Just generally curious about this topic because after researching a bit I haven't been able to locate a solid resource on this. I want to know the business side of wine lists a bit more. I studied business in college, but not in relation to wine. I understand contribution margins, COGS, etc, but I'm interested in how to price and how to decide how the wine list will perform.
Any resources or help would be appreciated!
If you haven't read this, we shared some thoughts on wine list pricing.
Awesome! Haven't read this.
After reading this, do you have any other advice, Geoff?
As a customer, I am a big fan of tiered pricing. While I’m more than happy to pay $45 for a $15 bottle, I would never spend $450 on a $150 bottle. I prefer to look at how much profit in dollars you can generate from the bottle rather than a percentage; you can’t put a percentage in your pocket.
Caveat: every business model is unique and I would never say that my approach is right for every wine program.
This makes a lot of sense. How do you feel BTG programs should be run. Although,you just stated every business is unique, is there any loose rules or guidelines one could follow?
Don't hesitate to make money on a BTG program. People need to pay for their seat in your restaurant. A typical approach is to charge your cost of the bottle for a 5-6oz pour. For glasses that are say $15 and above, I would consider scaling down that type of markup. I am also a fan of a small selection of wines by the glass; focus them. Fewer choices mean fresher wines and less waste.
This thread reminded me, so. just checking....is there an ETA for The Business of the Sommelier Study Guide yet :)
Not a study guide but the "bar management" podcast from guildsomm is amazing!
Edit: It's the "Wine Program Management" podcast.