than pay the same in a restaurant for something inferior! I think it’s definitely the case that restaurants steer customers towards wine, and also create wine lists that encourage more expensive purchases (nobody wants, after all, to be seen buying a cheap bottle of wine…)

The profits on wine must be astronomical. Even here in France, in restaurants within a few miles of the vineyards in question, bottles are habitually marked up by 100%, if not more. And when I’m in London, I often see bottles of Bordeaux wine that I know I can get retail for, say, £15 on the wine lists of restaurants for £40 or £50.

For one, increasingly, I’d rather stay at home, cook up some nice food of my own and spend 40 euros on a classed growth than pay the same in a restaurant for something inferior!

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