Looking for most popular mid-priced restaurant wine

May 10, 2006 1 Replies

To get a quick idea of restaurant markups, I look at two price points: White Zins (particularly Beringer, which seems to be the most widely stocked around here) and V. Cliquot gold label.



I call these my low and high price anchors. I am looking for a mid-point anchor.



The local supermarket (Publix) sells white zins for about $5 and the Cliquot for about $51.



I use those two prices to get a feel for how much I am getting killed on other wines whose retail price I don't recall (or ever knew).



I am looking for another wine to use as a mid-price anchor, something widely available, just like the VC and the Beringer (or its analogs) but which retails in the $12 to $25 range. I am inclined to use the Mondavi Coastal product line, but want to hear from you if you think there is a better indicator.



Thanks in advance for your suggestions.


P.S.: By the way, around here (South Florida), my very preliminary inquiries indicate that restaurant wine pricing is of the form: R mS + b where: R = restaurant price S = store price m = markup factor (around 1.2 to 1.5) b = base markup amount (somewhere between $15 and $25)



So, for example, the Beringer white zin and the VC gold go for, respectively:



R = 1.2 * $5 + $15 = $21 R = 1.2 * $51 + $15 = $76


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Well, to be useful, wouldn't one benchmark have to be on every winelist you looked at? Don't know the Florida market, but in NY I doubt I could come up with one wine- at ANY pricepoint- that is on 10% of winelists.

That being said, I often do similar calculations. But I just use whatever's on a list that I know- it's seldom that I don't have a pretty good idea of retail price of several wines on a list.

The other factor is , as Ed says, many restaurants don't have a fixed policy. It might be 2.2X Retail, but with a $15 "bonus" on wines that retail under $10, $10 bonus on $10-20 wines, etc. Or 2X on wines they have plenty of and 3X on wines with less than a case. Or a 1000 other options

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