By Roger Noujeim March 2, 2017 No Comments
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How to Open the Wine Sales Revenue Tap in Your Restaurant to the Full

(PART 1)

Upselling and promoting wine is where real revenue sits.

True professionals and decision makers focus on figuring the opportunity cost in terms of dollars. Do the math for an average week in your restaurant. The annualized upside can be substantial.

Awareness of the numbers is a must towards a commitment to optimizing team performance and results.

“It’s at the POS where true performance is measured.”

All of our clients pride themselves on their wine programs.

One of our prospects, in particular, headquartered in the Pacific Northwest, are a major brand and operate multiple locations.

The company’s head sommelier had always felt their wine program was an industry benchmark. With no obvious room for improvement. But when we looked deeper, we concluded otherwise.

A great list of wines with well-planned wine orientation for new staff. Running wine tastings with producers and regular training sessions. They give staff more confidence and improve their appreciation for the company’s wine program and objectives.

But as we know, these are typical aspects of a wine program that are not enough for the team to break through the revenue ceiling that holds back a company’s true potential.

“Maintaining the status quo in an industry that runs on razor-thin margins, is expensive.”

That’s one of the reasons the rate of restaurant failure is high. Common figures suggest that a new restaurant has one in ten chance of success. A Cornell University study in 2012 showed that number is closer to 60 percent. Not out of line with many other sectors, but still the number.

Wine Training

Focus and commitment to optimizing areas of the business that contribute to your margins are, therefore, detrimental.

We visited several of this company’s restaurants, and one of their key competitors. Without fail, our servers either did not offer us wine, could not answer a simple question including the difference between Pinot Gris and Pinot Grigio, or weren’t able to say why they suggested a specific wine. The general pitch was that a wine was their favourite or one of the most popular.

This is a sure signal that there is a significant revenue upside to be had in all these restaurants.

Do you relate to any such examples?

Using the QUINI SOMM™ platform ROI calculator, one small restaurant that serves around 250 alcoholic beverages each day figured that with a few tweaks and technology, it stands to gain over $20,000 dollars annually in additional wine sales revenue. Another, larger client, realized they are leaving up to $172,000 on the table each year.

In part 3 of this series, we delve into one of two first key strategies used by the modern restaurant company and sommelier to tame the wine training beast in their establishment.

If you would like to receive the entire article in advance, please drop me a note at roger@quiniwine.com.

RELATED POST: THE SOMMELIER’S GROWING ROLE

Roger Noujeim

Roger Noujeim

Roger is CEO at Quini.

See all of Roger's posts

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