Restaurant markups: What's reasonable?

Leo Bueno · 2004-05-09T16:10:31+00:00

In a local online wine group I manage, we've seen some different (andstrong) opinions lately as to what a "reasonable" or "fair" restaurantmarkup for wine bottles should be. The purpose of this message is to take this group’s quantitative pulseon the issue.The question is not whether a restaurant should be able to charge, ina legal or regulatory sense, whatever it pleases for the products itsells. I assume those of you answering this message live in aquasi-free-market economy, so the premise is that the price should bewhatever the restaurant wants. The inquiry here is more personal; it focuses on *your* subjectiveperspective as a wine consumer. So, please take the time to thinkabout and answer the following question: What is the *maximum* restaurant wine bottle mark-up from retailprices that you consider to be reasonable or fair? I started a poll on the subject, located at sample format of poll and question below)Please visit the poll if you are inclined to like those sorts ofthings, or express your view in text here or betteryet, do both!.Thanks.--------------------------------------------------------------------------------------Restaurant Wine Markup What is the *maximum* restaurant wine bottle mark-up from retailprices that you consider to be reasonable or fair? 50% 100% 150% 200% 250% 300% 350% 400% -----------------------------------------------------------------------------------------================================================Do you like wine? Do you live in South Florida?Visit the MIAMI WINE TASTERS group at

May 09, 2004 62 Replies

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I'm not familiar with DC restaurant mark-ups. Reasonable is what you're willing to endure. Some Md restaurants will take a "close-out" item marked down from lets say $18 a bottle to $4 by a wholesaler and still sell it on list for $45-54. Not passing a dime of savings on to the consumers. Most stores would blow the wine out at $6-18 and pass the savings on to their customers. Lots of restaurants keep names of producers and or vintage years off the wine list, just so they can take advantage of the extra profits from close outs.

Another beef of mine is pricing of low end wine. Some places won't price a wine for less than $20 saying "my customers don't want cheap stuff", even if it costs under $7 day to day. So entry level wines like Beaujolais, cotes du rhone, muscadet are way over priced.