Section V: The Business of Section V: The Business of WineWine

Chapter 18: Developing and Managing a Wine List

Choosing Which Wines to SellChoosing Which Wines to Sell

The three-tiered system of distribution can affect a restaurant’s sourcing and purchasing specific wines.

Any wine chosen should be • Enjoyable• Free from production or storage flaws• Offer a good value-to-price ratio for the guests• Be reflective of the grape used and the region of

origin

Selling Wines by the GlassSelling Wines by the Glass

Many operations offer two tiers of wines by the glass:• An entry level, value-priced tier• A reserve tier of slightly more expensive wines

Selling wines by the glass:• Is the most profitable way to sell wine• Represents the greatest volume of wine that the operation

will sell The more wines by the glass opened, the more time

it will take for an individual bottle to be consumed. The wines offered by the glass are usually typical

examples of a restaurant’s variety or style.

Choosing Wines to Sell by the Choosing Wines to Sell by the GlassGlass

Careful selection ensures happy guests and a profitable program.

When selecting wines to pour by the glass, there are a few key points to remember: • Availability• Pour size• Price point• Style

Which Wines to Feature by the Which Wines to Feature by the GlassGlass

Wines customers ask for and expect to be available:

For whites:• Chardonnay• Pinot Gris (Pinot Grigio)• Sauvignon Blanc (Fumé Blanc)

For reds: • Cabernet Sauvignon• Pinot Noir• Merlot• Zinfandel• Syrah (Shiraz)

Preserving Open Bottles of WinePreserving Open Bottles of Wine

Wasting unsold portions of the bottle after selling a glass will quickly erode a restaurant’s profit margins.

The full revenue from selling wines by the glass can only be realized if an operation sells the entire bottle.

If half the bottle is wasted due to spoilage, the product cost percent doubles.

Forms of preservation:• Inert gas• Cabinet systems• Vacuum systems

Filling Out the Wine LIstFilling Out the Wine LIst

Choose wines that complement both the:• Style of food offered• The expectations of the clientele

When deciding on how many labels and bottles are appropriate for the operation:• Consider is how much room is available to commit to

storing wine.• Reserve wines sold by the bottle will remain in

inventory for a considerable length of time.

Pricing the Wine ListPricing the Wine List

Sliding scale pricing• Takes advantage of the strengths of high markups and

the benefits of low pricing• A restaurant might employ the highest markups on the

lowest priced wines and a lower markup on higher priced wines.

Incentives• The operator is willing to drastically reduce their profits

from selling the bottle in order to get people in the door.• 20% off all bottles on a given day of the week

Providing options:• Bottle formats• Samples and flights

Organizing the ListOrganizing the List

By region of origin By varietal By style By price point

Using Wine Descriptions and Using Wine Descriptions and RecommendationsRecommendations

If an operator elects to have descriptors on the menu, several things should be considered:• The descriptors should give a basic overview of the

style of wine and a general commentary on its aroma and flavor profile.

• Descriptions should not be too elaborate or creative because this may not help the guest in making a decision, but rather deter or confuse them.

• The aim is to briefly describe the profile of the wine and guide guests in making a selection that they will be happy with.

Storing and Ageing WineStoring and Ageing Wine

Temperature and humidity control• Passive cellars• Racking and security

Older Wine and RestaurantsOlder Wine and Restaurants

Very few restaurant operations have the space required to age wines for years• The financial investment for aging can also be prohibitive.

Not every restaurant will have customers who expect offerings of older fine wines.• The demand for these products should be evaluated

before making a large investment for the list. For a few fine dining establishments with

customers who are willing to pay an extra price for well-aged wines, the returns may be worth the investment.