Wine Lists - a Huge Profit Opportunity 2012

7/31/2019 Wine Lists - a Huge Profit Opportunity 2012

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Profit Opportunity

Cameron DouglasMaster Sommelier

Creating aGreat Wine List


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What should a

wine list achieve?

Maximise profit? Y/N

Complement the cuisine? Y/N Add to the dining experience? Y/N

Show off the size of the cellar? Y/N

Impress the critics? Y/NOR


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Purpose

Gain customer confidence

Achieve customer

satisfactionAchieve and maximise sales


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Always a work in Progress

A wine list is not stagnant

You should always be looking out for ways toimprove your selection

Weekly changes and sometimes daily changes A minimum of four overhauls a yearusually

based in seasonal changes in availability oflocal produce. For example Oysters or

Asparagus


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The wine list For the customer and the business To select a glass or bottle based on

accurate information and in a timelymanner

- The list itself is a sales tool and can provideadvice

- Great sales advice from the staff is

immensely important VIP - Accuracy within the list

VIP - Availability of the product


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Special consideration must be givento the relationships between

The Cuisine of the establishmentEthnic, Pacific

Rim, Meat & 3 veg, Smorgasbord, Cutting edge The Target Clientele - and locals

The Class RestaurantCaf, Brassiere, Fine Dining,Specialist


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Wine list decision drivers Cuisine

Availability of the product

Continuity of supply Target audience

What the competition has

What the owner wants What the chef wants

Faith in what you are doing


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Knowledge is powerKnowledge is profit

Appropriately trained staff that are well versed inthe product available

Appropriately trained staff that are well versed infood and wine pairing

Tasting and vintage notes for every wineavailable

Suggestions from suppliers on food and winematches if there is no person on staff who can

A manager on duty who can resolve problemsthat may arise with faulty or unaccepted wines


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Moments of truthPresenting the wine list?

Timing and approaching the table lookingand sounding relaxed versus

Approaching the table and rushing the

guests into a decision Average dining time of about 1.5 to 2.0

hrs divided into the kitchen opening time.How many glasses or bottles can safely

and legally be sold and consumed in thattime?


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The importance of Service

Only one chance for first impressions

Food menu and wine list at the same time orseparately?

Food ordered first then wine sales or viceversa?

Does your service match your self elected

class? Fine dining or casual


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Engage your customers

Wine and food pairing advice has a stronglink to profit and repeat business

Make it a habit to offer assistance to every

guest regardless Know your food menu inside out and back

to front

Have three wine choices for every menuitem available

Be pro-active..show up at the table with acouple of choices and see what happens


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Provide International Service All wine by the glass is served at the table

from the original bottle

This is how we over-deliver for the price

paid, justify the price customers pay andprovide a memorable experience

If you pour wine at the bar or behind thescenes it is called - Lazy Service!


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Sommelier Have you got one? Do you need one?

Can they make a difference to the

bottom line? Do they have credentials?

What should they bring to the role?


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Points of View

On Sommeliers..

They should know that first and foremost

your duty is to the customer. Your job is tomake sure they are drinking the right winefor them.

Jeremy Prus. Duende - Perth


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Points of View

A rock solid grounding in the classics anda finger on the pulse, trying to gaugewhat the next big thing might be.

Nicole Reimers. Rockpool - Sydney


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Some Wine List Layout Ideas


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Indexed by Weight

Aperitif wines:

Usually white, can include sparkling wines (Champagne,local Mthode), Fino sherries and vermouths, SauvignonBlanc and Riesling.

Light to medium-bodied whites(generally unoaked wines)

Sauvignon Blanc, Riesling, Chenin Blanc, Pinot Gris, MullerThurgau, Gewurztraminer, some unoaked Chardonnay

Medium to full-bodied whites (generally oaked wines)

Chardonnay, Semillon, Viognier


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Grape variety

Rieslings followed by

Sauvignon Blancs followed by

Pinot Gris followed by

Chardonnay followed by Rose followed by

Pinot Noir followed by


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Indexed By Price (glass)

