How Much Is That Wine In The Restaurant?
I almost never order alcohol in restaurants because I have to drive home afterward (and cabs are expensive). That is a good thing, because I recently learned that how high markups can be: a bottle is marked up 300% in restaurants over the wholesale price, or 200% over the retail price (see WSJ article on pricing formula).
Cheaper vintages tend to be marked up at a higher percentage (300% – 400% of wholesale) compared to more expensive ones (150%-200% of wholesale).
That means a $20 bottle you bought at a grocery store would cost you $50 at that bistro down the street. WOW! I was always under the impression that wine markups were high, but I had no idea how high.
Also, as can be imagined, more expensive restaurants may have higher markups.
In most cases, the fancier the restaurant, the higher the markup. A top-tier chef, a team of sommeliers, a large wine cellar and expensive stemware are all built into the wine price. Because pricier restaurants typically have fewer tables and less turnover, they need to make profits on fewer bottles sold.
Buying wine by the glass is even more costly. Restaurants tend to charge the wholesale bottle price for a glass – so that they make back their investment with the first glass (see this ChowHound thread about wine markups) and protect against loss if any bottles have wasted wine.
WSJ recommends that diners avoid ordering by the glass if possible – for reasons of taste as well as value.
If the wine in an opened bottle doesn’t sell in a few days, for example, best practice is to pour out the spoiled wine — but whether that happens or not is a matter of conjecture. For diners looking to maximize the value per ounce, ordering a pricier bottle may be a better choice than ordering by the glass.
A few nights ago I went out to a cheap burger & fries place where the entrees top out at $10 or $11. A friend ordered a couple glasses of red. The restaurant didn’t even say what type of red it is. She forgot to check the price, but assumed that it was $5 or $6. Turns out it was $9!! Two glasses added up to almost $20. Talk about high markups!
I’m trying to become more educated on wine… and I think I shall begin with my education at home, where I can drink excellent Pinot Noirs & Chardonnays purchased at Costco for $10 or $15. These bottles, according to formulas on markups, may cost $30 or $40 at a restaurant.
What type of wines do you order at restaurants? Do you ever buy wine by the glass?
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32 Responses to “How Much Is That Wine In The Restaurant?”
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I Need a New JobSeptember 7, 2010
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Ugh. I just ordered a $13 glass of Malbec at a steakhouse the other night. I don't know what came over me. The wine was decent, but I don't normally pay that much for a bottle! (I usually buy $5 and under bottles from Trader Joe's.) Why, oh why, didn't I just order Iced Tea? I think I'll just eat some good cheese with my whine now.
I never order wine at a restaurant because they are marked up so high! I worked as a server and saw first hand that a glass of wine selling for $6 could usually be found in a grocery store for the same price for a whole bottle! Its always free to taste wines at a restaurant. Sometimes I do, but I never buy.
I didn't know you can taste wines at a restaurant… I'd feel badly if I were to ask to taste wines with no intention of buying any. But once the waiter offered a taste (I think it was 1/4 glass from an almost-empty bottle), I'd say okay and had a few sips.
Yup, knew that. Or, at least, BF knew that. He has a friend who owns a winery.
I just don't have the palate to enjoy or taste wine, so I guess I'm saved on that front
Still, even with the mark up, I'd rather have wine on the fancy nights out (yanno those 1-2 times per year occasions) than a glass of water.
I've always been of the opinion that I'd rather eat my calories, but I agree – there's something about a nice bottle of wine that just complements a fancy meal. Once or twice a year is definitely worth it.
This shouldn't really be a surprise. Drinks are marked up anywhere you go starting from the cheap fast food places all the way up to the most expensive restaurants. There's no getting around it except to drink water.
Usually when we go out, we get water, but there are occasions where I order a mixed drink. I understand that I'm paying an exorbitant amount, but I consider it part of the 'dining out and enjoying ourselves' experience when I do. I think that if you enjoy a glass of your favorite drink now and then, paying a little extra is OK.
Useful information! I knew they marked up the price of wine, but by 300%??? I almost always order by the glass because I don't want more than one glass most nights and I am not sure if they would let me take the bottle home if I didn't finish it all.
Bottles are almost always the better deal price per ounce wise, but if your dinner companions don't want to drink, then it's hard to order a bottle. I went out to dinner with a girlfriend once and we finished a bottle of white all by ourselves… so I guess you just need 2 to do the bottle.
If I buy wine, it's usually during happy hour or some type of special the restaurant is having. I don't know much about wines, so I enjoy either describing what I know I like to the waiter/waitress or asking their recommendations (AFTER checking out the wines and prices so I know not to agree to a $10+ glass). I look at the experience as trying something new and maybe I'll find a few favorites along the way.
