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September 20, 2006

Wine Mark Ups in restaurants-I came across an article in www.jancisrobinson.com were wines in restaurants were debated and their profitability discussed. It was stated that the areas discussed (UK) used mark ups of 60%-70% and food costs at 22%-25%. I find it disgusting that South African restaurants can have mark ups of 150% to 250% and get away with it. If consumers stand together and refuse to pay exorbitant prices for wine that was not even stored properly or matured at the restaurant's expense, with a few exceptions, like Browns and The Butcher Shop and grill, than what right do they have to make more money than the wine farm itself? and most of the time the wine lists are atrocious with so few good wines available and only wines from one or two suppliers with loads of cheapies selling at premium prices.

Guys, you need to take your own wine! If we refuse to buy high priced wines and all take good quality wine with us we will still save money. If your retail price for a bottle of Chardonnay is R100, hypothetically, then the restaurant price will be R250 (more or less as the restaurant will not be paying retail prices) so if you take that bottle of wine with you and pay R50 corkage, you still save R100, the price of the second bottle!!

I always like to suggest to retail customers that they have a so called "restaurant rack" in their cellar were they keep the wines from R100 upwards and take these wines with them when they dine out. You will off course have your own benchmark and can take something a little cheaper but remember that if you take a cheapie you will be saving far less and have to drink bad wine with good food (maybe have a separate set of wines for your franchise sojourns)

So we hope to see you shopping up a storm and buying nice wines to dine with.

Maud

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