The Truth behind Drink Lists.....

My goal is to make the wine industry more transparent, hence me writing a previous blog on the "Scoring System".  I'm not going to call myself the Perez Hilton of the wine industry, but want to make people aware of what goes on "behind the scenes".

In these recessionary times, people are dining out less and less.  We like to call restaurants "FIFO" (First In, First Out), when times are good and bad.  It's usually the first thing to be cut from the household budget.  "Honey, let's stay in tonight and make a frozen pizza.  We need to save money."  I love to go out to eat, like most people.  Sometimes I would prefer not to cook, but I think restaurants are made to provide unique EXPERIENCE.  When people speak of a restaurant's quality, they refer to the food.  "I went to XYZ restaurant last night, and the salmon was cooked perfectly....it melted in my mouth"   I agree, good food will keep people coming back, but in these tougher times we need to take a look at all components (i.e. service, appearance, and drink lists).  Don't get me wrong, it's awesome walking into a dive, and have a mouth watering dish for only dollars.  If the restaurant is dirty/outdated, the service is lazy/slow, and they offer only Miller Lite...it makes the "experience" below average.  The converse is true as well.  If the service is top-notch, ambiance is perfect, the wine list is 200 selections deep (by-the-glass), but the food is cold, dried out, and uninteresting....we get another sub-par performance.  The goal is to find a place that fires on all cylinders, and gives you the best of all worlds!  These places are harder to come by than one might think.

As I digress from finding the "perfect" restaurant, let's brake down one of the crucial components.....the drink list.  First of all, wine always gets the bad wrap on drink lists.  Everybody complains that they mark it up way too much.  I say to that, "Really?  Are you fully educated on the business operations of a restaurant?" Here is an "insider" breakdown of what you're really paying when you order drinks at a restaurant (the costs are roughly estimated, but pretty inline):

Beer - Imported (Heineken)

Wholesale cost: $.80/btl

Drink list: $5.00/btl (in most metropolitan restaurants)

Mark up: 525%

Beer - Domestic (Miller)

Wholesale cost: $.20/draft

Drink List: $3.50/glass

Mark up: 1650%

Vodka - Absolut martini

Wholesale - $.80/shot  (20 shots/bottle. Bottle @$16.00)

Drink List: $8.00/drink (appletini)

Mark up: 900%

Wine - Chardonnay (Kendall Jackson)

Wholesale - $1.60/glass (5 glass/bottle.  Bottle @ $8.00)

Drink List - $7.00/glass

Mark up: 337%

Wine gets overlooked because of the price.  It is usually the most expensive item on a drink list.  By-the-glass can go up to $20!  Take a look at how much money is made on draft beer!  This is the cash cow of any bar.

When I lived in Chicago, after I graduated from college, my friends and I used to go to "All you can drink for FREE" bar parties that lasted 2 hours.  We were right out of school, and anything FREE was golden! What a great marketing tool/lure!  How many draft beers can somebody put down in 2 hours?  I would imagine 4-6 is a fair number (Although, some of my friends had healthier drinking habits!)  The bar is spending about $1.00/head to get you in.  They assume that after those drafts, you'll buy a round of shots, or mixed drinks.  This then will put the bar "back in the black" on you as a patron (please refer to the above entitled "Absolut martini").

Obviously, people are a little more thrifty with their spends at restaurants.   I would suggest this:  forgo the appetizer/dessert/espresso, and splurge for a decent bottle of wine.  You, generally, order what you want/desire for an entree.  It's the main component of a meal.  Pair that entree, with a great glass of wine, to complete the overall "experience".  Also, if the restaurant has a sommelier, or wine steward, partake in their services.  Most often, these guys aren't trying to upsell you, or try to "talk above you".  A common misconception is that they speak in the "wine lingo", and don't understand the need of the common person.  They're conscious of your budget, and are sometimes great allies when told specifically what you're looking for.

The Millennial generation is all about learning.  Google is a tremendous tool we use to bargain shop for cars, and electronics.  The next time you're out to eat, please keep the above information in the back of your mind.  Go ahead, give a wine-by-the glass a try, and leave the draft Miller product for the guy who hasn't done their research!