What is the right price for a bottle of wine at a restaurant?

Wine pricing at restaurants is a hot topic of late but has many complexities. Let&#39;s dig into it and better understand the issues and some potential solutions.&nbsp;

Let&#39;s remember the immense challenges the restaurant industry has faced in recent years, particularly the devastating impact of the pandemic. The industry is still grappling with the aftermath, including the closure of many beloved establishments, the departure of skilled professionals, ongoing supply chain issues, and the burden of inflation. Rising costs are a universal struggle,&nbsp;and&nbsp;simply raising prices is not enough.&nbsp;

At CorkRules, we recently conducted a study to gain insights into the restaurant and wine landscape from patrons&#39; perspectives. We discovered a significant tension between perceived value, service&nbsp;quality,&nbsp;and rising costs, with 72% of respondents expressing that the value they receive at restaurants is worse than pre-pandemic. Our research extends beyond the price of a bottle, but it&#39;s a crucial aspect to consider.&nbsp;

Let&#39;s jump into better understanding the issues on both sides:

How alcohol sustains restaurants:

For most full&ndash;service restaurants, alcohol accounts for ~25% of revenues, and for higher-end restaurants, it could be as high as 50%. Think Las Vegas. The gross profit on alcohol can range from 70% to 80%. This helps restaurants fund other costs related to their overall product (food margins, overhead, labor, rent, utilities, etc.).

How are bottles of wine priced?

Restaurants typically price wine purchased from distributors between 2 and 4 times its cost. Other considerations include the winemaker&#39;s reputation, quality, scarcity (how hard it is to find), and vintage (older usually increases the price).&nbsp;

Wines by the glass (BTG) usually have a higher markup (4-5x) as the restaurant is taking the risk of waste. Wine goes bad, and the restaurant may have to eat the cost of offering one customer a glass. With the invention of a Coravin (a wine preservation system), you are starting to see more expensive wine offered by the glass. The wine BTG programs have a great opportunity to make more wines accessible to patrons, but I digress.&nbsp;

In our research, nowhere do we see patrons unwilling to pay a wine markup. Let&#39;s explore issues from the patron&#39;s point of view.&nbsp;

Decisions about buying a bottle of wine:

Yes, price is a big part of the decision process, but most people don&#39;t appreciate the social aspect of picking a bottle for a boss, friend, or spouse. This is why wine scores are so popular; they take people off the hook for selecting. People are very nervous about picking the wrong wine, not to mention overpaying.&nbsp;

Price is a top decision when choosing a bottle of wine:

Yes, our research says price is 5X likely to influence your decision compared to other factors. This is because we all have a number in mind when we walk into a place. Is it a special occasion? Is it date night? We tend to contextualize our expectations and the price we are willing to pay. We see from our usage data that people drink more expensive wines on Saturdays vs Mondays. Duh, logical.&nbsp;

Inconsistency of wine prices:

Our data suggests that wine pricing is all over the place. We see the same wines priced differently from restaurant to restaurant. For instance, a bottle of Chardonnay that costs $20 at one establishment could be priced at $40 at another. This variation can range from 2-3% to 200-300%. Yes, it&#39;s wild. This leads consumers to distrust restaurants and feel they are being exploited.&nbsp;

The dreaded markup of wine:&nbsp;

There is inconsistency around the price of a bottle of wine relative to the fair markups and retail pricing. A &#39;markup&#39; is the difference between the cost of a product and its selling price. All consumers expect to pay a premium for ordering wine at a restaurant, but they are seeing significant inconsistencies (2-9x markups) and are, as such, skeptical about trusting the wine list price.&nbsp;

#1 wine app/technology:

&nbsp;It hurts me to say this, but Google is the number one wine app people use to check the price or reviews of a wine.&nbsp;In talking&nbsp;to many somms/beverage directors, they hate that the consumers are doing this. I&#39;m sure car sellers feel this way, too, or banks selling mortgages, but the reality is that we live in a digital world, and transparency is an expectation we all have. I hope our industry can embrace technology and create a win-win.

