The wine volume decline is no joke. If nothing is done about this by operators then eventually, the profitability of your wine list will keep on sliding.
We have covered why cutting costs is a dangerous game and ultimately, not really feasible. So now let’s talk about another potential solution that some people might go for: increasing the market share of their wine list.
Growing the sales mix of your wine list might sound like a good idea, and a logical one… “if we are selling less wine, then we might as well try to counter that by pushing our guests to buy more, run some staff incentives and really get behind our wine volumes” …
Whilst this in theory would solve the wine category issues, for the short term at least, what will this drive do for your other wet categories?
Let’s not forget that beer and spirits tend to run at a higher GP than wine, so surely cutting into those volumes is essentially, making the business less profitable as a whole. On top of that, it’s just a hell of a lot of legwork for you and the team to grow your wine sales mix, just to bring stability to the category. Surely such an effort is more deserving of a thrive mentality, not a survive one.
If your team is ‘wine confident’, if you have wine legends in your business, then you won’t need to focus on growing your wine category by volume, and you certainly won’t need to cut into other, more profitable elements of your wet business.
In fact, you might even want to look at growing your beer/spirits category in what is a declining wine consumption market, not do the opposite!
There is only one way to fight this systemic issue…
Watch this space…
Harry Crowther, Founder & Legend