Beyond Wine Lists

Question 1

Benchmarking, 4 steps

Answer 1

• Understand in detail your own processes
• Analyze the processes of others
• Compare your own processes and performances
• Implement the steps necessary to close the performance gap

Question 2

“Continual Feedback”, Policy Reinforcement = Price variations

Answer 2

Company general targeted financial objectives -> Financial, marketing, catering (basic policies) -> Overall budget (basic gross profit margin) -> Individual departmental budget (gross profit margins) -> Indi departmental differential profit margins -> Special pricing considerations

Question 3

Investigate your market?

Answer 3

• Visit restaurants (above/ below)
• Study how they buy wine
• Obtain a copy of their wine list
• How well their staff serves it
• Observes how many bottles of wine are on the tables

Question 4

Distributors offer help

Answer 4

Contact suppliers, explain objectives

• Suggest a hypothetical wine list
• Suggest ways of merchandising and promotion

Question 5

Storage capacity

Answer 5

• Temperature
• Minimum of light
• No vibration
• Does it allow room for shelving?
• Accessible the wine to the service personnel
• Carte du jour: daily stock
• par stock

Question 6

Preferences

Answer 6

• USA: 75/80% local, 20/25% imported
• France: 90% domestic, 10% imported
• Type of wine: red, wine, rose

Question 7

How long should be your wine list?

Answer 7

1. Determine your needs
   - min number of references allocated:
   + above 50 covers/ total number of seats divided by 2
   + below 50 covers = no rule!
2. Customers to know that wine matters

Question 8

Proportion of red to white

Answer 8

Location:
- sea side: 1/3W
- country side: 2/3R
- mountain side: 1/3W
Specialties: meat, fish, fondue, etc

Question 9

Budget

Answer 9

% moderately price, highly priced, low priced

Question 10

Capital investment

Answer 10

• Inventories 30 days or 60 days

- long-term investment -> larger budget

Question 11

Pricing

Answer 11

Drink = 1/2 Food price

• Wine by glass = Price of bottle / 5
• Going over 10% establish business as Restaurant with theme

Question 12

How to analyze wine list with the following factors

Answer 12

• Number of bottles sold per customer (bottle/ customers)
• How much white to red (%)
• Average price per bottle sold in a certain period of time (between inventories)
• > top 10 famous
• > instruct staff to report any requests for wines not on the list

Question 13

Why inventory? (must know)

Answer 13

• Control stock
• Establish data
• Reorder level

Question 14

Grid group Analysis

Answer 14

x-axis: Number of Sales in Period (Time gap and inventory)
y-axis: Gross profit contribution or if fixed markup
psychological one| targeted ones|over priced ones| ? = ?