WHY IS WINE SO EXPENSIVE IN RESTAURANTS?
Before I
answer the question, let me state the following: we almost never eat in
restaurants and, when we do, we never order wine unless it is the house wine.
Why?
Regarding
eating out, most restaurant food is too salty and too fatty for our
liking—that, of course, is what makes it taste too good. Add to that the fact
that my wife (and on rare occasions, me) can make meals that are just as tasty
as restaurant meals.
Regarding
ordering wine, it’s just too expensive. I don’t like paying $50 - $60 for a
wine I know costs $20, and I sure don’t like paying $20 for a wine I know costs
$7 - $8. Unfathomable pricing has always been part of the dining-out terroir. (See—the word came in handy)
So, let’s
explore why wine is so expensive. I used to think it was because the
restaurants had to set aside space and provide cooling for the wine. To be
fair, wine is capital intensive.
Restaurants have to allocate temperature controlled (hopefully) storage space
on the premises for wine. Depending on how often they get wine deliveries, that
space can vary in size. However, there are other reasons for the cost of wine
in a restaurant.
First of all,
restaurants markup wine prices because they can—it’s that simple. Wine (and alcohol in general) is a profit
generator for restaurants. Wine by the glass is even more of a money maker.
Restaurants can charge enough for one glass of wine to cover the cost of a
bottle at wholesale prices while at the same time squeezing five to six glasses
out of that bottle.
Then there is
the fact that some people feel pressure to order wine just because a waiter (or
worse, some sommelier with his nose in the air) drops a wine list on the table
along with a menu. This creates subtle pressure, as if the waiter is asking
you, “Are you going to order wine or are you too cheap?”
Restaurants
are also aware that most people have no clue what the retail price of wine on
their menu is so they cannot calculate the rip-off factor and, moreover, people
have no clue about the wine itself. Here are two examples of wines on the list
in a restaurant we used to go to in Columbia, Maryland: Dido la Universal Garnacha Blend and Alcance
Carmenere. What can you tell me about those wines? Hey—no cheating. You
have to answer without going to Google.
IF YOU ARE INSISTENT ON HAVING WINE IN A
RESTAURANT, WHAT CAN YOU DO TO KEEP THE COST DOWN?
Don’t ever order wine by the glass.
Like I said, restaurants can cover the cost of a bottle in one glass. Regarding
the wines I mentioned earlier, the restaurant sold a glass of Dido la Universal Garnacha Blend for
$14, yet the retail cost of a bottle is the same- $14. The restaurant sold a
glass of Alcance Carmenere for $13,
whereas the retail cost of a bottle is $19. Considering that a restaurant can
squeeze six 125 ML glasses out of a bottle, the restaurant is making a killing
by selling wine by the glass. It has gotten so bad that even Olive Garden
charges $7 for a glass of Chateau Ste. Michelle Chardonnay, a wine that costs
$8 per bottle retail.
Don’t buy Chardonnay. Seriously.
Chardonnay is one of the few white wines I like, but so does the rest of the
world, so restaurants can get away with charging the maximum on Chardonnays.
Don’t buy popular brand names.
Restaurants know that you have a sense of safety ordering what you know, so
they will take advantage of that fact.
Don’t buy the second-cheapest wine on the
list. It is a not-so-well-kept secret that restaurateurs know that diners
don’t want to appear cheap by ordering the least expensive wine on the list, so
they’ll really mark up the second-cheapest.
Look for ½ price nights. More
restaurants are offering wine at 1/2price on off nights, like Wednesdays and
Thursdays, to attract customers.
Look for restaurants that are attached to a
wine store. This is not very common but I found quite a few while
consulting in California. Those restaurants will sell the wine at their retail
price and just hit you with a $5 “corkage” fee or, if you’re lucky, no corkage
fee at all. For your information, there is at least one in San Antonio: 20Nine Restaurant and Wine Bar in the
Quarry Market. The restaurant’s wine list is online so you can pick out what
you are going to order in advance. If I find more, I will post about it.
Go online and look for a wine list.
Doing this may not bring down the price but at least you will know something
about the wines offered. You will also find out if the restaurant is gouging
you or not. Also, if you are willing to pay for a particular wine, make sure
you get what you ordered. If you order a 2012 vintage off the wine list and the
waiter brings the 2014 vintage, politely tell him that is not what you ordered.
Bring your own bottle. Not only do I
hate paying the outrageous prices for wine at restaurants, I also hate paying
$3.50 or $4.00 for a bottle of beer when
I can buy the whole six pack for about $10.00 (draft beer is a different story). If you can find a restaurant that lets you
BYOB you might want to check it out. You may get hit with a corkage fee, but
this is a cost-effective option when you want to enjoy a wine you really like.
Try the house wine. My best advice is
don’t order wine in a restaurant. However, if you really want to, don’t be
ashamed to try the house wine at restaurants that offer it. (Don’t be a wine snob.)
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