Service + Business of the Somm Flashcards
What is the ideal serving temperature for a light bodied white wine?
45 - 50° F
What is the ideal serving temperature for a full bodied white wine?
50 to 55°
What is the ideal serving temperature for a sweet white wine?
43 to 47°
What is the ideal serving temperature for rosé and for light bodied red wine?
50 to 55°
What is the ideal serving temperature for a medium bodied red wine?
55 to 58°
What is the ideal serving temperature for a full bodied red wine?
59 to 64°
What is the ideal serving temperature for a Port?
Tawny Port is best between 54 and 61 degrees. Ruby Port is served warmer, at 64 to 68°
What is the ideal serving temperature for a Vin Santo?
54 to 61°
What is the ideal serving temperature for a sparkling white/Champagne?
45 to 50°, but Vintage Champagne typically a little bit warmer at about 50°
What is the markup?
percentage increase between the cost of goods and the selling price
[simply, percentage x cost of good]
What is the equation to determine the markup percentage?
Gross Profit/Initial Cost x 100 = Markup Percentage
aka we’re making this much money on it - divide that by the initial cost. Then times it all by 100.
How do you calculate your COGS?
Take the starting inventory number.
Add the total of purchases of that period.
Subtract the ending inventory.
Starting inventory value + Cost of all Good Purchased - Ending Inventory Value = COGS
Take that number and divide by sales
Besides sales, what other factors influence your COGS?
Waste
Over-pours
Breakage
Spillage
Complementary pours
Inventory errors
What are “burdened COGS”?
Relevant costs such as labor, glassware, preservation systems, and storage space are included.
Why are “burdened COGS” helpful?
It is important to understand the profitability of an item. IE if we’re pouring something by Coravin, we should factor how much it costs to maintain cartridges, the Coravin itself, etc.
What is the Gross Profit?
The difference between revenue from a sale and the cost of that sale.
What are margin dollars or contribution margin?
Fancy ways to say… gross profit
How do you determine your Profit Margin?
Gross Profit/Total Revenue x 100 = Profit Margin Percentage
Why do restaurants have high gross margins in beverage programs?
To pay for:
High overhead
Inventory
Glassware
Polishing
Breakage
Balance labor and other costs
Why is it important to set a specific margin goal?
Communicates expectations
Aids in budgeting
Provides guidance for creating a list
How is the profit margin expressed?
PERCENTAGE
What is the average cost of wine in a restaurant? What would it be smart to target for and why?
36% is the average, but targeting for 33% will aid in absorbing theft, breakage, and loss
Why is it important to look at both profit margin and gross profit?
Wine 1 might sell for a 66.6% margin while Wine 2 only goes for 57%, but if Wine 2 brings in $40 vs Wine 1’s $20, then that wine is important to the bottom line
What is a P&L?
Profit and Loss Statement
Considers income and expenses over weeks, months or year to determine overall profitability and trends
What is a balance sheet?
A statement of financial position at a moment in time