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Leo Bueno
 
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Default Almost 5X markup in Chicago restaurant


Please excuse my grumbling again about this subject, but it continues
to annoy me.

A few weeks ago I stayed at the Chicago Hilton and brought back a
price list of the wines they were selling at one of its
restaurant/bars, Kitty O'Sheas. Here it is (no vintages listed):

Black Opal Chardonnay $33
Wolf Blass Riesling $38
Greg Norman Chardonnay $38
Black Opal Cabernet/Merlot Blend $33
Wolf Blass Shiraz $39

I was aware that Black Opal was usually an inexpensive product, but
thought that maybe wine prices in Illinois were out of whack, perhaps
due to post-prohibition taxation. So, I went to wine-searcher.com and
ran a search (pro version) for all of these wines, limiting the
location to Illinois (for non-US folk, that's the state in which
Chicago is located).

For each wine, I picked the *highest* listed price I could find for
the available vintages. Here are the results:

Black Opal Chardonnay $7
Wolf Blass Riesling $13
Greg Norman Chardonnay $13
Black Opal Cabernet/Merlot Blend $8
Wolf Blass Shiraz $10

I also called the restaurant and requested vintage information; a
return recorded message yielded the list below.

2003 Black Opal Chardonnay
2002 Wolf Blass Riesling
2002 Greg Norman Chardonnay
2002 Black Opal Cabernet/Merlot Blend
2001 Wolf Blass Shiraz

However, I question the reliability of the message, since, for
example, it looks like there is no such beast as a 2003 Black Opal
Chard (see http://www.beringerblass.com.au/brands/pdfs/225924.pdf).
Thus, I am sticking with the highest Illinois prices I could find for
purposes of the comparison above.

As you can see, the markups from conservative retail prices range from
2.9 times to 4.7 times.

The restauranteurs in the group will excuse me, but charging $33 for a
bottle of Black Opal Chardonnay, nearly 5 times a conservative retail
price, is ludicrous.

Note by the way, that the 2002 Greg Norman Chard is available at
Binnys Beverage depot in Skokie (Chicago area) for $11, so the
restaurant was marking up this product as much as 3.5X from a local
retail price. The 2001 Wolf Blass Shiraz is listed at Binnys and
Sam's Wines (right in Chicago) for $9, yielding a 4.3X markup.

Your thoughts please--and clicks, if you are so inclined, at the
RESTAURANT WINE MARKUP POLL,
http://home.earthlink.net/~leobueno/wine-markup.htm.


--
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Do you like wine? Do you live in South Florida?
Visit the MIAMI WINE TASTERS group at
http://groups.yahoo.com/group/miamiWINE
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  #2 (permalink)   Report Post  
pavane
 
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Default Almost 5X markup in Chicago restaurant


"Leo Bueno" > wrote in message
...
>
> Please excuse my grumbling again about this subject, but it continues
> to annoy me.
>


It is quite common for restaurants to mark up the cheaper wines
more than higher priced ones. What were on the middle and upper
ends of the scale?

pavane


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Thomas Curmudgeon
 
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Default Almost 5X markup in Chicago restaurant

In a restaurant where cocktails cost over 5 dollars, it's unlikely that
they'll sell wine for less.

Leo Bueno wrote:

> Please excuse my grumbling again about this subject, but it continues
> to annoy me.
>
> A few weeks ago I stayed at the Chicago Hilton and brought back a
> price list of the wines they were selling at one of its
> restaurant/bars, Kitty O'Sheas. Here it is (no vintages listed):
>
> Black Opal Chardonnay $33
> Wolf Blass Riesling $38
> Greg Norman Chardonnay $38
> Black Opal Cabernet/Merlot Blend $33
> Wolf Blass Shiraz $39
>
> I was aware that Black Opal was usually an inexpensive product, but
> thought that maybe wine prices in Illinois were out of whack, perhaps
> due to post-prohibition taxation. So, I went to wine-searcher.com and
> ran a search (pro version) for all of these wines, limiting the
> location to Illinois (for non-US folk, that's the state in which
> Chicago is located).
>
> For each wine, I picked the *highest* listed price I could find for
> the available vintages. Here are the results:
>
> Black Opal Chardonnay $7
> Wolf Blass Riesling $13
> Greg Norman Chardonnay $13
> Black Opal Cabernet/Merlot Blend $8
> Wolf Blass Shiraz $10
>
> I also called the restaurant and requested vintage information; a
> return recorded message yielded the list below.
>
> 2003 Black Opal Chardonnay
> 2002 Wolf Blass Riesling
> 2002 Greg Norman Chardonnay
> 2002 Black Opal Cabernet/Merlot Blend
> 2001 Wolf Blass Shiraz
>
> However, I question the reliability of the message, since, for
> example, it looks like there is no such beast as a 2003 Black Opal
> Chard (see http://www.beringerblass.com.au/brands/pdfs/225924.pdf).
> Thus, I am sticking with the highest Illinois prices I could find for
> purposes of the comparison above.
>
> As you can see, the markups from conservative retail prices range from
> 2.9 times to 4.7 times.
>
> The restauranteurs in the group will excuse me, but charging $33 for a
> bottle of Black Opal Chardonnay, nearly 5 times a conservative retail
> price, is ludicrous.
>
> Note by the way, that the 2002 Greg Norman Chard is available at
> Binnys Beverage depot in Skokie (Chicago area) for $11, so the
> restaurant was marking up this product as much as 3.5X from a local
> retail price. The 2001 Wolf Blass Shiraz is listed at Binnys and
> Sam's Wines (right in Chicago) for $9, yielding a 4.3X markup.
>
> Your thoughts please--and clicks, if you are so inclined, at the
> RESTAURANT WINE MARKUP POLL,
> http://home.earthlink.net/~leobueno/wine-markup.htm.
>
>
> --
> =================================================
> Do you like wine? Do you live in South Florida?
> Visit the MIAMI WINE TASTERS group at
> http://groups.yahoo.com/group/miamiWINE
> =================================================

  #4 (permalink)   Report Post  
Mark Lipton
 
Posts: n/a
Default Almost 5X markup in Chicago restaurant

Leo Bueno wrote:
> Please excuse my grumbling again about this subject, but it continues
> to annoy me.
>
> A few weeks ago I stayed at the Chicago Hilton and brought back a
> price list of the wines they were selling at one of its
> restaurant/bars, Kitty O'Sheas. Here it is (no vintages listed):


Leo,
To me, the key here is that you are dealing with a bar more than a
restaurant. Most bars will set an arbitrary lower limit on drink
prices, regardless of the cost of the wine. FWIW, these prices are
closer to 10x of wholesale...

Mark Lipton
  #5 (permalink)   Report Post  
Leo Bueno
 
Posts: n/a
Default Almost 5X markup in Chicago restaurant


That's all I saw in the list. This was an "Irish" place, so the
featured drink was beer.

On Mon, 14 Jun 2004 01:22:24 GMT, "pavane"
> wrote:

>
>"Leo Bueno" > wrote in message
.. .
>>
>> Please excuse my grumbling again about this subject, but it continues
>> to annoy me.
>>

>
>It is quite common for restaurants to mark up the cheaper wines
>more than higher priced ones. What were on the middle and upper
>ends of the scale?
>
>pavane
>


--
=================================================
Do you like wine? Do you live in South Florida?
Visit the MIAMI WINE TASTERS group at
http://groups.yahoo.com/group/miamiWINE
=================================================
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