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Wine By the Glass Price Formula: What's a Glass of Wine Cost?

November 22, 2019
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Scott
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Bar inventory software

Beverage programs need three things: restaurant sales, a good pour cost, and a decent profit margin.

Wine by the glass (WBTG) programs help with all those. They're quite profitable.

If you get the pricing right.

But that can be tricky. You've gotta factor in sales trends and cost of goods sold.

Here are some tips on how to get your WBTG program contributing to your bottom line.

Wine by the Glass Meaning

Many bars and restaurants offer wine by the glass. That means you needn’t buy the whole bottle of wine. You can buy a single glass of it.

A wine by the glass menu is often a fraction of the size of a proper wine list.

For good reason:

Offering every in-house wine by the glass requires opening up every bottle of wine. Wine degrades much quicker once opened, so the potential for waste is massive. It's also a great tool for coming up with restaurant marketing ideas.

That’s also the reason why wines by the glass are pricier, per glass, than a bottle of wine. You’re paying for the risk the restaurant assumes of that opened wine going to waste.

Pricing Wine by the Glass

A single glass of wine is typically priced at 85 to 100% of the wholesale cost of the entire bottle. Most wine bottle pricing marks up wholesale bottles around 200 to 300%. If you acquire bottles of wine from a vendor for $12 wholesale, you’ll sell them for around $36 retail. An accepted way to price that wine by the glass is $10 to $12 per glass.

There are some exceptions to that wine by the glass formula, though.

They are:

  • The bottle you’re pouring from is extraordinarily inexpensive. Let’s say a supplier got you some decent wine for $5 per bottle wholesale. You don’t have to follow the above formula. Price the wine by the glass at whatever minimum you’re comfortable with. Most guests won’t bat an eye at wines by the glass around $7 or $8.
  • The bottle may also be so expensive that a wine by the glass priced at its wholesale amount is too high. It takes a special kind of clientele to pay $30 for a glass of wine. But that’s roughly what a wine by the glass would cost if poured from a bottle that sells retail for $100. When you encounter this situation, it’s usually a good indicator that a particular wine isn’t a great candidate to be on your wine by the glass list.

Regardless, if you must have it available by the glass, you’ll have to lower the price of the glass. And accept a smaller profit margin.

How Much Is a Glass of Wine at a Bar?

The average cost of a glass of wine at a bar is around $12 per glass. Though, because of the exceptions to the wine by the glass pricing rule, this is a pretty loose average. At it's based on our personal experience at wine bars and restaurants (of which we have a silly amount). $8-10 for a wine by the glass is on the cheap side. $15+ is on the expensive side.

But, of course, it all depends on the quality of the wine and the price the bar or restaurant got it for from their vendor.

Wine By The Glass: Do’s and Don’ts

Do: Consider Your Business When Pricing Wine by the Glass

There are obviously more factors to consider when pricing than wholesale cost.

The specifics of your business, for example.

For bars, restaurants, and hotels, there are three big ones:

  1. Concept. If you’re a destination restaurant, a fine dining establishment, or any other hospitality business that depends on an association with sophistication or elegance, you can charge more. You’re not just charging for the wine in the glass, remember. You’re charging for the decor, the training, the furniture, the location. Everything that makes your concept unique. That stuff’s valuable. You'll also need to factor in your overhead expenses when setting prices.
  1. Commitment to wine. If your business is committed to running a thoughtful, curated wine program, you can charge for it. Your bartenders and servers are trained in wine service. Your bar managers or sommeliers put a lot of effort into sourcing and acquiring wines. You invest in quality glassware. A commitment to wine often demands a premium.
  1. Clientele. This goes hand-in-hand with point 1 above. Some folks are willing to pay more for things. That’s mostly because they’re comfortable with the fact that they’re not just paying for the commodity, they’re paying for the experience. If you have an experience-driven clientele, you can charge a little more.

Figuring out price points that maximize sales while maximizing pour cost is a field of study all its own. It’s called menu engineering. It’s the art and science of turning your most profitable drinks into your most popular, and vice versa. It involves taking wine inventory frequently, and a wine inventory spreadsheet helps with that.

Doing so will uncover what wines sell at what price or what bar promotions or happy hour ideas work best for your wine list. Learn how to do it. Depend on it. It unlocks your menu’s profit potential. Many restaurants with great wine lists do the same.

Don’t: Charge an Arm and a Leg

That said, don’t go overboard. It’s well-known that wine is marked up massively from supplier cost.

Guests know they can get a $50 bottle of wine from your restaurant for $20 at a liquor store. So try not to rub their face in it.

Guests, as a whole, have given hospitality an inch when it comes to wine pricing. Don’t take a foot.

Do: Have a Small List with a Healthy Variety

Having an enormous wine by the glass list isn’t profitable.

