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These 4 tactics can help restaurants sell more wine
Check out this press release from the Cornell University School of Hotel Administration Center for Hospitality Research that details four strategies restaurants can use to sell more wine, and tell me what you think. You can click here to view the executive summary of the report and to find a link to download the entire study entitled “Wine List Characteristics Associated with Greater Wine Sales”.
Here’s an excerpt from the Cornell press release:
The research found that the following four wine-list tactics were involved in higher wine sales: (1) Including the wine list on the food menu; (2) Listing prices without a dollar sign; (3) Listing wines from certain wineries known for their quality; and (4) Including “reserve” wines or another special section. A fifth tactic, however, was connected with lower sales, namely, using wine style as an organizational category on the list (e.g., sweet, bold, dry).
Listing prices without a dollar sign makes a discernible difference? Really? The human mind works in mysterious ways … .
The executive summary of the report by Sybil S. Yang and Michael Lynn notes that the study was “based on design and content attributes extracted from 270 wine lists from restaurants in several major metropolitan areas across the United States.” Among its findings: “For casual dining restaurants specifically, higher wine sales were related to extensive wine lists that have a length of approximately 150 bottles of wine as compared to lists with fewer or more bottles, and with wine lists that offer more low-cost wines. Neither of these factors showed any effect in fine-dining restaurants.”
Any theories about why researchers found meaningful impact of wine-list length on diners at casual restaurants but not at fine-dining restaurants? And why could grouping wines by styles be a turnoff, or at least be associated with lower wine sales?
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Comments
By Sarah C
July 28, 2009 4:35 PM | Link to this
I would like to see some restaurants suggest a wine with specific dishes right on the menu. In the the nicer dining areas that really want to push wine, I think this would really encourage people to buy wine if its incorporated with their food. I always crave wine with dinner, but sometimes I’m turned off by going through the wine list with the lack of tasting notes, and suggestions. I can’t support this with a study, but maybe this little tactic may encourage more wine purchases.
By Ed
July 27, 2009 2:39 PM | Link to this
What they neglected to mention in the study summary is the wine expertise level of the study group. A lot of the techniques they list may work better with a less sophisticated purchaser, who may gauge quality relative to price, versus someone who will buy wine relative to their palate. I agree with others who post that wine prices are WAAAYYYY too high. The net of it all is that more and more I cook at home, and drink from my own cellar. So the restaurant makes $0 from me.
By Nan
July 27, 2009 12:58 PM | Link to this
Although I LOVE good wine, price is still a factor in my selection. Interesting that removing the dollar sign increases sales. I do like more options to choose from since I enjoy several varietals and have favorite wineries.
By Leslie
July 27, 2009 11:27 AM | Link to this
Some of you must be under the impression that wholesale price on wine is extremely lower than retail. And some of you are not aware that the state has a minimum markup requirement. Finally if they don’t mark up the price, they won’t make money, therefore, they cannot pay rent, salaries, supplies, etc. and cannot stay in business.
By Linda
July 27, 2009 11:19 AM | Link to this
If the restaurants want to sell more wine reduce the price they charge. Out here in California most restaurants double to triple the price of a bottle of wine. That is outrageous. My friends and I bring our own wine for a corkage fee of $10. to $12. a bottle. Do the math. If the bottle has a screw top, sometimes they do not charge us, We always buy food but most restaurants have lost our wine business.
By Rob
July 27, 2009 11:05 AM | Link to this
Ditto on the cost thing. One little comment though, when I got to a restaurant, I expect to be offered certain items based on where I am. Not exactly Rocket Science. A formal setting begets a certain expectation…fine food, wine, and conversation. When I sit in Caddy’s, I expect loudness, multiple sports on the tele’s and a decent beer. I would not expect fine wine.
By Jeremy
July 27, 2009 9:46 AM | Link to this
John’s comment is true of quality beer, too. I paid $8 for a 12 oz. bottle of Bell’s Hop Slam at the Centerville Fox and Hound when it was still open. That’s more than a 300% markup from retail. (Six packs go for $15-$16.) It was the last bottle I ever bought there. Other good beer was similarly priced and I watched most of it collect dust on the shelves right up until the place closed.
By John
July 27, 2009 9:31 AM | Link to this
How about making the wine prices more reasonable instead of marking them up so high. Instead of charging three times the retail price why not just double it. It’s quite simple. Good wine and good prices leads to increased sales. Ask any wine retailer and they’ll tell you consumers are very price conscious.