Typing out loud, not a manifesto:
I was wondering this last night. If wine lists are a source of key revenue and there is an audience for those overpriced wines - why should a restaurant offer a ‘reasonably priced wine list’ (define it what you will)? The only reason I can think is volume - turning over that wine list to make up lost profits in volume. I.E., you are providing more value for less money, and that results in higher volume to make up your lower margin. But if the average wine list consumer doesn’t care more about more quality (because it is incremental in the world of high end wine, or they can’t really tell the difference between Parker vs. Classic, etc.) - then the volume won’t come there - the value you are giving is lost on them.
So I agree, what’s the point?
Perhaps you can become a destination joint for wine lovers who turn over your list more frequently than otherwise (so you still hit your x% of beverage profits at lower markups) - hard but doable. Hard because in Manhattan, there is so much density here and only a few become wino destinations - and those that do become because of corkage policies versus ‘lets go to the list there’). Note, there are WB threads for the best restaurants in NYC, and another list for restaurants offering corkage - but no threads on restaurants with good lists! And restaurants with below auction market pricing are kept secret by those in the know (for example, Robert’s IG post). But I have to think its doable, because there are destinations (and certainly this is the case abroad)! It may require a different type of marketing. And maybe requires starting some WB threads right now.
Alternatively, would we need to see a generational change of wine consuming habits? Where overpriced lists become the rarity, not the norm - and those become discussed as places to avoid by the average consumer, rather than the reverse. Is this why orange wine is so popular, its a rejection of 4x mark ups on top of high retail prices?
I imagine we ended up in this position due to capitalism and economics. That is - more money can - usually - be made by the average restaurant selling those marked up bottles to the few, than offering greater quality to the masses. And you can A/B test and optimize it with data (or Ybarselah) to find that optimal price point.
After this thread, I no longer will get upset about overpriced wine lists. I now better understand the economics and their importance to restaurants. That said, I don’t like how we ended up here. I’d personally rather restaurants find ways to make more profits on food (I’m OK with simpler menus and ingredients, prepared well) or that I would be so rich to be able to afford the 4x markups on a wine list. Going forward, I will try to steer corporate card dinners to the places that offer good BYO, to provide them the revenue they may be craving.
PS Nathan - where is your restaurant?
