Typically perceptive and lucidly written

Say, a bottle with a wholesale cost of $60 and a retail cost of ~$90 is priced at a restaurant at $115 (before Value Added Tax or say $130 after VAT).

This $25/bottle profit would seem to make good business sense for a restaurant with a loyal patronage that keeps its dining room turning tables.

With this approach, progressive pricing at other price levels should also make good business sense.

It doesn't seem to be necessary to price this bottle at $180 or $270 to make ends meet satisfactorily.

. . . . . Pete
 
originally posted by Peter Creasey:

Say, a bottle with a wholesale cost of $60 and a retail cost of ~$90 is priced at a restaurant at $115 (before Value Added Tax or say $130 after VAT).

This $25/bottle profit would seem to make good business sense for a restaurant with a loyal patronage that keeps its dining room turning tables.

With this approach, progressive pricing at other price levels should also make good business sense.

It doesn't seem to be necessary to price this bottle at $180 or $270 to make ends meet satisfactorily.

. . . . . Pete
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Depends on the shape of the demand curve.
 
My example assumes the restaurant pays the full retail price which is probably higher than what it really pays; thus, the restaurant would clear even more over its cost than my example shows.

. . . . . Pete
 
originally posted by Peter Creasey:

Say, a bottle with a wholesale cost of $60 and a retail cost of ~$90 is priced at a restaurant at $115 (before Value Added Tax or say $130 after VAT).

This $25/bottle profit would seem to make good business sense for a restaurant with a loyal patronage that keeps its dining room turning tables.

With this approach, progressive pricing at other price levels should also make good business sense.

It doesn't seem to be necessary to price this bottle at $180 or $270 to make ends meet satisfactorily.

. . . . . Pete
Click to expand...

Mostly preaching to the choir around here, I expect. But do you actually have restaurants near you that price that $90 at less than $90--not to mention a $40 for less than $40?
 
These discussions seem to contain the hidden assumption of constant volume, which I would challenge. I don't have the numbers, but I bet Patrick and Pascaline move a lot more wine than they would at higher prices, and carry a lot of food along with that.
 
originally posted by Jonathan Loesberg: do you actually have restaurants near you that price that $90 at less than $90--not to mention a $40 for less than $40?
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Jonathan, I have seen it happen that wines are priced less than retail, especially for wines that the restaurant was able to buy at a big discount or that have languished on the list.

Some restaurants have a reputation of very low markup from their cost. If their cost is less than retail, then it could happen that the price is less than or near retail.

. . . . . Pete
 
originally posted by .sasha:
just want to point out the original post, like a good old english tale, has a double plot

how about that '12 "g" , eh ?
Click to expand...

just wait for the 13.

in fact, i wish you were here. i think you'd be having fun.

fb.
 
originally posted by fatboy:
originally posted by .sasha:
just want to point out the original post, like a good old english tale, has a double plot

how about that '12 "g" , eh ?
Click to expand...

just wait for the 13.

in fact, i wish you were here. i think you'd be having fun.

fb.
Click to expand...

Glad you noticed, Mr. dotster. and fb, this is indeed good news.
 
What strikes me about many of even the most well-priced wine lists in New York is that they often carry large numbers of coveted fine wines that aren't ready to drink yet (usually the vintages that are currently on the retail market) or that won't show well when opened and decanted immediately before drinking.

I think Patrick Cappiello touched on this topic in Levi Dalton's podcast interview with him. Maybe this is old news? In any event, I can see how this would factor into an increase in BYOB's popularity, especially if it was once more common for wine lists to carry mature wines -- rather than customers now bringing in what they've aged or pre-decanted themselves.
 
And the trend in SF has been the exact opposite. Historically, this has been a very open market for BYOB -- typically $15/20 bottle. But the last 4-5 years have seen many restaurants raising corkage to $50+ and many limiting BYOB to 2 per table (doesn't matter if the table is one diner or eight). Of course, exceptions still remain, but they are increasingly less frequent, at least among the restaurants that I go to.
 
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