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Thoughts on restaurant wine pricing approaches...
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Folks, especially US, especially industry... would love to get your thoughts on what a restaurant in Atlanta is doing to shake up their approach to wine pricing.

Here's the approach:

  • Any wine under $100 wholesale (which is the majority of the list) gets priced at 1.75 times the wholesale cost, which will usually result in a small premium over typical retail prices. Example: Dirty & Rowdy Semillon used to be $71 on this restaurant's list, and is now $42. When this wine could be found locally at retail, it went for $36.

  • Any wine priced from $100 to $199 wholesale gets a flat $50 markup. Example: A magnum (equivalent to two regular bottles) of 2005 Château de Beaucastel Chateauneuf du Pape used to be $288 and is now $195. You're not likely to find this one at retail locally either, but it can be found online for $200 - $250.

  • Any wine priced at $200 and up wholesale gets a flat $100 markup. Example: There aren't many wines above $200 on the current list, but if you'd like to try a 1986 Cote-Rotie La Mouline from E. Guigal, it used to be $920 and is now $495. It can be found online for $450.

So, my questions... do you have any restaurants in your town (or that you're familiar with) doing similar, fairly aggressive pricing vs. the standard restaurant markups? How are they doing, especially in terms of becoming known as a wine destination?

Do you think it is actually sustainable for a restaurant to price this way? It's a substantial cut in typical margins on very high margin items.

Full article I wrote (freelance) about this particular restaurant can be found at http://www.clatl.com/food-drink/article/20833366/vine-tap-rewrites-the-wine-list if you want to get more of the background.

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8 years ago