Sparkling wines $12-$25 White wines $8-$12

White wines $15-$20

White wines over $20

Red wines $8-$12

Red wines $15-$20

Red wines over $20 Dessert wines $15-$20

Dessert wines over $20


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Indexed By Price (bottle)

Sparkling wines under $60 Sparkling wines under $250

White wines under $50

White wines under $100 Red wines under $50

Red wines under $100

Red wines under $200 Dessert wines under $50

Dessert wines under $100


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Indexed By course

Appetizer wines Starter/Entre wines

Main Course wines for light meats

Main Course wines for heavy meats andvegetarian dishes

Dessert wines for chocolate lovers

Dessert wines for non-chocolate lovers


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Easy to holdnot too large Easy to readappropriate font and size

Non-reflective paperhalogen lights and

fluorescent tubing increase reflectivity onlaminated or glossy papers

Unpretentious for the clienteleappropriate wording that is brief, yet

descriptive


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Price points

Have a range of prices so budgetconscious customers can choose withoutembarrassment

Enough wine at higher prices to attractthose with a bigger disposable income orcompany expense accounts


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Anchor brands

Anchor brands are very important Anchor brands keep a wine list from looking

too obscure

Try to have at least a couple of highlyrecognisable brands available

Anchor brands are safety zone wines forsome customers and sometimes your business

too


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Some advice

Dont list any wine you are not prepared to getbehind and sell

Dont list a wine you merely like

- Visualise how it will work on the list with whatfood, how long do you want it for - 1 month, 3months?

Dont take your wine reps word on the quality

always, always taste the wine first.


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Some advice

Expensive doesnt always mean high quality Cheap doesnt always mean low quality

Research every wine to see where else it is forsalesupermarkets, liquor stores


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Contracts with suppliers

Read them Do you understand the Fiduciary and

Bailment terms?

Do you understand the returns system?


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Fiduciary

A fiduciary is someone who hasundertaken to act for and on behalf ofanother in a particular matter incircumstances which give rise to arelationship of trust and confidence

You are the Fiduciary

Trust and Confidence


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Bailment

Describes the legal relationship incommon law where physical possession ofproperty (chattels - wine) is transferredfrom one person (the bailorsupplier) toanother person (the baileerestaurant)who holds possession.

Later intended for sale. The bailor owns

the goods, but you store them. The intention to possess and sell is signed

for


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Numbers. Do your sums!

Plan your sales targets Be conservative in your estimates

Dont price yourself out of the market

Make a good profit, dont be greedy Plan for public holidays

Plan for contingencies

Returns are OK


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Wine list size

Often too big Capital investment into to products that do

not move

30 seats40 to 60 wines

50 seats50 to 70 wines

Reserve list will only work if someone isprepared to actively sell the wines listed

Wines by the glassdepends how busy youare. 30% to 40% of the list perhaps more.What the market demands. Law


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How are great Wine Lists created?

Relationship buildingwith suppliers Reading, reading and reading

Watching auction sites

Understanding the origin and history of famous wines

Listing local wines

Balance between local and international wines

Competitive pricing

Something for everyone and every budget


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Do your homework anddo your sums


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1. Numbers. Target sales by unit

40 seat restaurant 30 covers X 5 nights X 3 units per seat = 450 (units

potential)

450 potential units of alcohol sold per week

Divided into the glass and bottle sales

Plus any water salesalways variable, but set a minimum of

50%....20 seats


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450 X 150mls = 67,500 67,500 750ml = 90 bottles or 7.5 cases

3 FOH staff = 30 bottles a week each Is this realistic?

Is this manageable?


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90 bottles average cost of $20(incl)= $1,800 90 bottles average sales price at 150% (2.5) of $50.00 =

$4,500

GP $2,700 less tax then standard expenses and contingency

The matrix is complex, but can be calculated


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Spreadsheet analysis


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Sliding margin scale

Not all wines can be subject to the samemargin

For example a 2.5 mark-up on Champagnewill likely lead to fewer sales in that category

A sliding scale could then be applied tobetter manage some items

2.2 to 2.5 on Anchor brands and slow movingproduct

2.0 to 2.2 on Champagnes and sweet wines


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Thank You

Any Questions?

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Wine Lists - a Huge Profit Opportunity 2012

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