Wine-ing about mark-ups
- Andy Lynes 2
In this world nothing can be said to be certain, except death, taxes and shock horror newspaper stories about restaurant wine mark ups. The latest appeared in the 24 May 2008 edition of the Telegraph under the headline “Top restaurants accused of greed for wine price mark-ups”. The article claimed that consumer watchdogs and wine experts had accused Raymond Blanc, Heston Blumenthal and Jamie Oliver of “greed” and said that “high prices could deter customers from dining out.”
Although the article fails to name the consumer watchdogs in question and only quotes the papers own wine expert Jonathan Ray (who says "There's no need for it. There are plenty of examples of successful restaurants with mark-ups that are a fraction of those we see typically in the industry”), the paper’s investigation has uncovered some uncomfortable truths
For example, a bottle of 2005 Bourgogne Aligote, available from Berkmann Wine Cellars for £12.12, costs £58 at the Fat Duck while a bottle of CorbiÈre La Tour Ch‚teau Grand Moulin 2006 costs £26 at Le Manoir Aux Quat' Saisons, but can be bought from the restaurants supplier General Wine Company for £5.37. In both cases, the mark up is approximately 500% compared to a more usual 300 per cent.
The Telegraph appears to have it in for M. Blanc; in 2003 they reported that Le Manoir was selling a 2000 Irouleguy white wine from the Pays Basque in France for £37 for which the restaurant had paid £6.64.
But this is no personal vendetta. In 2004, Dominic Price wrote about “The great wine rip off" in the Evening Standard and chastised Almeida restaurant in North London for selling a £4.30 bottle of 2001 CŸtes du Roussillon for £22.50. In a feature published in the 2005 Time Out Eating and Drinking Guide to London numerous restaurants including both The Greenhouse and The Ivy were criticized for their wine prices.
It’s a perennially popular story that won’t be going away anytime soon as long as journalists have easy online access to wine lists and the phone number of a few suppliers. But just because it’s an easy target doesn’t mean the story shouldn’t be written. Bruce Poole, chef proprietor of Chez Bruce in Wandsworth, whose award winning wine list is often praised for its value, believes it’s the sort of information customers should have.
“Our mark up on wine at the lower end of the list is a standard 300 per cent plus vat. If you don’t do that, you might as well close your doors,” he said. “A 500 per cent mark up is inexcusable, there is no justification whatsoever. If you buy well - and we’re quite canny - you can hand back the bonus to the customer. Some restaurants appear to be doing the opposite. I recently paid £160 for a Condrieu from Georges Vernay in a top London restaurant. I list the same wine for £80 and pay between £30 and £35 for it.”
Master Sommelier and owner of the Hotel Terravina in Netley Marsh, Gerard Basset
has less patience with the media.
“It annoys when people attack restaurants without really understanding the way they work. When I see some restaurants with very little reputation charge stupid prices then I think these people are not very clever, but if the criticism is directed at the top places then I don’t understand. Gordon Ramsay, Gavroche, Raymond Blanc, Waterside Inn, The Fat Duck – they all offer fabulous food, fabulous service and they have to make their money somewhere.”
So is the media justified in highlighting wine mark-ups in restaurants, or are the stories taken out of context? Could the price of wine put people off eating out or are customers now better informed about how restaurateurs go about making a living? Click the “Add a Comment” link below and let us know what you think or vote in our Question of the Week.
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Comments (2)
Wine mark-ups are the result of greedy restaurant owners wanting to increase the amount of money lining their fat-mans trousers. In the same way as tips go, restaurateurs just want to bleed the rest of us dry, take what they can and give nothing back.
Veuve Cliquot:
Restaurant chain - £45
Independent London restaurant - £65
Tesco - £29
Enough said.





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