Wine cost

Wine Cost By bottle or glass, you’d better know the basics

Sunday, December 16, 12

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 product


Purchasing Wine

Restaurants can buy liquor, wine and beer from wholesale suppliers.

Your state issued liquor license requires you to ONLY purchase from licensed wholesalers


WholesalersWholesale 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.


Wholesale PricingWholesalers 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-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 profit


Restaurants Wine CostWhen 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 pours


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.


Establish Bottle PortionWine 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)


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 smaller


Bottle CostDivide 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)


Ounce CostFor 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 ounce


Glass Portion CostOnce 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




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 sold


RecapCost

Selling Price

Wholesale

Retail

Mark-up

Portion

Flight

Bottle size

Wines by the glass

Bottle Cost

Ounce Cost

Glass Cost

Selling Price


PracticePrint 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 Count /

case

Case Cost Bottle Cost Ounces per case

Ounce Cost

121 2008 L'Esprit de Chevalier Pessac-Leognan Blend - CS 70%, M 30% 750 ml 12 $288.00

122 2010 Rancho Zabaco, Sonoma Heritage Vines Sonoma County Zinfandel 750ml 12 $133.80

123 1994 M McAlister South East Gippsland Cabernet Sauvignon 750 ml 4 $170.00

211 n/v Peter Vella Chardonnay 5L 4 $63.96

212 2009 Trinchero Calistoga, Napa V Sauvignon Blanc 1.5l 6 $88.00

213 1998 Chateau Benoit Willamette Valley Sauvignon Blanc 750ml 12 $143.88

214 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 $300.00

221 2010 Domaine de Martinolles Pays d'Aude, Burgundy Pinot Noir 750ml 12 $120.00

See attachment link in ulearn


Wine cost

Education

calculateyour cost

cost vs

cost of operations

bottle case

bottle portion wine

ounce portion

coverthe cost of marketing

cost ofthe item