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Why wines are so expensive in bars and restaurants
Summary
A wine by the glass costs more than a bottle? Here’s a quick guide to make sense of the price
The best way to discover new wines is at restaurants and wine bars in the company of a friendly sommelier, but it is hard on the pocket. An essential understanding of what determines the price of wine by the glass and by the bottle—beyond profits and excise duties—is needed for transparency.
In the premium dining space where wines thrive, there is a vague statement: “You’re paying for the experience". What does it mean? Is it the leather bar stools, vintage lamps and teakwood tables? Actually, it’s a combination of technical factors, including the procurement price (the cost at which a bottle is bought from a wine grower or importer), perishability, glassware, storage, salaries as well as years of training of the sommeliers.
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Ganga Ghale, the bar manager at Bengaluru’s buzzy wine bar, Wine In Progress, considers procurement and perishability as the top factors. For instance, if an imported wine bottle at a retail store is pegged at ₹2,000, an importer will sell it to a bar for ₹1,900. If the bar buys in bulk, they could score a discount and procure it for ₹1,500. Additionally, if the wine buyer has a good professional relationship with the importer, they could negotiate a better price. These translate into competitive pricing for the bar’s menu and better value to guests.
The second is perishability. “Wine is delicate; once a wine bottle is opened it’s best to finish it, although some may stay well for about two days if stored well," says Ghale. The quick spoilage is linked to alcohol content. A bottle of hard spirits, like gin or vodka, has about 40-45% alcohol and it will last a few weeks in a bar. But, a wine has about 5-20% alcohol, similar to beer. When wine is served by the glass, there’s a good chance that some will remain in the bottle, and will be wasted. “This happens everyday. It is one of the many reasons why bottles are priced at 2x compared to retail. It helps us avoid losses," she explains.
Restaurants and bars invest in high-end infrastructure to preserve wine, expenses that are passed on to the guests. Indian Accent in Mumbai and Delhi is known for its wine programme headed by sommelier Kevin Rodrigues. To store wines well, they have invested in premium wine coolers, which maintain the optimum temperature of 5-7 degrees centigrade and regulate humidity at 50-70%, says Rodrigues. Since they have a licence to serve and sell alcohol only for one floor at Indian Accent Mumbai, they can’t store wines in the basement, he explains. The wine coolers, therefore, take up space reserved for guests, which adds to the wine cost. They have also invested in luxury wine stoppers with small argon gas cylinders. The argon gas is pumped into an open bottle of wine to prevent oxidation and spoilage. “The cylinder lasts for only about two-and-a-half wine bottles. All of it is an expensive affair," explains Ghale.
When you know how a wine is priced in restaurants and bars, spending a few extra bucks is likely to pinch less.
