Professional Documents
Culture Documents
Research sponsored by
Southern Wines and Spirits of America,
a senior partner of the
Center for Hospitality Research
www.chr.cornell.edu
Advisory Board
Executive Summary
Sybil S. Yang is a doctoral candidate focusing on consumer behavior and menu psychology at the Cornell
University School of Hotel Administration (sy229@cornell.edu). Formerly an instructor at the Culinary Institute
of America, she has also been responsible for revenue management at Oxford Lodging, in San Francisco, and
Revenue Management Solutions, in Tampa. The holder of both the MMH degree from the School of Hotel
Administration and an M.B.A. from the Johnson Graduate School of Management at Cornell, her primary
research focus is menu design, layout, and psychology.
R estaurateurs are well aware that a good wine program can help improve revenues. In the
short term, improving wine sales helps generate cash flow from an existing wine
inventory (freeing working capital that is resting on the wine cellar racks). In the
medium and long term, improving wine and alcohol sales can not only improve dollar
sales, but it can also lower a restaurant’s beverage-cost percentage, and increase the overall contribution
margin of dining room sales. Depending on the operation, food costs generally fall between 22 and 33
percent of sales, whereas alcoholic beverage costs typically range from 15 to 30 percent of sales. Some
wine and spirit programs have been documented to operate at an astounding cost level of 12 percent of
sales.
40 We began with 484 wine lists, but we could not use many
of them for various reasons. For example, we omitted lists
from hotels, resorts, casinos, and clubs likely to have more
than one restaurant; we dropped bars and nightclubs that
20 were not comparable to restaurants; and we excluded all but
one randomly selected unit of any given restaurant chain.
This left us with a good-size sample of wine lists from 270
restaurants. Of these restaurants, 214 are independent restau-
0
Italian American Varied Asian Seafood Steak Other French rants and 56 are affiliated with a multi-unit brand. We coded
Cuisine type each restaurant’s service style (“fine” or “casual” dining) and
cuisine type from TDLinx.7 A breakdown of the restaurants
by dining classification and cuisine type is shown in Exhibit
1.
Coding. Two coders—one of whom had completed and
passed the first level of the Court of Master Sommeliers ex-
amination—independently coded each wine list for charac-
teristics within the following three general categories:
(1) selection and offerings, (2) physical attributes and design,
and (3) organization and information provided. Both coders
were familiar with wine terminology and had completed the
equivalent of a semester-length, introductory wine course.
Overall, inter-rater reliability between the two coders was
94.2 percent, and all disagreements between coders were re-
solved through discussions. Specific coding questions along
with the inter-rater reliability for each question are listed in
the appendix at the end of this report.
Sales Measurement and Standard Controls
Southern provided volume and dollar amounts of wine
purchased through each establishment’s account with the
distributor for the twelve months from September 2006 to
August 2007. We also received the volume amount of spirits
purchased, which we used as a proxy for cover counts. Since
almost all restaurant wine purchases are made for sale to cus-
tomers, we used the volume of wine purchased through the
distributor as an approximate measure of each restaurant’s
wine sales.
7 Ten restaurants not classified by TD Linx were put in the larger category
of casual dining restaurants as was one restaurant whose TD Linx clas-
sification was unclear.
4,000
how they should be offered, how the wine list itself should
be designed and organized, and what information to include.
2,000
We also counted the number of times each of twenty-four
national wine brands was mentioned on each wine list. A
0
full list of attributes evaluated is shown in the Exhibit 4. Chicago Miami No. Cal. So. Cal. Las Vegas Tampa Orlando NY Metro
Metro area
Results and Analysis
Many of the relationships we found (or did not find) be-
tween sales and wine-list attributes are surprising and even
counterintuitive. Since attributes were analyzed against a
set of control variables, such as restaurant size, cuisine type,
and number of bottles offered, the results reported may (but
do not necessarily) reflect a causal relationship between the
tested attribute and wine sales volume. A summary of these
attributes and their relationship with sales is presented in
Exhibit 4, on the next page.
