Looking for Profit – Check Your Wine Glass
by Herve Pennequin 
Many sommeliers and wine directors will agree that wines sold by the glass in a restaurant or at a bar generate a more profitable margin. Usually, bottles of wine are marked up two to three times the cost, depending upon the type of restaurant. Wines sold by the glass can generate a three-to- four-times cost markup. There is an interesting financial aspect of buying wines for the by-the-glass list. The buyer should always negotiate the best prices from the wholesaler in exchange for their marketing support based on the quantity moved from the program. A high-volume restaurant or wine bar can even deal directly with the winery or importer to get a private label or exclusivity on a wine for which the markup may rise to four to six times the regular price, making it very profitable for the restaurant. This high markup will help in buying other limited-production wines to attract the attention of wine aficionados who will come more often.
Wines sold by the glass help broaden guests’ perspective by offering wines from regions all over the world without having to order a full bottle. However, some drawbacks may occur with this approach. A wine program with a large list of wines sold by the glass may not be as successful in a restaurant or wine bar if there are no marketing promotions, server training or customer volume.
The chef and general manager should work together in selecting the wines by the glass and incorporate them with appropriate food pairings. This harmonious collaboration provides the chef so much flexibility in his/her creativity over bottled wines. Needless to say, those who do not have the level of knowledge to develop a decent wine program should use the services of an experienced wine consultant.
Be careful in choosing the right fit for your establishment, and study cautiously your wine program. In the end, an updated wine-by-the-glass program could meet your customers’ needs and help you with your bottom line. ■
April 9th, 2009 at 3:36 pm
You make some good points. Private label seems to be the way to go for restaurants to offer quality wine for reasonable prices while avoiding sticker shock with their customers and increasing brand recognition for their establishment at the same time. It’s a very exciting and dynamic opportunity emerging as the recession is keeping big brands locked up in warehouses. It’s very important to find an experienced negociant to guide you through the process to ensure that the juice is quality. We offer a turnkey solution at http://kdmglobalpartners.com if interested.