Hello there! I'm Dr. Vinifera, or "Vinny" for short. Ask me your toughest wine questions, from the technical aspects of winemaking to the fine points of etiquette. I hope you find my answers educational and even amusing. Looking for a particular answer? Check my archive and my FAQs. You can also follow me on Twitter: @AskDrVinny.
Dear Dr. Vinny,
What and how are the markups on wines on restaurant wine lists determined? Is there a basic formula that most restaurants adhere to?
Most restaurants start by pricing a bottle on a wine list at about three times the wholesale price, or about twice the price of retail. So, a bottle of wine you’d pay $20 for at a wine shop will typically go for about $40 at a restaurant.
Of course, it varies. And I should mention that there are state laws and tax codes that make this formula more complicated in certain parts of the country. Some restaurants will increase or decrease their margins based on what’s selling to their customers. I’ve noticed that more expensive bottlings are generally where the “value” is—that is, the more expensive the wholesale bottle price, the lower the markup. Other restaurants charge a flat fee for a markup (for example, every bottle may just be listed at $15 above retail). The biggest markup, proportionally, is usually for wines by the glass.
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