Why is wine in pubs/restaurants so expensive?

MattMattMattUK

WSB said:

Thanks for the comments so far folks. 
Understand all that stuff but just feel that things are a bit skewed in particular when charging high prices for wine. 
Would understand if the prices were increased relative to other drinks. 

The gross margins on all alcoholic drinks are roughly the same in any given pub apart from a few drinks, champagne and shot drinks, where margins are usually increased as part of an idiot tax. The margin is higher on soft drinks, with bottles soft drinks being the lowest and highest on post mix (cola, lemonade, etc. that come out of the dispenser gun). Gross margin on food across the whole menu will be in the 90-95% range in most places, in top restaurants it can hit 98%.

RobM99

HillStreetBlues said:

The markup on wine & beer is nothing compared to the mark up of fizzy drinks from the pump.

Bloomin' right there!  I've been charged £4 for a soda and lime in a pub and that was with the band I was in! I wonder if they charge a plumber £3.50 for a coffee!

eddddy

If you look purely at mark-ups...

• A tea bag and milk for a cup of tea probably costs about 5p

• The coffee beans for an Americano coffee probably cost about 12p

If you get a takeaway, the disposable cup and lid can sometimes cost more than the drink inside it.

stuhse

WSB said:

Why is wine in pubs/restaurants so expensive and has anyone started a campaign to do anything about it?

I understand that draft beer requires some TLC. Correct cellar temperature, clean pipes and even pouring skills, so although not 100% happy, can accept the usual price charged.

But for a large glass of wine out of a bottle that can be brought for a fraction of the cost is so expensive. 
Just requires a fridge at the correct temperature and that's it. 

So why is it so damn expensive and why haven't people been up in arms about it?
Or have they and I've missed it?

Thanks for your responses in advance. 

You appear to have forgotten a few other costs associated with serving a glass of wine in a restaurant , all of which you use, but are not itemised separately on your bill, they just appear as "glass of wine"

The wages for the person that selects and orders the wine.
The wages for the person that receives it and puts it in the fridge.
The wages for the person that takes your order
The wages for the person that takes it out of the fridge and delivers it to your table.
The cost of your table and your seat
The cost of the glass and the table mat.
The cost of the pictures on the wall and the carpet on the floor.
The cost of the toilet you use afterwards and the cleaner that cleans them, the water and the toilet roll you flush down it.
The cost of the restaurant building
The electric bills etc for the fridge and the light above your table.
Heating costs for the restaurant
Business rates
Various insurances eg, public liability and employers liability, buildings and contents.
The wages for the person that clears your table, washes your glasses , puts another bottle of wine in the fridge.
Wages for the cleaner.
Wages for the manager.
Wages for the barman.
Wages for the wages clerk.
Accountants Bill's.
Tax on profit.
Costs for staff training and recruitment. 
Advertising costs
Website costs.
Costs for disposal of the empty bottle.
Menu printing costs

I don't own a business, they are just a few I can think of, I'm sure business owners who use this forum will be able to think of others. 

QrizB

eddddy said:

If you get a takeaway, the disposable cup and lid can sometimes cost more than the drink inside it.

I've a relative who runs a (small) mobile catering business.
He gets fancy coffee from artisanal roasters, but even with that the paper cup is the most expensive item the customer receives.

LightFlare

I think the mark up on spirits is also quite high. I think it’s in the region of x8-10

Would be nice if pubs etc charged supermarket prices, but then they wouldn’t make any money and would have to close

cymruchris

WSB said:

Why is wine in pubs/restaurants so expensive and has anyone started a campaign to do anything about it?

I understand that draft beer requires some TLC. Correct cellar temperature, clean pipes and even pouring skills, so although not 100% happy, can accept the usual price charged.

But for a large glass of wine out of a bottle that can be brought for a fraction of the cost is so expensive. 
Just requires a fridge at the correct temperature and that's it. 

So why is it so damn expensive and why haven't people been up in arms about it?
Or have they and I've missed it?

Thanks for your responses in advance. 

Out of interest - following the responses you've received - are you still thinking of starting a campaign to do something about it? Do you still think it's a big rip-off?

WSB

cymruchris said:

WSB said:

Why is wine in pubs/restaurants so expensive and has anyone started a campaign to do anything about it?

I understand that draft beer requires some TLC. Correct cellar temperature, clean pipes and even pouring skills, so although not 100% happy, can accept the usual price charged.

But for a large glass of wine out of a bottle that can be brought for a fraction of the cost is so expensive. 
Just requires a fridge at the correct temperature and that's it. 

So why is it so damn expensive and why haven't people been up in arms about it?
Or have they and I've missed it?

Thanks for your responses in advance. 

Out of interest - following the responses you've received - are you still thinking of starting a campaign to do something about it? Do you still think it's a big rip-off?

Nah, think I'll give the campaign a miss. 
Never was on my list of things to do anyway. 
Besides, I can't stand wine. It's the devil's brew. 
I'm an ale drinker. 
And not just because it's far better value for money 😂
Still think wine is a rip off relative to the other pub drinks available though. 

Hoenir

LightFlare said:

I think the mark up on spirits is also quite high. I think it’s in the region of x8-10

Would be nice if pubs etc charged supermarket prices, but then they wouldn’t make any money and would have to close

Pubs have been steadily closing since Supermarkets started selling booze. That's why many have turned to being gastro. Same with nightclubs. People drink before even going out. 

wolvoman

stuhse said:

WSB said:

Why is wine in pubs/restaurants so expensive and has anyone started a campaign to do anything about it?

I understand that draft beer requires some TLC. Correct cellar temperature, clean pipes and even pouring skills, so although not 100% happy, can accept the usual price charged.

But for a large glass of wine out of a bottle that can be brought for a fraction of the cost is so expensive. 
Just requires a fridge at the correct temperature and that's it. 

So why is it so damn expensive and why haven't people been up in arms about it?
Or have they and I've missed it?

Thanks for your responses in advance. 

You appear to have forgotten a few other costs associated with serving a glass of wine in a restaurant , all of which you use, but are not itemised separately on your bill, they just appear as "glass of wine"

The wages for the person that selects and orders the wine.
The wages for the person that receives it and puts it in the fridge.
The wages for the person that takes your order
The wages for the person that takes it out of the fridge and delivers it to your table.
The cost of your table and your seat
The cost of the glass and the table mat.
The cost of the pictures on the wall and the carpet on the floor.
The cost of the toilet you use afterwards and the cleaner that cleans them, the water and the toilet roll you flush down it.
The cost of the restaurant building
The electric bills etc for the fridge and the light above your table.
Heating costs for the restaurant
Business rates
Various insurances eg, public liability and employers liability, buildings and contents.
The wages for the person that clears your table, washes your glasses , puts another bottle of wine in the fridge.
Wages for the cleaner.
Wages for the manager.
Wages for the barman.
Wages for the wages clerk.
Accountants Bill's.
Tax on profit.
Costs for staff training and recruitment. 
Advertising costs
Website costs.
Costs for disposal of the empty bottle.
Menu printing costs

I don't own a business, they are just a few I can think of, I'm sure business owners who use this forum will be able to think of others. 

You missed off the biggest cost of all: VAT

Mark up is usually around 2.5x
Let’s say a pub buys a bottle of wine wholesale for £9 and sells it for £24. They will have to hand over £4 to the government, leaving them with a gross margin of around 50% which is pretty low.