Ordering wine is complex:&nbsp;

Wine lists are always different. Restaurants all have different formats for presenting their lists: how they write the wine names, how they organize the list by region, varietal, price, the number of bottles they have, and finally, all the diverse choices they have. Many restaurants look to differentiate themselves, often with wines most of us are not familiar with, but to most consumers, it&#39;s daunting and overwhelming.&nbsp;

Wine knowledge is lacking:

If we are honest, learning about wine is a lifelong journey, and most of us aren&#39;t that invested, but it feels like we need to pick a wine at our favorite restaurant. Being handed a list and asked to make a selection in the first 10 minutes is intimidating. Trying to choose a wine that works for everyone is not easy. I eat meat, and my wife eats fish. How do I pick a wine that works for both of us? I know, ask the somm&hellip;

Talking to the somm/server about wine:&nbsp;

Somms have a bad rap as being stuffy, arrogant, and can be intimidating. However, they play a crucial role in the wine pricing process. They are responsible for curating the wine list, ensuring a diverse selection, and providing recommendations based on the menu and guest preferences. Yet, consumers are afraid to ask questions and look bad in front of their guest(s), so they tend to order what they know &ndash; Chardonnay or Cabernet. Ugh.&nbsp;

Becoming a certified sommelier requires significant passion, time, and personal expense. It can take 2-5 years to become a certified professional from the Court of Master Sommeliers (CMS). Numerous programs offer various certifications and diplomas. This program includes innumerable exams of both theory and service. It can cost thousands of dollars. This is a real commitment to their craft.&nbsp;

Wine knowledge at restaurants:

Sadly, 38% of consumers suggest that wine knowledge is not where it was before COVID-19. This is easily explained by the loss of many talented professionals who left the business due to COVID-19. Professionals new to the industry are not getting the training to service their clients and sell more wine.&nbsp;

So, where do we go from here?&nbsp;

Cristie Norman, a highly acclaimed sommelier, said it best: &quot; It starts with respect.&quot; We need to recognize that both sides have a point.&nbsp;

First,&nbsp;we must support our restaurants,&nbsp;eat out more, and order wine! 42% of our respondents eat out more than 5+ times a month and 64% order wine regularly. Let&#39;s keep it up.&nbsp;

Second,&nbsp;patrons want confidence in ordering, and this starts with transparency and open communications. Technology can help patrons connect the dots and help restaurants enhance the overall experience.&nbsp;

Third,&nbsp;let&#39;s keep the dialogue&nbsp;going about this complex topic. We all agree that we want our restaurants to succeed and provide unforgettable memory-making experiences.&nbsp;

We appreciate the continued dialogue on this critical topic.&nbsp;

&nbsp;

What is the right price for a bottle of wine at a restaurant? Wine pricing at restaurants is a hot topic of late but has many complexities. Let's dig into it and better understand the issues and some potential solutions.

The tension around wine pricing at restaurants?

Wines from grapes grown in higher altitude areas with cooler climate has become quite the trend recently. This specific growing environment gives intense flavor but elegance and freshness to the final wines. To highlight and champion these conditions more and more winemakers are starting to use alto as a marketing and labelling term to show their grapes were grown in high altitude vineyards.

Decoding the wine label: Alto

Brut is a word often seen on labels for different kinds of sparkling wine. As you may have discovered when drinking these wines, it indicates that the wine is dry, meaning there is no perceived sweetness in the wine. But how about Extra Brut or Dry, what do they mean and are they the same as Brut?

Decoding the wine label: Brut

Semi-sweet Riesling, a type of wine falling out of style. It’s a shame, since these wines are perfect to pair with flavorful cuisines like Asian or Mexican, or simply drink as they come under the summer sun. The higher level of sugar left in the wine also means that the alcoholic fermentation was stopped before finishing, providing a wine with lower alcohol level and therefor easier grabbing a second glass of.

