ExcelsiorAsset Management & Advisory

ExpertiseF&B and Restaurants Beverage and Wine Pricing

Knowledge · F&B

Wine and beverage pricing.

How to price a pour, a cocktail and a wine list, so that guests trade up and the margin grows in money, not only in percentage.

Principles

  • Set the price points first, then buy wines to fill them. A list built from what the supplier offers has gaps where guests want to spend.
  • Use a sliding multiplier. Mark accessible wines up about three times and prestige wines about 1.6 times. The percentage falls and the money per bottle rises at every step.
  • Price the glass so that the first glass sold covers most of the bottle. Opened bottles are the risk.
  • Cost every cocktail to the millilitre, including the garnish and the ice.
  • Treat the bar as seats. Measure its RevPASH beside the dining room’s.

House ruleA guest who moves from an accessible wine to the next tier should leave more money behind, at a lower percentage. Price for the money.

A wine ladder

Multipliers at the two ends are our house practice. The steps between are a typical ladder. Adjust for duty and tax where you trade.

TierBottle costMultiplierList priceCost of salesMargin in money
Accessible8003.0×2,40033%1,600
Core1,5002.6×3,90038%2,400
Premium3,0002.2×6,60045%3,600
Fine6,0001.9×11,40053%5,400
Prestige12,0001.6×19,20063%7,200

Illustrative costs. The percentage worsens down the table and the money improves, which is the point.

Benchmarks

CategoryTypical cost of sales
Spirits15 to 20%
Cocktails18 to 24%
Beer25 to 30%
Wine by the bottle30 to 45%
Soft drinks, tea and coffee10 to 20%

Common ranges in the trade. Local duty changes them materially, so set your own targets from your own costs.

Spirit and cocktail pour

The cost of one measure and the price that meets your target.

Measures per bottle = bottle size × (1 − wastage) ÷ measure. Price = cost per drink ÷ target cost of sales, rounded up to the next 5.

Result · example figures until you change them

Measures per bottle—
Cost per drink—
Margin per drink—
Revenue per bottle—
Selling price—

Wine: bottle and glass

The list price of a bottle, and the price of a glass poured from it.

Glass price = bottle price ÷ glasses × (1 + premium), rounded up to the next 5. The premium pays for bottles opened and not finished.

Result · example figures until you change them

Cost of sales, bottle—
Margin per bottle—
Price per glass—
Glasses sold to recover the bottle cost—
Bottle price—

Storage and service

  • Cellar at 13 to 15 °C, dark and still. Whites and sparkling chilled to order, never stored cold for weeks.
  • Count the bar every week and compare what was poured with what was sold. The gap is the number to manage.
  • One measure, one jigger, for every bartender. Free pouring is a cost decision made by whoever holds the bottle.

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