MKT, New Delhi
Four kitchens and a bar under one roof, planned as one business.
Read →Knowledge · F&B
How to price a pour, a cocktail and a wine list, so that guests trade up and the margin grows in money, not only in percentage.
Principles
House ruleA guest who moves from an accessible wine to the next tier should leave more money behind, at a lower percentage. Price for the money.
A wine ladder
Multipliers at the two ends are our house practice. The steps between are a typical ladder. Adjust for duty and tax where you trade.
| Tier | Bottle cost | Multiplier | List price | Cost of sales | Margin in money |
|---|---|---|---|---|---|
| Accessible | 800 | 3.0× | 2,400 | 33% | 1,600 |
| Core | 1,500 | 2.6× | 3,900 | 38% | 2,400 |
| Premium | 3,000 | 2.2× | 6,600 | 45% | 3,600 |
| Fine | 6,000 | 1.9× | 11,400 | 53% | 5,400 |
| Prestige | 12,000 | 1.6× | 19,200 | 63% | 7,200 |
Illustrative costs. The percentage worsens down the table and the money improves, which is the point.
Benchmarks
| Category | Typical cost of sales |
|---|---|
| Spirits | 15 to 20% |
| Cocktails | 18 to 24% |
| Beer | 25 to 30% |
| Wine by the bottle | 30 to 45% |
| Soft drinks, tea and coffee | 10 to 20% |
Common ranges in the trade. Local duty changes them materially, so set your own targets from your own costs.
The cost of one measure and the price that meets your target.
Result · example figures until you change them
The list price of a bottle, and the price of a glass poured from it.
Result · example figures until you change them
Storage and service
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