Wine Cost                  By bottle or glass, you’d better know the basicsSunday, December 16, 12
Cost vs Selling Price         Often confused by new comers to the restaurant         math game         Cost = the wholesal...
Purchasing Wine                          Restaurants can buy liquor, wine and beer                          from wholesale...
Wholesalers                          Wholesale Liquor, Beer or Wine companies                          often sell a variet...
Wholesale Pricing            Wholesalers mark up their products to cover            the cost of marketing, distributing, s...
Mark-up                     The mark-up or difference between price                     and cost = the amount of money the...
Restaurants Wine Cost                          When selling wine, we can portion it in a                          variety ...
Portion                          Portion is essential in maintaining a                          successful beverage progra...
Establish Bottle Portion                     Wine can be purchased by the case or bottle                     from the whol...
Wine Cases                          Wine Cases are generally made up of 12                          750ml bottles per case...
Bottle Cost             Divide the Wholesale purchase case price by the             number of bottles in the case         ...
Ounce Cost                          For a glass pour cost, we will need to                          establish the cost per...
Glass Portion Cost                          Once you have your cost per ounce, simply                          multiply th...
Building the                                  Selling Price                          To create a selling price that works ...
Recap                          Cost                Bottle size                          Selling Price       Wines by the  ...
Practice                              Print the attachment to this lesson and                              calculate the b...
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Wine cost

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Wine cost

  1. 1. Wine Cost By bottle or glass, you’d better know the basicsSunday, December 16, 12
  2. 2. Cost vs Selling Price Often confused by new comers to the restaurant math game Cost = the wholesale purchase price of the product Selling Price = the retail price you charge your guest for the productSunday, December 16, 12
  3. 3. Purchasing Wine Restaurants can buy liquor, wine and beer from wholesale suppliers. Your state issued liquor license requires you to ONLY purchase from licensed wholesalersSunday, December 16, 12
  4. 4. Wholesalers Wholesale Liquor, Beer or Wine companies often sell a variety of brands in each of theses alcoholic beverage categories They are controlled by the state in which they are licensed and can only sell to retailers in the same state Most Wholesale Liquor distributors are required to list their products and pricing in a state alcoholic beverage guide. This guide becomes the basis for retailers to build their cost and selling price.Sunday, December 16, 12
  5. 5. 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.Sunday, December 16, 12
  6. 6. Mark-up The mark-up or difference between price and cost = the amount of money the business plans to gain to support its cost of operations and profitSunday, December 16, 12
  7. 7. Restaurants Wine Cost When selling wine, we can portion it in a variety of ways: By the bottle - 1.5l, 750ml, 375ml, 187ml By the glass - 2oz, 4oz, 5oz, 6 oz or... By the flight - a combination of wines offered in 2oz poursSunday, December 16, 12
  8. 8. Portion Portion is essential in maintaining a successful beverage program. The portion aids us in establishing the cost per serving that we sell to the guest.Sunday, December 16, 12
  9. 9. Establish Bottle Portion Wine can be purchased by the case or bottle from the wholesaler Buying by the Case is usually the least expensive way to purchase wine. Most wholesalers will mark-up your purchase if ask them to break open a case and sell you a bottle. ( consider it an unpacking fee)Sunday, December 16, 12
  10. 10. Wine Cases Wine Cases are generally made up of 12 750ml bottles per case Some 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 smallerSunday, December 16, 12
  11. 11. Bottle Cost Divide the Wholesale purchase case price by the number of bottles in the case example: Rodney Strong Estate Pinot Noir $192 case $192 / 12 bottles = $16 per bottle (Case cost divided by number of bottles)Sunday, December 16, 12
  12. 12. Ounce Cost For a glass pour cost, we will need to establish the cost per ounce. A 750ml bottle contains 25.4 ounces of wine If there are 12 x 750ml bottles in a case. Each case contains 304 ounces Divide your case cost by 304 to get your once cost Example: Rodney Strong Estate Pinot Noir $192 / 304 ounces = $0.63 per ounceSunday, December 16, 12
  13. 13. Glass Portion Cost Once you have your cost per ounce, simply multiply the cost per ounce against the portion of your glass in ounces to calculate your cost per 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 costSunday, December 16, 12
  14. 14. Building the Selling Price To create a selling price that works for the business, you need to have a strong working knowledge on how to establish the cost of the item being soldSunday, December 16, 12
  15. 15. Recap Cost Bottle size Selling Price Wines by the Wholesale glass Retail Bottle Cost Mark-up Ounce Cost Portion Glass Cost Flight Selling PriceSunday, December 16, 12
  16. 16. 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 case 2008 LEsprit de Chevalier Pessac-Leognan 121 750 ml 12 $288.00 Blend - CS 70%, M 30% 2010 Rancho Zabaco, Sonoma Heritage Vines 122 750ml 12 $133.80 Sonoma County Zinfandel 1994 M McAlister South East Gippsland 123 750 ml 4 $170.00 Cabernet Sauvignon 211 n/v Peter Vella Chardonnay 5L 4 $63.96 2009 Trinchero Calistoga, Napa V Sauvignon 212 1.5l 6 $88.00 Blanc 1998 Chateau Benoit Willamette Valley 213 750ml 12 $143.88 Sauvignon Blanc 214 2009 Sonoma Cutrer Sonoma Coast Chardonnay 375ml 24 $199.92 215 2009 Chateau de Cosse Sauternes Semillon 375ml 24 $672.00 216 2009 Chateau de Jau Rivesaltes Muscat 500ml 12 $300.00 2010 Domaine de Martinolles Pays dAude, 221 750ml 12 $120.00 Burgundy Pinot Noir See attachment link in ulearnSunday, December 16, 12

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