1. Section V: The Business of Wine Chapter 18: Developing and Managing a Wine List

2. Choosing Which Wines to Sell  The three-tiered system of distribution can affect a restaurant’s sourcing and purchasing specific wines.  Any wine chosen should be Enjoyable Free from production or storage flaws Offer a good value-to-price ratio for the guests Be reflective of the grape used and the region of origin

3. Selling Wines by the Glass  Many operations offer two tiers of wines by the glass: An entry level, value-priced tier A reserve tier of slightly more expensive wines  Selling wines by the glass: Is the most profitable way to sell wine Represents the greatest volume of wine that the operation will sell  The more wines by the glass opened, the more time it will take for an individual bottle to be consumed.  The wines offered by the glass are usually typical examples of a restaurant’s variety or style.

4. Choosing Wines to Sell by the Glass  Careful selection ensures happy guests and a profitable program.  When selecting wines to pour by the glass, there are a few key points to remember: Availability Pour size Price point Style

5. Which Wines to Feature by the Glass  Wines customers ask for and expect to be available:  For whites: Chardonnay Pinot Gris (Pinot Grigio) Sauvignon Blanc (Fumé Blanc)  For reds: Cabernet Sauvignon Pinot Noir Merlot Zinfandel Syrah (Shiraz)

6. Preserving Open Bottles of Wine  Wasting unsold portions of the bottle after selling a glass will quickly erode a restaurant’s profit margins.  The full revenue from selling wines by the glass can only be realized if an operation sells the entire bottle.  If half the bottle is wasted due to spoilage, the product cost percent doubles.  Forms of preservation: Inert gas Cabinet systems Vacuum systems

7. Filling Out the Wine LIst  Choose wines that complement both the: Style of food offered The expectations of the clientele  When deciding on how many labels and bottles are appropriate for the operation: Consider is how much room is available to commit to storing wine. Reserve wines sold by the bottle will remain in inventory for a considerable length of time.

8. Pricing the Wine List  Sliding scale pricing Takes advantage of the strengths of high markups and the benefits of low pricing A restaurant might employ the highest markups on the lowest priced wines and a lower markup on higher priced wines.  Incentives The operator is willing to drastically reduce their profits from selling the bottle in order to get people in the door. 20% off all bottles on a given day of the week  Providing options: Bottle formats Samples and flights

9. Organizing the List  By region of origin  By varietal  By style  By price point

10. Using Wine Descriptions and Recommendations  If an operator elects to have descriptors on the menu, several things should be considered: The descriptors should give a basic overview of the style of wine and a general commentary on its aroma and flavor profile. Descriptions should not be too elaborate or creative because this may not help the guest in making a decision, but rather deter or confuse them. The aim is to briefly describe the profile of the wine and guide guests in making a selection that they will be happy with.

11. Storing and Ageing Wine  Temperature and humidity control Passive cellars Racking and security

12. Older Wine and Restaurants  Very few restaurant operations have the space required to age wines for years The financial investment for aging can also be prohibitive.  Not every restaurant will have customers who expect offerings of older fine wines. The demand for these products should be evaluated before making a large investment for the list.  For a few fine dining establishments with customers who are willing to pay an extra price for well-aged wines, the returns may be worth the investment.