Decoding the wine label: Spätlese

Have you ever heard the word Xinomavro? Most have not. It is however a word on many sommeliers’ lips today, as it happens to be considered the grape variety with the highest quality in Greece, and one that is trending at the moment. The fact that Greece have been making wine for a long time comes as no surprise, but they have never exported an amount to make sure wine lovers around the globe tried it. With the growing wine tourism many have discovered these wines and are serving them in wine bars and restaurants in many countries today.

Decoding the wine label: Xinomavro

Chianti Classico, Valpolicella Classico, Soave Classico… Why do all these Italian wine regions have the Classico addendum and what does it mean? What is the difference for wines labeled as Classico?

Classico is a wine term in Italy seen on a few wine labels and it indicates that the wine’s from the historic center of the region, the heart. Using Chianti and Chianti Classico and their Sangiovese-based red wines as an example, Chianti is a rather large wine district within the Tuscany region. Chianti Classico is located withing Chianti as the central part and the one that originally existed. Back then this smaller region was actually called Chianti, but as the region grew the quality of the wine plummeted and the well-known characteristics of these red wines were watered down. The reputation took a hit and sales diminished. Eventually this led to the creation of Chianti Classico, which would be drawn from the original Chianti borders to recover the typicity of these wines. Today the quality of both Chianti and Chianti Classico have risen a lot due to modern techniques and knowledge about pruning, planting and temperature control in the winery.

Decoding the wine label: Classico

In the rarefied world of fine wine, where bottles can command prices equivalent to luxury cars, authenticity is everything. Laurent Ponsot's gripping memoir "FBI: Fake Bottle Investigation" reads more like a high-stakes thriller than a traditional wine book, chronicling his relentless pursuit of one of the wine world's most infamous counterfeiters, Rudy Kurniawan.

From Burgundy's Vineyards to the FBI's Most Wanted: A Winemaker's Quest for Justice

Chablis – one of the more popular styles of wine today and a region known by many. Most are familiar with the word Chablis and the light, fresh white wine with a touch of minerality it brings. Even though it’s a renowned wine, few knows what it really is.

Decoding the wine label: Chablis

Many grape varieties around the world of wine have names local to the region or country they’re grown in, even though they’re exactly the same. The most famous example would be Syrah in France where the same grape is named Shiraz in Australia. Another variety with two names is Pinot Grigio, or Pinot Gris.

Decoding the wine label: Pinot Grigio

Have you ever seen the term sur lie on a wine label? It’s not a grape and not a wine region, but a winemaking method used to give certain styles of white wine a rounder texture and a more complex flavor profile.

Decoding the wine label: Sur lie

Madcap

Certified sommelier Michaela Quinlan and Robert Tas review the wine list at Madcap, California

Wine List Review of Madcap, California

Michaela Quinlan

Madcap:

RT: Hello and Welcome to CorkRules!&nbsp;

A podcast where, in each episode,&nbsp;we will review a wine list from your favorite restaurants. I&rsquo;m your host Robert Tas along with Michaela Quinlan, certified sommelier.

Hello Michaela,&nbsp;it&rsquo;s great to be back together for another episode.

MQ: Hi Robert!

RT: Before we jump in, let&rsquo;s talk about CorkRules.

We created CorkRules to demystify wine lists because we know from experience, that sometimes when we get that list handed to us, well&hellip; it can be intimidating, and even a little daunting.

Our aim is to help prepare you to navigate that list, find those hidden gems, or value wines or that special bottle that will take your dining experience over the top.

RT:&nbsp;So, sit back and listen as we review your favorite wine list.

RT: Today we are talking about Madcap. Madcap is a must visit if you are in the San Anselmo, CA area. Madcap features a seasonal tasting menu showcasing local and organic ingredients in an upscale environment.

Michaela, I can&rsquo;t wait to hear what do you think of their wine list?

MQ: I love when wine lists not only feature classic wine regions but also highlight unique varietals. We have some excellent selections for you today.

RT: That&rsquo;s really great, as you looked at the list did you see anything jump out at you?

MQ: A unique selection that caught my eye was the 2021 Nigl Zweitgelt Rose from Austria. &nbsp;Zweitgelt is a cross between the red grapes of Blaufrankisch and St Laurent and is similar in style to Pinot Noir. This rose is a deep salmon color with bright cranberries, raspberries, citrus, and a dry, mineral finish. This rose is rich enough to stand up to hard cheese and dense fish such as tuna and salmon.

