Well said, Randy! And I would add the subtext to your piece--if you want to sell wine in a restaurant and make friends, for god's sakes don't overprice the juice. Don't make wine the sacrificial lamb by putting the onus of profit solely on it, which too many restaurants do (including some I have worked at too). We would all be better off if wine was price at no more than 200% of cost. Food needs to pay its way, too
I totally agree, Joel. Just this past week I was talking at length with a friend about how wine bars with ambitious selections tend to overprice glasses (who likes "hanging out" at bars, any bars, where most drinks average over $20?). Yet the reality of restaurants is that in order to survive you have to price food and beverage at least three times on average in order to meet your costs (rent, lease, labor, cost of goods, etc.). Wine is a key revenue center, so it has to play a part in at least meeting margins. But a savvy operator can also manage a wine program in which guests can be offered perceived values (I still love a $5 or $6 glass of wine, which can still be found when you look hard enough!), the same way that chefs can manipulate menus where you find many dishes for, say, $5 to $15 balancing dishes that sell for $35, $45 or more. It's very possible to do this and still make a profit, but you have to be smart about it. Guests need to feel that they are not forced to spend an arm and a leg in order to have a good time. In my experience, they're most comfortable when they're at least given choices.
Love this! The way we do it in Oregon, Washington and Folsom is we deliver direct from the winery to our Tasting Room Restaurants charging the tasting room bottle price with a 20% discount for Club Members and a 25% discount for Owners. This creates a culinary sampling experience that brings down the price of small lot, single vineyard bottlings.
Well said, Randy! And I would add the subtext to your piece--if you want to sell wine in a restaurant and make friends, for god's sakes don't overprice the juice. Don't make wine the sacrificial lamb by putting the onus of profit solely on it, which too many restaurants do (including some I have worked at too). We would all be better off if wine was price at no more than 200% of cost. Food needs to pay its way, too
'jb
I totally agree, Joel. Just this past week I was talking at length with a friend about how wine bars with ambitious selections tend to overprice glasses (who likes "hanging out" at bars, any bars, where most drinks average over $20?). Yet the reality of restaurants is that in order to survive you have to price food and beverage at least three times on average in order to meet your costs (rent, lease, labor, cost of goods, etc.). Wine is a key revenue center, so it has to play a part in at least meeting margins. But a savvy operator can also manage a wine program in which guests can be offered perceived values (I still love a $5 or $6 glass of wine, which can still be found when you look hard enough!), the same way that chefs can manipulate menus where you find many dishes for, say, $5 to $15 balancing dishes that sell for $35, $45 or more. It's very possible to do this and still make a profit, but you have to be smart about it. Guests need to feel that they are not forced to spend an arm and a leg in order to have a good time. In my experience, they're most comfortable when they're at least given choices.
Love this! The way we do it in Oregon, Washington and Folsom is we deliver direct from the winery to our Tasting Room Restaurants charging the tasting room bottle price with a 20% discount for Club Members and a 25% discount for Owners. This creates a culinary sampling experience that brings down the price of small lot, single vineyard bottlings.
Many ways to skin a cat. The idea (the point of this article) is to get creative, the way you Oregonians are doing it!