LEO/LHB Grape Escape: Fair profit or masked bandit?

This might be a bit ironic coming from a wine/beer shop owner, but I've never had a problem buying wine when I am out to eat. To make the situation worse for me is knowing the cost of the bottle as opposed to the retail price. Whether its wine, a good beer, or even a cocktail, I always feel justified that I am paying the higher price for atmosphere and service. Sure I can get a great bottle of wine from my shop, take it home, cook a great meal, and serve that bottle of wine. But, I'll never get the same ambiance that I would say in L&N, or any of the other great restaurants in town.

I've had plenty of people ask me why I go to Rich O's when I have most, if not more of the bottled beers that they have available in my store, and why would I pay a higher price there as opposed to just getting it from my own shop. Again, it comes down to atmosphere. I usually still learn a little something about the beer that I didn't know going in, I always have great conversations, and I'm in a comfortable place to have a beer. I'll gladly pay more for the experience.

For me, its a balancing act. I enjoy taking a great bottle home to share with my wife or friends (be it beer or wine), but I also enjoy going out to eat and trying wine there too. I do some at home, and some while out dining. Before I was in the business, I used to love finding a new wine while dining, and then trying to find it at a retail shop afterward.

I for one don't care how much wine (or food for that matter) is marked up. In the end it all boils down to is my evening at place XXXXX worth YYYYY amount of money? If I have to pay 3x the retail price of a bottle of wine, so be it. I have the option of not doing it, so theres no problem. The restaurant has to purchase the wine, store it, train staff on it, an upscale place will have an expert on it. We purchase the glasses, pay someone to wash the glasses, pay someone to hand polish the glasses, etc etc. More importantly the restaurant needs to make enough profit on that to be around next year. If all wine was sold at cost + $10 (reasonable), all the money not being made due to the lack of a large markup would just be redirected into slightly higher food prices etc. Lets be honest, 99% of restauranteurs are just making enough money to keep their restaurant going, and hopefully fund new ventures, while allowing themselves to live comfortably. They don't all sit down at a table once a year and discuss "We should mark wine up 400% this year, I have a new Leer jet to pay for." They are simply operating their restaurant in a manner that allows them to make a bit of money, and provide a service to the guest, who can always say no.

In the age of the savvy consumer, and information sharing on the Internet, this is much more of an open secret than it used to be, and some people get irritated. But those of us who like to dine out and feel an obligation to support the local, independent restaurant industry in particular, come to accept the reality that there's a markup on restaurant food and a markup on restaurant wine. I appreciate Jeremy's spirited (heh) defense, but the bottom line, in my opinion, is that only a handful of restaurants actually add real value to the wine through cellaring and service.

Robin, you're on a roll, my friend..."spirited," "bottom line" nice...I'm a fan of punny

You may be right, but I would venture you should distinguish from those who do add real value and those who don't.

[Robin Garr]

You may be right, but I would venture you should distinguish from those who do add real value and those who don't.

And I generally do! Come at me with a creatively consumer-friendly wine program, and I'll generally pass it on in the form of praise in my review. Watch for it.

I know, but would it really be me if I didn't doubly clarify?

If all wine was sold at cost + $10 (reasonable), all the money not being made due to the lack of a large markup would just be redirected into slightly higher food prices etc. Lets be honest, 99% of restauranteurs are just making enough money to keep their restaurant going, and hopefully fund new ventures, while allowing themselves to live comfortably.

Your point is well taken but it's the markup with more reasonable (I go one step farther than you did and say retail +$10) they would probably sell more wine (and have a quicker turnover of their cellar) they would probably come close to equaling the profit they make for wine sales today.