Wine mark ups?

Guvnor

Just wondering if there is an average mark-up on wines in hotels and restaurants etcetera?

I've read online of 300% being standard and in some cases 500% - these articles were a few years old. I was wondering what it would be now?

Even 300% is scary on a €20.00 bottle - what did it cost when it left the vineyard etcetera?!

JIZZLORD

i suppose wine would be where the money is made. the margins on food probably isn't great as it spoils etc but wine is a money spinner. generally not a wine fan what really gets my goat when i'm out for a meal is poor choice of beer.

muckety

I have often observed a c. 100% mark up on the retail price of the wine - so a bit more than 100% on the wholesales price. Sometimes 200% (but I don't order these!). The problem here I suppose is that there is so much duty slapped on wine that it is already expensive when the restuarant buys it!

the beer revolu

Reasonable restaurants have a 50% mark up. Many people read this as 100%

Let me explain.

For simplicity's sake let's ignore VAT.
A restaurant buys a wine at €10 per bottle and sells it for €20.
half of the selling price is profit, hence 50% mark up.

Using this system off licences have about 25% mark up
Restaurants around 50%
And pubs, typically, 40% - 50%

Pubs do tend to want a higher margin on premium products, though. Greedy!

Guvnor

Cheers lads!

Good to see more modest mark-ups out there.

ibarelycare

the beer revolu wrote: »

Reasonable restaurants have a 50% mark up. Many people read this as 100%

Let me explain.

For simplicity's sake let's ignore VAT.
A restaurant buys a wine at €10 per bottle and sells it for €20.
half of the selling price is profit, hence 50% mark up.

Using this system off licences have about 25% mark up
Restaurants around 50%
And pubs, typically, 40% - 50%

Pubs do tend to want a higher margin on premium products, though. Greedy!

Sorry but I don't get this. Mark-up is calculated on cost, not selling price. If the bottle cost €10 and the mark-up was 50% then the selling price would be €15. If the selling price is €20 then mark-up is 100%.

Cameraman

the beer revolu wrote: »

Reasonable restaurants have a 50% mark up. Many people read this as 100%

Let me explain.

For simplicity's sake let's ignore VAT.
A restaurant buys a wine at €10 per bottle and sells it for €20.
half of the selling price is profit, hence 50% mark up.

Using this system off licences have about 25% mark up
Restaurants around 50%
And pubs, typically, 40% - 50%

Pubs do tend to want a higher margin on premium products, though. Greedy!

I think what you're describing here is the margin - not the markup.

In the example you've given, the margin is indeed 50%, but the markup is 100%.

enda1

muckety wrote: »

I have often observed a c. 100% mark up on the retail price of the wine - so a bit more than 100% on the wholesales price. Sometimes 200% (but I don't order these!). The problem here I suppose is that there is so much duty slapped on wine that it is already expensive when the restuarant buys it!

I think the duty is a per bottle price of something like 2 or 2.50.

So the more expensive the wine the lower the duty (as a percentage).

Also a restaurant I worked in in Dublin had a mar-up of €10 per bottle fixed price so not everywhere works on a percentage scheme.

melekalikimaka

its alot less than that, i know fir a fact smaller off licences have as low as 20 or 30 on common wines, more on exclusives

chahop

In Restaurants the general rule is price-vat * 2 + vat ( €10- vat = 7.9*2 =15.8 + vat = €19.12) aprox more expensive wines lower % margin but higher cash margin. Now some places are higher mainly hotels also there are extra costs associated. Eg if you want a better choice, bigger list, cost gos up.