8 E. Asimov, “Asian Fusion, Via the Wine List”(Dining In, Dining Out;
Style Desk: The Pour), The New York Times 158.54597 (Feb 25, 2009),
p. D6(L).
9 M. Lynn, “Suggestions for Increasing Restaurant Wine Sales: A Review
of Hospitality Trade Journals from January 1990 to April 1996” (prepared
for E&J Gallo, 1996).
Inter-rater
Coding question reliability Comments
Physical attributes and design
Stand-alone wine menu? 97% Sangria or up to two water listings does not disquality a wine list as stand
alone. Wine lists with more than two water listings, coffees, or teas are not
considered to be stand alone.
If no, is it part of a food menu? 99%
Is it part of or combined with bar or drink 99%
menu?
What is the wine menu’s physical size (small, 97% Medium = 8.5x11”; small < 8.5x11”; Large>8.5x11”
medium, large) ?
How many pages is the wine menu? 96% Page count does not include a title page that does not list wines; page count
may include spirit listings if the menu is a combined bar and drinks menu.
Are wine names printed in a typeface that is 86% Plain typefaces are those typically used in textbooks; all italicized menus are
plain or fancy? considered plain if the underlying typeface is plain.
Are the wine names printed in a font that is 97% Medium = 12’; small < 12’; large >12’
small, medium, or large?
How are the prices aligned on the page? 99% Right aligned or tucked in.
Which format best describes how wine 82.4% Price format based only on full-bottle prices if format differs between full-
prices are presented? bottle and by-the-glass sections.
Organization and information
Are the following sections or options
offered:
Tasting flight 99% Tasting flights were defined as a predetermined bundle of more than two
glasses of wine, selling for a package price.
Dessert wines 96% Includes fortified wines such as Port and Sherry; does not include any distilled
beverages such as cognacs or brandies; does not have to be listed as a
separate section on the menu.
Sparkling and Champagne 97%
Vertical selection 95% Three or more vintages of the same wine (same producer, varietal or mix) are
deemed to be vertical.
Which of the following groupings or
categorizations are used:
Type 96% For example, red, white, sparkling.
Price 97%
Country or region 96%
Reserve, special, or cellar 97%
Varietal or grape 92% May include regions with standard varietal mixes such as Bordeaux or
Burgundy; these regional exceptions are made after viewing the entire menu
as a whole.
Bin end or closeout 99% Verbiage implying limited availability.
House 95% The term “house” or the name of the establishment must be used.
Style 97% For example, descriptors such as bold, fruity, dry, sweet.
Size or portion 77% By-the-glass prices justified in their own column, but listed on the same row
as bottle listings are not considered as a separate “by the glass” grouping.
Food pairings 100% Includes both specific dish pairings, as well as general food pairing advice,
such as protein type.
What is the primary categorization of the 80%
menu?
What is the secondary categorization of the 74%
menu?
What is the tertiary categorization of the 70%
menu?
Which of the following descriptions are
used for the individual wines?
Bin number 99%
Style 99%
Vintage 98%
Food pairings 100%
Producer 97%
Chef recommendations 99%
Varietal 89% Varietal must be listed in each wine’s description; descriptions that rely on the
category header for varietal information do not count in this category.
Publication notes 99%
Country or region 98%
Producer notes 97%
Selection and offerings
Number of full bottles (750ml) listed 81.9% 750 ml bottles only; 500 ml bottles not included.
Number of half bottles (375 ml) listed 93.3%
Number of carafes or half carafes listed 96.8% If a single selection is offered in both bull and half carafe sizes, it is counted
only once.
Number of wines by the glass listed 73.8% Splits (187 ml) are not included here, even if they are listed under a wine-by-
the-glass category; house selections are counted individually; includes
fortified wines by the glass.
Cheapest full bottle 89.6%
Most expensive full bottle 92.6%
Cheapest half bottle 96.%5
Most expensive half bottle 98.1%
Cheapest wine by the glass 91.0%
Most expensive wine by the glass 91.6%
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