Also, BYOB's are great if you have them around – especially with a Trader Joe's bottle.
Arf! Arf!
…I just had to say that in response to your title. Hee hee, now that song is stuck in my head! (Off to read the rest of your post.)
Hahaha you got the title!
We should make up a new song to go along with it.
I use to be a wine connoisseur (perhaps consumer would be a better word in my case) of the cheaper brands of wine, hehe…
At certain restaurants, I still get a glass of wine on rare special occassions (I would get a bottle, but I'm the only one in my family that likes wine), but it's not a regular occurrence from me!
I found that my palate isn't sophisticated enough (or I'm too cheap) to buy the over $50 bottles of wine! I'm actually quite fond of the chianti straccali (and other cheaper table wines) at Olive Garden.
Many studies have been conduct that pretty much prove that there are many cheaper wines that are just as good as the expensive ones.
Good luck on your study of wine, it's got a great history and if you look for it, you can find great wine that is still reasonably priced!
The most expensive bottle I've ever purchased was a $16 bottle of rose I got as a gift to a friend… I think it was a pretty good one, but my palate is not refined either – after all, my favorite wines are Moscatos, not any of the "noble' reds or whites. But I'd like to learn to appreciate them.
I once bought a $39 bottle for a party, but nobody cared (or even heard of the vinyard)… I typically go for the reds like the merlots, pinot noirs, shiraz (cabs are too bitter for me unless I'm eating steak with it). I like the whites (Chardonnays , Reisling) too, but usually the red win me over (even when I'm eating seafood)…
I've never tried Moscatos before, I'll have to try it out!
Moscatos are dessert wines made from the Muscat grape. I love them, but you might find them too sweet. I like Orange Moscato. http://en.wikipedia.org/wiki/Muscat_(grape_and_wi...
I'm with FB. Wine is icky for me. It reminds me too much of church actually. I do know a good friend that swears by Pinot Grigio when we go out for Happy Hours and she usually strikes it lucky with 2 for 1 deals. So if you are going to order some wine, make sure it is during a Happy Hour!
You can buy a bottle of Beringer at Target for like $4 (classy, I know). My friend and I were at Olive Garden, and they were walking around trying to get people to buy their "fancy" wine – that they were selling for $30 a bottle – yup. The $4 Beringer.
Wow! That is a really high markup….8x retail.
I do like wine a lot, but try not to order it too much in restaurants because I know it's so marked up. I generally only get a bottle if I'm out for a special occasion. Otherwise I like to buy it and enjoy it from the comfort of my own couch.
Once I start learning about wines I think I'll be more inclined to order the harder-to-get-from-stores wines from restaurants. But right now I don't know what those wines are, so I don't feel like it's worth it to pay 3x wholesale for them.
If you think that wine at restaurants is marked up look at electronics, furniture, jewelery and clothing. It's tough to be a consumer.
Some meals are just better with wine, so I'll order a glass even though I know I'm over paying. Even better if the whole table is going to have wine, then you can order a bottle. If I'm going to dinner where I know that my party will want a bottle of wine, I'll call ahead and ask how much their corkage fee is. There is a terrific little French place near me that only charges a $2 corkage. I just bring a favorite bottle, and gladly pay an extra $2 to the house for the pleasure of enjoying a nice wine with my meal.
By the way, thanks for checking in with me. I'm still here, just not as frequently as I used to be.
I love restaurants with low or no corkage fees. Anything under $5 makes me happy.
When dining out I often buy a glass of wine to enjoy with my meal. We don't buy a bottle because my husband doesn't drink wine.
Although wine is very cheap at the grocery store, it's worth paying a higher per glass price to enhance the experience.
The markup isn't what's important to me – everything at restaurants is marked up so if that's how you're making your decision you shouldn't eat or drink anything out! And by the way, soft drinks are the most marked up items in restaurants (and consider pasta dishes, one of the most marked up dishes).
To me wine is a treat when I'm dining out or having happy hour with friends (I am within walking distance of dozens of bars and restaurants). I don't mind the markup because I usually spend an hour or two on a patio or by a fireplace or at a table in a beautiful area. You're paying for the time and location and experience as much as the wine/food.
I don't buy wine to drink at home by myself very often, just like I don't buy red meat to prepare at home very often – eating a steak or hamburger is a treat when I'm out.
I was eating out at a steakhouse the other day, and checked out their wine menu- one bottle of wine (forgot where it was imported from) was $453 or something.
Isn't that ridiculous?! That's like.. the cost of a flight to Hawaii or something!
Even when you get a glass of wine, it's like $7-$10. That's the price of an entree sometimes.
$450?! Wow… that's a, er, rich bottle. That means it probably retails for $200.