HomeMeet GuyServicesRestaurantsCorporateExperiencesJournalContactBook $99 Wine Advice
← ALL WRITING
RESTAURANTS

Straight multiples can strand the best bottles

Warm and inviting interior design of a vintage-style restaurant with wooden furnishings and dim lighting.

A single markup multiple is easy to run and often wrong for the list.

Take the same multiplier from the cheapest bottle to the most expensive and the gap between them expands fast. The wine that looked like a sensible step up at cost can become a large commitment on the list. It may still be good value by the restaurant’s internal formula. That does not mean it is orderable.

The result is familiar. Lower-priced bottles move. A few obvious celebratory choices move. Much of the serious middle and upper end stays on the page, where it earns nothing and ties up attention.

A flatter structure at higher costs does not mean giving wine away. It means deciding that a useful cash contribution matters more than forcing every bottle to deliver the same percentage margin.

One multiple creates the wrong jumps

A straight multiple treats wine cost as if it were the only thing that changes. It is not.

Every bottle requires some of the same work: receiving it, storing it, listing it, carrying it to the table, opening it, serving it and accounting for it. Those costs do not rise in direct proportion to the cost of the liquid. A bottle that costs more does not take several times as long to uncork.

The risk does change. A higher-cost bottle represents more cash tied up and may take longer to sell. That deserves recognition. But a uniform multiple is a crude way to deal with it.

Its main effect is to make each step up the list disproportionately large. A guest comparing two adjacent sections may accept a modest increase for a more distinctive region, a more mature style, or a bottle that suits the table’s food better. The same guest may stop when the next step requires a far larger spend than the difference in experience appears to justify.

That is the practical test. Look at the list as a sequence of decisions, not as a spreadsheet sorted by cost. Is there a believable reason to move from one price band to the next? Or does the list suddenly ask the guest to cross a gap that ends the conversation?

Mark the bottles that rarely sell but ought to have a clear role. Do not start by blaming the description or the staff. Check whether the list price has made them an unreasonable choice beside the wines around them.

Price the top end for contribution

The useful measure is not only gross margin percentage. It is also gross profit in cash from each bottle sold.

A higher-cost bottle can carry a lower percentage margin and still contribute more money than a lower-cost bottle. That simple point gets lost when the rule is “everything gets the same multiple.” A fixed multiplier feels disciplined because it is easy to explain. It is not necessarily commercially disciplined.

A better structure normally has bands. The entry level may need a stronger margin because the cash contribution per bottle is otherwise thin. The middle can remain firm, provided its price steps are coherent. Above that, the multiplier can reduce as cost rises.

The exact bands depend on the restaurant’s rent, staffing, storage, breakage exposure, service style and how quickly the list turns. There is no universal schedule to copy. The principle is more durable: set a required cash contribution for each part of the list, then ask whether the resulting selling price gives the bottle a genuine chance of leaving the cellar.

This also prevents a common mistake. Do not flatten prices indiscriminately across the whole list. If entry-level wines become too lightly priced, the list may lose the contribution that supports the operation. The aim is not low prices. The aim is prices that make sense at each level.

Write down, for each cost band, the intended cash contribution, the intended percentage margin, and the reason for both. If nobody can explain why a band is priced as it is, it is probably just inherited habit.

Build a ladder people can climb

A wine list needs a usable route upward. That route is not a list of escalating costs. It is a set of choices that make sense with food, occasion and table size.

Start with the wines likely to be compared directly. These may sit in the same grape section, the same country section, or beside similar dishes on a short list. Put their list prices next to one another without the bottle names. The bare pattern is often revealing.

Look for three problems.

First, repeated small jumps at the bottom followed by a large jump in the middle. This encourages guests to remain at the lower level or leap to a familiar safe choice.

Second, several bottles clustered at nearly the same price with no clear difference in style or purpose. They compete with each other rather than offering progression.

Third, a top end that begins so far above the middle that it functions as decoration. A prestige section with no bridge into it may look impressive, but it cannot be relied upon to sell.

Then give each band a job. One bottle may be the dependable house red for a broad range of dishes. Another may be the clear step up for a table ordering richer food. A higher band may offer greater depth, maturity or regional character. The price movement between those jobs should feel proportionate.

This is not an argument for making every expensive wine seem cheap. It is an argument for avoiding prices that make a well-chosen bottle look irrational compared with the one beneath it.

Check the result in service

Pricing only works if the floor can use it. A flatter top-end margin structure will not help if staff cannot point out the reason for a step up in plain language.

Give the team a short instruction for each price band: what sort of order it suits, what makes it different from the band below, and the simplest food match. Keep it factual. “More structured for the roast dishes” is more useful than a long description of aroma and texture.

Review sales by bottle and by band after enough service to see a pattern. Watch for bottles that are frequently discussed but not ordered, and bottles that sell only when a guest arrives already intending to spend at that level. Those are clues that the price ladder or the list placement needs work.

When a strong bottle remains static, lower the question to its essentials: does it have a role, can staff explain it, and is its price close enough to the next sensible choice to be considered? If the answer to the last question is no, the multiplier is running the list instead of the restaurant.

  • restaurant wine list
  • wine pricing
  • wine margins
  • hospitality
Free Guide

Buy Better Wine.
Avoid Expensive Mistakes.

Guy's Guide to Buying Better Wine is a short, plain English guide to spending your money well: what actually changes the wine in the glass, what to ignore, and how to walk into any shop or list with a plan.

One email with the guide. No noise, and you can unsubscribe whenever you like.