How to make your wine list profitable?
Quick answer
Making a wine list profitable relies on four levers: optimising markup by price tier (3-3.5x on entry level, 2-2.5x on premium), growing by-the-glass sales (60-70% gross margin), training staff to actively recommend, and culling slow-moving references. A realistic target is a wine cost of goods of 28-33%.
Detailed answer
Wine list profitability is not just about the markup coefficient. It is a system combining smart pricing, optimised rotation, active selling, and loss control.
First lever: progressive pricing. Instead of a flat multiplier, use a sliding scale: 3.5x on EUR 3-5 wholesale wines (high volume, lower unit margin), 3x on EUR 5-15, and 2-2.5x on EUR 15+. This maximises total margin without making premium bottles unsellable.
Second lever: wine by the glass. When a single glass covers the bottle cost, gross margin hits 60-70%. Offer 8-12 wines by the glass with weekly rotation. By-the-glass should ideally represent 35-45% of wine revenue.
Third lever: active selling. A server who recommends rather than passively takes orders lifts the average check 20-30%. Train your team to systematically suggest a wine with each dish.
Fourth lever: ruthless elimination of dead stock. Analyse sales monthly. Any reference sold fewer than 4 times in 4 weeks is a removal candidate. Idle stock has a real financial cost (tied-up cash) and an opportunity cost (space for a more profitable wine).
Loss control: an acceptable breakage and spoilage rate is 1-2% of stock. Above that, review your storage and service procedures.
| Profitability lever | Margin impact | Implementation difficulty |
|---|---|---|
| Progressive pricing by tier | +3-5 margin points | Low (price adjustment) |
| By-the-glass programme | +5-8 margin points | Medium (preservation, training) |
| Active sales training | +20-30% average check | Medium (ongoing training) |
| Culling dead references | -15-20% idle stock | Low (monthly analysis) |
| Loss control (< 2%) | +1-2 margin points | Low (procedures) |