Wine CostBy bottle or glass, you’d better know the basics
Cost vs Selling PriceOften confused by new comers to the restaurant mathgameCost = the wholesale purchase price of the productSelling Price = the retail price you charge your guestfor the product
Purchasing WineRestaurants can buy liquor, wine and beerfrom wholesale suppliers.Your state issued liquor license requires youto ONLY purchase from licensed wholesalers
WholesalersWholesale Liquor, Beer or Wine companiesoften sell a variety of brands in each of thesesalcoholic beverage categoriesThey are controlled by the state in which theyare licensed and can only sell to retailers inthe same stateMost Wholesale Liquor distributors arerequired to list their products and pricing in astate alcoholic beverage guide. This guidebecomes the basis for retailers to build theircost and selling price.
Wholesale Pricing Wholesalers mark up their products to cover the cost of marketing, distributing, storing & profiting from the sale of wine, beer and spirits.For Example: Tablas Creek Winery sells a case of Chardonnay for $120 to the wholesaler. Who in turn sells it to the retailer for $180, who sells it to the customer at $240.
Mark-upThe mark-up or difference between price andcost = the amount of money the businessplans to gain to support its cost of operationsand profit
Restaurants Wine CostWhen selling wine, we can portion it in avariety of ways:By the bottle - 1.5l, 750ml, 375ml, 187mlBy the glass - 2oz, 4oz, 5oz, 6 oz or...By the flight - a combination of wines offeredin 2oz pours
PortionPortion is essential in maintaining a successfulbeverage program.The portion aids us in establishing the cost perserving that we sell to the guest.
Establish Bottle PortionWine can be purchased by the case or bottlefrom the wholesalerBuying by the Case is usually the leastexpensive way to purchase wine. Mostwholesalers will mark-up your purchase if askthem to break open a case and sell you abottle. ( consider it an unpacking fee)
Wine CasesWine Cases are generally made up of 12750ml bottles per caseSome product may be packed differently: Beringer White Zinfandel has regularly sold in a 15 bottle case. Half bottles are often packed in 24 counts, while magnums may be packed in 6 packs Prestige wines ( ultra-high price) may pack 750ml bottle as 6 packs or smaller
Bottle Cost Divide the Wholesale purchase case price by the number of bottles in the caseexample: Rodney Strong Estate Pinot Noir $192 case $192 / 12 bottles = $16 per bottle (Case cost divided by number of bottles)
Ounce CostFor a glass pour cost, we will need to establishthe cost per ounce.A 750ml bottle contains 25.4 ounces of wineIf there are 12 x 750ml bottles in a case. Eachcase contains 304 ouncesDivide your case cost by 304 to get your oncecostExample: Rodney Strong Estate Pinot Noir $192 / 304 ounces = $0.63 per ounce
Glass Portion CostOnce you have your cost per ounce, simplymultiply the cost per ounce against the portionof your glass in ounces to calculate your costper glass$0.63 x 6 ounce portion = $3.79 glass cost$0.63 x 5 ounce portion = $3.15 glass cost$0.63 x 4 ounce portion = $2.52 glass cost
Building the Selling Price Selling PriceTo create a selling price that works for thebusiness, you need to have a strong workingknowledge on how to establish the cost of theitem being sold
Selling PriceWholesale RecapRetailMark-upPortionFlightBottle sizeWines by the glassBottle CostOunce CostGlass Cost
Practice Print the attachment to this lesson and calculate the bottle cost, ounces per case and the cost per ounce for the wines listed.Bin # Wine Name Bottle Size Bottle Case Cost Bottle Cost Ounces per Ounce Cost Count / case case121 2008 LEsprit de Chevalier Pessac-Leognan Blend 750 ml 12 $288.00 - CS 70%, M 30% 2010 Rancho Zabaco, Sonoma Heritage Vines122 750ml 12 $133.80 Sonoma County Zinfandel 1994 M McAlister South East Gippsland Cabernet123 750 ml 4 $170.00 Sauvignon211 n/v Peter Vella Chardonnay 5L 4 $63.96 2009 Trinchero Calistoga, Napa V Sauvignon212 1.5l 6 $88.00 Blanc 1998 Chateau Benoit Willamette Valley213 750ml 12 $143.88 Sauvignon Blanc214 2009 Sonoma Cutrer Sonoma Coast Chardonnay 375ml 24 $199.92215 2009 Chateau de Cosse Sauternes Semillon 375ml 24 $672.00216 2009 Chateau de Jau Rivesaltes Muscat 500ml 12 $300.00221 See attachment link in ulearn 2010 Domaine de Martinolles Pays dAude, Burgundy Pinot Noir 750ml 12 $120.00