That's because:

Wine expires quickly when it’s opened.

Having dozens of open bottles waiting to swirl down the drain is horrible for your pour cost.

10 wines by the glass is about the maximum unless you’re moving wine by the glass like mad. These are general guidelines. Adjust them to your individual business.

But, from the numbers we’ve crunched, a wine by the glass list of 7-10 is the sweet spot.

And you gotta make those wines count. Try to hit every possible flavor profile you can. Varietals, regions, reds, whites, dry, bold, fruit, floral, etc. The key to a successful wine by the glass list is variety. 

Don’t: Offer Only Familiar Wines

We see a lot of wine by the glass lists populated with greatest hits: Robert Mondavi, Coppola, etc.

Good wines, sure, but don’t go strictly for brand recognition as a sales strategy.

Here's why:

One of the great things about wine by the glass is that guests can take a chance and discover something. Discoverability is a big part of upselling wine and liquor.

Maybe they’ll be interested in a whole bottle of this new elixir that has so captured their spirit.

So include some lesser-known winemakers, regions, or varietals. Write some enticing copy. Build in the opportunity for your guests to be delighted.

You’ll be surprised how often they are.

Do: Seek Out High-Value, Up-and-Coming Regions

There’s a lot of value and quality in wine from production regions that aren’t France and Italy. Look into Australia, South America, and Portugal. You’ll nab amazing wines at wholesale prices that are a fraction of the cost of typical bottles. That’ll do wonders for the affordability and accessibility of your wine by the glass menu.


Bar profit margin and bar profitability ebook

Wine By The Glass Menu List: Example

Having trouble putting together a wine by the glass list? It’s okay.

Everyone gets winer’s block at some point.

Here are a few wines we’ve found perform particularly well by the glass. We approached this as if we were putting together a wine by the glass list of 8 wines.

  • Napa Valley Cabernet Sauvignon
  • Châteauneuf-du-Pape
  • Super Tuscan Blend 
  • Willamette Valley Pinot Noir
  • Chilean Zinfandel
  • New Zealand Sauvignon Blanc
  • Spätlese Riesling
  • Sonoma Valley Chardonnay 

There are four wines from the Americas, one from Australia/New Zealand, and three from Europe.

There are five red and three white.

There are classics like a Napa cab, but also more adventurous choices like the Grenache-blend Châteauneuf-du-Pape.

And it runs the gamut from light- to full-bodied and from sweet to dry.

*Chef kiss*

Best Wine By The Glass Portion Spouts

All this talk of wine by the glass has got us craving some wine by the glass. What an insane coincidence.

But, lo, we won’t just trudge forward and pour any old amount of wine into a glass. No! We’ll pour exactly one glass of wine into our glass.

How?

With wine by the glass portion spouts.

Best Wine by the Glass Portion Spout, 5-Ounce: Precision Pour 5-Ounce Clear Top Wine by the Glass Portion Spout

Precision Pour 5-Ounce Clear Top Wine by the Glass Portion Spout

This is the only wine by the glass portion spout on Amazon that pours in 5-ounce quantities. All the other ones will pour in 1- or 2-ounce quantities, which isn’t bad. A lot of people portion wine like that. But these are specifically made to pour wine by the glass.

And they make hitting a standard wine pour a breeze. They come in a pack of 12. Nothing better than a pack of 12.

Best Wine by the Glass Portion Spout, 1-Ounce: Zerone 1 Ounce Portion Spout Stopper for Wine

Zerone 1 Ounce Portion Spout Stopper for Wine

The Zerone pour spouts come in packs of 6 or 12 and pours one ounce at a time. They’re kinda like liquor bottle pour spouts—which likewise help barkeeps worldwide hit their standard liquor pours—but can also be used for wine. Maybe the 5-ounce portion spout above is a little big for you.

Or you want something you can use with most liquor bottle sizes. If either, get the Zerones. We have them, we use them, we love them.

Bar inventory software

Should Your Restaurant Have A WBTG Program?

Having wine by the glass program is a great selling point for your restaurant and a great way to accommodate guests’ needs.

And it’s a tried-and-true to make big steps toward your bar’s profitability.

But you should always consider your restaurant’s limit first before deciding on whether or not you should carry a WBTG program. Make sure you continue to study how to increase restaurant sales.

Pay close attention to your maximum and minimum price for your wine glass. Because they are tied directly to your profits. If you’re struggling to find good wine bottles that fit your price limits, work with your local distributors’ sales reps for a better deal.

Or find another vendor. It's important to learn how to manage cost for restaurant business to succeed.

Sometimes, the best option is to not offer the WBTG choice at all. It may just not make sense with the bar profit margin goals you’ve set for your business. But you’d be wise to try to make it work.

Because when it hits, it hits big.

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