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Wine Promotions in Restaurants: Do Beverage Sales Contribute or Cannibalize?

A controlled field study of wine promotions in a mid-priced chain restaurant generated three key findings: (1) selected wine recommendations increased sales by 12 percent, (2) food-wine pairing recommendations increased sales by 7.6 percent, and (3) wine tastings increased sales by 48 percent. In general, 69 to 87 percent of the increase in sales of promoted wines come from diners who would likely have ordered a non-promoted wine. This means that 13 to 31 percent of the increase come from diners who would have otherwise ordered liquor, beer, and nonalcoholic drinks. Specific implications for responsible restaurateurs are outlined, including the caveat to not cannibalize sales by promoting a lower-margin, lower-profit wine.

Download the entire study in a pdf here from GetGame.Biz


About the Author

Jeffrey is a 30 year veteran of creating, operating, Coaching and consulting with successful restaurant & hotel concepts that include national, international, franchised and independent brands. He is also the president and founder of Summers Hospitality Group a full-service, national and international, Restaurant & Hospitality Coaching and consulting firm based in Fort Worth, Texas. Besides helping clients achieve success by working with them one-on-one, Jeffrey frequently speaks at and attend numerous industry events as well as at local, state and national small business groups in order to share his passion for the business of food and hospitality. You can call Jeffrey toll free at 888-9988-SHG (744) for a free consultation or email him using the form below.

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