The High Price of Restaurant Wine, Explained.

Ever wonder why wine is so damn expensive at a restaurant? Ever notice that the cost is at least triple what you pay at a wine shop? Does this feel like a shake-down to you? In this article, I’ll explain why that bottle is so expensive and how to get the most value from that restaurant’s wine list.

It’s not only a matter of profit. Let’s start with the costs related to wine service. This includes glassware, staff training, and the possibility that a bottle will remain unopened and unsold for several months. You also gotta pay that sommelier’s wages. To simplify things, let’s discuss the specific points.

The Markup on Wine

What’s up with the markup? The general trend is that restaurants charge the consumer two to four times the wholesale price. For instance, a bottle that costs the restaurant $15 can be displayed for $45, $60, or even $75.

By-the-glass pricing? Even higher. A single glass glass is usually sold at the wholesale price of the full bottle or more. That’s because once you open the bottle, it has a chance of not being sold before it goes off. The consumption of each glass from that bottle must consider the waste.

And still, markup alone isn’t the whole picture.

Reasons for the Price of Wine in Restaurants

The Costs Beyond the Wine

If you buy a bottle from a shop, that’s all you do: You take it home and drink it. But in a restaurant, there’s more involved. Your money isn’t just going to the wine. It also has to cover part of the cost of running a restaurant.:

Labor – A staff member, possibly even a sommelier, trained in wine service.

Wine Storage – Wine fridges, cellars, and temperature controls

Glassware – Those fragile, fancy glasses are quite often prone to breaking.

Slow Turnover—Unlike liquor or beer, wines may not always be sold quickly. Some bottles take months or even years to sell, and storage costs can be surprisingly high.

Prestige & Branding

Certain restaurants not only have high prices for wine but also use pricing as a means of branding. Having a higher-priced wine list can promote a restaurant’s image as exclusive, chic, or a place to taste great wine.

The opposite is true: Some informal outlets might keep their wine prices comparatively low to promote sales. Everything is about strategy.

The Price Perception of Wine

Have you ever noticed that wine lists usually have one highly priced item? This is deliberate. It not only makes the rest seem more reasonable. This is what psychologists call anchoring – when you see that $500 bottle, the $100 one suddenly seems like a good deal.

Some restaurants also employ a “sweet spot” pricing method. They offer bottles just above the price of what the customers deem “average” but still low, and that’s when they generate the most revenue.

If the business of wine intrigues you, you should check out the following article: How To Become A Sommelier.

By-the-Glass in Comparison to By-the-Bottle Pricing

If you want to save money and get a good deal, ordering by the bottle instead of glass is always the best option. By-the-glass markups can be three to five times the wholesale price- at times more.

Here is the reason why:

Once the bottle is opened, the clock starts ticking. The oxidization of wine occurs fast.

Some bottles sell out quickly, but others might not sell at all. The restaurants must charge more for the by-the-glass pours to cover the risk.

Glasses also introduce a profit margin because customers are less likely to check the prices of single pours as much as full bottles.

If you are unsure about a bottle of wine, you might want to check with the sommelier or server, who will tell you if they are pouring fresh that day. In that case, you could drink a glass from a just-opened bottle instead of one that has been circulating for 48 hours.

How to Order Wine

Are you getting the idea that wine lists are designed to disadvantage you? There are methods to obtain a better deal.

Search for less famous wines. The prices of well-known wines (Napa Cabs, Burgundy, Super Tuscans, and Chardonnay are the popular ones) have the highest markup. Your best option is to go with lesser-known regions ( for example, Loire Valley, Portugal, and South Africa).

Look for house selections. Some restaurants offer special packages with certain bottles, and they pass on those benefits to their customers.

Get a few recommendations. Do not just say, “What is good?” Instead, offer the price range and style preference. A really good sommelier will find you an excellent bottle without upselling you.

BYO (if allowed). Many restaurateurs permit you to bring your own bottle for a corkage fee (usually $15–$50). Thus, this can be a wonderful way to enjoy a high-end wine at a low price—just remember to check the restaurateur’s terms first.

Is Restaurant Wine Worth the Money?

This may surprise you, but absolutely. Everything sold at a restaurant goes to one thing: overhead costs. You’re mostly covering the high cost of labor, rent, and insurance. Only about 20% of your bill goes to what you eat or drink.

We don’t go out to save money. We go out to drink wine and eat to enjoy the place, outstanding service, good pairings, and well-maintained bottles. In any case, knowing the factors that affect how restaurants price their wine can aid you in making better choices the next time you look at a menu.

The more important question is: Are you going to order wine by the bottle or just keep on playing it safe with beer?