One of the most important things on the agenda of senior hospitality management at this time of year is the launch of the all-important autumn and Christmas menus, which often include a new or re-vamped wine list.
Considering that a wine list might typically take somewhere between 5 – 20% of takings then it deserves some special attention. And yet it is easy to get things out of perspective. You know when you come across a wine list and it has just been pulled together with little attention to complimenting the menu, the list is not cared for and lacks both balance and perspective.
So balance and perspective are important issues to begin with – how much revenue is it responsible for and how much profit?
Can you leave this to a single supplier to provide a managed service for the outlet and its customers, or is it something that needs the specific care and attention of a member of management?
How much are customers going to spend in the next quarter and where are the trade up opportunities?
In approaching the subject of the wine list these are critical questions to ask before getting into the nitty gritty of which wines.
In these uncertain times it is critical that sales and profit are maximised from every part of the business. Here is a basic framework of five steps to take when deciding a wine list – The Basics, Pricing, Seasonality, Brands and Inspiration that if you work to it will create your wine list and maybe a little more.
The Basics
Tim Hayward, a reviewer, in the FT.com referred to the Overton Window, as a concept. It adapts a political model to deciding food and drink menus. The idea is that if you become too clever and push consumers to the limits of their preferences then they will choose something else. So first up decide which wines simply have to be on the list. You will probably include Sauvignon, Pinot Grigio, Prosecco, Shiraz, and Malbec just as the basic skeleton. These wines you will offer by the glass as well as the bottle.
Pricing
There are two basic models for pricing % margin and cash margin. If you want to really sweat your list try cash margin. If you currently operate on a % margin then switching needs some careful thought. It needs to offer at least the same profit to your business, whilst bringing customers attentions to new wines that they wouldn’t try otherwise.
A new trend is to now offer carafes in either 375ml or 500ml quantities. This is a great tactic to offer consumers greater flexibility and to offer that higher price wine, without them having to by a full bottle. Many a time one guest will want a particular wine, the other a different drink or when maybe a glass isn’t enough.
These are only realistically available to outlets that have wine preservation systems in operation.
Seasonality
This is where marginal profit is to be found. How can the wine list be constructed in such a way as to draw extra appeal. Coming into winter is a great opportunity is to put on warming mulled wine and/or cider. Ready mixed or mix it on premise? Of course there is more profit in the last, but more labour and organisation expense also.
Is it time to beef up the red wine list with some specials that add premium to spend and profit?
Christmas is a celebratory time, there are alternatives to Prosecco, such as Cava and Argentinian sparkling wines which may offer the consumer value? Alternatively consider specials that add credibility and authenticity of the outlet – a grower’s or Valdobiadenne Prosecco perhaps.
Brands
Brands are becoming an increasing feature of wine. In contrast, wine is used as a sector to demarcate differences from the norm. Whilst brands in other drinks sectors are used across different levels of outlets including premium and mass market, wine brands tend not to be used where the outlet owner wants to make a more individual quality statement.
Not including familiar brands means that consumers can lose some familiarity.
The brands that are sold in supermarkets will not offer a value premium. Whilst they are recognised by consumers, the price differential is also likely to be. So if your customer could comment ‘£6 per glass, I pay that per bottle’ then the residual value in your outlet is probably not good for that customer and possibly others.
Consider what a brand for wine is to your customer, a well-known ‘brand’ name or perhaps a grape variety or style of wine? For most it will be the latter and the latter is where opportunity lies through careful selection.
Inspiration
The wine list is the place where you can be inspired and inspire staff throughout the organisation. After the basics of the list have been decided, such as the parameters of price, seasonality and brands, then sprinkle some passion. Use the wine list to include some personality – ‘like Sauvignon then try this Albarino’ – ‘like Malbec then trade up and buy this growers one’.
View your wine list as an opportunity to improve your business. As we all know this quarter makes it or breaks it, and considering the last few months who can be certain of how the next 6 months will trade?
Alistair Morrell
Hospitality & Catering News, Wine Content Executive