RT: That is for sure unique. Did you find any others that caught your eye right away?

MQ: Absolutely! The 2018 Gamba Vineyards Etrusca Velia, Red blend from the Russian River Valley of California. This blend of Zinfandel, Alicante, Cagignan, and Petit Syrah is full bodied and dry, with aromas and flavors of ripe red cherries, plums, blackberries, smoke, oak, smooth, round tannins, and herbs on the lingering finish, making this wine a perfect companion for richly sauced proteins and pasta.

RT: So Michaela, their list seems to have lots of range but was there anything that you would say is a &ldquo;must-try&rdquo;?

MQ: A beautiful, must-try wine is the 2018 Ch&acirc;teau de Fosse-S&egrave;che, Arcane, from the Saumur which is located in the Loire region of France. This wine consists of Chenin Blanc, which is a light to medium bodied white grape featuring bright acidity, green apple, pear, dried apricots, and a mineral finish. This wine is a perfect companion to lighter fare such as soft cheese and seafood.

RT: These are some great calls. So, you know I&rsquo;m getting thirsty and will need to order a bottle with my dinner, where would you guide us?

MQ: Knowing how well Madcap crafts their tasting menus with local ingredients and herbs, I had to mention a favorite grape varietal. Consider the 2019 Domaine du Bel Air, Les Vignt Lieux, &nbsp;Cabernet Franc from the Loire Valley of France. The ripe cherries, earth, mushrooms, herbs, and oak make this an excellent crowd pleaser for the table.

RT: Michaela, speaking of price, sometimes people have a budget in mind. Any other great value wines you&rsquo;d point us to?&nbsp;

MQ: A stand-out quality and value white wine on the list is the 2021 Caravaglio, Infatata, Malvasia Secca from the island of Salina. This Italian, organic wine features the Malvasia grape which takes us straight to the Mediterranean. The bright acidity, melon, tangerine, lime zest, with salinity on the finish make this an excellent companion to shellfish and lightly sauced seafood.

RT: That sounds great. What is your other value selection?

MQ: another organic, quality and value wine to consider is the 2020 Laurent Fayolle, Crozes-Hermitage from the Southern Rhone of France. This wine is 100% Syrah and features flavors and aromas of ripe, red cherries, herbs, smoke, blackberries, with notes of black pepper and violets on the finish. Pair this red with richly sauced or herbed proteins.

RT: Now Michaela, what if I have a big client dinner or special occasion where I want to take it up a notch?

MQ: A standout, classic, white wine that always compliments a special occasion is the 2019 Domaine Didier Silex, from Pouilly-Fum&eacute; in the Loire Region of France. The appellation of Pouilly Fume produces award winning Sauvignon Blanc. This Sauvignon Blanc is crisp, flinty, and showcases gooseberry, lemon zest, and bright acidity. The Silex designation reflects the mineral-driven nature of the wine as a result of the limestone soils. This is truly a winner when pairing with rich seafood and special occasions.

RT: Michaela Thank you so much for all your great suggestions and helping us navigate Madcap&rsquo;s wine list. I can&rsquo;t wait to go try them myself. &nbsp;

To our audience, thank you all for joining us here on CorkRules.

If you would like us to review one of your favorite restaurants, please send us email to: <a href="mailto:Info@corkrules.Com">Info@CorkRules.Com</a> or visit our web website where we have a request form available and we will do our best to get it in the queue as quickly as possible.

We are looking forward to being with you on another CorkRules episode soon. In the meantime, please check out our website for other episodes of your favorite restaurant wine lists.&nbsp;

And finally, drink what you love and please make sure you drink responsibly.

&nbsp;

Thank you.

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CorkRules application allows you to discover wines at your favorite restaurants, learn with friends and be confident with price transparency. Order wine with confidence at restaurants and retailers. Get personalized recommendations. #DrinkWhatYouLove

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