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Tag Archives: restaurant wine

Restaurant wine prices: A better way

winetrends

Restaurant wine pricesWhat better way to follow up this month’s very popular post about escalating restaurant wine prices than with a story about restaurants that charge reasonable prices and sell more wine — and make more money — in the process? That was the theme of my piece in the current issue of the Beverage Media trade magazine, where one restaurateur told me: “We want our customers to be able to have dinner for two with a glass of wine each for $35 a person.”

Revolutionary thinking in a world where glass of wine costs $10 and bottles are marked up four times their wholesale price, no?

The highlights of the article, as well as a few of my thoughts:

• The debate centers around volume vs. margin; that is, does the restaurant want to sell a lot of wine, or is its business model focused on the amount it makes per bottle? This margin approach, which has been the model most restaurants use, has given us the $10 glass. Not surprisingly, those who use it still see no reason to change.

• Yet an increasing number of restaurants see a better way. “There is sort of this infrequently spoken gripe from consumers: ‘Why are we paying these kinds of markups?’… [T]hey are going to be cynical about your wine program.” says Stan Frankenthaler, chief officer of food, beverage and strategic supply for CraftWorks, which operates about 200 restaurants under 11 brands, including Old Chicago and Rock Bottom. That someone at a chain said this speaks to the failure of the margin model, since chains have some of the worst and most marked-up wine lists.

• A better approach: Pricing tiers, like 4 times wholesale, 2½ times, and 2 times, based on quality and availability. If the wine is difficult to find, for instance, or offers exceptional value, we’re more likely to pay 4 times markup — and especially if we have legitimate, less expensive choices instead of grocery store wine masquerading as something else.

• This story includes advice from my pal Diane Teitelbaum, who died shortly after I interviewed her. “You can sell a $100 bottle once a day, or you can sell $20 bottles of wine all day and all night,” she told me. No wonder everyone misses her so much.

 

 

The most popular restaurant wines

winetrends

restaurant winesOr, to phrase it more accurately, why the most popular restaurant wines aren’t wines that most of us drink. Which is not surprising, given the way too many restaurants treat wine drinkers.

The tipoff, of course, is price: Only one of the top 10 wines in the annual Wine & Spirits poll retails for less than $20, so by the time you add restaurant markup, we’ve passed that all-important $20 threshold. That’s the price that 95 percent of Americans who buy wine won’t cross. The average price for the top wines are ridiculous: $103.50 a bottle, up more than 20 percent from last year, and almost $13 a glass. That means one bottle is almost enough double the price of dinner for two at a nice restaurant, and who wants to do that?

Is it any wonder, then, that restaurant wine sales have not returned to pre-recession levels, and that one restaurant executive has criticized what he called restaurant complacency, adding “We see early warning signs for wine in the restaurant business. We may say, ‘wine is best with food,’ but that isn’t what our customers are telling us.”

Which is what the Wine Curmudgeon has been saying for years; that someone in the restaurant business agrees with me is welcome news. But does it matter, or is that complacency too much to overcome? I’d argue for complacency, based on the poll results. Eight of the 10 best-selling wines are the same as they were 10 years ago, which is hardly different or unique. And, to add insult to injury, the best-selling sparkling is Veuve Clicquot, about as hip and with it as I am.

Also depressing: Sommeliers, both here and elsewhere, keep insisting that they’re trying to make restaurant wine lists more interesting, but that doesn’t come across in the survey. Gruet, the sparkling wine from New Mexico but which is now made with California grapes, hasn’t been interesting for years. But it’s the third best-selling bubbly by the glass, as if the cava and Prosecco revolutions had never happened.

In this, restaurant wine is the trendsetter in just one thing: That wine is becoming increasingly splintered, with the focus on selling to the elite and leaving the rest of us to fend for ourselves.

Winebits 376: Apothic, restaurant wine, wine consumption

winenews

apothicA revolutionary product? Gallo’s Apothic, which revolutionized sweet red wine when it was introduced in 2007, may be doing it again. The company has released Apothic Crush, a slightly sweet red wine with 14.5 percent alcohol. In this, it appears to be the first sweet high alcohol wine that actually admits to being sweet and high in alcohol. For most of wine’s history, sweet table wines had less alcohol than dry wines not only because that’s how fermentation worked, but because no one thought consumers would drink a high alcohol sweet wine. But that has changed, first with the trend toward riper, more alcoholic wines, and second, with improvements in winemaking technology. In this, who knew Robert Parker, who has championed riper, higher alcohol wines, would pave the way for a Gallo product? Or, as the noted philosopher Mick Jagger has said more than once, “You can’t always get what you want/But if you try sometime you find/You get what you need.”

Less hope for wine lists? Is the end coming for the independent restaurant? That may be one of the conclusions from a recent study, which found that the number of independents fell by two percent in the U.S. in 2014, and that the number of full-service independents dropped three percent. Chains, meanwhile, continued to grow in the low single digits. Why does this matter to wine drinkers? Because those independents, and especially the full-serves, are the last best hope for improved restaurant wine lists. Chains usually don’t care about wine and make decisions in a corporate office based on price, which means they have the crummiest and most overpriced wine lists. Independents, for all their problems with wine, generally do a better job than chains. So any drop in the number of chains should be worrisome for wine drinkers who want choices that aren’t from Big Wine.

Beer, wine, or spirits? This chart, from Ghost in the Data, should answer all questions about whether the U.S. (or any other country in the world) is a wine drinking country. We’re not — it’s still beer. In fact, save for part of western Europe, the world is mostly indifferent to wine. This is something my colleagues in the Winestream Media should pay more attention to, instead of patting themselves on the back because we drink more wine than any other country in because we have more people than France and Italy.

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